Information Services Group Announces Strong Q4 and Full-Year 2025 Results, Accelerates AI Strategy

STAMFORD, Conn., March 5, 2026 – Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has released its financial results for the fourth quarter and full year ended December 31, 2025. The report highlights robust growth driven by increasing demand for AI-powered transformation services, strategic acquisitions, and improved profitability, positioning ISG as a leader in the technology consulting space.

Key Financial Highlights

• Q4 2025 GAAP Revenues: \$61.2 million, at the top end of guidance and up 6% year-over-year.
• Q4 GAAP Net Income: \$2.6 million; GAAP EPS: \$0.05; Adjusted EPS: \$0.08.
• Q4 Adjusted EBITDA: \$8.1 million, up 24% from prior year; Adjusted EBITDA margin: 13.2% (up from 11.3%).
• Cash from Operations (Q4): \$5.1 million; Full-Year: \$29.0 million (up 46%).
• Full-Year 2025 GAAP Revenues: \$244.7 million (down 1% YoY, but up 7% excluding 2024 automation unit results).
• Full-Year GAAP Operating Income: \$17.8 million (up from \$5.8 million).
• Full-Year GAAP Net Income: \$9.3 million; GAAP EPS: \$0.19; Adjusted Net Income: \$16.5 million; Adjusted EPS: \$0.33.
• Full-Year Adjusted EBITDA: \$32.2 million, up 28% YoY; Adjusted EBITDA margin: 13.2% (vs 10.2%).
• Cash Balance (Year-End): \$28.7 million, up 24% from prior year.
• Dividend: Declared first-quarter dividend of \$0.045 per share, payable March 26, 2026, to shareholders of record as of March 20, 2026.
• Share Repurchase: \$2.3 million of shares repurchased in Q4.

Strategic Developments & AI Focus

• Acquisition of AI Maturity Index: In January 2026, ISG acquired the AI Maturity Index, an AI readiness benchmarking and intelligence platform. This tool helps clients assess and track AI readiness at individual and enterprise levels and improve workforce capability to leverage AI.
• AI Acceleration Strategy: Formation of an AI Acceleration Unit to help clients scale AI rapidly, integrating expert-led approaches.
• Strong Early Interest: The AI Maturity platform has generated an early pipeline of over 30 clients.
• ISG Tango™ Platform: Continued leverage of AI to improve proprietary client platforms with ISG Tango™ now processing over \$25 billion of sourcing contract value, tripled versus 2024.

Regional Performance

• Americas: Q4 revenues \$38.3 million, up 1% YoY; full-year revenues (excluding automation unit) \$160.9 million, up 11%.
• Europe: Q4 revenues \$19.1 million, up 28% YoY; full-year revenues (excluding automation) \$65.5 million, up 3%.
• Asia Pacific: Q4 revenues \$3.9 million, down 22%; full-year \$18.3 million, down 13% YoY.

Guidance and Outlook

• Q1 2026 Guidance: Targeting revenues between \$60.5 million and \$61.5 million; adjusted EBITDA between \$7.5 million and \$8.5 million.
• Management expects clients to accelerate spending as the year progresses, despite uncertainty related to tariffs, geopolitics, and FX/inflation.

Shareholder-Relevant and Price-Sensitive Information

• Dividend Announcement: The declared dividend is a positive signal regarding cash flow and shareholder returns, potentially price-sensitive.
• Share Repurchase: Signals confidence in future prospects and could support share price.
• AI Maturity Index Acquisition: Expansion into AI benchmarking and intelligence platforms strengthens ISG’s market position and could drive future growth.
• Strong Recurring Revenue Growth: Recurring revenues up 13% in Q4, suggesting increased stability and visibility for future earnings.
• Profitability Improvements: Adjusted EBITDA and margins significantly improved, supporting higher valuation multiples.
• ISG Tango™ Growth: The tripling of contract value processed through ISG Tango™ suggests increasing adoption and market traction.
• Client Base Expansion: Over 350 clients served with AI-related services in 2025, three times more than prior year, highlighting accelerating demand.

Risks and Forward-Looking Statements

• ISG’s outlook is subject to uncertainties including macroeconomic conditions, competition, FX fluctuations, integration risks, and changing client spending patterns.
• Forward-looking statements involve risks that could cause actual results to differ materially from expectations.

Conference Call Details

ISG will hold a conference call at 9 a.m. ET, March 6, 2026, to discuss its financial results. Access details are available for U.S. and international callers, and a recording will be posted on ISG’s investor relations page.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm, serving more than 900 clients, including 75 of the world’s top 100 enterprises. ISG leverages proprietary data, research, and platforms to help organizations achieve operational excellence and growth.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on ISG’s official financial filings and press releases. Investors should consider their own circumstances and consult professional advisors before making any investment decisions. Past performance is not indicative of future results. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ.

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