Information Services Group Inc. SEC 10-Q Report

Information Services Group Inc. (ISG), a leading global technology research and advisory firm, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial and operational performance, showcasing growth in key areas despite challenges in certain regions.

Financial Highlights

Revenues: $62.4 million, increased by $1.1 million or approximately 2% compared to the third quarter of 2024, driven by growth in the Americas and offset by declines in Europe and Asia Pacific.

Operating Income: $4.6 million, reflecting an increase from $4.3 million in the third quarter of 2024, primarily due to cost management and efficiency improvements.

Net Income: $3.1 million, up from $1.1 million in the third quarter of 2024, attributed to higher operating income and lower interest expenses.

Basic Earnings Per Share: $0.06, compared to $0.02 in the third quarter of 2024, reflecting improved profitability.

Diluted Earnings Per Share: $0.06, compared to $0.02 in the third quarter of 2024, indicating enhanced earnings performance.

Business Highlights

Geographical Performance:

• The Americas region saw a 5% increase in revenue for the third quarter of 2025, driven by growth in the Network & Software (NaSa), GovernX, and Consulting service lines.
• Europe experienced a 1% decline, primarily due to the prior year's sale of the Automation service line, although excluding this, revenues would have been up 7%.
• Asia Pacific saw a 15% decrease, attributed to declines across all service lines.

For the nine months ended September 30, 2025:

• The Americas region's revenue increased by 1%, with significant growth in Consulting and NaSa service lines, offset by the prior year's Automation service line sale.
• Europe and Asia Pacific saw declines of 12% and 10%, respectively, with Europe impacted by the Automation sale and lower NaSa and GovernX revenues, while Asia Pacific faced decreases in Consulting and NaSa.

Operational Expenses:

• Total operating expenses increased by 1% in Q3 2025 compared to Q3 2024, primarily due to a prior year's contingent consideration adjustment and increased contractor labor costs, offset by reductions in automation license fees, stock-based compensation, and acquisition-related costs.
• For the nine months ended September 30, 2025, operating expenses decreased by 7%, driven by lower automation license fees, restructuring costs, and compensation expenses, partially offset by higher legal reserves and travel expenses.

Future Outlook: The company anticipates that current cash and ongoing cash flows from operations will be adequate to meet working capital, capital expenditure, and debt financing needs for at least the next twelve months. The company is focused on strengthening its market position, developing new services, expanding geographically, and growing through acquisitions. Additionally, ISG is evaluating the impacts of the 'One Big Beautiful Bill Act' on its financial statements and is focused on leveraging AI to help organizations achieve operational excellence and faster growth.

SEC Filing: Information Services Group Inc. [ III ] - 10-Q - Nov. 03, 2025