Information Services Group (III)
NASDAQ:III
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Information Services Group
(NASDAQ:III)
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Rating:68Neutral
Price Target:
$4.50
▲(5.14% Upside)
Action:Reiterated
Date:05/11/26
The score is driven primarily by improving fundamentals (notably stronger leverage and recovering profitability) and a constructive earnings outlook with AI-driven momentum and continued margin expansion. These positives are tempered by weak technical trends (price below key long-term moving averages) and ongoing business consistency risks, including uneven revenue history and regional weakness (especially APAC).
Positive Factors
Balance sheet leverage improvement
ISG's dramatic reduction in leverage to ~0.09 materially strengthens financial flexibility, lowers interest expense risk, and increases capacity to invest in growth initiatives or sustain dividends/repurchases. This durable improvement reduces refinancing risk and supports strategic optionality over months.
Negative Factors
Choppy revenue history
ISG's uneven revenue trajectory—declines in 2023–2025 followed by re-acceleration—indicates demand and project-timing sensitivity. This structural variability complicates capacity planning, weakens forecasting reliability and can pressure margins if fixed costs must be maintained through lumpy project cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet leverage improvement
ISG's dramatic reduction in leverage to ~0.09 materially strengthens financial flexibility, lowers interest expense risk, and increases capacity to invest in growth initiatives or sustain dividends/repurchases. This durable improvement reduces refinancing risk and supports strategic optionality over months.
Read all positive factors
Information Services Group Key Performance Indicators (KPIs)
Information Services Group (III) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$211.93M
Dividend Yield3.03%
Average Volume (3M)227.25K
Price to Earnings (P/E)16.9
Beta (1Y)0.92
Revenue Growth1.41%
EPS Growth39.19%
CountryUS
Employees1,300
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding47,839,275
10 Day Avg. Volume312,710
30 Day Avg. Volume227,254
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 Cap0.93
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda7.88
Forecast
1Y Price Target
$6.00Price Target Upside40.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.22
Revenue Forecast (FY)$251.73M
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call presented more positive developments than setbacks: modest overall revenue growth, continued double‑digit adjusted EBITDA expansion and margin improvement, a sharp acceleration in AI‑related revenue, a record multiyear governance win, strong European performance, and progress toward higher recurring revenue. Weakness was concentrated in Asia Pacific (down 14.7% YoY) and a slight Americas decline, along with a QoQ reduction in cash driven by seasonality and capital returns. Management is constructive on demand and AI as a tailwind but remains cautious on macro uncertainty and is taking a conservative near‑term posture.Positive Updates
Top-of-Guidance Revenue and Year‑Over‑Year Growth
Q1 revenue of $61.2M, up 3% year‑over‑year and at the top end of guidance; company expects Q2 revenue of $62.5M to $63.5M, indicating continued growth momentum.
Negative Updates
Asia Pacific Revenue Decline
APAC revenue of $4.1M, down 14.7% YoY ($700K decline); management expects sequential recovery of ~20% in Q2 based on current pipeline, but APAC remains a weakness year‑over‑year in Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-of-Guidance Revenue and Year‑Over‑Year Growth
Q1 revenue of $61.2M, up 3% year‑over‑year and at the top end of guidance; company expects Q2 revenue of $62.5M to $63.5M, indicating continued growth momentum.
Read all positive updates
Company Guidance
ISG guided Q2 revenue of $62.5–$63.5 million and adjusted EBITDA of $8–$9 million (vs. Q2’25 revenue of $61.6M), signaling continued year‑over‑year growth and margin expansion off a Q1 base of $61.2M revenue (+3% YoY) and $8.3M adjusted EBITDA (+11.8%; 13.5% margin, +111 bps). Management expects Asia‑Pacific to rise ~20% sequentially (Q1 APAC $4.1M → ≈$4.9M), a robust Americas pipeline implying solid Y/Y growth, and sustained strong operating cash flow for the remainder of the year after ending Q1 with $22.7M cash, $0.7M net cash used in ops, headcount ~1,276, consulting utilization 71.5%, gross debt/EBITDA just under 1.8x and an average borrowing rate of 5.4%.Information Services Group Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 246.32M | 244.72M | 247.59M | 291.05M | 286.27M | 277.83M |
| Gross Profit | 100.54M | 100.87M | 97.28M | 112.14M | 116.62M | 109.36M |
| EBITDA | 25.12M | 22.33M | 16.95M | 21.21M | 35.21M | 30.78M |
| Net Income | 10.57M | 9.34M | 2.84M | 6.15M | 19.73M | 15.53M |
Balance Sheet | ||||||
| Total Assets | 202.79M | 211.00M | 204.51M | 247.34M | 243.03M | 236.79M |
| Cash, Cash Equivalents and Short-Term Investments | 22.69M | 28.66M | 23.07M | 22.64M | 30.59M | 47.52M |
| Total Debt | 8.61M | 70.53M | 64.92M | 87.05M | 85.97M | 79.79M |
| Total Liabilities | 108.60M | 116.33M | 108.23M | 145.26M | 142.60M | 138.40M |
| Stockholders Equity | 94.19M | 94.68M | 96.29M | 102.08M | 100.43M | 98.39M |
Cash Flow | ||||||
| Free Cash Flow | 22.41M | 24.99M | 17.03M | 8.84M | 7.72M | 39.62M |
| Operating Cash Flow | 27.36M | 29.01M | 19.86M | 12.27M | 11.15M | 41.94M |
| Investing Cash Flow | -4.94M | -4.94M | 18.99M | -4.43M | -6.87M | -2.32M |
| Financing Cash Flow | -20.25M | -19.55M | -37.91M | -16.20M | -18.94M | -34.13M |
Information Services Group Technical Analysis
Neutral
4.28
Price Trends
4.06
Positive
4.65
Negative
4.98
Negative
Market Momentum
0.05
Negative
62.80
Neutral
81.55
Negative
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 4.28 is above the 20-day moving average (MA) of 4.16, above the 50-day MA of 4.06, and below the 200-day MA of 4.98, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 81.55 is Negative, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $211.93M | 16.88 | 11.20% | 3.03% | 1.41% | 39.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $252.90M | 18.19 | 15.84% | 2.41% | -5.71% | -38.81% | |
56 Neutral | $350.15M | 38.22 | -24.08% | ― | 66.50% | 52.19% | |
47 Neutral | $121.65M | -3.99 | -111.94% | ― | -3.08% | 37.75% | |
47 Neutral | $216.53M | -1.04 | 125.36% | ― | 0.15% | -359.97% | |
46 Neutral | $235.75M | -1.37 | -19.59% | ― | -5.40% | -172.56% |
* Technology Sector Average
III
Information Services Group
4.43
-0.15
-3.34%
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Information Services Group Corporate Events
Executive/Board ChangesShareholder Meetings
Information Services Group Stockholders Approve Governance and Compensation
Positive
Apr 27, 2026
At its April 24, 2026 Annual Meeting of Stockholders, Information Services Group, Inc. reported that approximately 86.22% of outstanding common shares were represented in person or by proxy, ensuring a strong quorum for governance decisions. Stock...
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.