Information Services Group Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Yellow here stands for a company that does its homework and for one operating question it has not yet answered. The substance is documented: $244.7 million of revenue and $9.3 million of net income in fiscal 2025, $29.0 million of operating cash flow, a 44.9 percent equity ratio, debt at 1.80 times EBITDA, covenants in compliance, no going-concern warning, a quarterly dividend held for years and an active buyback. What is open is the revenue question: the top line has fallen three years running, AI so far only replaces what the legacy business loses, and the firm has a single reportable segment with which to absorb any drop in demand. Add a disputed receivable of $4.7 million carried without a material reserve as of March 31, 2026 — roughly half a year of earnings. None of this threatens the substance, so not red; but it is too much unfinished business for green. On price, which explicitly does not set the light: roughly 0.8 times annual revenue and a dividend yield of about 4.3 percent is not an expensive entry — though the market is not paying for a growth story here, it is paying for a company mid-rebuild. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
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.
Business model
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.
Revenue trend
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.
Earnings power
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.
Balance sheet and financing
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.
Receivable risk
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.
Ownership and pay
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.
Worth Noting
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.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at III since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 3.80 $ to 6.10 $ · Last price: 5.30 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Information Technology Services
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Information Services Group Inc III | 0.3 | 25.2 | 11.6 | 44.8 | 8.2 | -1.2 | 2.0 |
| International Business Machines IBM | 212.8 | 21.3 | 16.3 | 58.1 | 13.8 | 7.6 | -5.9 |
| Accenture plc ACN | 117.9 | 15.3 | 9.0 | 32.0 | 17.0 | 7.4 | -18.5 |
| Infosys Ltd INFY | 45.0 | 13.7 | 9.0 | 29.7 | 21.2 | 4.6 | -32.7 |
| Cognizant Technology Solutions Corporation CTSH | 29.3 | 13.1 | 7.3 | 33.4 | 15.6 | 7.0 | -9.6 |
| CDW Corp CDW | 19.1 | 17.3 | 12.4 | 21.4 | 6.6 | 6.8 | -9.0 |
| Broadridge Financial Solutions Inc BR | 19.0 | 17.6 | 12.1 | 31.8 | 18.4 | 5.9 | -31.4 |
| Fidelity National Information Services, Inc. FIS | 18.8 | 7.2 | 9.6 | 35.8 | 16.4 | 5.4 | -43.7 |
| Wipro Limited WIT | 16.6 | 12.9 | 7.4 | 29.0 | 15.7 | 4.0 | -37.3 |
| Median of companies shown | 19.1 | 15.3 | 9.6 | 32.0 | 15.7 | 5.9 | -18.5 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 217 | -3 | -7 | -0.18 | 11 | 57 | 235 |
| 2017 | 270 | 9 | -2 | -0.05 | 11 | 64 | 225 |
| 2018 | 276 | 13 | 6 | 0.12 | 19 | 79 | 215 |
| 2019 | 266 | 13 | 3 | 0.07 | 20 | 90 | 219 |
| 2020 | 249 | 9 | 3 | 0.06 | 44 | 99 | 240 |
| 2021 | 278 | 25 | 16 | 0.30 | 42 | 98 | 237 |
| 2022 | 286 | 29 | 20 | 0.39 | 11 | 100 | 243 |
| 2023 | 291 | 15 | 6 | 0.12 | 12 | 102 | 247 |
| 2024 | 248 | 6 | 3 | 0.06 | 20 | 96 | 205 |
| 2025 | 245 | 18 | 9 | 0.19 | 29 | 95 | 211 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| 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 |
| 2026: Q2 | 0.07 | -12.50 | 66 | 6.30 | 5.00 | 5 | 5 |
What Do These Terms Mean?
- 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.
Screening
Appears in These Scanners
This stock currently matches 5 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 0.38 | 0.36 – 0.41 | 255 | 15.2% | 4 |
| 12/31/2027 | 0.44 | 0.39 – 0.51 | 264 | 15.8% | 4 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 9.4% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $11.3M |
|---|---|
| Market cap | $256.0M |
| Free cash flow in year ten | $27.7M |
| Terminal value as a share of market value | 57.1% |
For comparison: over the past five years free cash flow shrank by 10.2% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Information 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.
10-K · 2026-03-06 · View SEC filing
„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.
10-K · 2026-03-06 · View SEC filing
„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.
10-Q · 2026-05-08 · View SEC filing
„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.
10-K · 2026-03-06 · View SEC filing
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
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -5.1%
- More than 10% revenue growth is expected for the coming year -73.9%
- Share count grows by less than 3% a year -0.1%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 9.1%
- Gross margin at 40% or higher and without meaningful erosion 41.2%
- Goodwill from acquisitions does not grow faster than revenue 42.4%
- Net debt below twice EBITDA 1.8 x EBITDA
- Operating cash flow covers the profits of the last three years 43 m
- Return on capital at 15% or higher, or up versus two years ago 10.4%
- Insiders hold at least 10% or are net buyers 27.9%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
4/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 1.4%
- Exp. sales growth 3Y > 5% 3.9%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 54.0%
- Net debt < 4x EBIT 2.4x
- EBIT positive, 10Y straight 9
- Max. EBIT decline < 50% 80.5%
- Return on equity > 15% 467.9%
- ROCE > 15% 10.4%
- Expected return > 10% 69.0%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 1, 2026 | Sherrick Michael A. | EVP & CHIEF FINANCIAL OFFICER | Other | 66,996 | 5.06 | 339,000 |
| Aug 18, 2026 | Sherrick Michael A. | EVP & CHIEF FINANCIAL OFFICER | Other | 10,754 | 4.93 | 53,017 |
| Aug 18, 2026 | Sherrick Michael A. | EVP & CHIEF FINANCIAL OFFICER | Other | 18,116 | – | – |
| Aug 18, 2026 | Lavieri Todd D. | VICE CHAIRMAN | Other | 11,481 | 4.93 | 56,601 |
| Aug 18, 2026 | Lavieri Todd D. | VICE CHAIRMAN | Other | 25,880 | – | – |
| Aug 18, 2026 | Kucinski Thomas S. | EVP, CHIEF HR | Other | 4,197 | 4.93 | 20,691 |
| Aug 18, 2026 | Kucinski Thomas S. | EVP, CHIEF HR | Other | 7,764 | – | – |
The company
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
- Address
- 400 Atlantic Street, 06901 Stamford, United States
- Phone
- 203 517 3100
- Website
- isg-one.com
- IPO Date
- 02/01/2007
- ISIN
- US45675Y1047
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 | – |
| Will Thoretz | Head of Corporate Communications | – |
| Tom Werner | Sales Director | – |
| Thomas S. Kucinski | Executive VP & Chief HR Officer | 1964 |
| Steven E. Hall | Chief AI Officer | – |
| Todd Dreger | President of ISG Enterprise Growth & Chair of ISG GovernX® | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/05/2026 Information Services Group Inc. (III): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 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.