Key Highlights

  • Sales in the third quarter of 2026 reached $65.1 million, which was 4.4% above the $62.4 million of the year-earlier period.
  • Revenue from AI rose 56% to nearly $34 million, exceeding half of the company's total.
  • A 15.4% Margin accompanied adjusted EBITDA of $10.0 million, which grew 18.7%, and the margin sits almost 200 basis points above the prior level.
  • GAAP Net Income came to $3.4 million, equal to $0.07 a diluted share, against $3.1 million ($0.06), previously.
  • The company expects $64 million to $65 million for the closing quarter, alongside adjusted EBITDA between $9 million and $10 million.

AI-Linked Work Now Generates Over Half of Quarterly Revenue

Results for the three months ending Sep 30, 2026 were published by Information Services Group (NASDAQ:III) on Nov 2, 2026. Top-line sales were $65.1 million, which was 4.4% above the $62.4 million recorded a year earlier. Currency movements contributed roughly $0.2 million.

This global firm provides technology research and advisory services across sourcing, Investment decisions and vendor oversight, with around 1,500 staff. Leadership said the Business moved to an AI-focused model about two years ago.

Revenue linked to AI increased 56%, approaching $34 million and representing over 50% of the total, a threshold leadership had anticipated only later in 2027. Recurring Revenue advanced almost 8% to a record $30.5 million, with research the main driver.

Regional Mix: Asia Pacific Gains 46.8%, Europe 6.2%, Americas Flat

The Americas generated $41.9 million, about unchanged from last year, because certain engagements moved into the fourth quarter. Leadership expects a strong closing quarter there, citing double-digit research growth and momentum in energy and public-sector work.

Europe brought in $17.0 million, a 6.2% advance, and Asia Pacific climbed 46.8% to $6.2 million; management labeled this a return to growth.

For the nine months to Sep 30, 2026, sales came to $191.8 million, up $8.3 million (roughly 5%) from $183.5 million. Consulting utilization reached 74%, a 190-basis-point improvement, with 1,273 employees on staff.

Operating Margin Reaches 9.9% as Adjusted EBITDA Margin Hits a Four-Year Peak

Operating income climbed 40.6%, landing at $6.5 million and pushing Operating Margin to 9.9%, a 255-basis-point gain that management credited to pricing and cost discipline. Adjusted EBITDA expanded 18.7%, landing at $10.0 million and marking eight consecutive quarters with double-digit expansion and the best margin in four years.

On a GAAP basis, net income reached $3.4 million, which is $0.07 per diluted share, up from $3.1 million ($0.06) a year before. Adjusted net income came to $5.0 million, equal to $0.10 a diluted share.

Operating cash flow reached $12.3 million, versus $5.2 million in Q2, and cash finished at $28.6 million, up from $23.7 million three months prior.

Leverage Falls to 1.6 Times as the Board Sets a $0.045 Quarterly Payout

Debt principal stood at $59.2 million, while the gross debt-to-EBITDA multiple came down to 1.6x from 1.9x as of Dec 31, 2025. Borrowing costs averaged 5.4%, an 87-basis-point decrease. In the period, dividends of $2.4 million were paid and $4.3 million of shares were repurchased, leaving about $27.9 million under the buyback program.

Directors approved a $0.045 per-share fourth-quarter dividend, with a Dec 4, 2026 Record Date and Dec 18, 2026 payment. For the closing quarter, the company targets $64 million to $65 million in revenue, while adjusted EBITDA sits between $9 million and $10 million; the delayed Americas engagements are the key item to track.