Information Services Group (III) Q2 2026 earnings summary

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 a margin of 14.3%.

• AI-related revenue surged 64% to $26 million, 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 (+6.4% YoY), Americas $42.1M (+7%), Europe $18.3M (+10%), Asia Pacific $5.1M (-7%).

• Adjusted EBITDA: $9.4 million (+13% YoY), margin up to 14.3%.

• Operating income: $5.9 million (+25.6% YoY), operating margin 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, monitoring macroeconomic factors.

• Asia Pacific expected to return to growth in the second half due to public sector momentum.

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