# EDGAR Filing Document

**Accession Number:** 0001371489
**File Stem:** 0001558370-25-010750
**Filing Date:** 2025-8
**Character Count:** 115473
**Document Hash:** f4a1b7eb32cb4e90d8dc358a53a8ac69
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-25-010750.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001558370-25-010750

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 58

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Information Services Group Inc.
- **CENTRAL INDEX KEY:** 0001371489
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MANAGEMENT CONSULTING SERVICES [8742]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 205261587
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33287
- **FILM NUMBER:** 251193642

**BUSINESS ADDRESS:**
- **STREET 1:** 2187 ATLANTIC STREET
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06902
- **BUSINESS PHONE:** 203-517-3100

**MAIL ADDRESS:**
- **STREET 1:** 2187 ATLANTIC STREET
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06902

?xml version='1.0' encoding='ASCII'? Information Services Group Inc._June 30, 2025

------

**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended June 30, 2025**

**OR**

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**Commission File Number: 001-33287**

**INFORMATION SERVICES GROUP, INC.**

(Exact name of Registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **20-5261587** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |

---

**2187 Atlantic StreetStamford, CT 06902**(Address of principal executive offices and zip code)

**(203) 517-3100**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Title of each class** | &nbsp;&nbsp;**Name of each exchange on which registered** |
| &nbsp;&nbsp;Shares of Common Stock, $0.001 par value<br> &nbsp;&nbsp;III | &nbsp;&nbsp;The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer ◻ | Accelerated filer **☒** | Non-accelerated filer ◻ | Smaller reporting company **☒** |
|  |  |  | Emerging growth company **☐** |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). **☐** Yes ⌧ No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

---

| | |
|:---|:---|
| **Class** | **Outstanding at July 31, 2025**  |
| Common Stock, $0.001 par value | 48,195,469 shares |

---

------

**CAUTIONARY NOTE REGARDING**

**FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10–Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "continue" or the negative of such terms or other similar expressions. Our actual results may vary materially from those expected or anticipated in these forward-looking statements. The realization of such forward-looking statements may be impacted by certain important unanticipated factors. Because of these and other factors that may affect our operating results, past performance should not be considered as an indicator of future performance, and investors should not use historical results to anticipate results or trends in future periods. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements contained in this Quarterly Report on Form 10-Q, whether as a result of any new information, future events or otherwise. Readers should carefully review the risk factors described in this and other documents that we file from time to time with the Securities and Exchange Commission, including the risks set forth in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent Current Reports on Form 8-K and Quarterly Reports on Form 10-Q.

**PART I—FINANCIAL INFORMATION**

**ITEM 1.** **FINANCIAL STATEMENTS (UNAUDITED)**

**INFORMATION SERVICES GROUP, INC.CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

**(In thousands, except par value)**

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | $25222 | $23075 |
| Accounts receivable and contract assets, net of allowance of $1,835 and $5,047, respectively | 59176 | 58822 |
| Prepaid expenses and other current assets | 6513 | 9384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 90911 | 91281 |
| Restricted cash | 93 | 83 |
| Furniture, fixtures and equipment, net  | 6320 | 6195 |
| Right-of-use lease assets | 4887 | 5437 |
| Goodwill | 87540 | 87293 |
| Intangible assets, net | 2923 | 3560 |
| Deferred tax assets | 5305 | 6997 |
| Other assets | 2695 | 3669 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $200674 | $204515 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | $7652 | $9192 |
| Contract liabilities | 9745 | 10058 |
| Accrued expenses and other current liabilities | 20086 | 19170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 37483 | 38420 |
| Long-term debt, net of current maturities | 59175 | 59175 |
| Deferred tax liabilities | 1383 | 1750 |
| Operating lease liabilities | 3014 | 3416 |
| Other liabilities | 5520 | 5468 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 106575 | 108229 |
| Commitments and contingencies (Note 7) |  |  |
| **Stockholders' equity** |  |  |
| Preferred stock, $0.001 par value; 10,000 shares authorized; none issued |  |  |
| Common stock, $0.001 par value; 100,000 shares authorized; 49,658 shares issued and 48,323 outstanding at June 30, 2025 and 49,658 shares issued and 48,542 outstanding at December 31, 2024 | 50 | 50 |
| Additional paid-in capital | 204543 | 210149 |
| Treasury stock (1,335 and 1,116 common shares, respectively, at cost) | (5677) | (3996) |
| Accumulated other comprehensive loss | (8624) | (10053) |
| Accumulated deficit | (96193) | (99864) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 94099 | 96286 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $200674 | $204515 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**INFORMATION SERVICES GROUP, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME**

**(Unaudited)**

**(In thousands, except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenues** | $61565 | $64263 | $121148 | $128532 |
| **Operating expenses** |  |  |  |  |
| Direct costs and expenses for advisors | 35591 | 38908 | 69518 | 79954 |
| Selling, general and administrative | 20144 | 20083 | 41299 | 44171 |
| Depreciation and amortization | 1165 | 1622 | 2270 | 3127 |
| Operating income  | 4665 | 3650 | 8061 | 1280 |
| Interest income | 37 | 222 | 92 | 479 |
| Interest expense | (1046) | (1568) | (2102) | (3068) |
| Foreign currency transaction (loss) gain  | (96) | 13 | (93) | 6 |
| Income (loss) before taxes | 3560 | 2317 | 5958 | (1303) |
| Income tax provision  | 1377 | 279 | 2287 | 48 |
| Net income (loss) | $2183 | $2038 | $3671 | $(1351) |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 48274 | 48798 | 48322 | 48645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 50129 | 49577 | 50190 | 48645 |
| Earnings (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.05 | $0.04 | $0.08 | $(0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.04 | $0.04 | $0.07 | $(0.03) |
| **Comprehensive income (loss):** |  |  |  |  |
| Net income (loss) | $2183 | $2038 | $3671 | $(1351) |
| Foreign currency translation gain (loss), net of tax expense (benefit) of $322, $(40), $448 and $(90), respectively | 1029 | 73 | 1429 | (581) |
| Comprehensive income (loss) | $3212 | $2111 | $5100 | $(1932) |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**INFORMATION SERVICES GROUP, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(Unaudited)**

