Information Services Group, Inc. (ISG) reported a slight decline in total revenues for the fiscal year ended December 31, 2025, amounting to $244.7 million, a decrease of approximately 1% from $247.6 million in 2024. The revenue drop was primarily attributed to declines in the Europe and Asia Pacific regions, which were partially offset by growth in the Americas, where revenues increased by 1% to $160.9 million. The company noted that its enterprise AI consulting and research services significantly contributed to growth, now representing about 30% of total revenue, up from 10% the previous year. Net income for 2025 was reported at $9.3 million, compared to $2.8 million in 2024, reflecting improved profitability.
Operating expenses decreased by approximately 6% to $226.9 million, driven by lower costs associated with the automation business, which was divested in 2024, and reduced restructuring costs. The company’s focus on cost management and operational efficiency contributed to this decline. Additionally, ISG's effective tax rate improved to 35.7% from 45.7% in the prior year, benefiting from a favorable mix of earnings across various jurisdictions and the impact of the automation business sale.
Strategically, ISG expanded its capabilities through the acquisition of Martino & Partners, a strategic advisory firm in Italy, which enhances its market presence in the public sector. The company also launched new AI governance solutions and continued to develop its ISG GovernX® and ISG Tango platforms, which are integral to its service delivery model. The ISG Tango platform, in particular, has gained traction, managing over $25 billion in total contract value and attracting more than 50 new clients in 2025.
As of December 31, 2025, ISG employed 1,290 individuals, with a voluntary turnover rate of 11% to 13% over the past three years. The company reported a strong cash position, with $28.8 million in cash and cash equivalents, up from $23.2 million in 2024. This liquidity supports ongoing operations and strategic initiatives, including potential acquisitions. Looking ahead, ISG anticipates continued demand for its AI-driven services and aims to leverage its proprietary data and market intelligence to enhance client offerings and expand its market share. The company remains committed to maintaining a strong financial foundation while pursuing growth opportunities in both existing and new markets.
About Information Services Group Inc.
Information Services Group, Inc. is a global AI-focused technology research and advisory firm providing digital transformation, sourcing, analytics, and risk management services. Serving private and public sector clients worldwide, it leverages proprietary data, market intelligence, and industry expertise to help organizations optimize operations, adopt emerging technologies, and achieve growth through independent, data-driven advice and innovative platforms.
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