ISG posts stronger 2025 EBITDA and AI-driven growth
Information Services Group, Inc. reported solid fourth-quarter and full-year 2025 results, highlighting momentum in its AI-centered advisory business.
Rhea-AI Filing Summary
Information Services Group, Inc. reported solid fourth-quarter and full-year 2025 results, highlighting momentum in its AI-centered advisory business. Fourth-quarter revenues were $61.2 million, up from $57.8 million a year earlier, with Europe up 28 percent and recurring revenues up 13 percent. Quarterly operating income rose to $5.1 million, while adjusted EBITDA reached $8.1 million and the adjusted EBITDA margin improved to 13.2 percent.
For the full year 2025, revenues were $244.7 million. Net income increased to $9.3 million, or $0.19 per diluted share, compared with $0.06 per diluted share in the prior year. Full-year adjusted EBITDA was $32.2 million, up 28 percent, with an adjusted EBITDA margin of 13.2 percent versus 10.2 percent. Cash from operations rose 46 percent to $29.0 million, and cash on hand was $28.7 million at year end.
The company emphasized growing AI-related demand, serving more than 350 clients with AI-focused services in 2025, three times the prior year. It acquired the AI Maturity Index platform, formed an AI Acceleration Unit, and noted that more than $25 billion of sourcing contract value now flows through its ISG Tango™ platform. For first-quarter 2026, ISG is targeting revenues between $60.5 million and $61.5 million and adjusted EBITDA between $7.5 million and $8.5 million. The board declared a quarterly dividend of $0.045 per share.
Positive
- Stronger profitability and margins: Full-year 2025 adjusted EBITDA rose to $32.2 million, up 28 percent, with the adjusted EBITDA margin improving to 13.2 percent from 10.2 percent, indicating better operating efficiency and earnings quality.
Insights
ISG delivered stronger profitability and cash generation in 2025 while leaning harder into AI-focused growth.
Information Services Group showed meaningful operating leverage in 2025. Full-year revenues were $244.7 million, but adjusted EBITDA rose 28 percent to $32.2 million, lifting the adjusted EBITDA margin from 10.2 percent to 13.2 percent. Net income and diluted EPS increased to $9.3 million and $0.19, respectively.
Growth was uneven by region, with strong contributions from Europe in Q4 and revenue pressure in Asia Pacific, while reported full-year revenue dipped 1 percent due to the prior divestiture of the automation unit. Nonetheless, cash from operations grew 46 percent to $29.0 million, and year-end cash reached $28.7 million, giving the company more financial flexibility even after dividends and share repurchases.
Strategically, ISG is centering its narrative on AI. Management highlighted serving more than 350 clients with AI-focused services in 2025 and acquiring the AI Maturity Index platform. Guidance for Q1 2026—revenues of $60.5–$61.5 million and adjusted EBITDA of $7.5–$8.5 million—implies continued year-over-year growth, though actual performance will depend on macro conditions and client spending patterns described by management.
8-K Event Classification
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Information Services Group (III) perform financially in Q4 2025?
What were Information Services Group’s full-year 2025 revenues and earnings?
How did ISG’s profitability and cash flow change in 2025?
What guidance did Information Services Group provide for Q1 2026?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 5, 2026 (
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer |
(Address of principal executive offices)
(
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On March 5, 2026 Information Services Group, Inc. (“ISG” or the “Company”) released its earnings for the fourth quarter 2025 which ended on December 31, 2025 and is furnishing a copy of the earnings release to the Securities and Exchange Commission under Item 2.02 of this Current Report on Form 8-K. In addition, ISG will discuss its financial results during a teleconference call on Friday, March 6, 2026 at 9:00am (ET). To access the teleconference call, go to ISG’s website at www.isg-one.com. The press release is furnished herewith as Exhibit 99.1 and shall not be deemed filed for purposes of the Exchange Act.
ISG reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). ISG believes, however, that evaluating its ongoing operating results will be enhanced if it also discloses certain non-GAAP information. These non-GAAP financial measures exclude non-cash and certain other special charges that many investors believe may obscure the user’s overall understanding of ISG’s current financial performance and the Company’s prospects for the future. ISG believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate the Company’s performance.
