# EDGAR Filing Document

**Accession Number:** 0001371489
**File Stem:** 0001104659-26-057713
**Filing Date:** 2026-5
**Character Count:** 99736
**Document Hash:** 11f6ff492ac85d7b33454911f2ad4f5f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-057713.hdr.sgml**: 20260508

**ACCESSION NUMBER**: 0001104659-26-057713

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 61

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260508

**DATE AS OF CHANGE**: 20260508

**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:** 26957052

**BUSINESS ADDRESS:**
- **STREET 1:** 400 ATLANTIC STREET
- **STREET 2:** SIXTH FLOOR
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06901-3512
- **BUSINESS PHONE:** 203-517-3100

**MAIL ADDRESS:**
- **STREET 1:** 400 ATLANTIC STREET
- **STREET 2:** SIXTH FLOOR
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06901-3512

?xml version='1.0' encoding='ASCII'? Information Services Group Inc._March 31, 2026

------

**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 March 31, 2026**

**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.) |

---

**400 Atlantic StreetStamford, CT 06901**(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 May 1, 2026** |
| Common Stock, $0.001 par value | 47,839,274 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, 2025 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)**

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | $22689 | $28661 |
| Accounts receivable and contract assets, net of allowance of $2,401 and $2,359, respectively | 59447 | 59409 |
| Prepaid expenses and other current assets | 4915 | 6001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 87051 | 94071 |
| Restricted cash | 91 | 93 |
| Furniture, fixtures and equipment, net  | 6942 | 6597 |
| Right-of-use lease assets | 9838 | 10809 |
| Goodwill | 89330 | 89375 |
| Intangible assets, net | 3049 | 3305 |
| Deferred tax assets | 5100 | 4982 |
| Other assets | 1386 | 1769 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $202787 | $211001 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| Accounts payable | $8604 | $10111 |
| Contract liabilities | 7336 | 9788 |
| Accrued expenses and other current liabilities | 16880 | 20258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 32820 | 40157 |
| Long-term debt, net of current maturities | 59175 | 59175 |
| Deferred tax liabilities | 1584 | 1536 |
| Operating lease liabilities | 8607 | 9007 |
| Other liabilities | 6410 | 6450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 108596 | 116325 |
| Commitments and contingencies (Note 8) |  |  |
| **Stockholders' equity** |  |  |
| Preferred stock, $0.001 par value; 10,000 shares authorized; none issued |  |  |
| Common stock, $0.001 par value; 100,000 shares authorized; 49,707 shares issued and 47,767 outstanding at March 31, 2026 and 49,707 shares issued and 47,774 outstanding at December 31, 2025 | 50 | 50 |
| Additional paid-in capital | 200479 | 202702 |
| Treasury stock (1,940 and 1,933 common shares, respectively, at cost) | (9868) | (9383) |
| Accumulated other comprehensive loss | (8663) | (8170) |
| Accumulated deficit | (87807) | (90523) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 94191 | 94676 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $202787 | $211001 |

---

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**  |
|  | **March 31,**  | **March 31,**  |
|  | **2026** | **2025** |
| **Revenues** | $61183 | $59583 |
| **Operating expenses** |  |  |
| Direct costs and expenses for advisors | 34803 | 33927 |
| Selling, general and administrative | 20317 | 21155 |
| Depreciation and amortization | 1046 | 1105 |
| Operating income  | 5017 | 3396 |
| Interest income | 32 | 55 |
| Interest expense | (878) | (1056) |
| Foreign currency transaction gain | 152 | 3 |
| Income before taxes | 4323 | 2398 |
| Income tax provision  | 1607 | 910 |
| Net income  | $2716 | $1488 |
| Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 47746 | 48369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 50175 | 50252 |
| Earnings per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.06 | $0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.05 | $0.03 |
| **Comprehensive income:** |  |  |
| Net income  | $2716 | $1488 |
| Foreign currency translation gain, net of tax expense (benefit) of $(81), and $126 respectively | (493) | 400 |
| Comprehensive income  | $2223 | $1888 |

