Information Services Group Inc
NASDAQ:III
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Information Services Group Inc
Information Services Group, Inc. engages in the provision of sourcing advisory services. The company is headquartered in Stamford, Connecticut and currently employs 1,335 full-time employees. The company went IPO on 2007-02-01. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis. The company supports both private and public sector organizations to transform and optimize their operational environments. The company provides an operating model, ISG NEXT, which offers solutions to businesses such as digital transformation and digital investments. The company has two global client solution areas: ISG Digital, which is focused on developing technology, transformation, sourcing and digital solutions for clients, and ISG Enterprise, which is focused on helping clients manage change and optimize operations in various areas. The firm's geographical segments include Americas, Europe, and Asia Pacific.
Information Services Group, Inc. engages in the provision of sourcing advisory services. The company is headquartered in Stamford, Connecticut and currently employs 1,335 full-time employees. The company went IPO on 2007-02-01. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis. The company supports both private and public sector organizations to transform and optimize their operational environments. The company provides an operating model, ISG NEXT, which offers solutions to businesses such as digital transformation and digital investments. The company has two global client solution areas: ISG Digital, which is focused on developing technology, transformation, sourcing and digital solutions for clients, and ISG Enterprise, which is focused on helping clients manage change and optimize operations in various areas. The firm's geographical segments include Americas, Europe, and Asia Pacific.
Strong Quarter: ISG reported Q3 revenue of $62.4 million, up 8% year-over-year, driven by sustained AI demand and strong performance in the Americas and Europe.
AI Momentum: AI-related revenue reached $20 million in Q3, four times higher than last year, as clients increasingly utilize ISG for AI expertise.
Profitability: Adjusted EBITDA rose 19% to $8.4 million, with a 200 basis point margin expansion to 13.5%.
Cash Generation: Operating cash flow was $11.1 million in the quarter; the company delivered $23 million in operating cash flow over the last two quarters.
Outlook Raised: Q4 guidance targets revenue of $60.5–$61.5 million and adjusted EBITDA growth of 15–20% year-over-year, continuing margin expansion.
Europe Returns to Growth: European revenues were up 7%, marking the first growth in two years, led by major AI transformation projects.
Recurring Revenue: Recurring revenues were $28 million, up 9% year-over-year, representing 45% of total revenue.
Balance Sheet Improvement: Gross debt-to-EBITDA ratio declined to 1.95x and cash rose to $28.7 million.