Information Services Group (III)
NASDAQ:III
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Information Services Group
(NASDAQ:III)
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Rating:66Neutral
Price Target:
$4.50
▲(10.57% Upside)
Action:ReiteratedDate:03/07/26
The score is driven mainly by improved fundamentals (deleveraging, stronger cash generation, and profitability rebound) and a constructive earnings outlook with clear AI/recurring revenue momentum. These strengths are tempered by bearish technicals (price below key moving averages with negative MACD) and a relatively high P/E despite a supportive ~4% dividend yield.
Positive Factors
Deleveraging / Balance Sheet Strength
Sharp deleveraging materially reduces financial risk and interest burden, improving flexibility for organic investment, targeted M&A, dividends or buybacks. A low debt-to-equity (~0.10) also enhances resilience to macro shocks and supports multi-quarter execution of strategic initiatives.
Negative Factors
Uneven Revenue Trend
Inconsistent topline progress limits operating-leverage upside and makes multi-period forecasting harder. Reliance on a recovery in demand and successful monetization of AI/platform initiatives is elevated until revenue sustainably exceeds prior peak, constraining long-term margin expansion visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging / Balance Sheet Strength
Sharp deleveraging materially reduces financial risk and interest burden, improving flexibility for organic investment, targeted M&A, dividends or buybacks. A low debt-to-equity (~0.10) also enhances resilience to macro shocks and supports multi-quarter execution of strategic initiatives.
Read all positive factors
Information Services Group (III) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$194.03M
Dividend Yield3.03%
Average Volume (3M)274.46K
Price to Earnings (P/E)29.8
Beta (1Y)0.88
Revenue Growth-5.74%
EPS GrowthN/A
CountryUS
Employees1,300
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.05
Shares Outstanding47,674,340
10 Day Avg. Volume189,612
30 Day Avg. Volume274,457
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)2.94
Price to Sales (P/S)1.14
P/FCF Ratio11.14
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit2.35
Enterprise Value/Ebitda10.60
Forecast
1Y Price Target
$6.00Price Target Upside47.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.22
Revenue Forecast (FY)$251.59M
Information Services Group Business Overview & Revenue Model
Company Description
Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automation, cloud...
How the Company Makes Money
ISG primarily makes money by selling professional services and subscription-style research products to enterprise and public-sector clients seeking support with IT and business-process sourcing and transformation. Key revenue streams generally inc...
Information Services Group Key Performance Indicators (KPIs)
Information Services Group Earnings Call Summary
Earnings Call Date:Jan 15, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
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.Positive Updates
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.
Negative Updates
Asia Pacific Revenue Weakness
Asia Pacific Q4 revenue was $3.9 million, down $1.1 million YoY. Management expects APAC to be back-half weighted and cited the need for public-sector spending to reignite growth.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
ISG guided next-quarter revenues of $60.5–$61.5 million and adjusted EBITDA of $7.5–$8.5 million, calling for continued year‑over‑year growth; for context, Q4 revenue was $61.2M (+6% YoY) with adjusted EBITDA $8.1M (+24%) and an EBITDA margin of 13.2% (≈+190 bps). For the full year ISG reported $245M revenue (+7%), adjusted EBITDA >$32M (+28%) with a 13.2% margin (+300 bps), operating cash flow $29M (+46%), recurring revenues $112M (46% of total), AI‑related revenue ~35% of Q4 (~30% for the year, 3x 2024), ISG Tango TCV >$25B (up from $7B), headcount 1,290, Q4 consulting utilization 69% (FY 73%), cash $28.7M, gross debt/EBITDA ~1.9x, average borrowing rate 5.8%, and recent capital actions including $2.2M of dividends paid and $2.3M of share repurchases.Information Services Group Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
73
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 244.72M | 247.59M | 291.05M | 286.27M | 277.83M |
| Gross Profit | 100.87M | 97.28M | 112.14M | 116.62M | 109.36M |
| EBITDA | 22.33M | 16.95M | 21.21M | 35.21M | 30.78M |
| Net Income | 9.34M | 2.84M | 6.15M | 19.73M | 15.53M |
Balance Sheet | |||||
| Total Assets | 211.00M | 204.51M | 247.34M | 243.03M | 236.79M |
| Cash, Cash Equivalents and Short-Term Investments | 28.66M | 23.07M | 22.64M | 30.59M | 47.52M |
| Total Debt | 70.53M | 64.92M | 87.05M | 85.97M | 79.79M |
| Total Liabilities | 116.33M | 108.23M | 145.26M | 142.60M | 138.40M |
| Stockholders Equity | 94.68M | 96.29M | 102.08M | 100.43M | 98.39M |
Cash Flow | |||||
| Free Cash Flow | 24.99M | 17.03M | 8.84M | 7.72M | 39.62M |
| Operating Cash Flow | 29.01M | 19.86M | 12.27M | 11.15M | 41.94M |
| Investing Cash Flow | -4.94M | 18.99M | -4.43M | -6.87M | -2.32M |
| Financing Cash Flow | -19.55M | -37.91M | -16.20M | -18.94M | -34.13M |
Information Services Group Technical Analysis
Neutral
4.07
Price Trends
4.49
Negative
5.06
Negative
5.04
Negative
Market Momentum
-0.15
Negative
47.65
Neutral
76.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For III, the sentiment is Neutral. The current price of 4.07 is above the 20-day moving average (MA) of 3.91, below the 50-day MA of 4.49, and below the 200-day MA of 5.04, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for III.
Information Services Group Risk Analysis
Information Services Group disclosed 40 risk factors in its most recent earnings report. Information Services Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Information Services Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $194.03M | 29.80 | 9.87% | 3.03% | -5.74% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $310.23M | -10.17 | -31.77% | ― | 17.44% | 41.97% | |
52 Neutral | $332.74M | 42.13 | 12.82% | 2.41% | 0.68% | -67.84% | |
46 Neutral | $118.01M | -0.25 | -85.51% | ― | -5.70% | 94.70% | |
45 Neutral | $149.72M | 2.63 | 126.78% | ― | -4.93% | 18.65% | |
44 Neutral | $221.23M | -1.68 | -20.84% | ― | -12.45% | -142.77% |
* Technology Sector Average
III
Information Services Group
4.07
0.59
17.09%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.