| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 61.18 | 2.7% |
| Total Income | 61.18 | 2.7% |
| Expenditure | 56.17 | 0.0% |
| PBT | 4.32 | 80.0% |
| Net Profit | 2.72 | 82.5% |
| OPM | 8.20% | 2.50pp |
| NPM | 4.44% | 1.94pp |
| EPS | 0.06 | 100.0% |
ISG Announces Q1 2026 Results: Revenue Up 3% to $61.2 Million
08 May 2026 · 8 May, 2:10 am
Summary
Information Services Group (ISG) announced its financial results for the first quarter ended March 31, 2026. The company reported revenues of $61.2 million, a 3% increase from the prior year, and adjusted EBITDA of $8.3 million, up 12%. Revenue growth was primarily driven by Europe, which was up 25%, and recurring revenues, up 9%. ISG signed a multiyear agreement valued at up to $17 million to provide governance services for a top global manufacturer. The company's second-quarter guidance includes revenues between $62.5 million and $63.5 million and adjusted EBITDA between $8.0 million and $9.0 million.
Key Highlights
- 1
Information Services Group reported first-quarter GAAP revenues of $61.2 million, up 3% versus the prior year.
- 2
First-quarter GAAP net income was $2.7 million, up 83%, with GAAP EPS of $0.05, also up 83%.
- 3
Adjusted EPS for the first quarter was $0.09, reflecting a 17% increase.
- 4
The company's first-quarter adjusted EBITDA reached $8.3 million, a 12% increase compared to the prior year.
- 5
ISG signed a historic multiyear contract valued at up to $17 million to support AI-powered reinvention for a top global manufacturer.
- 6
The company declared a second-quarter dividend of $0.045 per share, payable June 26, 2026.
- 7
Second-quarter guidance projects revenues between $62.5 million and $63.5 million and adjusted EBITDA between $8.0 million and $9.0 million.
Management Comments
Michael P. Connors
ISG delivered a strong first quarter, with revenue of $61.2 million, up 3 percent, and adjusted EBITDA of $8.3 million, up 12 percent—both at the top end of guidance—with adjusted EBITDA margins expanding more than 100 basis points from the prior year, to 13.5 percent. Revenue growth was driven primarily by Europe, up 25 percent, and recurring revenues, up 9 percent, as AI continues to be a tailwind for our firm. Adding to our recurring revenue acceleration, we signed the largest single client contract in our history—a multiyear agreement valued at up to $17 million to provide governance services for a top global manufacturer. Clients remain somewhat cautious in the face of current macro and geopolitical conditions and as a result are focusing on cost optimization and preparing for enterprise-scale adoption of AI, which play to ISG strengths. We see current demand trends continuing. ISG is targeting revenues between $62.5 million and $63.5 million and adjusted EBITDA of between $8.0 million and $9.0 million, which will continue our year-over-year growth. We will monitor the macroeconomic environment, including the impact of FX, inflation and other factors, and adjust our business plans accordingly.
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