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Information Services Group (III)
NASDAQ:III
Earnings Data
Report Date
Apr 16, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.04Last Year’s EPS
0.03Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized multiple clear positives: solid top-line growth, meaningful margin expansion, strong cash generation, improved leverage, and rapid adoption of AI services (AI revenue rising to ~30% of full-year revenue and ~35% in Q4). Platform momentum (ISG Tango) and targeted AI investments/acquisitions underpin a credible growth strategy. The primary negatives were concentrated regionally (Asia Pacific weakness), some GAAP EPS comparability noise due to prior-year divestiture gains, and short-term pipeline timing risk driven by macro uncertainty. On balance, operational and strategic positives—particularly around AI and recurring revenue—outweigh the contained challenges, supporting a positive outlook for 2026 execution.Company Guidance
Top-line Growth and Guidance
Q4 revenue of $61.2 million, up 6% year-over-year and at the top end of guidance; full-year revenue $245 million, up 7% YoY. Management provided Q1 guidance of $60.5M–$61.5M revenue and adjusted EBITDA of $7.5M–$8.5M, signaling expected continued YoY growth.
Strong Profitability Expansion
Q4 adjusted EBITDA of $8.1 million, up 24% YoY (from $6.5M) with EBITDA margin of 13.2% (+189 basis points YoY). Full-year adjusted EBITDA exceeded $32 million, up 28% YoY, with full-year margin of 13.2% (+300 basis points YoY).
Robust Cash Generation and Improved Leverage
Full-year operating cash flow of $29 million, up 46% YoY. Year-end cash of $28.7 million (up $5.6M YoY). Gross debt-to-EBITDA fell to just under 1.9x from 2.4x a year earlier and average borrowing rate declined to 5.8% (down 125 bps YoY).
Recurring Revenue Mix Strength
Full-year recurring revenues of $112 million, representing 46% of total revenue. Q4 recurring revenues grew 13% YoY, led by research and platform businesses (notably government services).
Rapid AI Revenue Adoption
AI-related services accounted for nearly 35% of Q4 revenues and ~30% for the full year — reported as a 3x increase from 2024 — demonstrating meaningful momentum in AI-centered transformation services.
Platform and Product Momentum (ISG Tango)
ISG Tango platform now runs more than $25 billion of total contract value (TCV), up from $7 billion the prior year (roughly a 3.6x increase). Platform adoption includes meaningful mid-market penetration (management noted ~25–30% mid-market share of flow).
Strategic AI Investments and M&A
Acquisition of the AI Maturity Index platform and formation of a dedicated AI acceleration unit led by the Chief AI Officer. Management remains active in M&A conversations, prioritizing assets that increase recurring revenue and AI capabilities.
Regional Wins and Large Client Engagements
Europe Q4 revenue up 28% to $19.1M; Americas delivered $38.3M in Q4 and full-year Americas up 11% (best since 2021). Notable client wins include multimillion-dollar transformation and sourcing engagements (examples: consumer products client targeting 40% operating cost reduction, a U.S. hospital network engagement delivering >$130M savings).
III Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
III Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 15, 2026 | $6.01 | $6.01 | 0.00% |
Nov 03, 2025 | $5.40 | $5.95 | +10.16% |
Aug 06, 2025 | $4.11 | $4.08 | -0.71% |
May 08, 2025 | $3.85 | $4.47 | +16.02% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Information Services Group (III) report earnings?
Information Services Group (III) is schdueled to report earning on Apr 16, 2026, Before Open (Confirmed).
What is Information Services Group (III) earnings time?
Information Services Group (III) earnings time is at Apr 16, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is III EPS forecast?
III EPS forecast for the fiscal quarter 2026 (Q1) is 0.04.