A Business at a Glance
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Information Services Group Inc.
III
$190M
Mkt Cap
$3.86
+0.52%
Information Services Group Inc. (III) has a current P/E ratio of 20.3, compared to its historical median P/E of 29.7. The stock is currently considered Fair based on its historical valuation range.
Information Services Group Inc. (III) has a 5-year average return on invested capital (ROIC) of 8.7%. This is below average and may indicate limited pricing power.
Information Services Group Inc. (III) has a market capitalization of $190M. It is classified as a small-cap stock.
Yes, Information Services Group Inc. (III) pays a dividend with a trailing twelve-month yield of 4.84%. The company also returns capital through share buybacks, with a buyback yield of 4.89%.
Based on historical P/E analysis, Information Services Group Inc. (III) appears fair. The current P/E of 20.3 is 32% below its historical median of 29.7. The estimated fair value CAGR (P/E method) is 11.3%.
Information Services Group Inc. (III) operates in the Services-Management Consulting Services industry, within the Industrials sector.
Item 1. Business Unless the context otherwise requires, Information Services Group, Inc., the registrant, is referred to in this Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Form 10-K”) as the “Company,” “ISG”, “we,” “us” and “our.” Our Company Information Services Group, Inc. (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its approximately 1,500 professionals worldwide working together to help clients maximize the value of their technology investments. For more information, visit www.isg-one.com.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 245M | 245M | 248M | 291M | 286M | 278M |
| Net Income | 9.3M | 9.3M | 2.8M | 6.2M | 20M | 16M |
| EPS | $0.19 | $0.19 | $0.06 | $0.12 | $0.39 | $0.30 |
| Free Cash Flow | 25M | 25M | 17M | 8.8M | 7.7M | 40M |
| ROIC | 8.4% | 8.5% | 1.8% | 5.1% | 15.1% | 12.9% |
| Gross Margin | 43.1% | 43.1% | 39.3% | 38.5% | 40.7% | 39.4% |
| Debt/Equity | 0.74 | 0.74 | 0.68 | 1.63 | 0.95 | 0.81 |
| Dividends/Share | $0.19 | $0.18 | $0.18 | $0.18 | $0.15 | $0.09 |
| Operating Income | 18M | 18M | 5.8M | 15M | 29M | 25M |
| Operating Margin | 7.3% | 7.3% | 2.3% | 5.0% | 10.3% | 9.1% |
| ROE | 9.9% | 9.8% | 2.9% | 6.1% | 19.8% | 15.7% |
| Shares Outstanding | 49M | 49M | 47M | 51M | 51M | 52M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 210M | 209M | 216M | 270M | 276M | 266M | 249M | 278M | 286M | 291M | 248M | 245M | 245M |
| Gross Margin | 40.8% | 40.4% | 38.9% | 41.9% | 42.0% | 42.4% | 39.8% | 39.4% | 40.7% | 38.5% | 39.3% | 43.1% | 43.1% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 65M | 68M | 79M | 91M | 95M | 93M | 84M | 79M | 82M | 91M | 86M | 83M | 83M |
| EBIT | 13M | 9.6M | -2.6M | 9.2M | 13M | 13M | 9.3M | 25M | 29M | 15M | 5.8M | 18M | 18M |
| Op. Margin | 6.0% | 4.6% | -1.2% | 3.4% | 4.6% | 5.0% | 3.7% | 9.1% | 10.3% | 5.0% | 2.3% | 7.3% | 7.3% |
| Net Income | 6.2M | 4.8M | -6.5M | -2.1M | 5.7M | 3.3M | 2.8M | 16M | 20M | 6.2M | 2.8M | 9.3M | 9.3M |
| Net Margin | 2.9% | 2.3% | -3.0% | -0.8% | 2.1% | 1.3% | 1.1% | 5.6% | 6.9% | 2.1% | 1.1% | 3.8% | 3.8% |
