olivLaw · US equity research
Information Services Group, Inc. III
Services-Management Consulting Services · SIC 8742 · Vertical: Services-Management Consulting Services (SIC 8742)
Information Services Group is a global AI-centered technology research and advisory firm serving more than 900 clients with about 1,500 professionals. Its relevance now comes from growth in AI advisory, research and governance platform revenue, against a backdrop of cautious client spending, per its filings.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Information Services Group, Inc. (III) stock was 6.08 USD (+1.16% on the day), with market capitalisation 289.5 m USD, P/E 25.2 on diluted EPS of 0.24 USD over the last 12 months, dividend yield 2.96%, beta 0.63, 52-week range 3.76–6.28 USD. Latest reported quarter (Q3 2026): revenue of 65.1 m USD (+4.4% YoY), net income of 3.4 m USD (+10.3% YoY), diluted EPS 0.07 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 59.4
- strong (55–70)
- Bollinger (20, 2)
- 5.58 – 6.32
- in the upper half of the band · %B 0.67 · band width 12.5%
- SMA 50 / 200
- 5.57 / 4.72
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.17 / 0.18
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +4.5% | −1.1% | +5.6 pp | — |
| 3 months | +42.7% | −0.5% | +43.2 pp | — |
| 6 months | +46.9% | +4.4% | +42.5 pp | — |
| Year to date | +5.2% | +12.3% | −7.1 pp | — |
| 1 year | +2.9% | +13.5% | −10.7 pp | −28.1% |
| 3 years | +41.1% | +76.4% | −35.3 pp | −29.4% |
| 5 years | −32.2% | +63.7% | −95.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 57.8 m | 59.6 m | 61.6 m | 62.4 m | 61.2 m | 61.2 m | 65.5 m | 65.1 m |
| Cost of revenue | 33.8 m | 33.9 m | 35.6 m | 36.0 m | 33.8 m | 34.8 m | 33.5 m | 36.6 m |
| SG&A | 22.6 m | 21.2 m | 20.1 m | 20.6 m | 21.2 m | 20.3 m | 25.1 m | 21.0 m |
| Operating income | 183.0 k | 3.4 m | 4.7 m | 4.6 m | 5.1 m | 5.0 m | 5.9 m | 6.5 m |
| Depreciation & amortisation | 1.2 m | 1.1 m | 1.2 m | 1.1 m | 1.1 m | 1.0 m | 1.1 m | 1.1 m |
| Interest expense | 1.2 m | 1.1 m | 1.0 m | 1.1 m | 913.0 k | 878.0 k | 897.0 k | 909.0 k |
| Pre-tax income | 3.6 m | 2.4 m | 3.6 m | 4.2 m | 4.4 m | 4.3 m | 5.2 m | 5.8 m |
| Income tax | 606.0 k | 910.0 k | 1.4 m | 1.1 m | 1.8 m | 1.6 m | 1.9 m | 2.5 m |
| Net income | 3.0 m | 1.5 m | 2.2 m | 3.1 m | 2.6 m | 2.7 m | 3.3 m | 3.4 m |
| Diluted EPS | 0.06 ≈ | 0.03 | 0.04 | 0.06 | 0.05 ≈ | 0.05 | 0.07 | 0.07 |
| Operating cash flow | 6.6 m | 978.0 k | 11.9 m ≈ | 11.1 m ≈ | 5.1 m | -672.0 k | 5.2 m ≈ | 12.3 m ≈ |
| Capex | 527.0 k | 837.0 k | 842.0 k ≈ | 1.6 m ≈ | 753.0 k | 841.0 k | 513.0 k ≈ | 765.0 k ≈ |
| Dividends paid | 4.5 m | 2.2 m | 2.4 m ≈ | 2.4 m ≈ | 2.2 m | 2.2 m | 2.3 m ≈ | 2.4 m ≈ |
| Share repurchases | 2.2 m | 2.6 m | 2.2 m ≈ | 2.6 m ≈ | 2.0 m | 1.3 m | 0 ≈ | 3.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 35 percentile of its own 31-quarter history (min 11.6, median 30.8, max 223.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 275.8 m | 265.8 m | 249.1 m | 277.8 m | 286.3 m | 291.1 m | 247.6 m | 244.7 m |
