IIINasdaqServices-Management Consulting ServicesUS GAAP · USD

Information Services Group Inc.

Information Services Group Inc. (ISG) is a U.S.-based technology research and advisory firm focused on helping enterprises and public agencies source, govern, and transform technology services. The company combines proprietary market data, benchmarking, and advisory expertise to support decisions across sourcing, cloud, data analytics, managed governance, and operating model design.

Revenue245m USD
−1.2 %y/y
Operating profit (EBIT)17.8m USD
+209.1 %y/y
EBIT margin7.3%
+4.9 ppy/y
Net income9.3m USD
+229.0 %y/y
Free cash flow25.0m USD
+46.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0100200300m USD2020: 249 m USD2020: EBIT 9.3 m USD20202021: 278 m USD2021: EBIT 25 m USD20212022: 286 m USD2022: EBIT 29 m USD20222023: 291 m USD2023: EBIT 15 m USD20232024: 248 m USD2024: EBIT 5.8 m USD20242025: 245 m USD2025: EBIT 18 m USD202524518
RevenueOperating profit (EBIT)

Business

Share of revenue
Sourcing advisory35 %

Advisory services for outsourcing, vendor selection, benchmarking, and commercial negotiations.

Consulting and transformation25 %

Technology strategy, operating model, and change advisory for enterprise transformation programs.

Research and market intelligence15 %

Proprietary data, benchmarking, and provider ecosystem research used to inform client decisions.

Managed governance and risk services15 %

Ongoing oversight, governance, and risk management support for outsourced and technology environments.

Network and software advisory10 %

Specialized advisory around network, software, and related technology sourcing decisions.

Customers

ISG sells primarily to large enterprises and public-sector organizations that need help reducing technology costs, improving operating efficiency, and managing complex transformation programs. Its private-sector base is concentrated in manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services, while public-sector clients include U.S. state and local governments and government bodies in the U.K., Italy, and Australia.

Large enterprise clients

Buy sourcing, technology, and transformation advisory to reduce cost and improve execution.

Public-sector organizations

Buy modernization, governance, and operating-model support for constrained budgets and legacy systems.

Financial services

Buy advisory for technology sourcing, risk controls, and digital operating model changes.

Manufacturing and industrial clients

Buy transformation and sourcing support to improve efficiency and manage vendor ecosystems.

Health sciences, energy, and consumer services

Buy specialized advisory for technology investment decisions and operational change.

Strategy

ISG is trying to deepen its position in AI-centered advisory by expanding its existing service model, productizing market data, and broadening managed services. Management also emphasizes geographic expansion, new industry verticals, and acquisitions as ways to scale the platform and strengthen the value of its proprietary research and benchmarking assets.

Productize market data assetsMedium term

Turns proprietary research and benchmarking into more scalable offerings and strengthens differentiation.

Expand managed servicesMedium term

Creates stickier client relationships and more recurring revenue opportunities.

Broaden geographic and industry footprintMedium term

Reduces dependence on a narrow set of markets and opens new client budgets.

Acquire and integrate complementary brandsLong term

Adds capabilities and scale in data, analytics, and advisory.

Geography

Q1/2026

ISG operates globally, with business concentrated in the Americas, Europe, and Asia Pacific. In 2025, the Americas accounted for the largest share of revenue, while Europe and Asia Pacific were smaller but important international markets; foreign revenue is generally invoiced and collected in local currency, creating translation exposure.

Americas65 %
Europe28 %
Asia Pacific6.7 %

Share of the revenue the company reports by geography.

Risks

ISG is exposed to cyclical demand for discretionary consulting and sourcing work, so macro weakness or reduced client spending can quickly affect revenue. The business also depends on retaining advisors and protecting proprietary data, while competition, cybersecurity, AI-related threats, and foreign-currency exposure add operational and execution risk.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Advisor and management retention1Cybersecurity and confidential data exposure2Cyclical demand and discretionary spending pressure3Competitive pressure4Foreign exchange and international operating risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Advisor and management retentionImpact: HighLikelihood: Medium

    The service model depends on experienced advisors, analysts, and service leads.

    Exposure: Delivery quality and client relationships

  2. Cybersecurity and confidential data exposureImpact: HighLikelihood: Medium

    The company handles sensitive client and employee information across digital systems.

    ExposureResearch dataClient deliverablesRemote accessThird-party vendors
  3. Cyclical demand and discretionary spending pressureImpact: HighLikelihood: Low

    Clients can delay sourcing and transformation projects when macro conditions weaken.

    Exposure: Enterprise and public-sector advisory budgets

  4. Competitive pressureImpact: MediumLikelihood: Medium

    Independent advisory firms, consultants, and sourcing providers compete on price and expertise.

    Exposure: Sourcing advisory and market intelligence

  5. Foreign exchange and international operating riskImpact: MediumLikelihood: Medium

    A meaningful share of revenue is generated outside the U.S. and collected in local currency.

    Exposure: Europe and Asia Pacific revenue translation

Accounting

Judgemental items
Revenue recognition on mixed contract types

Different contract structures affect when revenue is recorded and how margins appear.

Impact: Quarterly comparability and reported growth

Contingent consideration

Acquisition-related earnouts can create non-cash expense or gains depending on remeasurement.

Impact: Operating expense volatility

Goodwill and intangible assets

Acquisitions may create assets that need impairment testing if performance weakens.

Impact: Potential non-cash write-downs

Stock-based compensation

Equity awards to key employees affect reported compensation expense and retention economics.

Impact: SG&A and advisor cost structure

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026