Information Services Group slightly beats Q1 revenue estimates

Information Services

07/05/2026 21:48

Overview

US AI technology advisory firm's Q1 revenue rose 3%, slightly beating analyst expectations

Adjusted net income and adjusted EBITDA for Q1 both beat analyst expectations

Company signed largest-ever client contract, a multiyear deal valued up to $17 mln

Outlook

Company targets Q2 revenue between $62.5 mln and $63.5 mln

Company expects Q2 adjusted EBITDA of $8.0 mln to $9.0 mln

Company says clients remain cautious amid macro and geopolitical conditions

Result Drivers

EUROPEAN GROWTH - Q1 revenue growth was driven primarily by Europe, up 25% versus prior year

RECURRING REVENUE - Recurring revenues rose 9% in Q1, contributing to overall revenue growth

LARGEST-EVER CONTRACT - Signed multiyear contract valued up to $17 mln to support AI-powered transformation for global manufacturer

Company press release: ID:nBw71F10ca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$61.20 mln
$60.86 mln (5 Analysts)
Q1 EPS
$0.05
Q1 Adjusted Net Income
Beat
$4.27 mln
$3.83 mln (3 Analysts)
Q1 Adjusted EBITDA
Beat
$8.30 mln
$7.76 mln (5 Analysts)
Q1 Adjusted EBITDA Margin
13.50%
Q1 Operating Income
$5 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for Information Services Group Inc is $6.88, about 66.1% above its May 6 closing price of $4.14

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)