**(In thousands, except per share data)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Treasury**<br>**Stock** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | <br>**Accumulated**<br>**Deficit** | <br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balance March 31, 2025** | 49658 | $50 | $208526 | $(5511) | $(9653) | $(98376) | $95036 |
| Net income |  |  |  |  |  | 2183 | 2183 |
| Other comprehensive income |  |  |  |  | 1029 |  | 1029 |
| Treasury shares repurchased  |  |  |  | (3893) |  |  | (3893) |
| Proceeds from issuance of employee stock purchase plan (ESPP) shares |  |  | (4) | 175 |  |  | 171 |
| Issuance of treasury shares for RSUs vested |  |  | (3552) | 3552 |  |  |  |
| Accrued dividends on unvested shares |  |  | (67) |  |  |  | (67) |
| Cash dividends paid to shareholders ($0.045 per share) |  |  | (2364) |  |  |  | (2364) |
| Stock based compensation |  |  | 2004 |  |  |  | 2004 |
| **Balance June 30, 2025** | 49658 | $50 | $204543 | $(5677) | $(8624) | $(96193) | $94099 |
|  |  |  |  |  | **Accumulated** |  |  |
|  |  |  | **Additional** |  | **Other** |  | **Total** |
|  | **Common Stock** | **Common Stock** | **Paid-in** | **Treasury** | **Comprehensive** | **Accumulated** | **Stockholders'** |
|  | **Shares** | **Amount** | **Capital** | **Stock** | **Loss** | **Deficit** | **Equity** |
| **Balance December 31, 2024** | 49658 | $50 | $210149 | $(3996) | $(10053) | $(99864) | $96286 |
| Net income |  |  |  |  |  | 3671 | 3671 |
| Other comprehensive income |  |  |  |  | 1429 |  | 1429 |
| Treasury shares repurchased  |  |  |  | (7313) |  |  | (7313) |
| Proceeds from issuance of ESPP shares |  |  | (12) | 321 |  |  | 309 |
| Issuance of treasury shares for RSUs vested |  |  | (5311) | 5311 |  |  |  |
| Accrued dividends on unvested shares |  |  | (99) |  |  |  | (99) |
| Cash dividends paid to shareholders ($0.090 per share) |  |  | (4608) |  |  |  | (4608) |
| Stock based compensation |  |  | 4424 |  |  |  | 4424 |
| **Balance June 30, 2025** | 49658 | $50 | $204543 | $(5677) | $(8624) | $(96193) | $94099 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Treasury**<br>**Stock** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | <br>**Accumulated**<br>**Deficit** | <br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balance March 31, 2024** | 49472 | $49 | $216521 | $(5188) | $(9643) | $(106092) | $95647 |
| Net income |  |  |  |  |  | 2038 | 2038 |
| Other comprehensive income |  |  |  |  | 73 |  | 73 |
| Treasury shares repurchased  |  |  |  | (1975) |  |  | (1975) |
| Proceeds from issuance of ESPP shares |  |  | (82) | 344 |  |  | 262 |
| Issuance of treasury shares for RSUs vested |  |  | (4066) | 4066 |  |  |  |
| Issuance of shares for Change 4 Growth | 186 | 1 | 700 |  |  |  | 701 |
| Accrued dividends on unvested shares |  |  | (4) |  |  |  | (4) |
| Dividend payable |  |  | (2203) |  |  |  | (2203) |
| Cash dividends paid to shareholders ($0.045 per share) |  |  | (124) |  |  |  | (124) |
| Stock based compensation |  |  | 1112 |  |  |  | 1112 |
| **Balance June 30, 2024** | 49658 | $50 | $211854 | $(2753) | $(9570) | $(104054) | $95527 |
|  |  |  |  |  | **Accumulated** |  |  |
|  |  |  | **Additional** |  | **Other** |  | **Total** |
|  | **Common Stock** | **Common Stock** | **Paid-in** | **Treasury** | **Comprehensive** | **Accumulated** | **Stockholders'** |
|  | **Shares** | **Amount** | **Capital** | **Stock** | **Loss** | **Deficit** | **Equity** |
| **Balance December 31, 2023** | 49472 | $49 | $217684 | $(3959) | $(8989) | $(102703) | $102082 |
| Net loss |  |  |  |  |  | (1351) | (1351) |
| Other comprehensive loss |  |  |  |  | (581) |  | (581) |
| Treasury shares repurchased  |  |  |  | (4506) |  |  | (4506) |
| Proceeds from issuance of ESPP shares |  |  | (124) | 570 |  |  | 446 |
| Issuance of treasury shares for RSUs vested |  |  | (5142) | 5142 |  |  |  |
| Issuance of shares for Change 4 Growth | 186 | 1 | 700 |  |  |  | 701 |
| Accrued dividends on unvested shares |  |  | 100 |  |  |  | 100 |
| Dividend payable |  |  | (2203) |  |  |  | (2203) |
| Cash dividends paid to shareholders ($0.085 per share) |  |  | (2522) |  |  |  | (2522) |
| Stock based compensation |  |  | 3361 |  |  |  | 3361 |
| **Balance June 30, 2024** | 49658 | $50 | $211854 | $(2753) | $(9570) | $(104054) | $95527 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**INFORMATION SERVICES GROUP, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net income (loss) | $3671 | $(1351) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| Depreciation expense | 1634 | 1635 |
| Amortization of intangible assets | 636 | 1492 |
| Deferred tax expense (benefit) from stock issuances | 84 | 66 |
| Amortization of deferred financing costs | 111 | 111 |
| Stock-based compensation | 4424 | 3361 |
| Change in fair value of contingent consideration | 20 | 57 |
| Provisions for credit losses | 79 | 559 |
| Deferred tax (benefit) provision | 763 | (1673) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable and contract assets | (2044) | 889 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 4681 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (1848) | (2899) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | (314) | (629) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 999 | 2870 |
| **Net cash provided by operating activities** | 12896 | 4516 |
| **Cash flows from investing activities** |  |  |
| Purchase of furniture, fixtures and equipment | (1679) | (1914) |
| **Net cash used in investing activities** | (1679) | (1914) |
| **Cash flows from financing activities** |  |  |
| Proceeds from revolving facility (Note 9) | 5000 | 5000 |
| Repayment of outstanding debt (Note 9) | (5000) | (10000) |
| Additional proceeds from the sale of the Automation business | 1954 |  |
| Proceeds from issuance of employee stock purchase plan shares | 310 | 446 |
| Payments related to tax withholding for stock-based compensation | (2588) | (1491) |
| Payment of contingent consideration | (550) | (1657) |
| Cash dividends paid to shareholders | (4608) | (2522) |
| Treasury shares repurchased | (4725) | (3000) |
| **Net cash used in financing activities** | (10207) | (13224) |
| **Effect of exchange rate changes on cash** | 1147 | (301) |
| **Net decrease in cash, cash equivalents, and restricted cash** | 2157 | (10923) |
| **Cash, cash equivalents**, **and restricted cash**, beginning of period | 23158 | 22809 |
| **Cash, cash equivalents**, **and restricted cash**, end of period | $25315 | $11886 |
| **Supplemental disclosures of cash flow information:** |  |  |
| Cash paid for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $2027 | $2829 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes, net of refunds | $116 | $2081 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of treasury stock for vested restricted stock units | $5311 | $5142 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**INFORMATION SERVICES GROUP, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(tabular amounts in thousands, except per share data)**

**(unaudited)**

**NOTE 1—DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS**

Information Services Group, Inc. (the "Company" or "ISG") is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,300 professionals worldwide working together to help clients maximize the value of their technology investments. For more information, visit www.isg-one.com. The content on the Company's website is available for informational purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this Form 10-Q or any other filings.

The Company was founded with the strategic vision to become a high-growth, leading provider of information-based advisory services and continues to believe that its vision will be realized through the acquisition, integration and successful operation of market-leading brands within the data, analytics and advisory industry.

**NOTE 2—BASIS OF PRESENTATION**

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are considered necessary for a fair statement of the financial position of the Company as of June 30, 2025, the results of operations for the three and six months ended June 30, 2025 and 2024 and the cash flows for the six months ended June 30, 2025 and 2024. The condensed consolidated balance sheet as of December 31, 2024 has been derived from the Company's audited consolidated financial statements. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with GAAP have been omitted from these interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended December 31, 2024, which are included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC.

*S*a*le of Automation Business Line*

Based on the achievement of certain contractual requirements for the year ended December 31, 2024, during the first quarter of 2025, the Company received additional proceeds in cash from the sale of its Automation business line from UST Global Inc. of $2.0 million.

**Out-of-Period Adjustment**

In conjunction with the Company's close process for the second quarter of 2024, management identified a $0.5 million error related to revenue incorrectly recognized during the third quarter of 2022. Accordingly, the Company recorded a $0.5 million adjustment in the second quarter of 2024 to reduce revenue. Management evaluated the pre-tax impact of this error of $0.5 million on the Company's previously reported interim and annual financial statements for Q3 2022 and full year 2022 and determined that the error was not material to any previously issued financial statements and

that the out-of-period adjustment recorded in Q2 2024 was not material to the three or six months ended June 30, 2024 or the annual period ended December 31, 2024.

**NOTE 3—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Use of Estimates**

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the revenue recognition guidance for contracts in which control is transferred to the customer over time affect the amounts of revenues, expenses, contract assets and contract liabilities. Numerous internal and external factors can affect estimates. Estimates are also used for but are not limited to allowance for credit losses, useful lives of furniture, fixtures and equipment and definite lived intangible assets, depreciation expense, fair value assumptions in evaluating goodwill for impairment, income taxes and deferred tax asset valuation and the valuation of stock-based compensation.

**Restricted Cash**

Restricted cash consists of cash and cash equivalents which the Company has committed for rent deposits and are not available for general corporate purposes.

**Fair Value**

The carrying value of the Company's cash and cash equivalents, receivables, accounts payable, other current liabilities and accrued interest approximated their fair values as of June 30, 2025 and December 31, 2024 due to the short-term nature of these accounts.

Fair value measurements were applied with respect to the Company's non-financial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to goodwill, intangible assets and other long-lived assets and assets acquired and liabilities assumed in a business combination.

Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy:

● Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market;

● Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and

● Level 3 measurements include those that are unobservable and of a highly subjective measure.

The following tables summarize the assets and liabilities (as applicable) measured at fair value on a recurring basis at the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | $97 | $— | $— | $97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $97 | $— | $— | $97 |
| **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration <sup>(1)</sup> | $— | $— | $695 | $695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $— | $695 | $695 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | $84 | $— | $— | $84 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $84 | $— | $— | $84 |
| **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration <sup>(1)</sup> | $— | $— | $1225 | $1225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $— | $1225 | $1225 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)As of June 30, 2025, the current contingent consideration is included in "Accrued expenses and other current liabilities". As of December 31, 2024, the current and noncurrent contingent consideration are included in "Accrued expenses and other current liabilities" and "Other liabilities".

