Information Services Group (III) investor relations material

Executive summary

• Q2 2026 revenue reached $65.5 million, up 6.4% year-over-year, led by 10% growth in Europe and 7% in the Americas, while Asia Pacific declined 7%.

• Net income for Q2 2026 was $3.3 million, a 51% increase from the prior year, with diluted EPS of $0.07.

• Adjusted EBITDA grew 13% to $9.4 million, marking the seventh consecutive quarter of double-digit growth and margin expansion to 14.3%.

• AI-related revenue surged 64% to $26 million in Q2, now representing 37% of total revenue for the first half.

• The company expanded its AI and European advisory capabilities through acquisitions of AI Maturity Index and Martino & Partners.

Financial highlights

• Revenue: $65.5 million in Q2 2026, up 6.4% year-over-year, with a $700,000 FX benefit.

• Adjusted EBITDA: $9.4 million, up 13% year-over-year; margin expanded to 14.3%.

• Operating income: $5.9 million, up 25.6% year-over-year; operating margin at 8.9%.

• GAAP net income: $3.3 million ($0.07/share); adjusted net income: $5 million ($0.10/share).

• Cash at quarter end: $23.7 million; net cash from operations: $5.2 million.

Outlook and guidance

• Q3 2026 revenue guidance: $63.5–$64.5 million; adjusted EBITDA: $8.5–$9.5 million.

• Management expects continued year-over-year growth and margin expansion, with strong operating cash flow for the remainder of the year.

• Current cash and operating cash flows are expected to be sufficient for at least the next twelve months.