| Revenue YoY | +2.3% | −3.6% | −6.3% | +11.5% | +3.0% | +1.7% | −14.9% | −1.2% |
| Net income | 5.7 m | 3.3 m | 2.8 m | 15.5 m | 19.7 m | 6.2 m | 2.8 m | 9.3 m |
| Net income YoY | unavailable | −41.1% | −17.5% | +463.7% | +27.0% | −68.8% | −53.9% | +229.0% |
| Diluted EPS | 0.12 | 0.07 | 0.06 | 0.30 | 0.39 | 0.12 | 0.06 | 0.19 |
| Diluted EPS YoY | unavailable | −41.7% | −14.3% | +400.0% | +30.0% | −69.2% | −50.0% | +216.7% |
| net % | 2.1% | 1.3% | 1.1% | 5.6% | 6.9% | 2.1% | 1.1% | 3.8% |
| Free cash flow | 15.1 m | 18.5 m | 42.8 m | 39.6 m | 7.7 m | 8.8 m | 17.0 m | 25.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 28.7 m USD
- Financial debt
- 59.2 m USD
- Net debt
- 30.5 m USD
- Equity
- 94.7 m USD
- Total assets
- 211.0 m USD
- Debt / equity
- 0.63x
- Current ratio
- 2.34x
- ROE
- 9.8%
- ROA
- 4.5%
- FCF margin
- 10.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 249.1 m | 277.8 m | 286.3 m | 291.1 m | 247.6 m | 244.7 m | SEC (XBRL)· 06 Mar 2026verified |
| Cost of revenue | 149.9 m | 168.5 m | 169.7 m | 178.9 m | 150.3 m | 139.3 m | SEC (XBRL)· 06 Mar 2026verified |
| Gross profit | 99.3 m ≈ | 109.4 m ≈ | 116.6 m ≈ | 112.1 m ≈ | 97.3 m ≈ | 105.4 m ≈ | SEC (XBRL)· 06 Mar 2026derived |
| SG&A | 83.8 m | 78.8 m | 81.8 m | 91.3 m | 85.6 m | 83.1 m | SEC (XBRL)· 06 Mar 2026verified |
| Operating income | 9.3 m | 25.3 m | 29.5 m | 14.6 m | 5.8 m | 17.8 m | SEC (XBRL)· 06 Mar 2026verified |
| Depreciation & amortisation | 6.2 m | 5.3 m | 5.4 m | 6.3 m | 5.9 m | 4.5 m | SEC (XBRL)· 06 Mar 2026verified |
| EBITDA | 15.5 m ≈ | 30.6 m ≈ | 34.8 m ≈ | 20.9 m ≈ | 11.6 m ≈ | 22.3 m ≈ | SEC (XBRL)· 06 Mar 2026derived |
| Interest expense | 3.6 m | 2.3 m | 3.2 m | 6.2 m | 5.8 m | 4.1 m | SEC (XBRL)· 06 Mar 2026verified |
| Pre-tax income | 5.9 m | 23.1 m | 26.7 m | 8.8 m | 5.2 m | 14.5 m | SEC (XBRL)· 06 Mar 2026verified |
| Income tax | 3.1 m | 7.6 m | 7.0 m | 2.6 m | 2.4 m | 5.2 m | SEC (XBRL)· 06 Mar 2026verified |
| Net income | 2.8 m | 15.5 m | 19.7 m | 6.2 m | 2.8 m | 9.3 m | SEC (XBRL)· 06 Mar 2026verified |
| Diluted EPS | 0.06 | 0.30 | 0.39 | 0.12 | 0.06 | 0.19 | SEC (XBRL)· 06 Mar 2026verified |
| Weighted average diluted shares | 50.0 m | 51.8 m | 50.4 m | 50.2 m | 50.0 m | 50.3 m | SEC (XBRL)· 06 Mar 2026verified |
| Dividend per share | — | 0.09 | 0.15 | 0.18 | 0.18 | 0.18 | SEC (XBRL)· 06 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 43.7 m | 47.5 m | 30.6 m | 22.6 m | 23.1 m | 28.7 m | SEC (XBRL)· 06 Mar 2026verified |
| Receivables | 45.5 m | 45.5 m | 47.6 m | — | — | — | SEC (XBRL)· 10 Mar 2023verified |
| Current assets | 114.6 m | 116.1 m | 115.5 m | 112.8 m | 91.3 m | 94.1 m | SEC (XBRL)· 06 Mar 2026verified |
| Property, plant & equipment, net | 5.0 m | 5.3 m | — | — | — | — | SEC (XBRL)· 10 May 2022verified |
| Goodwill | 91.0 m | 90.8 m | 95.0 m | 97.2 m | 87.3 m | 89.4 m | SEC (XBRL)· 06 Mar 2026verified |
| Intangibles (excl. goodwill) | 15.1 m | 12.4 m | 14.4 m | 12.6 m | 3.6 m | 3.3 m | SEC (XBRL)· 06 Mar 2026verified |
