III · Information Services Group, Inc.

Information Services Group, Inc. delivered strong Q1 2026 results with GAAP revenues of $61.2 million, a 3% increase from the prior year, primarily fueled by robust 25% growth in Europe to $17.3 million and 9% rise in recurring revenues, offsetting a 3% decline in Americas to $39.8 million and 15% drop in Asia Pacific to $4.1 million. Adjusted EBITDA rose 12% to $8.3 million, with margins expanding over 100 basis points to 13.5%, reflecting improved operational efficiency amid AI-driven demand. GAAP operating income improved to $5.0 million from $3.4 million, and net income surged 83% to $2.7 million, boosting diluted EPS to $0.05. CEO Michael P. Connors highlighted AI as a tailwind, evidenced by the historic multiyear contract valued at up to $17 million with a top global manufacturer, where ISG will govern $300 million in technology spend across 200 vendors for AI transformation. This deal underscores ISG's positioning in AI advisory and execution. Cash from operations was a $0.7 million use, with cash balance at $22.7 million as of March 31, 2026, after $2.2 million in dividends and $2.1 million share repurchases. For Q2, ISG guides revenues to $62.5-$63.5 million and adjusted EBITDA to $8.0-$9.0 million, signaling continued growth despite cautious client spending on cost optimization and AI adoption. The board declared a $0.045 per share dividend, payable June 26, 2026.