| Non-Recurring | -19K | -3K | 0 | -19K | -66K | -3K | 2.3M | 2.3M | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 11.6% | 8.1% | -4.9% | 3.7% | 7.7% | 5.0% | 3.7% | 12.9% | 15.1% | 5.1% | 1.8% | 8.5% | 8.4% |
| ROE | 14.7% | 11.1% | -12.6% | -3.5% | 8.0% | 4.0% | 2.9% | 15.7% | 19.8% | 6.1% | 2.9% | 9.8% | 9.9% |
| ROA | 4.5% | 3.7% | -3.6% | -0.9% | 2.6% | 1.5% | 1.2% | 6.5% | 8.2% | 2.5% | 1.3% | 4.5% | 4.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 7.0M | 8.3M | 12M | 11M | 19M | 20M | 44M | 42M | 11M | 12M | 20M | 29M | 29M |
| Free Cash Flow | 4.8M | 6.9M | 10M | 8.3M | 15M | 19M | 43M | 40M | 7.7M | 8.8M | 17M | 25M | 25M |
| Owner Earnings | -3.5M | -3.8M | -2.6M | -8.7M | 1.5M | 4.1M | 29M | 30M | -1.7M | -3.1M | 5.9M | 17M | 17M |
| CapEx | 2.2M | 1.4M | 2.4M | 3.2M | 4.0M | 1.9M | 1.2M | 2.3M | 3.4M | 3.4M | 2.8M | 4.0M | 4.0M |
| Maint. CapEx | 7.4M | 7.1M | 7.9M | 13M | 7.8M | 6.7M | 6.2M | 5.3M | 5.4M | 6.3M | 5.9M | 4.5M | 4.5M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 7.4M | 7.1M | 7.9M | 13M | 7.8M | 6.7M | 6.2M | 5.3M | 5.4M | 6.3M | 5.9M | 4.5M | 4.5M |
| CapEx/OCF | 31.0% | 20.2% | 19.1% | 27.7% | 20.9% | 9.4% | 2.7% | 5.5% | 30.7% | 28.0% | 14.2% | N/A | 13.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 5.2M | 0 | 0 | 0 | 0 | 0 | 4.4M | 7.5M | 8.7M | 9.4M | 9.2M | 9.2M |
| Dividend Yield | N/A | 4.1% | N/A | N/A | N/A | N/A | N/A | 1.7% | 2.7% | 3.9% | 5.9% | N/A | 4.8% |
| Share Buybacks | 5.3M | 3.4M | 12M | 2.9M | 3.1M | 3.4M | 5.2M | 16M | 12M | 3.5M | 5.6M | 9.3M | 9.3M |
| Buyback Yield | 3.8% | 3.1% | 10.2% | 1.9% | 1.8% | 3.7% | 4.3% | 4.8% | 6.0% | 1.6% | 3.7% | 0.0% | 4.9% |
| Stock-Based Comp | 3.1M | 5.0M | 7.0M | 7.4M | 9.9M | 9.6M | 8.9M | 6.5M | 7.5M | 9.1M | 8.0M | 7.8M | 7.8M |
| Debt Repayment | 3.4M | 2.6M | 4.9M | 8.5M | 11M | 12M | 8.1M | 4.3M | 4.3M | 827K | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 26M | 32M | 88M | 86M | 79M | 76M | 41M | 32M | 64M | 144M | 42M | 42M | 42M |
| Cash & Equiv. | 28M | 18M | 34M | 28M | 19M | 18M | 44M | 48M | 31M | 23M | 23M | 29M | 29M |
| Long-Term Debt | 49M | 48M | 116M | 99M | 89M | 75M | 74M | 69M | 74M | 79M | 59M | 59M | 59M |
| Debt/Equity | 1.31 | 1.09 | 2.14 | 1.80 | 1.24 | 1.05 | 0.85 | 0.81 | 0.95 | 1.63 | 0.68 | 0.74 | 0.74 |
| Interest Coverage | 5.7 | 5.4 | -1.0 | 1.3 | 1.9 | 2.1 | 2.6 | 10.8 | 9.3 | 2.4 | 1.0 | 4.4 | 4.4 |
| Equity | 41M | 46M | 57M | 64M | 79M | 90M | 99M | 98M | 100M | 102M | 96M | 95M | 95M |
| Total Assets | 134M | 131M | 235M | 225M | 215M | 219M | 240M | 237M | 243M | 247M | 205M | 211M | 211M |
| Total Liabilities | 93M | 84M | 177M | 161M | 136M | 129M | 140M | 138M | 143M | 145M | 108M | 116M | 116M |
| Intangibles | 18M | 14M | 35M | 26M | 21M | 17M | 15M | 12M | 14M | 13M | 3.6M | 3.3M | 3.3M |
| Retained Earnings | -154M | -149M | -156M | -158M | -150M | -147M | -144M | -128M | -109M | -103M | -100M | -91M | -91M |
| Working Capital | 35M | 40M | 54M | 51M | 58M | 59M | 64M | 59M | 64M | 67M | 53M | 54M | 54M |
| Current Assets | 72M | 71M | 106M | 104M | 98M | 100M | 115M | 116M | 115M | 113M | 91M | 94M | 94M |