| Total assets | 239.5 m | 236.8 m | 243.0 m | 247.3 m | 204.5 m | 211.0 m | SEC (XBRL)· 06 Mar 2026verified |
| Accounts payable | 11.2 m | 16.2 m | 15.9 m | 11.3 m | 9.2 m | 10.1 m | SEC (XBRL)· 06 Mar 2026verified |
| Short-term debt | 4.3 m | 4.3 m | 4.3 m | — | — | — | SEC (XBRL)· 10 Mar 2023verified |
| Long-term debt | 73.6 m | 69.5 m | 74.4 m | 79.2 m | 59.2 m | 59.2 m | SEC (XBRL)· 06 Mar 2026verified |
| Current liabilities | 50.7 m | 56.8 m | 51.2 m | 46.3 m | 38.4 m | 40.2 m | SEC (XBRL)· 06 Mar 2026verified |
| Total liabilities | 140.4 m | 138.4 m | 142.6 m | 145.3 m | 108.2 m | 116.3 m | SEC (XBRL)· 06 Mar 2026verified |
| Equity | 99.1 m † | 98.4 m † | 100.4 m † | 102.1 m † | 96.3 m † | 94.7 m † | SEC (XBRL)· 06 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 44.0 m | 41.9 m | 11.1 m | 12.3 m | 19.9 m | 29.0 m | SEC (XBRL)· 06 Mar 2026verified |
| Capex | 1.2 m | 2.3 m | 3.4 m | 3.4 m | 2.8 m | 4.0 m | SEC (XBRL)· 06 Mar 2026verified |
| Free cash flow | 42.8 m ≈ | 39.6 m ≈ | 7.7 m ≈ | 8.8 m ≈ | 17.0 m ≈ | 25.0 m ≈ | SEC (XBRL)· 06 Mar 2026derived |
| Investing cash flow | -3.5 m | -2.3 m | -6.9 m | -4.4 m | 19.0 m | -4.9 m | SEC (XBRL)· 06 Mar 2026verified |
| Financing cash flow | -15.7 m | -34.1 m | -18.9 m | -16.2 m | -37.9 m | -19.5 m | SEC (XBRL)· 06 Mar 2026verified |
| Dividends paid | — | 4.4 m | 7.5 m | 8.7 m | 9.4 m | 9.2 m | SEC (XBRL)· 06 Mar 2026verified |
| Share repurchases | 5.2 m | 16.3 m | 12.1 m | 3.5 m | 5.6 m | 9.3 m | SEC (XBRL)· 06 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 62 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 289.5 m USD
Key indicators
Coverage and freshness
Score by group
- Valuation69
- Returns88
- Quality75
- Balance sheet74
- Growth0
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.37 – 8.26 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)4.65 – 7.97 (Mid 5.89)WACC 8.3% · starting FCFF 21.2 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -3.8%
- Peers: EV/EBITDA6.20 – 8.26 (Mid 7.99)9 companies used · median multiple 15.4x · quartiles 12.2x – 15.8xACCS, ASTH, BAH, BWMN, FCN, HCKT, HURN, ICFI, ONT
- Peers: P/E3.18 – 5.52 (Mid 4.59)11 companies used · median multiple 19.0x · quartiles 13.2x – 22.8xAERT, BAH, EXPO, FCN, G, HCKT, HURN, ICFI, RMR, TSSI, ZTG
- Dividend discount (DDM)2.37 – 3.18 (Mid 2.71)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 62/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 10.9% | 67 (vs peers) | 10% |
| Net margin · Quality | 4.7% | 64 (vs peers) | 6% |
| FCF conversion · Quality | 158.2% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | -5.1% | 0 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -21.3% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 1.1x | 64 (vs peers) | 10% |
| Interest coverage · Balance sheet | 6.2x | 73 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.8x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 25.2x | 47 (vs peers) | 10% |
| EV/EBITDA · Valuation | 12.0x | 82 (vs peers) | 10% |