ISG provides adjusted EBITDA (defined as net income, plus interest, taxes, depreciation and amortization, foreign currency transaction gains/losses, non-cash stock compensation, interest accretion associated with contingent consideration, change in contingent consideration, acquisition and disposition-related cost, loss on the disposal of assets, gain on the sale of business and severance, integration and other expense), adjusted net income (defined as net income, plus amortization of intangible assets, non-cash stock compensation, foreign currency transaction gains/losses, interest accretion associated with contingent consideration, change in contingent consideration, acquisition and disposition-related cost, loss on the disposal of assets, gain on the sale of business and severance, integration, and other expense on a tax-adjusted basis), adjusted net income per diluted share, adjusted EBITDA margin and selected financial data on a constant currency basis which are non-GAAP measures that the Company believes provide useful information to both management and investors by excluding certain expenses and financial implications of foreign currency translations, which management believes are not indicative of ISG’s core operations. These non-GAAP measures are used by ISG to evaluate the Company’s business strategies and management’s performance.
Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure. Non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d)Exhibit.
99.1Press Release dated March 5, 2026 regarding earnings for the fourth quarter 2025
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EXHIBIT INDEX
Exhibit Number | Description | |
99.1 104 | Press Release dated March 5, 2026 regarding earnings for the fourth quarter 2025. Cover Page Interactive Data file – the cover page iXBRL tags are embedded within the inline XBRL document. | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: March 5, 2026 | INFORMATION SERVICES GROUP, INC. | |
By: | /s/ Michael P. Connors | |
Michael P. Connors | ||
Chairman and Chief Executive Officer | ||
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| Exhibit 99.1 Press Contact: Will Thoretz +1 203 517 3119 will.thoretz@isg-one.com Investor Contact: Michael Sherrick +203 517 3104 michael.sherrick@isg-one.com |
| |
Information Services Group Announces
Fourth-Quarter and Full-Year 2025 Results
| ● | Reports fourth-quarter GAAP revenues of $61.2 million, at the top end of guidance and up 6% versus prior year |
| ● | Reports fourth-quarter GAAP net income of $2.6 million, GAAP EPS of $0.05 and adjusted EPS of $0.08; Prior year GAAP results reflect a fourth-quarter net gain of $2.3 million from the previously disclosed sale of the firm’s automation unit on October 1, 2024 |
| ● | Reports fourth-quarter adjusted EBITDA of $8.1 million, up 24% versus prior year |
| ● | Generates $5.1 million of cash from operations in fourth quarter |
| ● | Delivers full-year GAAP revenues of $245 million; GAAP operating income of $17.8 million; GAAP net income of $9.3 million and GAAP EPS of $0.19; adjusted EBITDA of $32.2 million, adjusted net income of $16.5 million and adjusted EPS of $0.33 |
| ● | Declares first-quarter dividend of $0.045 per share, payable March 26, 2026, to shareholders of record as of March 20, 2026 |
| ● | Acquires AI readiness benchmarking and intelligence platform, the AI Maturity Index, in January 2026, part of broader AI acceleration strategy |
| ● | Sets first-quarter guidance: revenues between $60.5 million and $61.5 million and adjusted EBITDA between $7.5 million and $8.5 million |
STAMFORD, Conn., March 5, 2026 ― Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, today announced financial results for the fourth quarter and full year ended December 31, 2025.
“ISG had a strong Q4 and an outstanding year, fueled by continuing client interest in our AI-powered transformation services,” said Michael P. Connors, chairman and CEO. “Fourth-quarter revenue growth was led by Europe, up 28 percent, and by recurring revenues, up 13 percent. From a profitability
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standpoint, adjusted EBITDA was up 24 percent, with adjusted EBITDA margins expanding nearly 200 basis points. For the full year, revenue growth was led by the Americas, up 11 percent, excluding 2024 automation results, and our adjusted EBITDA was up 28 percent, while cash from operations rose 46 percent, to $29 million, all versus prior year.”
Commenting on AI demand, Connors said, “Clients overall remain cautious in a still-uncertain macro environment but continue to invest in AI-related business transformation, cost optimization and insights to plan the journey ahead. In 2025, we served more than 350 clients with AI-focused research and advisory services, three times more than the prior year.”
More broadly speaking, Connors said, “Clients are demanding business outcomes, a reshaping of their partner ecosystems and broader capability. This plays to our strengths. ISG is well positioned with our proprietary data, research, platforms and on-the-ground expertise to continue delivering great ROI for our clients.”