The following table represents the change in contingent consideration liability during the six months ended June 30, 2025:

---

| | |
|:---|:---|
|  | **Six Months Ended** <br>**June 30,**  |
|  | **2025** |
| Beginning Balance | $1225 |
| &nbsp;&nbsp;Change 4 Growth contingent consideration payment | (550) |
| &nbsp;&nbsp;Accretion of contingent consideration | 20 |
| Ending Balance | $695 |

---

The Company's accompanying unaudited condensed consolidated financial instruments include outstanding borrowings of $59.2 million at both June 30, 2025 and December 31, 2024, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings was approximately $59.6 million at both June 30, 2025 and December 31, 2024. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows was 6.1% and 6.4% as of June 30, 2025 and December 31, 2024, respectively. The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions and interest rates.

**Recently Issued Accounting Pronouncements**

*Income Taxes*

In December 2023, the Financial Accounting Standards Board (the "FASB") issued updated guidance to enhance the transparency of income tax disclosure by requiring disaggregated information about an entity's effective tax rate reconciliation, as well as information on taxes paid. This updated guidance is effective for annual periods beginning after December 15, 2024 and is not expected to have a material impact on the Company's consolidated financial statements.

*Income Statement Disaggregation*

In November 2024, the FASB issued ASU 2024-03 to improve the disaggregation of income statement expenses. This updated guidance requires additional disclosure of certain amounts included in the expense captions presented on the statement of operations as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted for annual financial statements that have not yet been issued. The Company does not expect ASU 2024-03 to have a material impact on the Company's consolidated financial statements.

**NOTE 4—REVENUE**

The majority of the Company's revenue is derived from contracts that can span from a few months to several years. The Company enters into contracts that can include various combinations of services, which, depending on contract type, are sometimes capable of being distinct. If services are determined to be distinct, they are accounted for as separate performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of account. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company's contracts have a single performance obligation as the respective promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, is not distinct. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using its best estimate of the standalone selling price, or SSP, of each distinct product or service in the contract. The Company establishes SSP based on management's estimated selling price or observable prices of products or services sold separately in comparable circumstances to similar clients.

The Company's contracts may include promises to transfer multiple services and products to a client. Determining whether services and products are considered distinct performance obligations that should be accounted for separately versus together may require judgment.

*Contract Balances*

The timing of revenue recognition, billings and cash collections result in billed accounts receivables, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities). The Company's clients are billed based on the type of arrangement. A portion of the Company's services are billed monthly based on hourly or daily rates. There are also client engagements in which the Company bills a fixed amount for its services. This may be one single amount covering the whole engagement or several amounts for various phases, functions or milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, the Company sometimes receives advances or deposits before revenue is recognized, resulting in contract liabilities. Contract assets and liabilities are generally reported in the current assets and current liabilities sections of the consolidated balance sheet, at the end of each reporting period, based on the timing of the satisfaction of the related performance obligation(s). For multi-year contract sales with annual invoicing, the Company performs a significant financing component calculation and recognizes the associated interest income throughout the duration of the financing period. In addition, it reclassifies the resulting contract asset balances as current and noncurrent receivables as receipt of the consideration is conditional only on the passage of time and there are no performance risk factors present. See the table below for a breakdown of the Company's contract assets and contract liabilities as of the periods presented.

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| Contract assets  | $17323 | $18335 |
| Contract liabilities  | $9745 | $10058 |

---

Revenue recognized for the three and six months ended June 30, 2025 that was included in the contract liability balance at January 1, 2025 was $2.5 million and $7.6 million, respectively, primarily representing revenue from the Company's subscription, fixed-fee, and research contracts.

*Remaining Performance Obligations*

As of June 30, 2025, the Company had $112.1 million of remaining performance obligations, the majority of which are expected to be satisfied within the next twelve months.

*Accounts Receivable and Contract Assets* 

During the fourth quarter of 2023, a client that had engaged the Company for two multi-year projects, which previously commenced in 2021 and 2022, respectively, failed to make payments as per the contracted payment schedule, and the Company therefore ceased performing services under the agreements. After unsuccessful negotiations, the Company provided the client with notice that it would be terminating the respective projects. Accordingly, during the fourth quarter of 2023, the Company recorded through bad debt expense an allowance for doubtful accounts reserve of $4.8 million associated with this client. The specific reserve recorded as of December 31, 2024 represented management's best estimate of the probable amount of collection related to the outstanding amounts under these agreements. During the three months ended June 30, 2025, after exhausting all collection efforts on one of the projects, the Company wrote-off $3.6 million of the outstanding amounts against the previously established reserve. As all amounts written off were previously fully reserved, there was no incremental impact to the income statement in the current period. As of June 30, 2025, $1.3 million of the reserve on the other multi-year project remains, and the Company is continuing to pursue legal action against the former client, which has resulted in a favorable judgment for ISG. As collection efforts are ongoing, actual collections from the client may differ from the Company's estimate.

Separately, the Company is currently engaged in litigation with a client over a disputed accounts receivable balance for services rendered, and mediation arrangements are currently being explored. As the Company believes the balance of approximately $4.7 million is collectible, it has not recorded a reserve. The Company will continue to reassess the need for a reserve in future periods.

**NOTE 5—NET INCOME PER COMMON SHARE**

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company. For the three and six months ended June 30, 2025, 0.8 million and 1.9 million restricted stock units, respectively, and for the three and six months ended June 30, 2024, 1.8 million and 4.7 million restricted stock units, respectively, have not been considered in the diluted earnings per share calculation, as the effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| **Basic:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $2183 | $2038 | $3671 | $(1351) |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares | 48274 | 48798 | 48322 | 48645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earnings (loss) per share  | $0.05 | $0.04 | $0.08 | $(0.03) |
| **Diluted:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss)  | $2183 | $2038 | $3671 | $(1351) |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic weighted average common shares | 48274 | 48798 | 48322 | 48645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Potential common shares | 1855 | 779 | 1868 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted weighted average common shares | 50129 | 49577 | 50190 | 48645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings (loss) per share | $0.04 | $0.04 | $0.07 | $(0.03) |

---

**NOTE 6—INCOME TAXES**

The Company's effective tax rate for the three and six months ended June 30, 2025 was 38.7% and 38.4%, respectively, based on pretax income of $3.6 million and $6.0 million, respectively. The Company's effective tax rate for the quarter ended June 30, 2025 was impacted by non-deductible expenses and earnings and losses in certain foreign jurisdictions. The Company's effective tax rate for the three and six months ended June 30, 2024 was 12.0% and (3.7%), respectively, based on pretax income and loss of $2.3 million and $1.3 million, respectively. The Company's effective tax rate for the quarter ended June 30, 2024 was impacted by non-deductible expenses and earnings and losses in certain foreign jurisdictions.

On July 4, 2025, the "One Big Beautiful Bill Act" (OBBBA) was signed into law, making significant changes to the U.S. federal tax code. At the date of issuance of these financial statements, the Company is currently in the process of evaluating the impacts of the legislation on its consolidated financial statements.

**NOTE 7—COMMITMENTS AND CONTINGENCIES**

The Company is subject to contingencies which arise through the ordinary course of business. All material liabilities of which management is aware are properly reflected in the financial statements as of June 30, 2025 and December 31, 2024.

**Ventana Research Contingent Consideration**

On October 31, 2023, a subsidiary of the Company executed an Asset Purchase Agreement with Ventana Research, Inc. ("Ventana Research") and consummated the acquisition of substantially all assets, and assumed certain liabilities, of Ventana Research. The purchase price comprised of $1.0 million of cash consideration paid at closing. Ventana Research will also have the right to receive additional consideration paid via earn-out payments, if certain financial targets are met.

As of June 30, 2025, the Company has recorded a liability of $0.7 million representing the estimated fair value of contingent consideration related to the acquisition of Ventana Research, which is classified as current and included in "Accrued expenses and other current liabilities" on the condensed consolidated balance sheet.

**Change 4 Growth Contingent Consideration**

On October 31, 2022, a subsidiary of the Company executed an Asset Purchase Agreement with Change 4 Growth, LLC ("Change 4 Growth") and consummated the acquisition of substantially all the assets, and assumed certain

liabilities, of Change 4 Growth. The purchase price was comprised of $3.8 million of cash consideration, $0.6 million of shares of ISG common stock issued promptly after closing and Change 4 Growth also had the right to receive additional consideration paid via earn-out payments, if certain financial targets were met.

The Company paid $0.5 million in cash consideration in April 2025, which was related to 2024 performance. The Company no longer has a related liability as of June 30, 2025.

