ISG Posts 6% Q4 Revenue Growth to $61.2M, EBITDA Up 24%
Information Services Group reported Q4 2025 revenue of $61.2M, hitting guidance and rising 6% year-over-year, driven by a 28% surge in European sales and a 13% increase in recurring revenues. Adjusted EBITDA climbed 24% to $8.1M, while full-year cash from operations jumped 46% to support its AI strategy.
1. Q4 Financial Performance
Information Services Group delivered Q4 2025 GAAP revenue of $61.2 million, reaching the top end of its guidance and marking a 6% increase year-over-year. The company’s adjusted EBITDA rose 24% to $8.1 million, with margins expanding roughly 200 basis points, while recurring revenues climbed 13%.
2. AI Strategy and Acquisition
ISG expanded its AI-focused client base to over 350 enterprises, a threefold increase from the prior year, and acquired the AI Maturity Index benchmarking platform in January. Its proprietary sourcing platform, ISG Tango, now processes more than $25 billion in contract value, underscoring a shift toward AI-powered advisory services.
3. Guidance and Outlook
For Q1 2026, ISG set revenue guidance between $60.5 million and $61.5 million, with adjusted EBITDA projected at $7.5 million to $8.5 million. Full-year 2025 cash from operations rose 46% to bolster investment in AI research and advisory offerings despite an uncertain macroeconomic environment.