| FCF yield · Valuation | 6.6% | 82 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 5.6% | 80 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 48.4% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet74/100 · 3/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality75/100 · 3/3 factors with a value
- Returns88/100 · 2/2 factors with a value
- Valuation69/100 · 3/3 factors with a value
Memo
Information Services Group Inc. (III). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 244.7 m USD in 2025; YoY growth -1.2%; net margin 4.7%; ROE 12.7%; net debt/EBITDA 1.1x.
The estimated value range is 3.92–6.75 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 5.24 USD, the price of 6.08 USD leaves a potential of -13.9% (value / price − 1) and a margin of safety of -16.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 62/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 158.2%
- Interest coverage: 6.2x
- Current ratio: 2.8x
- EV/EBITDA: 12.0x
- FCF yield: 6.6%
- Shareholder yield (distributions): 5.6%
- Payout ratio (FCF): 48.4%
What contradicts it
- Revenue CAGR 3Y: -5.1%
- EPS CAGR 3Y: -21.3%
Versus the vertical median
Services-Management Consulting Services (SIC 8742) · same industry (4-digit SIC) · compared with 33 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BAHBooz Allen Hamilton Holding Corporation | 10.5 bn | 13.7 | 70.0% | 7.1% | −6.4% | +6% / −29% |
| GGenpact Limited | 6.9 bn | 12.1 | 22.4% | 11.1% | +6.6% | −7% / +20% |
| FCNFti Consulting, Inc | 5.4 bn | 24.7 | 15.2% | 5.9% | +2.4% | +22% / −10% |
| EXPOExponent, Inc. | 4.2 bn | 39.2 | 31.2% | 17.7% | +4.2% | +21% / +14% |
| HURNHuron Consulting Group Inc. | 2.7 bn | 25.8 | 25.5% | 6.1% | +11.7% | +5% / +66% |
| ASTHAstrana Health, Inc. | 2.2 bn | 48.3 | 5.1% | 1.1% | +56.4% | +72% / +19% |
| ICFIICF International, Inc. | 1.7 bn | 20.1 | 8.6% | 4.9% | −7.3% | +24% / −31% |
| BWMNBowman Consulting Group Ltd. | 744.2 m | 105.3 | 2.9% | 1.4% | +14.9% | +19% / +39% |
| ONTOnterris, Inc. | 566.4 m | — | -2.5% | -1.4% | +19.3% | −37% / −48% |
| PPHCPublic Policy Holding Company, Inc. | 381.3 m | — | -39.5% | -18.9% | +24.7% | unavailable / unavailable |
| HCKTHackett Group, Inc. | 329.4 m | 19.0 | 20.7% | 6.3% | −2.6% | −28% / −40% |
| IIIInformation Services Group Inc. | 289.5 m | 25.2 | 12.7% | 4.7% | −1.2% | +3% / +41% |
| AERTAeries Technology, Inc. | 282.0 m | 20.9 | — | 3.6% | −0.3% | +35% / −68% |
| RMRRmr Group Inc. | 250.5 m | 12.6 | 8.7% | 3.1% | −22.0% | +10% / −30% |
| SUPXSuperx Ai Technology Limited | 209.8 m | — | -101.8% | -527.7% | +1,878.6% | −84% / unavailable |
| TSSITss, Inc. | 193.3 m | 14.1 | 32.0% | 7.4% | +65.9% | −29% / +1,976% |
| GRNQGreenpro Capital Corp. | 122.4 m | — | -26.8% | -169.6% | −40.7% | −57% / −19% |
| AUCAtif Holdings Limited | 109.4 m | — | -90.5% | -723.7% | −74.7% | −12% / −70% |
| ROMARoma Green Finance Limited | 101.0 m | — | -44.2% | -287.8% | −22.2% | +138% / unavailable |
| RTBRTB Digital, INC. | 92.6 m | — | -141.9% | -198.5% | −38.7% | −49% / −94% |
| MHHMastech Digital, Inc. | 74.9 m | 71.0 | 1.3% | 0.7% | −3.8% | −21% / −27% |