AI Maturity Index Acquisition and AI Acceleration Strategy
In January 2026, ISG announced the acquisition of the AI Maturity Index, an AI readiness benchmarking and intelligence platform that allows clients to assess and track the AI readiness of their workforces on an individual and enterprise level and improve their employees’ ability to leverage AI technology. The ISG AI Maturity platform is already generating strong interest, ISG said, with an early pipeline of more than 30 clients.
The move is part of ISG’s broader AI acceleration strategy that includes the formation of an AI Acceleration Unit that brings an integrated, expert-led approach to helping clients rapidly scale AI.
ISG also is leveraging AI to improve the speed and efficiency of its proprietary client platforms, most notably ISG Tango™, the firm’s groundbreaking sourcing platform. More than $25 billion of sourcing contract value now flows through ISG Tango™, up more than three times from 2024.
Fourth-Quarter 2025 Results
Reported revenues for the fourth quarter were $61.2 million, up 6 percent from $57.8 million in the prior year. Currency translation positively impacted reported revenues by $1.3 million versus the prior year.
Revenues were $38.3 million in the Americas, up 1 percent on a reported basis. Revenues in Europe were $19.1 million, up 28 percent on a reported basis, and Asia Pacific revenues were $3.9 million, down 22 percent on a reported basis, all versus the prior year.
ISG reported fourth-quarter operating income of $5.1 million, compared with operating income of $0.2 million in the prior year. Reported fourth-quarter net income was $2.6 million, compared with net income of $3.0 million in the prior year. Fully diluted earnings per share were $0.05, compared with fully diluted earnings per share of $0.06 in the prior year.
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During the fourth quarter of 2024, ISG recorded a $2.3 million net gain on the sale of its automation unit. Excluding this gain, net income and GAAP EPS would have been $0.7 million and $0.01 per share, respectively.
Adjusted net income (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) for the fourth quarter of 2025 was $4.0 million, or $0.08 per share on a fully diluted basis, compared with adjusted net income of $3.0 million, or $0.06 per share on a fully diluted basis, in the prior year’s fourth quarter.
Fourth-quarter adjusted EBITDA (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) was $8.1 million, up 24 percent from the prior-year fourth quarter. Adjusted EBITDA margin (a non-GAAP measure calculated by dividing adjusted EBITDA by reported revenues) was 13.2 percent, compared with 11.3 percent in the prior year.
Full-Year 2025 Results
Reported revenues for the full year were $244.7 million, down 1 percent versus the prior year. Excluding 2024 results from ISG’s automation unit, which the firm divested on October 1, 2024, revenues were up 7 percent for the full year of 2025.
Excluding 2024 automation results, revenues were $160.9 million in the Americas, up 11 percent, and up 1 percent on a reported basis. Revenues in Europe were $65.5 million, up 3 percent, excluding automation, and down 3 percent on a reported basis, and in Asia Pacific, revenues were $18.3 million, down 13 percent, all versus the prior year.
ISG reported full-year operating income of $17.8 million, compared with $5.8 million in the prior year. The firm also reported net income and fully diluted earnings per share of $9.3 million and $0.19, respectively, versus net income of $2.8 million and fully diluted earnings per share of $0.06 in the prior year. For the full year, ISG recorded a $1.7 million net gain on the sale of its automation unit. Excluding the gain on this sale, 2024 net income and GAAP EPS would have been $1.2 million and $0.02 per share, respectively.
Adjusted net income (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) for the full year was $16.5 million, or $0.33 per share on a fully diluted basis, compared with adjusted net income of $10.0 million, or $0.20 per share on a fully diluted basis, in the prior year.
Full-year adjusted EBITDA (a non-GAAP measure defined below under “Non-GAAP Financial Measures”) was $32.2 million, up 28 percent from the prior year. Adjusted EBITDA margin (a non-GAAP measure calculated by dividing adjusted EBITDA by reported revenues) was 13.2 percent, compared with 10.2 percent in the prior year.
Other Financial and Operating Highlights
ISG generated $5.1 million of cash from operations in the fourth quarter and $29.0 million for the full year. The firm’s cash balance totaled $28.7 million at December 31, 2025, up 24 percent from the prior year.
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During the fourth quarter, ISG paid dividends of $2.2 million and repurchased $2.3 million of shares.
