Information Services Group

III · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

III · Last close · November 6, 2026

$5.92

Value Information Services Group yourself

Information Services Group's revenue fell 1.2% to $245 million in fiscal 2025. Its operating margin was 7.3%, up from 2.3% a year earlier. Free cash flow was $25 million, up 46.7%. It paid out $18 million in dividends and buybacks, 74% of free cash flow. The diluted share count rose 0.6%.

Information Services Group Inc. Latest fiscal year ended December 31, 2025 10-K filed March 6, 2026 · 0001104659-26-024573 Updated November 7, 2026

Revenue

$245M

1.2%

Operating margin

7.3%

4.9 pts

Net income

$9M

229.0%

Free cash flow

$25M

46.7%

Return on capital

8.9%

6.7 pts

Market cap

$299M

Nov 6 close

P/E

23.7x

On $0.25 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Information Services Group does

Information Services Group, known as ISG, is a technology research and advisory firm based in Stamford, Connecticut. It advises companies and public-sector bodies on sourcing technology and business services, cloud and data analytics, managing outside providers and risk, network and software choices, technology strategy, and change management. It was founded in 2006 and says it serves more than 900 clients.

Its work is supported by ISG Research, which publishes market analyses and provider evaluations, and by its own digital platforms for managing suppliers, benchmarking operations and speeding up sourcing decisions. It says it tracks over 180,000 technology service contracts. Some of its engagements are fixed-fee or capped-fee, and some pay only on contingent results. Clients are mainly in manufacturing, banking and financial services, insurance and health sciences, plus government.

ISG operates in over 20 countries. On December 31, 2025, it employed 1,290 people worldwide, of whom 1,254 were full-time.

Its biggest risks, as it describes them

Failing to meet the covenants in its credit agreement, and interest costs on variable-rate debt.
Acquisitions that are hard to integrate, and the risks of selling businesses.
Clients can end, delay or shrink its engagements at any time.
Losing money on fixed-fee or capped-fee contracts, and swings from contingent-fee work.
Its AI efforts may not succeed and carry legal and operational risks.

From Information Services Group's annual report on Form 10-K, filed March 6, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2018 to 2025, earnings per share grew 6.8% a year and net income 7.2% a year, as new shares raised the share count by 9% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	48	31	23	23	29
Debt incl. finance leases	74	79	79	59	59
Net debt (negative means net cash)	27	48	57	36	31
Net debt to EBITDA	0.9x	1.4x	2.7x	3.1x	1.4x
Debt to equity	0.8x	0.8x	0.8x	0.6x	0.6x
Interest coverage	10.8x	9.3x	2.4x	1.0x	4.4x
Current ratio	2.0x	2.3x	2.4x	2.4x	2.3x
Quick ratio	2.0x	2.3x	2.4x	2.4x	2.3x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Information Services Group's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Information Services Group's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Information Services Group shares on the open market, and 2 insiders sold $5.3 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Dec 15, 2025	Chevrillon & Associes10% owner	Sold	200,000	$5.95	$1.2 million	Form 4
Dec 11, 2025	Chevrillon & Associes10% owner	Sold	250,000	$6.06	$1.5 million	Form 4
Nov 12, 2025	Michael P ConnorsChairman & CEO, Director, 10% owner	Sold	66,196	$5.26	$348,191	Form 4
Nov 11, 2025	Michael P ConnorsChairman & CEO, Director, 10% owner	Sold	100,096	$5.21	$521,500	Form 4
Nov 10, 2025	Michael P ConnorsChairman & CEO, Director, 10% owner	Sold	78,476	$5.22	$409,645	Form 4
Nov 7, 2025	Michael P ConnorsChairman & CEO, Director, 10% owner	Sold	248,935	$5.47	$1.4 million	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	6 of 9	6 of 9	6 of 9
Rule of 40	4.7%	−8.1%	9.1%
Altman Z''	1.55	1.23	1.70
Accruals ratio	−2.5%	−7.5%	−9.5%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Pass	Pass	Fail
Gross margin rose	Fail	Pass	Pass
Revenue rose relative to assets	Fail	Fail	Pass
F-score	6 of 9	6 of 9	6 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put Information Services Group side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Information Services Group	FY25	−1.2%	7.3%	10.2%	8.9%	1.4x	6
TSS	FY25	65.9%	2.6%	0.9%	—	−9.1x	5	Compare
Innodata	FY25	47.6%	15.8%	14.2%	—	—	—	Compare
Hackett Group	FY25	−2.6%	7.7%	10.6%	11.8%	2.0x	5	Compare
Grid Dynamics Holdings	FY25	17.5%	−0.5%	6.1%	—	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	—	270	276	266	249	278	286	291	248	245
Revenue growth	—	—	2.3%	−3.6%	−6.3%	11.5%	3.0%	1.7%	−14.9%	−1.2%
Gross profit	—	—	116	113	99	109	117	112	97	105
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	−3	9	13	13	9	25	30	15	6	18
Net income	−6	−2	6	3	3	16	20	6	3	9
Diluted EPS (US$)	−0.18	−0.05	0.12	0.07	0.06	0.30	0.39	0.12	0.06	0.19
Diluted shares (millions)	37	43	46	48	50	52	50	50	50	50
Cash flow
Cash from operations	12	11	19	20	44	42	11	12	20	29
Capital expenditure	2	3	4	2	1	2	3	3	3	4
Free cash flow	10	8	15	19	43	40	8	9	17	25
Dividends paid	0	0	0	0	0	4	8	9	9	9
Share buybacks	12	3	3	3	5	16	12	4	6	9
Acquisitions	55	1	0	0	2	0	0	1	0	2
Stock-based compensation	7	7	10	10	9	6	8	9	8	8
Balance sheet at fiscal year end
Cash and short-term investments	34	28	19	18	44	48	31	23	23	29
Debt incl. finance leases	122	114	98	86	78	74	79	79	59	59
Total assets	235	225	215	219	240	237	243	247	204	211
Total liabilities	177	161	136	129	140	138	143	145	108	116
Shareholders' equity	57	64	79	90	99	98	100	102	96	95
Margins and ratios
Gross margin	—	—	42.0%	42.4%	39.8%	39.4%	40.7%	38.5%	39.3%	43.1%
Operating margin	—	3.4%	4.6%	5.0%	3.7%	9.1%	10.3%	5.0%	2.3%	7.3%
Net margin	—	−0.8%	2.1%	1.3%	1.1%	5.6%	6.9%	2.1%	1.1%	3.8%
Free cash flow margin	—	3.1%	5.5%	7.0%	17.2%	14.3%	2.7%	3.0%	6.9%	10.2%
Rule of 40 (growth + FCF margin)	—	—	7.8%	3.3%	10.9%	25.8%	5.7%	4.7%	−8.1%	9.1%
Return on capital	−1.8%	3.1%	7.7%	4.2%	3.2%	13.1%	15.9%	6.7%	2.1%	8.9%
Return on equity	−12.4%	−3.5%	8.0%	4.0%	2.9%	15.7%	19.8%	6.1%	2.9%	9.8%
Return on assets	−3.5%	−0.9%	2.6%	1.5%	1.2%	6.5%	8.2%	2.5%	1.3%	4.5%
Net debt to EBITDA	16.6x	3.9x	3.9x	3.4x	2.2x	0.9x	1.4x	2.7x	3.1x	1.4x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Information Services Group's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Information Services Group.