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Information Services Group Inc.

CIK:0001371489|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Revenues	$ 65,488	$ 61,565	$ 126,671	$ 121,148
Operating expenses
Direct costs and expenses for advisors	33,519	35,591	68,322	69,518
Selling, general and administrative	25,055	20,144	45,372	41,299
Depreciation and amortization	1,057	1,165	2,104	2,270
Operating income	5,857	4,665	10,873	8,061
Interest income	27	37	59	92
Interest expense	(897)	(1,046)	(1,774)	(2,102)
Foreign currency transaction gain/(loss)	254	(96)	406	(93)
Income before taxes	5,241	3,560	9,564	5,958
Income tax provision	1,943	1,377	3,550	2,287
Net income	$ 3,298	$ 2,183	$ 6,014	$ 3,671
Weighted average shares outstanding:
Basic	48,058	48,274	47,902	48,322
Diluted	49,840	50,129	50,008	50,190
Earnings per share:
Basic	$ 0.07	$ 0.05	$ 0.13	$ 0.08
Diluted	$ 0.07	$ 0.04	$ 0.12	$ 0.07
Comprehensive income:
Net income	$ 3,298	$ 2,183	$ 6,014	$ 3,671
Foreign currency translation (loss) gain, net of tax (benefit) expense of $(107), $322, $(188) and $448, respectively	(341)	1,029	(834)	1,429
Comprehensive income	$ 2,957	$ 3,212	$ 5,180	$ 5,100

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income	$ 6,014	$ 3,671
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	1,634	1,634
Amortization of intangible assets	470	636
Deferred tax (benefit) expense from stock issuances	2	84
Amortization of deferred financing costs	111	111
Stock-based compensation	3,933	4,424
Change in fair value of contingent consideration	11	20
Provisions for credit losses	4,351	79
Deferred tax provision (benefit)	1,407	763
Changes in operating assets and liabilities:
Accounts receivable and contract assets	(5,860)	(2,044)
Prepaid expenses and other assets	1,353	4,681
Accounts payable	(177)	(1,848)
Contract liabilities	(1,910)	(314)
Accrued expenses and other liabilities	(6,804)	999
Net cash provided by operating activities	4,535	12,896
Cash flows from investing activities
Purchase of furniture, fixtures and equipment	(1,354)	(1,679)
Net cash used in investing activities	(1,354)	(1,679)
Cash flows from financing activities
Proceeds from revolving facility (Note 10)	20,000	5,000
Repayment of outstanding debt (Note 10)	(20,000)	(5,000)
Additional proceeds from the sale of the Automation business		1,954
Proceeds from issuance of employee stock purchase plan shares	330	310
Payments related to tax withholding for stock-based compensation	(2,257)	(2,588)
Payment of contingent consideration		(550)
Cash dividends paid to shareholders	(4,533)	(4,608)
Treasury shares repurchased	(1,316)	(4,725)
Net cash used in financing activities	(7,776)	(10,207)
Effect of exchange rate changes on cash	(388)	1,147
Net (decrease) increase in cash, cash equivalents, and restricted cash	(4,983)	2,157
Cash, cash equivalents, and restricted cash, beginning of period	28,754	23,158
Cash, cash equivalents, and restricted cash, end of period	23,771	25,315
Supplemental disclosures of cash flow information:
Interest	1,665	2,027
Taxes, net of refunds	1,975	116
Non-cash investing and financing activities:
Issuance of treasury stock for vested RSUs	$ 5,632	$ 5,311

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 23,681	$ 28,661
Accounts receivable and contract assets, net of allowance of $1,007 and $2,359, respectively	60,931	59,409
Prepaid expenses and other current assets	6,065	6,001
Total current assets	90,677	94,071
Restricted cash	90	93
Furniture, fixtures and equipment, net	6,671	6,597
Right-of-use lease assets	9,890	10,809
Goodwill	89,057	89,375
Intangible assets, net	2,809	3,305
Deferred tax assets	4,655	4,982
Other assets	748	1,769
Total assets	204,597	211,001
Current liabilities
Accounts payable	10,583	10,111
Contract liabilities	7,624	9,788
Accrued expenses and other current liabilities	14,033	20,258
Total current liabilities	32,240	40,157
Long-term debt, net of current maturities	59,175	59,175
Deferred tax liabilities	2,281	1,536
Operating lease liabilities	8,327	9,007
Other liabilities	6,745	6,450
Total liabilities	108,768	116,325
Stockholders' equity
Common stock, $0.001 par value; 100,000 shares authorized; 49,707 shares issued and 48,368 outstanding at June 30, 2026 and 49,707 shares issued and 47,774 outstanding at December 31, 2025	50	50
Additional paid-in capital	196,264	202,702
Treasury stock (1,339 and 1,933 common shares, respectively, at cost)	(6,972)	(9,383)
Accumulated other comprehensive loss	(9,004)	(8,170)
Accumulated deficit	(84,509)	(90,523)
Total stockholders' equity	95,829	94,676
Total liabilities and stockholders' equity	$ 204,597	$ 211,001