| EGGEnigmatig Ltd | 64.8 m | 268.0 | 6.3% | 12.6% | +12.2% | +40% / unavailable |
| CTMCastellum, Inc. | 46.4 m | — | -6.8% | -4.1% | +18.1% | −53% / +123% |
| ACCLAcco Group Holdings Limited | 34.9 m | 119.0 | 7.0% | 5.6% | +5.8% | −38% / unavailable |
| INTJIntelligent Group Limited | 33.5 m | — | -23.5% | -98.3% | −9.0% | −72% / unavailable |
1- and 3-year price returns: for III from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 3.39 Total return -42% · Per year -42% | 6.02 Total return 2% · Per year 2% | 9.11 Total return 53% · Per year 53% |
| 3 years | 2.69 Total return -50% · Per year -21% | 5.43 Total return -2% · Per year -1% | 9.11 Total return 60% · Per year 17% |
| 5 years | 2.14 Total return -56% · Per year -15% | 4.90 Total return -6% · Per year -1% | 9.11 Total return 68% · Per year 11% |
- Exit P/E± 1.36
- Net margin± 0.95
- Annual revenue growth± 0.86
- Annual dilution± 0.08
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (02 Nov 2026 · results), 10-Q (02 Nov 2026).
In brief
Information Services Group is a global AI-centered technology research and advisory firm serving more than 900 clients with about 1,500 professionals. Its relevance now comes from growth in AI advisory, research and governance platform revenue, against a backdrop of cautious client spending, per its filings 13.
SWOT
Strengths
- The company has a proprietary contract data base and a reputation for independence from vendors.
- Recurring revenue has grown and adds predictability to the top line.
- The GovernX and Tango platforms have brought in new clients and large contracts.
Weaknesses
- Variable-rate debt exposes the firm to higher interest costs and a risk of covenant breaches.
- Revenue declined in fiscal 2025 after the automation unit sale, and personnel costs remain high.
- The business depends on consultant utilization, so shifts in demand can quickly affect results.
Opportunities
- Demand for AI and supplier governance could continue to grow.
- The public sector and the mid-market, reached through Tango, are areas for expansion.
- Strategic acquisitions, such as the Italian one, could quickly widen the firm's presence in specific countries.
Threats
- Clients could build AI capabilities in-house, reducing the need for external consultants.
- Macroeconomic and trade uncertainty may lead clients to postpone projects.
- Evolving AI regulation may impose compliance costs and liability risks.
Risks
- Variable-rate debtmedium
Outstanding debt under the credit facility carries a variable rate, and rising rates could increase debt service costs 1.
- Covenant compliancehigh
If financial performance declines, the firm could breach its leverage and interest coverage covenants, with consequences for liquidity 1.
- AI initiative executionhigh
If AI investments fail to deliver intended results or competitors outpace them, the firm could lose competitiveness 1.
- Acquisition integrationmedium
Acquisitions such as Martino & Partners could face integration difficulties and divert management attention 1.
