Information Services Group Inc (III)
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In its 2025 annual report, Information Services Group calls itself an "AI-centered" advisory firm and puts AI consulting and research at about 30 percent of firmwide revenue, up from 10 percent a year earlier. The same report says total revenue fell by $2.9 million to $244.7 million. Run those two disclosures against each other and the AI business added roughly $48 million while everything else lost roughly $51 million. Add an operating cash outflow of $0.7 million in the first quarter, a disputed $4.7 million receivable carried without a reserve, and a risk factor in which the firm warns about the very technology it sells. Not investment advice — just the question of what has actually grown behind the new name plate.
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AI Rating
Sells AIInformation Services Group verkauft KI selbst als Produkt: Das Haus bezeichnet sich im Geschäftsbericht 2025 als „AI-centered“ Research- und Beratungsfirma, beziffert KI-Beratung und KI-Research auf rund 30 Prozent des Konzernumsatzes (nach rund 10 Prozent 2024) und integriert zugekaufte KI-Software in das eigene Angebot — die im selben Bericht genannte Bedrohung durch KI tritt nach der Vorrang-Regel dahinter zurück.
View the full file — quotes, sources, reviewed filings
„Information Services Group, Inc. (Nasdaq: III) is a global AI-centered technology research and advisory firm."
Information Services Group, Inc. (Nasdaq: III) ist ein weltweit tätiges, KI-zentriertes Technologie-Research- und Beratungsunternehmen.
„Enterprise AI consulting and research, not surprisingly, played a significant part in our growth, and now represents about 30 percent of our firmwide revenue, up from 10 percent last year."
KI-Beratung und KI-Research für Unternehmen spielten, wenig überraschend, eine bedeutende Rolle für unser Wachstum und machen inzwischen rund 30 Prozent unseres Konzernumsatzes aus, nach 10 Prozent im Vorjahr.
„The assets acquired consist primarily of developed software and related intellectual property that will be integrated into ISG’s AI-related offerings, including the ISG AI Maturity Index."
Die erworbenen Vermögenswerte bestehen im Wesentlichen aus entwickelter Software und zugehörigem geistigem Eigentum, die in das KI-bezogene Angebot von ISG integriert werden, einschließlich des ISG AI Maturity Index.
„AI and automation may also diminish the need for certain services currently provided by our personnel, and we may not be able to adjust our delivery model, pricing, staffing, training or organizational structure in a timely or cost-effective manner."
KI und Automatisierung könnten auch den Bedarf an bestimmten Leistungen verringern, die derzeit von unseren Mitarbeitern erbracht werden, und wir sind möglicherweise nicht in der Lage, unser Leistungsmodell, unsere Preisgestaltung, unsere Personalausstattung, unsere Schulungen oder unsere Organisationsstruktur rechtzeitig oder kosteneffizient anzupassen.
Filings Reviewed: 10-Q 2026-05-08 · 10-K 2026-03-06 · 10-Q 2025-11-03 · 10-Q 2025-08-07 · 10-Q 2025-05-09 · 10-K 2025-03-13
Rated on August 1, 2026 · How the Rating Is Built
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q2 | 0.08 | -27.30 | 64 | -13.90 | 3.20 | 2 | 1 |
| 2024: Q3 | 0.05 | -54.50 | 61 | -14.60 | 1.90 | 9 | 8 |
| 2024: Q4 | 0.06 | 0.00 | 58 | -12.70 | 5.30 | 7 | 6 |
| 2025: Q1 | 0.07 | 600.00 | 60 | -7.30 | 2.50 | 1 | 0 |
| 2025: Q2 | 0.08 | 0.00 | 62 | -4.20 | 3.50 | 12 | 11 |
| 2025: Q3 | 0.09 | 80.00 | 62 | 1.80 | 4.90 | 11 | 10 |
| 2025: Q4 | 0.03 | -50.00 | 61 | 5.90 | 4.30 | 5 | 3 |
| 2026: Q1 | 0.09 | 28.60 | 61 | 2.70 | 4.40 | -1 | -2 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
An established research and advisory house with genuine differentiators: proprietary benchmark data from nearly 10 million contract data points, more than 900 clients, and more than $25 billion of total contract value running through the Tango platform according to the 2025 annual report. But there is only one reportable segment, and therefore no second earnings stream if demand for technology advisory softens.
Three years pointing the same way: $291.1 million (2023), $247.6 million (2024), $244.7 million (2025) — all as reported. The AI business added roughly $48 million in 2025 while the rest lost roughly $51 million. The first quarter of 2026 brought growth back for the first time, up 3 percent to $61.2 million, carried by Europe at plus 25 percent.
The cost side was visibly tidied in 2025: operating income from $5.8 million to $17.8 million, net income from $2.8 million to $9.3 million, operating cash flow from $19.9 million to $29.0 million, interest expense from $5.8 million to $4.1 million. In the first quarter of 2026 adjusted EBITDA rose 12 percent to $8.3 million and the margin went from 12.4 percent to 13.5 percent.
