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Information Services Group (III) investor relations material
Information Services Group Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue reached $62.4 million, up 8% year-over-year excluding the divested automation unit, driven by strong AI demand and broad-based growth, especially in the Americas and Europe.
Adjusted EBITDA rose 19% to $8.4 million, with margin expansion of 200 basis points to 13.5%.
Net income for Q3 2025 was $3.1 million (GAAP EPS $0.06, adjusted EPS $0.09), up from $1.1 million in the prior year.
AI-related revenue quadrupled to $20 million, and 350 clients were supported with AI advisory and research services, up over 200% year-over-year.
The Martino & Partners acquisition expanded European presence and recurring revenue.
Financial highlights
Americas revenue up 11% to $42.2 million; Europe up 7% to $16 million (excluding automation); Asia-Pacific down 15% to $4.2 million.
Operating income was $4.6 million, up from $4.3 million year-over-year.
Net income was $3.1 million (6 cents per share), up from $1.1 million (2 cents per share) last year.
Adjusted net income was $4.7 million (9 cents per share), up from $2.5 million (5 cents per share) year-over-year.
Cash balance at quarter-end was $28.7 million, up $3.5 million sequentially.
Outlook and guidance
Q4 2025 revenue guidance is $60.5–$61.5 million, with adjusted EBITDA expected to increase 15–20% year-over-year to $7.5–$8.5 million.
Recurring revenue expected to reach $120 million+ in 2026.
Dividend of $0.045 per share declared for Q4, payable December 19, 2025.
Management expects current cash and operations to cover capital and debt needs for at least twelve months.
Anticipates continued margin expansion and growth, driven by AI and operational efficiencies.
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