2026 First-Quarter Revenue and Adjusted EBITDA Guidance
“As clients absorb the latest tariff and geopolitical news, and as the U.S. economy, in particular, continues to evolve during the first half, we expect clients to adjust and then accelerate their spending as the year progresses. For the first quarter, ISG is targeting revenues between $60.5 million and $61.5 million and adjusted EBITDA of between $7.5 million and $8.5 million, which will continue our year-over-year growth. We will continue to monitor the macroeconomic environment, including the impact of FX, inflation and other factors, and adjust our business plans accordingly,” Connors said.
Quarterly Dividend
The ISG Board of Directors declared a first-quarter dividend of $0.045 per share, payable on March 26, 2026, to shareholders of record as of March 20, 2026.
Conference Call
ISG has scheduled a call for 9 a.m., U.S. Eastern Time, March 6, 2026, to discuss the company’s fourth-quarter results. The call can be accessed by dialing +1 (800) 715-9871; or, for international callers, by dialing +1 (646) 307-1963. The access code is 6145572. A recording of the conference call will be accessible on ISG’s investor relations page for approximately four weeks following the call.
Forward-Looking Statements
This communication contains “forward-looking statements” which represent the current expectations and beliefs of management of ISG concerning future events and their potential effects. Statements contained herein including words such as “anticipate,” “believe,” “contemplate,” “plan,” “estimate,” “target,” “expect,” “intend,” “will,” “continue,” “should,” “may,” and other similar expressions, are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Those risks relate to inherent business, economic and competitive uncertainties and contingencies relating to the businesses of ISG and its subsidiaries including without limitation: (1) failure to secure new engagements or loss of important clients; (2) ability to hire and retain enough qualified employees to support operations; (3) ability to maintain or increase billing and utilization rates; (4) management of growth; (5) success of expansion internationally; (6) competition; (7) ability to move the product mix into higher margin businesses; (8) general political and social conditions such as war, political unrest and terrorism; (9) healthcare and benefit cost management; (10) ability to protect ISG and its subsidiaries’ intellectual property or data and the intellectual property or data of others; (11) currency fluctuations and exchange rate adjustments; (12) ability to successfully consummate or integrate strategic acquisitions; (13) outbreaks of diseases, including coronavirus, or similar public health threats or fear of such an event; (14) engagements may be terminated, delayed or reduced in scope by clients; (15) the effect of the divestiture of the automation unit on ISG’s relationships with its customers and suppliers and on its retained business generally; (16) the success of ISG’s focus on AI advisory and AI-powered platforms; (17) changes to trade policy, including new or increased tariffs and changing import/export regulations, and (18) potential employment-related claims. Certain of these and other applicable risks, cautionary statements and factors that could cause actual results to differ from ISG’s forward-looking
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statements are included in ISG’s filings with the U.S. Securities and Exchange Commission. ISG undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
Non-GAAP Financial Measures
ISG reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). In this release, ISG has presented both GAAP financial results as well as non-GAAP information for the three and twelve months ended December 31, 2025, and December 31, 2024. ISG believes that evaluating its ongoing operating results will be enhanced if it discloses certain non-GAAP information. These non-GAAP financial measures exclude non-cash and certain other special charges that many investors believe may obscure the user’s overall understanding of ISG’s current financial performance and ISG’s prospects for the future. ISG believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate the Company’s performance.
ISG provides adjusted EBITDA (defined as net income, plus interest, taxes, depreciation and amortization, foreign currency transaction gains/losses, non-cash stock compensation, interest accretion associated with contingent consideration, acquisition- and disposition-related costs, loss on disposal of assets, gain on sale of business, change in contingent consideration, and severance, integration and other expense), adjusted net income (defined as net income, plus amortization of intangible assets, non-cash stock compensation, foreign currency transaction gains/losses, interest accretion associated with contingent consideration, acquisition- and disposition-related costs, loss on disposal of assets, gain on sale of business, change in contingent consideration, and severance, integration and other expense on a tax-adjusted basis), adjusted net income per diluted share, adjusted EBITDA margin, and selected financial data on a constant currency basis which are non-GAAP measures that ISG believes provide useful information to both management and investors by excluding certain expenses and financial implications of foreign currency translations, which management believes are not indicative of ISG’s core operations. These non-GAAP measures are used by ISG to evaluate the Company’s business strategies and management’s performance.