Equity of $94.7 million on total assets of $211.0 million (a 44.9 percent ratio as of December 31, 2025), $59.2 million of debt drawn on a $140.0 million facility maturing February 22, 2028, debt-to-EBITDA of 1.80 times and covenants explicitly in compliance (quarterly report as of March 31, 2026). No going-concern warning and a clean audit opinion.
As of March 31, 2026 the company is suing for an outstanding receivable of $4.7 million and has explicitly recorded no material reserve against it — roughly half of full-year 2025 net income. A second case ended on September 3, 2025 with a judgment of about $5.6 million; no assets of the debtor had been identified as of the reporting date.
Directors and executive officers hold 15.8 percent as a group (February 25, 2026), with the chief executive alone at 9.9 percent — real skin in the game. At the same time he sold 493,703 shares in November 2025 for roughly $2.64 million, and large holder Chevrillon & Associés sold another 450,000 in December 2025 for roughly $2.71 million; no insider bought on the open market after June 2025. The CEO's performance restricted stock units only pay out above a $5.00 share price, measured through June 2, 2028.
Information Services Group is the rare case of a company whose AI story is true and whose overall picture it still does not rescue. About 30 percent of firmwide revenue came from AI consulting and research in 2025 after about 10 percent a year earlier — roughly $48 million of added revenue on the company's own numbers. In the same year total revenue fell $2.9 million to $244.7 million, because everything else lost roughly $51 million. Earnings improved markedly (operating income $17.8 million against $5.8 million, operating cash flow $29.0 million against $19.9 million) and the balance sheet carries its weight at a 44.9 percent equity ratio with covenants met. What stays open is a disputed $4.7 million receivable without a reserve, an operating cash outflow of $0.7 million in the first quarter, and the question of whether the new business will ever overtake the old. Not investment advice.
- Information Services Group reached our list through the data reconciliation of our in-house stock scanner on August 1, 2026, not through a momentum or hype hit. At the time of this analysis the stock was new to our universe; the scanner lists are recalculated daily.
- The AI share of about 30 percent is a management disclosure from the results discussion of the annual report, not an audited segment figure — the company runs one single reportable segment. The amounts derived from it (roughly $73 million of AI revenue in 2025, roughly $25 million in 2024) are deliberately marked as estimates, because the company discloses only rounded percentages.
- Time-series basis: every revenue and earnings figure in this analysis is shown as reported, meaning consolidated and without restatement. The automation business sold on October 1, 2024 was not reported in discontinued operations and therefore still sits inside the 2023 and 2024 figures. The "up 7 percent" the company cites in its compensation section excludes that business and must not be mixed with the reported series.
- All point-in-time figures — cash, debt, interest rate, credit facility, share count, management, auditor — come from the most recent document that states them: the quarterly report 10-Q as of March 31, 2026 (filed May 8, 2026), the earnings release of May 7, 2026, the annual-meeting report of April 27, 2026 and the insider filings through June 3, 2026. Market capitalization was cross-checked against the share count on the quarterly report and the last price documented in a filing.
- Data services and the primary documents disagree on insider ownership. This analysis uses the figure from the 2026 proxy statement: 15.8 percent for directors and executive officers as a group as of February 25, 2026, of which 9.9 percent for the chief executive.
About the Company
Information Services Group, Inc., together with its subsidiaries, operates as an artificial intelligence (AI) centered technology research and advisory company in the Americas, Europe, and the Asia Pacific. It offers digital transformation services, including sourcing advisory and cloud and data analytics; managed governance and risk; network and software advisory; technology strategy and operations design; change management; and market intelligence. The company also provides ISG Digital, a client solution platform focused on developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in such areas as information technology, finance, human resources, and training. In addition, it offers ISG Research, which provides market analyses, provider evaluations, and data-driven insights; ISG Network and Software Advisory portfolio; and ISG GovernX, ISG Inform, and ISG Tango software platforms, as well as ISG iFlex, a delivery model for deployment of resources. The company serves private sector clients operating in the manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services industries; and public sector clients, including state and local governments, airport and transit authorities, and national and provincial government units. Information Services Group, Inc. was incorporated in 2006 and is based in Stamford, Connecticut.
| Employees | 1,500 |
|---|---|
| Headquarters | Stamford, CT |
| Website | isg-one.com |
| IPO Date | 1. Feb 2007 |
| Next Earnings | 5. Aug 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Michael P. Connors | Chairman & CEO | 1955 |
| Michael A. Sherrick | CFO & Executive VP | 1974 |
| Todd D. Lavieri | Vice Chairman & President of ISG Americas and Asia Pacific | 1963 |
| Kathy Rudy | Partner, Chief Data & Analytics and Head of ISG Data, Analytics & Technology Office | – |
| Richard L. Fogel | VP of Law & Americas General Counsel | – |
| Tom Werner | Sales Director | – |
| Thomas S. Kucinski | Executive VP & Chief Human Resources Officer | 1964 |
| Steven E. Hall | President of ISG EMEA & Chief AI Officer | – |
| Todd Dreger | President of ISG Enterprise Growth & Chair of ISG GovernX® | – |
| Paul Norman Gottsegen | Partner of Americas Consulting & President of ISG Client Experience | 1963 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.