*Legal Reserves*

From time to time, the Company is a party to litigation, claims and other contingencies, including regulatory and employee matters as well as examinations and investigations by governmental agencies, which arise in the ordinary course of business. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with Accounting Standards Codification ("ASC") Topic 450, Contingencies, or other applicable accounting standards. Such reserves are included in accrued liabilities on the condensed consolidated balance sheets. Based on the information available at the present time, the Company is unable to predict the ultimate outcome of any litigation or claims. However, the Company intends to vigorously defend its legal position on all claims and, to the extent necessary, seek recovery.

**NOTE 8—SEGMENT AND GEOGRAPHICAL INFORMATION**

The Company operates as one reportable segment consisting primarily of fact-based sourcing advisory services. The Company operates principally in the Americas, Europe and Asia Pacific.

The Company's Chief Operating Decision Maker (the "CODM") is our Chairman & Chief Executive Officer, Michael Connors. The CODM uses net income as presented on our Consolidated Statement of Income and Comprehensive Income in evaluating performance and determining how to allocate resources of the Company as a whole.

Geographical revenue information for the segment is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| Americas | $39480 | $39981 | $80482 | $80821 |
| Europe | 16637 | 18801 | 30432 | 36598 |
| Asia Pacific | 5448 | 5481 | 10234 | 11113 |
|  | $61565 | $64263 | $121148 | $128532 |

---

The segregation of revenues by geographic region is based upon the location of the legal entity performing the services. The Company does not measure or monitor gross profit or operating income by geography or any other measure or metric, other than consolidated, for the purposes of making operating decisions or allocating resources.

The following table represents a breakdown of net income that is used to help determine how resources are allocated:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue | $61565 | $64263 | $121148 | $128532 |
| Less: |  |  |  |  |
| Compensation expense | 40560 | 41149 | 80548 | 83567 |
| Contract labor | 4470 | 4716 | 8749 | 9626 |
| Third party costs | 452 | 3934 | 971 | 8134 |
| Travel and entertainment | 2576 | 1795 | 4952 | 4614 |
| Professional fees | 1776 | 1465 | 3670 | 3235 |
| Computer expense | 1255 | 1255 | 2378 | 2550 |
| Restructuring costs | 332 | 698 | 715 | 3677 |
| Other segment expenses (1) | 4314 | 3979 | 8834 | 8722 |
| Depreciation and amortization | 1165 | 1622 | 2270 | 3127 |
| Interest income | (37) | (222) | (92) | (479) |
| Interest expense | 1046 | 1568 | 2102 | 3068 |
| Foreign currency translation | 96 | (13) | 93 | (6) |
| Income tax provision | 1377 | 279 | 2287 | 48 |
| Net income (loss) | $2183 | $2038 | $3671 | $(1351) |

---

<sup>(1)</sup> Other segment expenses include communication, occupancy, marketing, stock-based compensation, acquisition- and-disposition and other overhead expenses.

**NOTE 9—FINANCING ARRANGEMENTS AND LONG-TERM DEBT**

On February 22, 2023, the Company amended and restated its senior secured credit facility to increase the revolving commitments per the revolving facility from $54.0 million to $140.0 million and eliminate its term loan (as further amended, the "2023 Credit Agreement"). The material terms under the 2023 Credit Agreement are as follows. Capitalized terms used but not defined herein have the meanings ascribed to them in the 2023 Credit Agreement:

● The revolving credit facility has a maturity date of February 22, 2028.

● The credit facility is secured by all of the equity interests owned by the Company, and its direct and indirect domestic subsidiaries, and, subject to agreed exceptions, the Company's direct and indirect "first-tier" foreign subsidiaries, and a perfected first priority security interest in all of the Company's and its direct and indirect domestic subsidiaries' tangible and intangible assets.

● The Company's direct and indirect existing and future wholly owned domestic subsidiaries serve as guarantors to the Company's obligations under the senior secured facility.

● At the Company's option, the credit facility bears interest at a rate per annum equal to either (i) the "Base Rate" (which is the highest of (a) the rate publicly announced from time to time by the administrative agent as its "prime rate", (b) the Federal Funds Rate plus 0.5% per annum and (c) Term SOFR, plus 1.0%), plus the applicable margin, or (ii) Term SOFR (which is the Term SOFR screen rate for the relevant interest period plus a credit spread adjustment of 0.10%) as determined by the administrative agent, plus the applicable margin. The applicable margin is adjusted quarterly based upon the Company's consolidated leverage ratio. For the first three months of 2025, the applicable margin was decreased by 0.25% percentage of the revolving loans maintaining a Base Rate loans of 1.75% for the revolving loans maintained as Term SOFR loans.

● The senior secured credit facility contains a number of covenants that, among other things, place restrictions on matters customarily restricted in senior secured credit facilities, including restrictions on indebtedness

(including guarantee obligations), liens, fundamental changes, sales or dispositions of property or assets, investments (including loans, advances, guarantees and acquisitions), transactions with affiliates, dividends and other payments in respect of capital stock, optional payments and modifications of other material debt instruments, negative pledges and agreements restricting subsidiary distributions and changes in line of business. In addition, the Company is required to comply with a consolidated leverage ratio and consolidated interest coverage ratio.

● The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control provisions.

The Company's financial statements include outstanding borrowings of $59.2 million at both June 30, 2025 and December 31, 2024, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings was approximately $59.6 million at both June 30, 2025 and December 31, 2024. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows was 6.1% and 6.4% as of June 30, 2025 and December 31, 2024, respectively. The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions and interest rates. During the six months ended June 30, 2025, the Company borrowed $5.0 million and subsequently repaid $5.0 million of the revolver loan. The Company is currently in compliance with its financial covenants.

**NOTE 10—LEASES**

The Company recognizes lease payments in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments.

The Company leases its office space and office equipment under long-term operating lease agreements that expire at various dates through October 2033, some of which include options to extend the leases for up to 3 years, and some of which included options to terminate the leases within 1 year. Under the operating leases, the Company pays certain operating expenses relating to the office equipment and leased property.

In April 2025, the Company entered into a new operating ten-year lease for approximately 17,500 square feet of office space in Stamford, Connecticut and includes annual base rent of $0.9 million, subject to annual escalation of 2% with an option to terminate the lease effective on the seventh (7th) anniversary of the rent commencement date. The lease commencement date is expected to be in September 2025, and the rent commencement date is expected to be November 2026. The Company is still evaluating the financial impact of this new lease.

**NOTE 11—SUBSEQUENT EVENTS**

On August 5, 2025, the Company's Board of Directors (the "Board") approved a third-quarter dividend of $0.045 per share, payable September 26, 2025, to shareholders of record as of September 5, 2025. The dividends are accounted for as a decrease to Stockholders' Equity. All future dividends will be subject to the Board's prior approval.

On August 1, 2025, a subsidiary of the Company entered into a definitive purchase agreement to acquire Martino & Partners s.r.l ("M&P"), with the anticipated closing of such acquisition to occur on September 1, 2025, subject to customary closing conditions. The total purchase price is comprised of EUR 1.5 million in cash paid at closing; USD 250,000 worth of shares of ISG's common stock, issued promptly following the closing; and EUR 350,000 in cash, to be paid no later than April 30, 2028. M&P will also have the right to receive additional consideration paid via earn-out payments, if certain financial targets are met.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

You should read the following discussion and analysis in conjunction with our financial statements and related notes included elsewhere in this report. Except for historical information, the discussion in this report contains certain forward-looking statements that involve risks and uncertainties. We have based these forward-looking statements on our current expectations and assumptions about future events. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "predict," "potential," "continue," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," "forecast" and similar expressions (or the negative of such expressions). Forward-looking statements include, but are not limited to, statements concerning 2025 revenue growth rates and capital expenditures. Forward-looking statements are based on our beliefs as well as assumptions based on information currently available to us, including financial and operational information, the volatility of our stock price, current competitive conditions and the impact of U.S. tariffs, trade barriers and restrictions, as well as wars. As a result, these statements are subject to various risks and uncertainties. For a discussion of material risks and uncertainties that we face, see the discussion in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 titled "Risk Factors" and in this Quarterly Report on Form 10-Q under Item 1A of Part II, "Risk Factors."

**BUSINESS OVERVIEW**

Information Services Group, Inc. (Nasdaq: III) (the "Company," "ISG," "we," "us" or "our") is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services sourcing that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems and the expertise of its 1,300 professionals worldwide working together to help clients maximize the value of their technology investments. For more information, visit www.isg-one.com. The content on our website is available for informational purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this Quarterly Report on Form 10-Q or any other filings.

