ISG Reports Q2 2025 Results with Revenues Up 7% YoY, Acquires Martino & Partners

ISG reported Q2 2025 revenues of $62mln, up 7% YoY, excluding its divested automation unit. Net income was $2.2mln, EPS was $0.04, and adjusted EPS was $0.08. Adjusted EBITDA reached $8.3mln, up 17% YoY. The company generated $12mln in cash from operations, up from $2.2mln in the prior year. ISG also agreed to acquire Martino & Partners and declared a third-quarter dividend of $0.045 per share.

Information Services Group (ISG), a global AI-centered technology research and advisory firm, announced its second-quarter 2025 financial results, showcasing robust growth and strategic initiatives. The company reported GAAP revenues of $62 million, an increase of 7% year-over-year (YoY), excluding the results from its divested automation unit. This performance was driven by a 16% increase in the Americas business, which contributed $39.5 million to the total revenue [1].

ISG's net income for the quarter stood at $2.2 million, while the earnings per share (EPS) were $0.04. Adjusted EPS, a non-GAAP measure, was $0.08 per share, reflecting a 17% YoY increase in adjusted EBITDA to $8.3 million [1]. The company's operating cash flow reached $12 million, a significant improvement from the $2.2 million generated in the prior year [1].

ISG also announced the acquisition of Martino & Partners, a strategic advisory firm serving clients in Italy. The transaction is expected to close in early September and aims to expand ISG's client base and geographic footprint in Italy [1]. This move aligns with ISG's focus on AI and cost optimization, areas where Italy is showing emerging growth potential.

The company declared a third-quarter dividend of $0.045 per share, payable on September 26, 2025, to shareholders of record as of September 5, 2025. Additionally, ISG provided third-quarter revenue guidance of between $60.5 million and $61.5 million, and adjusted EBITDA guidance of between $7.5 million and $8.5 million [1].

ISG's chairman and CEO, Michael P. Connors, highlighted the company's strong performance and strategic positioning. "Enterprises remain cautious about tech spending in general but continue to leverage technology for cost optimization while moving forward aggressively to modernize their infrastructure as they prepare for broad adoption of AI," he said. "These trends are right in ISG’s sweet spot. Our AI-centered positioning, investment in expanded AI capabilities and long-term focus on operational excellence continue to resonate with our client base. We are well positioned for success."

References:
[1] https://www.businesswire.com/news/home/20250806274422/en/Information-Services-Group-Announces-Second-Quarter-2025-Results