ISG Adjusted EBITDA Margin Reaches Four-Year High

The Tip Desk · November 2, 2026 · 2 min read

Adjusted EBITDA was $10.0 million in the third quarter, up 19% from a year earlier, as Asia Pacific revenue reversed a second-quarter decline.

Information Services Group (III), a global AI-centered technology research and advisory firm, reported third-quarter GAAP revenue of $65.1 million, up 4.4% from $62.4 million a year earlier, exceeding its guidance. Year-over-year growth slowed from 6.4% in the second quarter. Adjusted EBITDA was $10.0 million, up 19%, also above the company’s outlook.

Adjusted EBITDA margin expanded to 15.4% from 13.5% a year earlier, the highest quarterly margin in four years, and from 14.3% in the second quarter. Operating income was $6.5 million, compared with $4.6 million in the prior-year quarter. GAAP net income was $3.4 million, or $0.07 a share. Adjusted net income was $5.0 million, or $0.10 a share.

Chairman and CEO Michael P. Connors said revenue was driven by a return to growth in Asia Pacific, up 47%, AI-related revenues reaching over $30 million for the first time, and recurring revenues up 7%. Asia Pacific revenue was $6.2 million, reversing a 7% decline in the second quarter. Europe revenue was $17.0 million, up 6%. Americas revenue was $41.9 million, down 1% after a 7% increase in the second quarter.

Cash from operations was $12.3 million, the highest amount in five years. The cash balance totaled $28.5 million at September 30, 2026, up 20% from $23.7 million at June 30. ISG returned $6.9 million to shareholders in the quarter through $4.5 million of share repurchases and $2.4 million of dividends.

The company is targeting fourth-quarter revenues between $64 million and $65 million and adjusted EBITDA of $9 million to $10 million, Connors said, continuing year-over-year growth. That revenue range overlaps the third-quarter guide of $63.5 million to $64.5 million and sits $0.5 million higher at each endpoint. The board declared a fourth-quarter dividend of $0.045 a share, payable December 18, 2026, to shareholders of record as of December 4.