| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 65.49 | 7.0% | 6.4% |
| Total Income | 65.49 | 7.0% | 6.4% |
| Expenditure | 59.63 | 6.2% | 4.8% |
| PBT | 5.24 | 21.3% | 47.2% |
| Net Profit | 3.30 | 21.3% | 51.4% |
| OPM | 8.94% | 0.74pp | 1.37pp |
| NPM | 5.04% | 0.60pp | 1.49pp |
| EPS | 0.07 | 16.7% | 40.0% |
Information Services Group Announces Second-Quarter 2026 Results
06 Aug 2026 · 6 Aug, 2:14 am
Summary
Information Services Group (ISG) reported strong second-quarter 2026 results, with GAAP revenues of $65.5 million, up 6.4% year-over-year, and adjusted EBITDA of $9.4 million, up 13%. GAAP net income increased by 51% to $3.3 million. Management highlighted the strong performance driven by AI-centered research and governance services, leading to an expansion of the share repurchase program and positive outlook for the third quarter.
Key Highlights
- 1
Information Services Group (ISG) reported second-quarter GAAP revenues of $65.5 million, an increase of 6.4% compared to the prior year, surpassing guidance.
- 2
The company announced second-quarter GAAP net income of $3.3 million, a 51% increase year-over-year, with GAAP EPS rising 75% to $0.07 and adjusted EPS up 25% to $0.10.
- 3
Second-quarter adjusted EBITDA reached $9.4 million, marking a 13% increase from the prior year and exceeding guidance.
- 4
ISG declared a third-quarter dividend of $0.045 per share, payable on September 25, 2026.
- 5
The company announced a $30 million expansion of its share repurchase program, the largest in its history.
- 6
ISG provided third-quarter guidance, expecting revenues between $63.5 million and $64.5 million and adjusted EBITDA between $8.5 million and $9.5 million.
Management Comments
Michael P. Connors
ISG had a very strong second quarter, generating our highest quarterly revenue since 2023. We delivered Q2 revenue of $65.5 million, up more than 6 percent; adjusted EBITDA of $9.4 million, up 13 percent, and an adjusted EBITDA margin of 14.3 percent, up more than 80 basis points from the prior year. Our growth this quarter was led by Europe, up 10 percent, and the Americas, up 7 percent, while our recurring revenues reached a new quarterly high of $30 million, driven by our AI-centered research and governance services. This completes an excellent first half for our firm. Given our strong results, our Board of Directors has authorized an additional $30 million in share repurchases, the single largest expansion of our share buyback program in our history. Our unique mix of AI-centered research, advisory and governance services is proving its value in today’s AI-driven market, while our cost optimization and business transformation services continue to be prized by our clients amid uncertain macro conditions. Considering these ongoing demand characteristics, ISG is targeting third-quarter revenues between $63.5 million and $64.5 million and adjusted EBITDA of between $8.5 million and $9.5 million, which will continue our year-over-year growth. We continuously monitor the macroeconomic environment, including the impact of FX, inflation and other factors, and will adjust our business plans, if needed. ISG remains committed to a disciplined capital allocation strategy that consists of reinvesting in our business, returning capital to shareholders via dividends and share repurchases and supplementing our organic growth with strategic acquisitions to drive long-term shareholder value.
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