| Current Liabilities | 37M | 31M | 52M | 53M | 41M | 41M | 51M | 57M | 51M | 46M | 38M | 40M | 40M |
| Per Share Data | |||||||||||||
| EPS | 0.16 | 0.13 | -0.18 | -0.05 | 0.12 | 0.07 | 0.06 | 0.30 | 0.39 | 0.12 | 0.06 | 0.19 | 0.19 |
| Owner EPS | -0.09 | -0.10 | -0.07 | -0.20 | 0.03 | 0.09 | 0.63 | 0.58 | -0.03 | -0.06 | 0.13 | 0.34 | 0.34 |
| Book Value | 1.05 | 1.24 | 1.58 | 1.49 | 1.66 | 1.88 | 2.16 | 1.90 | 1.99 | 1.99 | 2.03 | 1.93 | 1.93 |
| Cash Flow/Share | 0.18 | 0.22 | 0.34 | 0.27 | 0.40 | 0.43 | 0.96 | 0.81 | 0.22 | 0.24 | 0.42 | 0.59 | 0.28 |
| Dividends/Share | 0.14 | 0.14 | N/A | N/A | N/A | N/A | N/A | 0.09 | 0.15 | 0.18 | 0.18 | 0.18 | 0.19 |
| Shares Out. | 38.6M | 37.2M | 36.1M | 42.6M | 47.3M | 47.7M | 45.9M | 51.8M | 50.6M | 51.3M | 47.3M | 49.2M | 49.2M |
| Valuation | |||||||||||||
| P/E Ratio | 22.4 | 22.3 | N/A | N/A | 29.7 | 28.0 | 44.0 | 21.9 | 10.1 | 36.4 | 53.6 | N/A | 20.3 |
| P/FCF | 28.6 | 15.6 | 11.3 | 18.4 | 11.2 | 5.1 | 2.8 | 8.6 | 25.9 | 25.4 | 8.9 | N/A | 7.6 |
| EV/EBIT | 12.9 | 14.6 | N/A | 26.0 | 19.5 | 12.1 | 16.8 | 14.5 | 8.4 | 19.2 | 32.7 | N/A | 13.0 |
| Price/Book | 3.4 | 2.3 | 2.0 | 2.4 | 2.1 | 1.0 | 1.2 | 3.5 | 2.0 | 2.2 | 1.6 | N/A | 2.0 |
| Price/Sales | 0.7 | 0.6 | 0.5 | 0.5 | 0.6 | 0.5 | 0.4 | 0.9 | 0.9 | 0.8 | 0.6 | N/A | 0.8 |
| FCF Yield | 3.5% | 6.4% | 8.9% | 5.4% | 9.0% | 19.8% | 35.3% | 11.6% | 3.9% | 3.9% | 11.2% | N/A | 13.2% |
| Market Cap | 138M | 108M | 113M | 152M | 169M | 94M | 121M | 340M | 200M | 224M | 152M | 0 | 190M |
| Avg. Price | 3.74 | 3.41 | 3.21 | 3.16 | 3.61 | 2.67 | 2.04 | 5.03 | 5.37 | 4.40 | 3.34 | 0.00 | 3.86 |
| Year-End Price | 3.59 | 2.90 | 3.12 | 3.57 | 3.57 | 1.96 | 2.64 | 6.57 | 3.95 | 4.37 | 3.22 | 0.00 | 3.86 |
Information Services Group Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Information Services Group Inc. trades at 20.3x trailing earnings, compared to its 15-year median P/E of 29.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 6.9x vs a median of 11.2x. The company's 5-year average ROIC is 8.7% with a gross margin of 40.2%. Total shareholder yield (dividends + buybacks) is 9.7%. At current prices, the estimated annualized return to fair value is -12.0%.
Information Services Group Inc. (III) reported annual revenue of $245 million in its most recent fiscal year, based on SEC EDGAR filings.
Information Services Group Inc. (III) has a net profit margin of 3.8%. This is a modest margin.
Information Services Group Inc. (III) generated $25 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Information Services Group Inc. (III) has a debt-to-equity ratio of 0.74. This indicates moderate leverage.
Information Services Group Inc. (III) reported earnings per share (EPS) of $0.19 in its most recent fiscal year.
Information Services Group Inc. (III) has a return on equity (ROE) of 9.8%. This indicates moderate shareholder returns.
Information Services Group Inc. (III) has a 5-year average gross margin of 40.2%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for Information Services Group Inc. (III), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Information Services Group Inc. (III) has a book value per share of $1.93, based on its most recent annual SEC filing.