Information Services Group (III) Small-Cap Virtual Conference summary

Company overview and market positioning

• Operates as a global AI-centered technology research and advisory firm with 1,600 professionals in 20 countries, focusing on large enterprises and technology-driven operational excellence.

• Holds a proprietary database sourced from client engagements, technology provider data exchanges, and public sources, influencing over $200 billion in enterprise spend annually.

• Offers a broad array of advisory services, including AI, benchmarking, cost optimization, and governance, with sourcing as the largest segment.

• Maintains strong client retention, with 80% of revenue recurring from existing clients and 45% as contracted recurring revenue.

• Recognized as an authoritative industry voice, hosting quarterly index calls and maintaining low employee turnover through a flexible, virtual work model.

AI strategy and platform innovation

• Pivoted to an AI-centered approach, advising clients on AI strategy, sourcing, and ecosystem navigation, with significant enterprise AI adoption expected by 2030.

• Integrates AI into research, client advisory, and proprietary platforms, notably ISG Tango, which accelerates sourcing processes and enhances data transparency.

• ISG Tango standardizes sourcing, reduces cycle times by up to 20%, and improves margin and talent utilization for both clients and technology providers.

• AI-driven platforms and patented intelligent contracting support efficiency and margin growth.

• Competitive landscape includes Gartner in research and benchmarking, audit firms in advisory, and internal procurement departments as primary competitors.

Financial performance and growth strategy

• Growth plan targets upper single-digit revenue growth and EBITDA growth at 1.5x revenue, with recurring revenue aiming for 50%.

• Achieved 7% revenue growth and 17% EBITDA growth in the first half of 2025, driven by platform innovation and operational efficiency.

• Maintains a balanced capital allocation strategy, including dividends, share buybacks, and selective M&A, with a focus on recurring revenue and technology capabilities.

• Recent acquisition in Italy expands public sector presence and recurring revenue, aligning with long-term digital transformation trends.

• Strong balance sheet with gross debt at $59 million and net debt at $34 million, maintaining leverage at the lower end of the target range.