Information Services Group, Inc. (ISG) reported a revenue increase of 6% for the second quarter of 2026, reaching $65.5 million compared to $61.6 million in the same period of 2025. For the first half of 2026, revenues totaled $126.7 million, up from $121.1 million year-over-year. The company's net income for the second quarter was $3.3 million, or $0.07 per diluted share, compared to $2.2 million, or $0.04 per diluted share, in the prior year. For the six months ended June 30, 2026, net income was $6.0 million, reflecting a significant increase from $3.7 million in the same period of 2025.
Operating expenses for the second quarter rose to $59.6 million, a 5% increase from $56.9 million in the previous year. This rise was primarily driven by a $4.3 million increase in bad debt expense and higher compensation costs. However, direct costs associated with advisors decreased by 6% to $33.5 million. The company also reported a foreign currency transaction gain of $0.3 million, which contributed positively to its financial performance.
Strategically, ISG has made significant moves, including the acquisition of AI Maturity Index, a SaaS platform aimed at enhancing AI readiness among organizations, for a total consideration of $750,000. This acquisition is expected to bolster ISG's AI-related offerings. Additionally, the company completed the acquisition of Martino & Partners in September 2025, further expanding its capabilities in the European market. As of June 30, 2026, ISG's employee headcount stood at approximately 1,500, maintaining its workforce to support its growing service offerings.
Geographically, revenue growth was notable in the Americas, which saw a 7% increase to $42.1 million, while Europe experienced a 10% rise to $18.3 million. However, revenue from the Asia Pacific region declined by 7% to $5.1 million. The company reported a total of $121.4 million in remaining performance obligations as of June 30, 2026, indicating a strong pipeline of future revenue.
Looking ahead, ISG anticipates continued growth driven by its strategic initiatives and market demand for its services. The company remains focused on expanding its service model, geographic reach, and product offerings while navigating potential challenges such as global economic conditions and competition. The board has also approved a third-quarter dividend of $0.045 per share, reflecting the company's commitment to returning value to shareholders.
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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