Our strategy is to strengthen our existing market position and develop new services and products to support future growth plans. As a result, we are focused on growing our existing service model, expanding geographically, developing new industry sectors, productizing market data assets, expanding our managed services offerings and growing via acquisitions. Although we do not expect any adverse conditions that will impact our ability to execute against our strategy over the next twelve months, the more significant factors that could limit our ability to grow in these areas include global macro-economic conditions and the impact on the overall sourcing market, competition, our ability to retain advisors and reductions in discretionary spending with our top client accounts or other significant client events. Other areas that could impact the business would also include natural disasters, pandemics, wars, legislative and regulatory changes and capital market disruptions.

We principally derive revenues from fees for services generated on a project-by-project basis. Prior to the commencement of a project, we reach agreement with the client on rates for services based upon the scope of the project, staffing requirements and the level of client involvement. Revenues for services rendered are recognized on a time and materials basis or on a fixed-fee or capped-fee basis in accordance with accounting and disclosure requirements for revenue recognition.

Revenues for time and materials contracts are recognized based on the number of hours worked by our advisors at an agreed upon rate per hour and are recognized in the period in which services are performed. Revenues for time and materials contracts are billed monthly, semimonthly or in accordance with the specific contractual terms of each project.

We also derive our revenues from certain recurring revenue streams. These include such annuity-based ISG offerings as ISG GovernX, ISG Research Lens, ISG Inform and our multi-year Public Sector contracts. These offerings are characterized by subscriptions (i.e., renewal-centric as opposed to project-centric revenue streams) or, in some instances, multi-year contracts. Our digital services now span a volume of offerings and have become embedded as part of our traditional transaction services. Digital enablement provides capabilities, digital insights and better engagement with clients and partners.

Our results are impacted principally by our full-time consultants' utilization rate, the number of business days in each quarter and the number of our revenue-generating professionals who are available to work. Our utilization rate can be negatively affected by increased hiring because there is generally a transition period for new professionals that result in a temporary drop in our utilization rate. Our utilization rate can also be affected by seasonal variations in the demand for our services from our clients. The number of business workdays is also affected by the number of vacation days taken by our consultants and holidays in each quarter. Time-and-expense engagements do not provide us with a high degree of predictability as to performance in future periods. Unexpected changes in the demand for our services can result in significant variations in utilization and revenues and present a challenge to optimal hiring and staffing. The volume of work performed for any particular client can vary widely from period to period.

**RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024**

***Revenues***

The following table presents a breakdown of our revenue by geographic area:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  |
| <br>**Geographic Area** | **2025** | **2024** | <br>**Change** | **Percent**<br>**&nbsp;&nbsp;&nbsp;&nbsp;Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Americas | $39480 | $39981 | $(501) | (1)% |
| Europe | 16637 | 18801 | (2164) | (12)% |
| Asia Pacific | 5448 | 5481 | (33) | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $61565 | $64263 | $(2698) | (4)% |

---

Revenues decreased $2.7 million, or approximately 4%, in the second quarter of 2025 compared to the second quarter of 2024. The decrease in revenue in the Americas was primarily due to a decrease in Automation revenue (excluding the prior year Automation revenue due to sale of the Automation service line, revenues would have reported an increase of 16%), partially offset by an increase in Consulting service lines. The decrease in revenue in Europe was primarily attributable to a decrease in Automation and Network & Software Advisory Services ("NaSa") service lines (excluding the prior year Automation revenue, revenues would have reported a decrease of 7%). The revenue decrease in Asia Pacific was primarily attributable to a decrease in our Consulting and NaSa service lines. The translation of foreign currency revenues into U.S. dollars positively impacted performance in Europe and Asia Pacific compared to the prior year by $0.9 million.

***Operating Expenses***

The following table presents a breakdown of our operating expenses by category:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  |
| <br>**Operating Expenses** | **2025** | **2024** | <br>**Change** | **Percent**<br>**Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Direct costs and expenses for advisors | $35591 | $38908 | $(3317) | (9)% |
| Selling, general and administrative | 20144 | 20083 | 61 | 0% |
| Depreciation and amortization | 1165 | 1622 | (457) | (28)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $56900 | $60613 | $(3713) | (6)% |

---

Total operating expenses decreased $3.7 million, or approximately 6%, for the second quarter of 2025 compared to the second quarter of 2024. The decrease in operating expenses was primarily due to lower automation license fees expense of $3.4 million, expense reversal associated with an amount that was no longer due to a sub-contractor of $1.9 million, compensation expense of $0.5 million, restructuring costs of $0.4 million, conference expense of $0.4 million, bad debt expense of $0.3 million and contract labor expense of $0.2 million. These costs were partially offset by higher legal reserves of $1.8 million, stock-based compensation expense of $0.9 million and travel and entertainment expense of $0.8 million.

Compensation costs consist of a mix of fixed and variable salaries, annual bonuses, benefits and profit-sharing plan contributions. A portion of compensation expenses for certain billable employees are allocated between direct costs and selling, general and administrative costs based on relative time spent between billable and non-billable activities. Bonus compensation is determined based on achievement against Company financial targets and is accrued monthly throughout the year based on management's estimates of target achievement. Statutory and elective profit-sharing plans are offered to employees as appropriate. Direct costs also include employee taxes, health insurance, workers' compensation and disability insurance.

Sales and marketing costs consist principally of compensation expenses related to business development, proposal preparation and delivery and negotiation of new client contracts. Costs also include travel expenses relating to the pursuit of sales opportunities, expenses for hosting periodic client conferences, public relations activities, participation in industry conferences, industry relations, website maintenance and business intelligence activities. The Company maintains a dedicated global marketing function responsible for developing and managing sales campaigns, brand promotion, the ISG Index and assembling proposals.

We maintain a comprehensive program for training and professional development. Related expenses include product training, updates on new service offerings or methodologies and development of project management skills. Also included in training and professional development are expenses associated with the development, enhancement and maintenance of our proprietary methodologies and tools and the systems that support them.

Selling, general and administrative expenses consist principally of executive management compensation, allocations of billable employee compensation related to general management activities, IT infrastructure and costs for finance, accounting, information technology and human resource functions. General and administrative costs also reflect continued investment associated with implementing and operating client and employee management systems. Because our billable personnel operate primarily on client premises or work remotely, all occupancy expenses are recorded as general and administrative.

Depreciation and amortization expense was $1.2 million and $1.6 million for the second quarters of 2025 and 2024, respectively. The decrease of $0.5 million was primarily due to the sale of our Automation business on October 1, 2024. Our fixed assets consist of furniture, fixtures, equipment (mainly personal computers) and leasehold improvements. Depreciation expense is generally computed by applying the straight-line method over the estimated useful lives of assets. We also capitalize certain costs associated with the purchase and development of internal-use software, system conversions and website development costs. These costs are amortized over the estimated useful life of the software or system.

We amortize our intangible assets (e.g., client relationships and databases) over their estimated useful lives. Goodwill related to acquisitions is not amortized, but is subject to annual impairment testing and interim impairment tests, if triggering events are identified.

***Other Income (Expense), Net***

The following table presents a breakdown of other income (expense), net:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  |
| <br>**Other income (expense), net** | **2025** | **2024** | <br>**Change** | **Percent**<br>**Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Interest income | $37 | $222 | $(185) | (83)% |
| Interest expense | (1046) | (1568) | 522 | 33% |
| Foreign currency transaction (loss) gain | (96) | 13 | (109) | (838)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | $(1105) | $(1333) | $228 | 17% |

---

The total decrease in other expenses of $0.2 million, or approximately 17% in the second quarter of 2025 compared to the second quarter of 2024, was primarily the result of lower interest expense attributable to a lower debt balance.

***Income Tax Expense***

Our quarterly effective tax rate varies from period to period based on the mix of our earnings among the various state and foreign tax jurisdictions in which our business is conducted and the level of non-deductible expenses projected to be incurred during the current fiscal year. Our effective tax rate for the quarter ended June 30, 2025 was 38.7% compared to 12.0% for the quarter ended June 30, 2024. The difference for the quarter ended June 30, 2025 was primarily due to the impact of an increase in pre-tax earnings. The Company's effective tax rate for the quarter ended June 30, 2025 was higher than the statutory rate primarily due to non-deductible expenses and the impact of earnings in foreign jurisdictions. There were no significant changes in uncertain tax position reserves or valuation allowances during the quarter ended June 30, 2025.

**RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024**

***Revenues***

The following table presents a breakdown of our revenue by geographic area:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
| <br>**Geographic Area** | **2025** | **2024** | <br>**Change** | **Percent**<br>**Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Americas | $80482 | $80821 | $(339) | (0)% |
| Europe | 30432 | 36598 | (6166) | (17)% |
| Asia Pacific | 10234 | 11113 | (879) | (8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $121148 | $128532 | $(7384) | (6)% |

---

Revenues decreased $7.4 million, or approximately 6%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The revenue for the Americas was flat with an increase in Consulting partially offset by a decrease in Automation (excluding the prior year Automation revenue due to sale of the Automation service line, revenues would have reported an increase of 16%). The decrease in revenue in Europe was primarily attributable to a decrease in Automation, NaSa, and GovernX service lines (excluding the prior year Automation revenue, revenues would have reported a decrease of 10%). The revenue decrease in Asia Pacific was primarily attributable to a decrease in our Consulting, and NaSa service lines. The translation of foreign currency revenues into U.S. dollars positively impacted performance in Europe and Asia Pacific compared to the prior year by $0.4 million.

***Operating Expenses***

The following table presents a breakdown of our operating expenses by category:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
| <br>**Operating Expenses** | **2025** | **2024** | <br>**Change** | **Percent**<br>**Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Direct costs and expenses for advisors | $69518 | $79954 | $(10436) | (13)% |
| Selling, general and administrative | 41299 | 44171 | (2872) | (7)% |
| Depreciation and amortization | 2270 | 3127 | (857) | (27)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $113087 | $127252 | $(14165) | (11)% |

---

Total operating expenses decreased $14.2 million, or approximately 11%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease in operating expenses was primarily due to lower automation license fees expense of $7.1 million, restructuring costs of $3.0 million, compensation expense of $2.9 million, expense reversal associated with an amount that was no longer due to a sub-contractor of $1.9 million, contract labor expense of $0.9 million, bad debt expense of $0.5 million, conference expense of $0.4 million and computer expense of $0.3 million. These costs were partially offset by higher legal reserves of $1.8 million, stock-based compensation expense of $1.1 million and professional fees of $0.4 million.

Compensation costs consist of a mix of fixed and variable salaries, annual bonuses, benefits and profit-sharing plan contributions. A portion of compensation expenses for certain billable employees are allocated between direct costs and selling, general and administrative costs based on relative time spent between billable and non-billable activities. Bonus compensation is determined based on achievement against Company financial targets and is accrued monthly throughout the year based on management's estimates of target achievement. Statutory and elective profit-sharing plans are offered to employees as appropriate. Direct costs also include employee taxes, health insurance, workers' compensation and disability insurance.

Sales and marketing costs consist principally of compensation expenses related to business development, proposal preparation and delivery and negotiation of new client contracts. Costs also include travel expenses relating to the pursuit of sales opportunities, expenses for hosting periodic client conferences, public relations activities, participation in industry conferences, industry relations, website maintenance and business intelligence activities. The Company maintains a dedicated global marketing function responsible for developing and managing sales campaigns, brand promotion, the ISG Index and assembling proposals.

We maintain a comprehensive program for training and professional development. Related expenses include product training, updates on new service offerings or methodologies and development of project management skills. Also included in training and professional development are expenses associated with the development, enhancement and maintenance of our proprietary methodologies and tools and the systems that support them.

Selling, general and administrative expenses consist principally of executive management compensation, allocations of billable employee compensation related to general management activities, IT infrastructure and costs for finance, accounting, information technology and human resource functions. General and administrative costs also reflect continued investment associated with implementing and operating client and employee management systems. Because our billable personnel operate primarily on client premises or work remotely, all occupancy expenses are recorded as general and administrative.

Depreciation and amortization expense for the six months ended June 30, 2025 and June 30, 2024 were $2.3 million and $3.1 million, respectively. The decrease of $0.9 million was primarily due to the sale of our Automation business on October 1, 2024. Our fixed assets consist of furniture, fixtures, equipment (mainly personal computers) and leasehold improvements. Depreciation expense is generally computed by applying the straight-line method over the estimated useful lives of assets. We also capitalize certain costs associated with the purchase and development of internal-use software, system conversions and website development costs. These costs are amortized over the estimated useful life of the software or system.

We amortize our intangible assets (e.g., client relationships and databases) over their estimated useful lives. Goodwill related to acquisitions is not amortized but is subject to annual impairment testing and interim impairment tests, if triggering events are identified.

***Other Income (Expense), Net***

The following table presents a breakdown of other income (expense), net:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
| <br>**Other income (expense), net** | **2025** | **2024** | <br>**Change** | **Percent**<br>**Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Interest income | $92 | $479 | $(387) | (81)% |
| Interest expense | (2102) | (3068) | 966 | 31% |
| Foreign currency transaction (loss) gain  | (93) | 6 | (99) | n/a% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | $(2103) | $(2583) | $480 | 19% |

---

The total decrease in other expenses of $0.5 million, or approximately 19%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was primarily the result of lower interest expense attributable to a lower debt balance, partially offset by lower interest income.

***Income Tax Expense***

Our six months effective tax rate varies from period to period based on the mix of our earnings among the various state and foreign tax jurisdictions in which our business is conducted and the level of non-deductible expenses projected to be incurred during the current fiscal year. Our effective tax rate for the six months ended June 30, 2025 was 38.4% compared to (3.7%) for the six months ended June 30, 2024. The difference for the six months ended June 30, 2025 was primarily due to the impact of an increase in pre-tax earnings. The Company's effective tax rate for the six months ended June 30, 2025 was higher than the statutory rate primarily due to non-deductible expenses and the impact of earnings in foreign jurisdictions. There were no significant changes in uncertain tax position reserves or valuation allowances during the six months ended June 30, 2025.

**NON-GAAP FINANCIAL PRESENTATION**

This management's discussion and analysis presents supplemental measures of our performance that are derived from our consolidated financial information but are not presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We refer to these financial measures, which are considered "non-GAAP financial measures" under rules promulgated by the Securities and Exchange Commission (the "SEC"), as adjusted EBITDA, adjusted net income and adjusted net income per diluted share, each as defined below. See "Non-GAAP Financial Measures" below for information about our use of these non-GAAP financial measures, including our reasons for including these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

**NON-GAAP FINANCIAL MEASURES**

We use non-GAAP financial measures to supplement the financial information presented on a GAAP basis. We provide adjusted EBITDA (defined as net income plus interest, taxes, depreciation and amortization, foreign currency transaction gains/losses, non-cash stock compensation, interest accretion associated with contingent consideration, acquisition and disposition-related costs, and severance, integration and other expense), adjusted net income (defined as net income plus amortization of intangible assets, non-cash stock compensation, foreign currency transaction gains/losses, interest accretion associated with contingent consideration, acquisition and disposition-related costs, severance, integration and other expense, on a tax-adjusted basis) and adjusted net income per diluted share, excluding the net tax effect of the items set forth in the table below. These are non-GAAP measures that the Company believes provide useful information to both management and investors by excluding certain expenses and financial implications of foreign currency translations that management believes are not indicative of ISG's core operations. These non-GAAP measures are used by the Company to evaluate the Company's business strategies and management's performance. However, they are not measurements of financial performance under GAAP and should not be considered as alternatives to measures of performance derived in accordance with GAAP. These non-GAAP financial measures exclude non-cash and certain other special charges that some investors believe may obscure the user's overall understanding of the Company's current

financial performance and the Company's prospects for the future. We believe that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate the Company's performance. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the respective financial results presented in accordance with GAAP.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Net income (loss) | $2183 | $2038 | $3671 | $(1351) |
| Plus: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense (net of interest income) | 1009 | 1346 | 2010 | 2589 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes provision | 1377 | 279 | 2287 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1165 | 1622 | 2270 | 3127 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accretion associated with contingent consideration | 9 | 31 | 20 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and disposition-related costs <sup>(1)</sup> | 123 |  | 203 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, integration and other expense | 332 | 698 | 715 | 3677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain)  | 96 | (13) | 93 | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock compensation | 2004 | 1112 | 4424 | 3361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $8298 | $7113 | $15693 | $11527 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Net income (loss) | $2183 | $2038 | $3671 | $(1351) |
| Plus: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock compensation | 2004 | 1112 | 4424 | 3361 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible amortization | 318 | 738 | 637 | 1492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accretion associated with contingent consideration | 9 | 31 | 20 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and disposition-related costs <sup>(1)</sup> | 123 |  | 203 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, integration and other expense | 332 | 698 | 715 | 3677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain)  | 96 | (13) | 93 | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect <sup>(2)</sup> | (922) | (821) | (1949) | (2754) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income | $4143 | $3783 | $7814 | $4501 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) per diluted share | $0.04 | $0.04 | $0.07 | $(0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock compensation | 0.04 | 0.02 | 0.09 | 0.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible amortization | 0.01 | 0.02 | 0.01 | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accretion associated with contingent consideration | 0.00 | 0.00  | 0.00  | 0.00  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and disposition-related costs <sup>(1)</sup> | 0.00 | - | 0.00  | 0.00  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, integration and other expense | 0.01 | 0.02  | 0.02  | 0.08  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain)  | 0.00 | (0.00) | 0.00  | (0.00) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect <sup>(2)</sup> | (0.02) | (0.02) | (0.03) | (0.06) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income per diluted share | $0.08 | $0.08 | $0.16  | $0.09 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consists of expenses from acquisition and disposition-related costs and non-cash fair value adjustments on pre-acquisition contract liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Marginal tax rate of 32%, reflecting U.S. federal income tax rate of 21% plus 11% attributable to U.S. states and foreign jurisdictions.

