Tuesday, November 04, 2025
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q25. Operating performance in 3Q25 exceeded expectations. Revenue came in at $62.4 million, up 1.8% y-o-y and up 8.8% excluding divested operations. Adjusted EBITDA grew 19% to $8.4 million and adjusted EBITDA margin expanded nearly 200 basis points to 13.5%, again ex divested ops. ISG reported GAAP net income of 3.1 million, or EPS of $0.03/sh, compared to $1.1 million, or EPS of $0.02/sh, last year. Adjusted EPS was $0.09 versus $0.05 last year.
AI and Recurring Revenue. Management noted revenue derived from AI-related activities accounted for some $20 million of overall revenue in the quarter. Recurring revenue was $28 million, up 9% year-over-year, representing 45% of overall revenue. We expect both AI-related revenue and overall recurring revenue to increase going forward.
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