ISG Posts Highest Quarterly Revenue Since 2023

The Tip Desk · August 5, 2026 · 2 min read

Second-quarter revenue reached $65.5 million, up 6.4% from a year earlier, as year-over-year growth accelerated from the first quarter's 3% pace.

Information Services Group (III), a global AI-centered technology research and advisory firm, reported second-quarter revenue of $65.5 million, up 6.4% from $61.6 million a year earlier, exceeding its guidance and marking the firm’s highest quarterly revenue since 2023.

That year-over-year rate accelerated from the first quarter, when revenue was $61.2 million and up 3% from a year earlier. Chairman and CEO Michael P. Connors said the quarter completed “an excellent first half.”

Adjusted EBITDA was $9.4 million, up 13% versus the prior year and also above guidance. The adjusted EBITDA margin expanded to 14.3% from 13.5% a year earlier. GAAP net income was $3.3 million, or $0.07 a share, compared with $2.2 million, or $0.04 a share, a year earlier. Adjusted net income was $5.0 million, or $0.10 a share.

Americas revenue was $42.1 million, up 7% on a reported basis, reversing a 3% reported decline in the first quarter. Europe revenue was $18.3 million, up 10% on a reported basis, after 25% reported growth in the first quarter. Asia Pacific revenue was $5.1 million, down 7% on a reported basis, after a 15% reported decline in the first quarter.

Connors said growth was led by Europe and the Americas and that recurring revenues reached a new quarterly high of $30 million, driven by AI-centered research and governance services. Operating income was $5.9 million, compared with $4.7 million in the prior year.

Cash from operations was $5.2 million, compared with using $0.7 million of cash from operations in the first quarter of 2026. The cash balance totaled $23.7 million at June 30, 2026, up from $22.7 million at March 31. During the second quarter the firm paid dividends of $2.3 million and repurchased $1.5 million of shares.

The board authorized an additional $30 million share-repurchase program, which Connors called the single largest expansion of the buyback in the company’s history. Aggregate available authorization rose to $32.3 million; the new authorization takes effect after the current program, which had about $2.3 million remaining as of June 30.

The board also declared a third-quarter dividend of $0.045 a share, payable September 25, 2026.

Connors said ISG is targeting third-quarter revenues between $63.5 million and $64.5 million and adjusted EBITDA of $8.5 million to $9.5 million, which the company said will continue year-over-year growth. Second-quarter guidance had been $62.5 million to $63.5 million of revenue and $8.0 million to $9.0 million of adjusted EBITDA. The company said it continuously monitors the macroeconomic environment, including FX and inflation, and will adjust business plans if needed.