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP financial measure, excludes the impact of year-over-year fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current and prior-periods local currency financial results using the same point in time exchange rates and then compare the adjusted current and prior period results. This calculation may differ from similarly titled measures used by others and, accordingly, the constant currency presentation is not meant to be a substitution for recorded amounts presented in conformity with GAAP, nor should such amounts be considered in isolation.
Management believes this information facilitates comparison of underlying results over time. Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure. Non-
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GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the forward-looking non-GAAP estimates contained herein to the corresponding GAAP measures is not being provided, due to the unreasonable efforts required to prepare it.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
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Information Services Group, Inc.
Condensed Statement of Income and Comprehensive Income
(unaudited)
(in thousands, except per share amounts)
| | Three Months Ended December 31, |
| | Year Ended December 31, |
| ||||||||
| | 2025 | | 2024 |
| | 2025 | | 2024 |
| ||||
| | | | | | | | | | | | | | |
Revenues | | $ | 61,213 | | $ | 57,777 | | | $ | 244,725 | | $ | 247,585 | |
Operating expenses | | | | | | | | | | | | | | |
Direct costs and expenses for advisors | |
| 33,772 | |
| 33,821 | | |
| 139,321 | |
| 150,306 | |
Selling, general and administrative | |
| 21,169 | |
| 22,613 | | |
| 83,070 | |
| 85,634 | |
Depreciation and amortization | |
| 1,125 | |
| 1,164 | | |
| 4,538 | |
| 5,888 | |
Operating income | |
| 5,147 | |
| 179 | | |
| 17,796 | |
| 5,757 | |
Interest income | |
| 36 | |
| 81 | | |
| 151 | |
| 782 | |
Interest expense | |
| (913) | |
| (1,165) | | |
| (4,067) | |
| (5,837) | |
Gain on the sale of business | | | — | | | 4,536 | | | | 720 | | | 4,532 | |
Foreign currency transaction gain (loss) | |
| 111 | |
| 17 | | |
| (64) | |
| (7) | |
Income before taxes | |
| 4,381 | |
| 3,648 | | |
| 14,536 | |
| 5,227 | |
Income tax provision | |
| 1,765 | |
| 606 | | |
| 5,195 | |
| 2,388 | |
Net income | | $ | 2,616 | | $ | 3,042 | | | $ | 9,341 | | $ | 2,839 | |
| | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | |
Basic | |
| 47,867 | |
| 48,909 | | |
| 48,161 | |
| 48,785 | |
Diluted | |
| 50,517 | |
| 50,638 | | |
| 50,334 | |
| 50,049 | |
| | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | |
Basic | | $ | 0.05 | | $ | 0.06 | | | $ | 0.19 | | $ | 0.06 | |
Diluted | | $ | 0.05 | | $ | 0.06 | | | $ | 0.19 | | $ | 0.06 | |
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Information Services Group, Inc.
Reconciliation from GAAP to Non-GAAP
(unaudited)
(in thousands, except per share amounts)
| | Three Months Ended December 31, |
| | Year Ended December 31, |
| ||||||||
| | 2025 | | 2024 |
| | 2025 | | 2024 |
| ||||
| | | | | | | | | | | | | | |
Net income | | $ | 2,616 | | $ | 3,042 | | | $ | 9,341 | | $ | 2,839 | |
Plus: | | | | | | | | | | | | | | |
Interest expense (net of interest income) | |
| 877 | |
| 1,084 | | |
| 3,916 | |
| 5,055 | |
Income tax provision | |
| 1,765 | |
| 606 | | |
| 5,195 | |
| 2,388 | |
Depreciation and amortization | |
| 1,125 | |
| 1,164 | | |
| 4,538 | |
| 5,888 | |
Interest accretion associated with contingent consideration | |
| 6 | |
| 12 | | |
| 35 | |
| 77 | |
Loss on assets disposal | | | 1 | | | — | | | | 93 | | | — | |
Gain on the sale of business | | | — | | | (4,536) | | | | (720) | | | (4,532) | |
