ISG Reports Stable Revenue, Largest-Ever Contract

Technology research and advisory firm Information Services Group (ISG) has reported first quarter revenue up 3% to $61.2 million, and adjusted EBITDA of $8.3 million, up 12%. However, revenue was flat on a constant currency basis, and the firm has made acquisitions.

ISG is headquartered in Stamford, CT and was founded in 2006-7 by former Nielsen / VNU man Michael P. Connors. The firm provides services including digital transformation and other change management, sourcing advisory, strategy and operations design, market intelligence, technology research and analysis. Headcount appears to have fallen slightly during the year from around 1,600 to around 1,500.

Reported revenue rose only in Europe, but rose here very strongly - up 25% to $17.3 million. In the Americas, revenues were down 3% reported to $39.8 million, and in Asia Pacific $4.1 million, down 15%. Unusually, the firm's published financials do not include like-for-like or organic growth figures, and ISG has acquired Italian strategic advisory firm Martino & Partners and corporate readiness measure the AI Maturity Index, during the past twelve months, presumably adding significantly to Q1 2026 revenue.

Chairman and CEO Connors (pictured) points to a number of positive factors: recurring revenues rose nine percent; AI adoption continues to be a tailwind for the company; and since the beginning of the year ISG has signed 'the largest single client contract in its history' - a multiyear agreement valued at up to $17 million to provide governance services for a top global manufacturer. He states: 'Under this landmark contract, ISG will manage $300 million in global technology spend with 200 technology vendors to support a large-scale, multiyear AI-powered transformation. '

Looking ahead, Connors says clients 'remain somewhat cautious in the face of current macro and geopolitical conditions', but the resulting focus on cost optimization and preparation for enterprise-scale adoption of AI are a plus for the company. ISG is targeting revenues between $62.5 million and $63.5 million and adjusted EBITDA of between $8.0 million and $9.0 million for the second quarter.

The firm is on the web at www.isg-one.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.