**LIQUIDITY AND CAPITAL RESOURCES**

***Liquidity***

Our primary sources of liquidity are cash flows from operations, existing cash and cash equivalents and our revolving credit facility. Operating assets and liabilities consist primarily of receivables from billed and unbilled services, accounts payable, accrued expenses and accrued payroll and related benefits. The volume of billings and timing of collections and payments affect these account balances.

As of June 30, 2025, our cash, cash equivalents and restricted cash totaled $25.3 million compared to $23.2 million as of December 31, 2024, a net increase of $2.1 million, which was primarily attributable to the following:

● net cash provided by operating activities of $12.9 million;

● repayment of outstanding debt of $5.0 million;

● proceeds from revolving facility of $5.0 million;

● cash dividends paid to shareholders of $4.6 million;

● purchase of furniture, fixtures and equipment of $1.7 million;

● proceeds from the sale of the Automation business of $2.0 million;

● treasury shares repurchased of $4.7 million;

● payments related to tax withholding for stock-based compensation of $2.6 million;

● payment of contingent consideration of $0.6 million; and

● proceeds from issuance of employee stock purchase plan shares of $0.3 million.

***Capital Resources***

On February 22, 2023, the Company amended and restated its senior secured credit facility to increase the revolving commitments per the revolving facility from $54.0 million to $140.0 million and eliminate its term loan (as further amended, the "2023 Credit Agreement"). The material terms under the 2023 Credit Agreement are as follows. Capitalized terms used but not defined herein have the meanings ascribed to them in the 2023 Credit Agreement:

● The revolving credit facility has a maturity date of February 22, 2028.

● The credit facility is secured by all of the equity interests owned by the Company, and its direct and indirect domestic subsidiaries and, subject to agreed exceptions, the Company's direct and indirect "first-tier" foreign subsidiaries, and a perfected first priority security interest in all of the Company's and its direct and indirect domestic subsidiaries' tangible and intangible assets.

● The Company's direct and indirect existing and future wholly owned domestic subsidiaries serve as guarantors to the Company's obligations under the senior secured facility.

● At the Company's option, the credit facility bears interest at a rate per annum equal to either (i) the "Base Rate" (which is the highest of (a) the rate publicly announced from time to time by the administrative agent as its "prime rate", (b) the Federal Funds Rate plus 0.5% per annum and (c) Term SOFR, plus 1.0%), plus the applicable margin, or (ii) Term SOFR (which is the Term SOFR screen rate for the relevant interest period plus a credit spread adjustment of 0.10%) as determined by the administrative agent, plus the applicable

margin. The applicable margin is adjusted quarterly based upon the Company's consolidated leverage ratio. For the first quarter of 2025, applicable margin was decreased by 0.25% percentage of the revolving loans maintaining a Base Rate loans of 1.75% for the revolving loans maintained as Term SOFR loans.

● The senior secured credit facility contains a number of covenants that, among other things, place restrictions on matters customarily restricted in senior secured credit facilities, including restrictions on indebtedness (including guarantee obligations), liens, fundamental changes, sales or dispositions of property or assets, investments (including loans, advances, guarantees and acquisitions), transactions with affiliates, dividends and other payments in respect of capital stock, optional payments and modifications of other material debt instruments, negative pledges and agreements restricting subsidiary distributions and changes in line of business. In addition, the Company is required to comply with a consolidated leverage ratio and consolidated interest coverage ratio.

● The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control provisions.

The Company's financial statements include outstanding borrowings of $59.2 million at both June 30, 2025 and December 31, 2024, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings was approximately $59.6 million at both June 30, 2025 and December 31, 2024. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows was 6.1% and 6.4% as of June 30, 2025 and December 31, 2024, respectively. The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions and interest rates. During the six months ended June 30, 2025, the Company borrowed $5.0 million and repaid $5.0 million of the revolver loan. The Company is currently in compliance with its financial covenants.

We anticipate that our current cash and the ongoing cash flows from our operations will be adequate to meet our working capital, capital expenditure and debt financing needs for at least the next twelve months. The anticipated cash needs of our business could change significantly if we pursue and complete additional business acquisitions, if our business plans change, if economic conditions change from those currently prevailing or from those now anticipated or if other unexpected circumstances arise that may have a material effect on the cash flow or profitability of our business. If we require additional capital resources to grow our business, either internally or through acquisitions, or to maintain liquidity, we may seek to sell additional equity securities or to secure additional debt financing. The sale of additional equity securities or certain forms of debt financing could result in additional dilution to our stockholders. We may not be able to obtain financing arrangements in sufficient amounts or on terms acceptable to us in the future.

**Dividend Program**

On August 5, 2025, the Company's Board of Directors (the "Board") approved a third-quarter dividend of $0.045 per share, payable on September 26, 2025, to shareholders of record as of September 5, 2025. The dividends are accounted for as a decrease to Stockholders' Equity. All future dividends will be subject to the Board's approval.

**Off-Balance Sheet Arrangements**

We do not have any off-balance sheet financing arrangements or liabilities, guarantee contracts, retained or contingent interests in transferred assets or any obligation arising out of a material variable interest in an unconsolidated entity.

**Recently Issued Accounting Pronouncements**

See Note 3 to our condensed consolidated financial statements included elsewhere in this report.

**Critical Accounting Policies and Accounting Estimates**

This management's discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements. We prepare these financial statements in conformity with GAAP. As such, we are required to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. We base our estimates on historical experience, available information and various other assumptions we believe to be reasonable under the circumstances. On an ongoing basis, we evaluate our estimates; however, actual results may differ from these estimates under different assumptions or conditions. There have been no material changes or developments in our evaluation of the accounting estimates and the underlying assumptions or methodologies that we believe to be Critical Accounting Policies and Estimates as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

**ITEM 3.** **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**Interest Rate Risk**

As of June 30, 2025, the Company had $59.2 million in total debt principal outstanding. Note 9 — Financing Arrangements and Long-Term Debt in the notes to condensed consolidated financial statements provides additional information regarding the Company's outstanding debt obligations.

All of the Company's total debt outstanding as of June 30, 2025 was based on a floating base rate (SOFR – Secured Overnight Financing Rate) of interest, which potentially exposes the Company to increases in interest rates. However, due to our debt to EBITDA ratio of 2.03 times and forecasted rates from external banks, we believe that our total exposure is limited and is considered in our forecasted cash uses.

**Foreign Currency Risk**

A significant portion of our revenues are typically derived from sales outside of the United States. Among the major foreign currencies in which we conduct business are the Euro, the British Pound and the Australian dollar. The reporting currency of our condensed consolidated financial statements is the U.S. dollar. As the values of the foreign currencies in which we operate fluctuate over time relative to the U.S. dollar, the Company is exposed to both foreign currency translation and transaction risk.

Translation risk arises as our foreign currency assets and liabilities are translated into U.S. dollars because the functional currencies of our foreign operations are generally denominated in the local currency. Adjustments resulting from the translation of these assets and liabilities are deferred and recorded as a component of stockholders' equity. There was a negative impact of foreign currency translation on our Statement of Stockholders' Equity of $1.1 million for the year ended December 31, 2024 and a positive impact of $1.4 million for the six months ended June 30, 2025. The translation of our foreign currency revenues and expenses historically has not had a material impact on our consolidated earnings because movements in and among the major currencies in which we operate tend to impact our revenues and expenses fairly equally. However, our earnings could be impacted during periods of significant exchange rate volatility, or when some or all of the major currencies in which we operate move in the same direction against the U.S. dollar.