Change in contingent consideration | | | (846) | | | — | | | | (846) | | | (2,390) | |
Acquisition and disposition-related costs (1) | |
| 32 | |
| 2,201 | | |
| 437 | |
| 2,880 | |
Severance, integration and other expense | |
| 963 | |
| 625 | | |
| 2,310 | |
| 4,887 | |
Foreign currency transaction gain (loss) | | | (111) | | | (17) | | | | 64 | |
| 7 | |
Non-cash stock compensation | | | 1,655 | | | 2,356 | | | | 7,835 | |
| 8,046 | |
Adjusted EBITDA | | $ | 8,083 | | $ | 6,537 | | | $ | 32,198 | | $ | 25,145 | |
| | | | | | | | | | | | | | |
Net income | | $ | 2,616 | | $ | 3,042 | | | $ | 9,341 | | $ | 2,839 | |
Plus: | | | | | | | | | | | | | | |
Non-cash stock compensation | |
| 1,655 | |
| 2,356 | | |
| 7,835 | |
| 8,046 | |
Intangible amortization | |
| 308 | |
| 376 | | |
| 1,275 | |
| 2,606 | |
Interest accretion associated with contingent consideration | |
| 6 | |
| 12 | | |
| 35 | |
| 77 | |
Change in contingent consideration | | | (846) | | | — | | | | (846) | | | (2,390) | |
Loss on assets disposal | | | 1 | | | 0 | | | | 93 | | | — | |
Gain on the sale of business | | | — | | | (4,536) | | | | (720) | | | (4,532) | |
Acquisition and disposition-related costs (1) | | | 32 | | | 2,201 | | | | 437 | | | 2,880 | |
Severance, integration and other expense | |
| 963 | |
| 625 | | |
| 2,310 | |
| 4,887 | |
Foreign currency transaction gain (loss) | |
| (111) | |
| (17) | | |
| 64 | |
| 7 | |
Tax effect (2) | |
| (643) | |
| (1,073) | | |
| (3,355) | |
| (4,452) | |
Adjusted net income | | $ | 3,981 | | $ | 2,986 | | | $ | 16,469 | | $ | 9,968 | |
| | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | |
Basic | |
| 47,867 | |
| 48,909 | | |
| 48,161 | |
| 48,785 | |
Diluted | |
| 50,517 | |
| 50,638 | | |
| 50,334 | |
| 50,049 | |
| | | | | | | | | | | | | | |
Adjusted earnings per share: | | | | | | | | | | | | | | |
Basic | | $ | 0.08 | | $ | 0.06 | | | $ | 0.34 | | $ | 0.20 | |
Diluted | | $ | 0.08 | | $ | 0.06 | | | $ | 0.33 | | $ | 0.20 | |
| (1) | Consists of expenses from acquisition and disposition-related costs and non-cash fair value adjustments on pre-acquisition contract liabilities. |
| (2) | Marginal tax rate of 32% reflecting U.S. federal income tax rate of 21% plus 11% attributable to U.S states and foreign jurisdictions. |
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Information Services Group, Inc.
Selected Financial Data
Constant Currency Comparison
| | | | | | Constant | | | Three Months Ended | | | | | | Constant | | | Three Months Ended |
|
| | | Three Months Ended | | | currency | | | December 31, 2025 | | | Three Months Ended | | | currency | | | December 31, 2024 | |
| | | December 31, 2025 | | | impact | | | Adjusted | | | December 31, 2024 | | | impact | | | Adjusted | |
Revenue | | $ | 61,213 | | $ | (328) | | $ | 60,885 | | $ | 57,777 | | $ | 924 | | $ | 58,701 | |
Operating income | | $ | 5,147 | | $ | (384) | | $ | 4,763 | | $ | 179 | | $ | 142 | | $ | 321 | |
Adjusted EBITDA | | $ | 8,083 | | $ | (406) | | $ | 7,677 | | $ | 6,537 | | $ | 186 | | $ | 6,723 | |
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| | | Twelve Months Ended | | | Constant | | | Twelve Months Ended | | | Twelve Months Ended | | | Constant | | | Twelve Months Ended | |
| | | Ended | | | currency | | | December 31, 2025 | | | Ended | | | currency | | | December 31, 2024 | |
| | | December 31, 2025 | | | impact | | | Adjusted | | | December 31, 2024 | | | impact | | | Adjusted | |
Revenue | | $ | 244,725 | | $ | 686 | | $ | 245,411 | | $ | 247,585 | | $ | 3,016 | | $ | 250,601 | |
Operating income | | $ | 17,796 | | $ | (720) | | $ | 17,076 | | $ | 5,757 | | $ | 165 | | $ | 5,922 | |
Adjusted EBITDA | | $ | 32,198 | | $ | (704) | | $ | 31,494 | | $ | 25,145 | | $ | 388 | | $ | 25,533 | |
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