- Economic slowdown and decision cyclesmedium
If clients' business activity declines, demand for consulting could weaken, affecting revenue and margins 12.
Investment thesis
What would need to be true (bull case)
- Quarterly revenue growth and margin expansion suggest the AI and recurring strategy could sustain growth 3.
- A rising share of recurring revenue and the success of GovernX and Tango could add predictability 1.
- The new buyback authorization and dividend may signal capacity to return capital if cash flows hold up 3.
What would break the thesis
What to watch
- Revenue and adjusted EBITDA margin versus third-quarter guidanceQ3 2026
- Share of recurring revenue and AI consulting in total revenuenext 10-K
- Debt level and compliance with credit covenantsQ3 2026
- Integration of Martino & Partners and rollout of new AI offerings2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (02 Nov 2026 · results), 10-Q (02 Nov 2026).
The business
ISG is a technology research and advisory firm founded in 2006 that helps public and private organizations reduce costs and accelerate innovation. It builds its work on proprietary contract data, provider analysis and digital platforms such as GovernX, Tango and Inform 1. Revenue comes mainly from project-based services billed on time-and-materials or fixed-fee terms, plus a recurring base of subscriptions and multi-year contracts 1.
Total revenues in fiscal 2025 were 244.7 million USD, a slight decline, and about 46% of the total came from recurring revenue 1. The company sold its automation unit in 2024 and acquired Martino & Partners in Italy on September 1, 2025 1. Outstanding debt at December 31, 2025 was 59.2 million USD under a credit facility secured by substantially all assets 1.
Segments
AI consulting and research
Enterprise AI consulting and research represented about 30% of firmwide revenue in fiscal 2025, up from 10% a year earlier, according to the company 1. Offerings cover AI strategy, sourcing, data transformation and agentic AI 1.
Market context
The company operates in the technology and business advisory services market, where public and private clients seek cost reduction, efficiency and modernization of legacy systems 1. The company expects global software spending could exceed 1.4 trillion USD by the end of 2030, with AI as a catalyst 1.
Trends
- AI adoption in sourcing and transformationtailwind
Client adoption of AI technologies is accelerating, which management says increases demand for advisory, research and governance platforms 1. If this demand continues, it could support growth in newer services 3.
- Competition from AI-native firms and large providersheadwind
Competitors, including global consultancies, technology vendors and AI-native firms, could introduce capabilities that exceed ISG's offerings 1. Clients may build AI capabilities in-house, which could reduce demand for its services 1.
- Macroeconomic pressure and cautious budgetsmixed
Global economic conditions could lead clients to reduce or defer consulting spending, and the company acknowledges that a prolonged slowdown could pressure margins 1. However, management signaled a recovery in Europe in the second quarter of 2026 3.
- Public sector modernization needstailwind
Outdated systems and tight budgets at state and local governments may create opportunities for independent advisory, including in procurement and maintenance 1. The company views its neutral advisor position as an advantage 1.
Competitive position
The market is competitive, and the firm faces global consultancies, technology vendors, hyperscalers and AI-native firms, as described in the annual report risk discussion 1. The advantage the company cites is its independence from vendors and its proprietary data base 1.
Competition is intensifying in AI, where a rival that integrates AI more effectively could reduce ISG's ability to win contracts 1. The company focuses on mid-market clients, where Tango offers a cost advantage 1.
- Global consultancies (not named in sources)
The sources cite global consultancies as a competitive force without naming specific firms.
- Technology vendors and hyperscalers
The sources include technology vendors and hyperscalers as potential competitors in AI services.
- Emerging AI-native firms
The sources mention newer AI-native firms that could introduce competing capabilities.
- Outsourcing providers (clients' in-house teams)
Clients could develop capabilities internally, reducing demand for external advisory work.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report02 Nov 2026
- Current report02 Nov 2026Results of operations · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report08 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Current report27 Apr 2026Shareholder vote
- Proxy statement11 Mar 2026
- Annual report06 Mar 2026
- Current report05 Mar 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Information Services Group, Inc. · 06 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Information Services Group, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Information Services Group, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.