Transaction risk arises when we enter into a transaction that is denominated in a currency that may differ from the local functional currency. As these transactions are translated into the local functional currency, a gain or loss may result, which is recorded in current period earnings. For the year ended December 31, 2024 and for the six months ended June 30, 2025, the impact on revenues from foreign currency transactions was not material to our condensed consolidated financial statements.

**Credit Risk**

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of short-term, highly liquid investments classified as cash equivalents and accounts receivable and contract assets. The majority of the Company's cash and cash equivalents are with large investment-grade commercial banks. Accounts receivable and contract asset balances deemed to be collectible from customers have limited concentration of credit risk due to our diverse customer base and geographies.

**ITEM 4.** **CONTROLS AND PROCEDURES**

**Disclosure Controls and Procedures**

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2025 as required by Rule 13a-15(b) under the Exchange Act. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025.

**Changes in Internal Control over Financial Reporting**

There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II—OTHER INFORMATION**

**ITEM 1.** **LEGAL PROCEEDINGS**

We and our consolidated subsidiaries are not currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against us or our consolidated subsidiaries that, in each case, are required to be disclosed under Item 103 of Regulation S-K. From time to time, we and our consolidated subsidiaries may be a party to certain legal proceedings in the ordinary course of business, including as described above under the header legal proceedings.

**ITEM 1A.** **RISK FACTORS**

In addition to the other information set forth in this Quarterly Report on Form 10-Q, including Management's Discussion and Analysis of Financial Condition and Results of Operations and the condensed consolidated financial statements and related notes, you should carefully consider the risks discussed in Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. If any of these risks occur or continue to occur, our business, financial condition and/or operating results could be materially adversely affected. We also note that the risk factors described in this report and in our Form 10-K are not the only risks facing our Company, and such additional risks or uncertainties that we currently deem to be immaterial or are unknown to us could negatively impact our business, operations and/or financial results.

***Changes to trade policy, including new or increased tariffs and changing import/export regulations, may adversely affect our business, financial condition and results of operations***.

Changes in U.S. or international laws and policies governing foreign trade could materially and adversely affect our business. The U.S. has instituted certain changes, and has proposed additional changes, in trade policies that include the negotiation or termination of trade agreements, the imposition of higher tariffs on imports into the U.S. and other government regulations affecting trade between the U.S. and other countries where we conduct our business. The new tariffs and other changes in U.S. trade policy have triggered retaliatory actions by affected countries, and foreign governments have instituted or are considering imposing trade sanctions on U.S. goods.

The imposition of tariffs and other trade restrictions, as well as the escalation of trade disputes and any downturns in the global economy resulting therefrom, could materially and adversely affect our business, financial condition and results of operations. The extent and duration of the tariffs and other trade restrictions and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, the availability and cost of alternative sources of supply and demand for our services in affected markets.

***We may experience employment-related claims, commercial indemnification claims and other legal proceedings that could materially harm our business.***

We currently are, and may again in the future be, subject to employment-related claims in certain of the jurisdictions in which we operate, including claims of wage and hour violations. We incur a risk of liability for claims relating to employment-related matters, contractual obligations, government inquiries and other claims. Some or all of these claims may give rise to litigation or settlements, which may cause us to incur costs or have other material adverse impacts on our financial statements. Additionally, new employment and labor laws and regulations may be proposed or adopted in the jurisdictions in which we operate that may increase the potential exposure of employers to employment-related claims and litigation.

Certain clients have negotiated broad indemnification provisions regarding the services we provide. In addition, we may have liability to our clients for the action or inaction of our consultants that may cause harm to our clients or third parties. In some cases, we must indemnify our clients for certain acts of our consultants or arising from our consultants' presence on the client's job site. We may also incur fines, penalties, and losses that are not covered by insurance or negative publicity with respect to these matters.

**ITEM 2.** **UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**Dividend Program**

On August 5, 2025, the Board approved a third-quarter dividend of $0.045 per share, payable on September 26, 2025, to shareholders of record as of September 5, 2025. The dividends are accounted for as a decrease to Stockholders' Equity. All future dividends will be subject to the Board's approval.

**Issuer Purchases of Equity Securities**

On August 1, 2023, the Board approved a new stock repurchase plan authorizing the Company to repurchase an aggregate of $25 million in shares of the Company's common stock, which took effect upon the completion of the Company's previous repurchase program that was exhausted in the quarter ended March 31, 2024. The Company had approximately $11.0 million of capacity available under its current share repurchase program as of June 30, 2025. The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, pursuant to a Rule 10b5-1 repurchase plan or by other means in accordance with federal securities laws. The timing, the amount and the method of any repurchases will be determined by the Company's management based on its evaluation of market conditions, capital allocation alternatives and other factors. There is no guarantee as to the number of shares that will be repurchased, and the repurchase program may be extended, suspended or discontinued at any time without notice at the Company's discretion.

The following table details the repurchases that were made during the three months ended June 30, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Period** | <br>**Total Number of**<br>**Shares**<br>**Purchased**<br>**(In thousands)** | <br>**Average**<br>**Price Paid per**<br>**Share** | **Total Number of**<br>**Shares**<br>**Purchased**<br>**as Part of Publicly**<br>**Announced Plans or Programs**<br>**(In thousands)** | **Approximate Dollar**<br>**Value of Shares**<br>**That May Yet Be**<br>**Purchased Under**<br>**the Plans or Programs**<br>**(In thousands)** |
| April 1 - April 30 | 300 | $3.78 | 300 | $13749 |
| May 1 - May 31 | 198 | $4.64 | 198 | $12832 |
| June 1 - June 30 | 390 | $4.73 | 390 | $10990 |

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**ITEM 5.** **OTHER INFORMATION**

During the three months ended June 30, 2025, none of the Company's directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Exchange Act).

**ITEM 6.** **EXHIBITS**

The following exhibits are filed or furnished as part of this report:

---

| | | |
|:---|:---|:---|
| **Exhibit**<br>**Number** |  | <br>**Description** |
| 31.1 | \* | [Certification of Chief Executive Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a).](iii-20250630xex31d1.htm) |
| 31.2 | \* | [Certification of Chief Financial Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a).](iii-20250630xex31d2.htm) |
| 32.1 | \*\* | [Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](iii-20250630xex32d1.htm) |
| 32.2 | \*\* | [Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](iii-20250630xex32d2.htm) |
| 101 | \* | The following materials from ISG's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Income and Comprehensive Income, (iii) Condensed Consolidated Statement of Stockholders' Equity, (iv) Condensed Consolidated Statement of Cash Flows and (v) the Notes to Condensed Consolidated Financial Statements. |
| 104 | \* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |

---

\* Filed herewith.

\*\* Furnished herewith.

**SIGNATURES**

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | |
|:---|:---|
|  | **INFORMATION SERVICES GROUP, INC.** |
| Date: August 7, 2025 | /s/ Michael P. Connors |
|  | Michael P. Connors, Chairman of the |
|  | Board and Chief Executive Officer |
| Date: August 7, 2025 | /s/ Michael A. Sherrick |
|  | Michael A. Sherrick, Executive Vice |
|  | President and Chief Financial Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATE PURSUANT TO<br>RULES 13a-14(a) and 15d-14(a),<br>AS ADOPTED PURSUANT TO<br>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michael P. Connors, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Information Services Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| August 7, 2025 | /s/ MICHAEL P. CONNORS |
|  | Michael P. Connors |
|  | Chairman and Chief Executive Officer |
|  | (Principal Executive Officer) |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATE PURSUANT TO<br>RULES 13a-14(a) and 15d-14(a),<br>AS ADOPTED PURSUANT TO<br>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michael A. Sherrick, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Information Services Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| August 7, 2025 | /s/ MICHAEL A. SHERRICK |
|  | Michael A. Sherrick |
|  | Executive Vice President and Chief Financial Officer |
|  | (Principal Financial Officer and Principal Accounting Officer) |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO<br>18 USC. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report on Form 10-Q of Information Services Group, Inc. (the "Company") for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael P. Connors, Chairman and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| August 7, 2025 | /s/ MICHAEL P. CONNORS |
|  | Michael P. Connors |
|  | Chairman and Chief Executive Officer |
|  | (Principal Executive Officer) |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO<br>18 USC. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report on Form 10-Q of Information Services Group, Inc. (the "Company") for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael A. Sherrick, Executive Vice President, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| August 7, 2025 | /s/ MICHAEL A. SHERRICK |
|  | Michael A. Sherrick |
|  | Executive Vice President and Chief Financial Officer |
|  | (Principal Financial Officer and Principal Accounting Officer) |

---

------