---

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 December 31, 2025** | 49707 | $50 | $202702 | $(9383) | $(8170) | $(90523) | $94676 |
| Net income |  |  |  |  |  | 2716 | 2716 |
| Other comprehensive loss |  |  |  |  | (493) |  | (493) |
| Treasury shares repurchased  |  |  |  | (2086) |  |  | (2086) |
| Proceeds from issuance of employee stock purchase plan (ESPP) shares |  |  | 39 | 120 |  |  | 159 |
| Issuance of treasury shares for restricted stock units ("RSUs") vested |  |  | (1481) | 1481 |  |  |  |
| Accrued dividends on unvested shares |  |  | (290) |  |  |  | (290) |
| Cash dividends paid to shareholders ($0.045 per share) |  |  | (2245) |  |  |  | (2245) |
| Stock-based compensation |  |  | 1754 |  |  |  | 1754 |
| **Balance March 31, 2026** | 49707 | $50 | $200479 | $(9868) | $(8663) | $(87807) | $94191 |
|  |  |  |  |  | **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 |  |  |  |  |  | 1488 | 1488 |
| Other comprehensive income |  |  |  |  | 400 |  | 400 |
| Treasury shares repurchased  |  |  |  | (3421) |  |  | (3421) |
| Proceeds from issuance of ESPP shares |  |  | (8) | 147 |  |  | 139 |
| Issuance of treasury shares for restricted stock units ("RSUs") vested |  |  | (1759) | 1759 |  |  |  |
| Accrued dividends on unvested shares |  |  | (31) |  |  |  | (31) |
| Cash dividends paid to shareholders ($0.045 per share) |  |  | (2245) |  |  |  | (2245) |
| Stock-based compensation |  |  | 2420 |  |  |  | 2420 |
| **Balance March 31, 2025** | 49658 | $50 | $208526 | $(5511) | $(9653) | $(98376) | $95036 |

---

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)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
|  | **March 31,**  | **March 31,**  |
|  | **2026** | **2025** |
| **Cash flows from operating activities** |  |  |
| Net income  | $2716 | $1488 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| Depreciation expense | 811 | 787 |
| Amortization of intangible assets | 235 | 318 |
| Deferred tax (benefit) expense from stock issuances | (8) | 112 |
| Amortization of deferred financing costs | 56 | 56 |
| Stock-based compensation | 1754 | 2420 |
| Change in fair value of contingent consideration | 5 | 12 |
| Provisions for credit losses | 71 | 37 |
| Deferred tax provision (benefit) | 170 | (128) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable and contract assets | 111 | (5515) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 2114 | 2965 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (2143) | (1300) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | (2452) | (78) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | (4112) | (196) |
| **Net cash (used in) provided by operating activities** | (672) | 978 |
| **Cash flows from investing activities** |  |  |
| Purchase of furniture, fixtures and equipment | (841) | (837) |
| **Net cash used in investing activities** | (841) | (837) |
| **Cash flows from financing activities** |  |  |
| Proceeds from revolving facility (Note 10) | 20000 | 5000 |
| Repayment of outstanding debt (Note 10) | (20000) | (5000) |
| Additional proceeds from the sale of the Automation business |  | 1954 |
| Proceeds from issuance of employee stock purchase plan shares | 159 | 139 |
| Payments related to tax withholding for stock-based compensation | (770) | (756) |
| Cash dividends paid to shareholders | (2245) | (2245) |
| Treasury shares repurchased | (1316) | (2565) |
| **Net cash used in financing activities** | (4172) | (3473) |
| **Effect of exchange rate changes on cash** | (289) | 376 |
| **Net decrease in cash, cash equivalents, and restricted cash** | (5974) | (2956) |
| **Cash, cash equivalents, and restricted cash, beginning of period** | 28754 | 23158 |
| **Cash, cash equivalents, and restricted cash, end of period** | $22780 | $20202 |
| **Supplemental disclosures of cash flow information:** |  |  |
| Cash paid for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $878 | $1062 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes, net of refunds | $879 | $512 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of treasury stock for vested restricted stock units | $1481 | $1759 |

---

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", "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 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 and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its approximately 1,500 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 Form 10-Q or any other filings.

**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 March 31, 2026, the results of operations for the three months ended March 31, 2026 and 2025 and the cash flows for the three months ended March 31, 2026 and 2025. The condensed consolidated balance sheet as of December 31, 2025 has been derived from the Company's audited consolidated financial statements. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

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, 2025, which are included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 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.

**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 March 31, 2026 and December 31, 2025 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** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | $98 | $— | $— | $98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $98 | $— | $— | $98 |
| **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration (1) | $— | $— | $339 | $339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $— | $339 | $339 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** | **Basis of Fair Value Measurements** |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents | $98 | $— | $— | $98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $98 | $— | $— | $98 |
| **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration (1) | $— | $— | $334 | $334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $— | $334 | $334 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)As of March 31, 2026 and December 31, 2025, the noncurrent contingent consideration is included in "Other liabilities".

The following table represents the change in contingent consideration liability during the three months ended March 31, 2026:

---

| | |
|:---|:---|
|  | **Three Months Ended** <br>**March 31,**  |
|  | **2026** |
| Beginning Balance | $334 |
| &nbsp;&nbsp;Accretion of contingent consideration | 5 |
| Ending Balance | $339 |

---

The Company's accompanying unaudited condensed consolidated financial instruments include outstanding borrowings of $59.2 million at both March 31, 2026 and December 31, 2025, 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 $59.5 million at both March 31, 2026 and December 31, 2025. 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 5.3% at both March 31, 2026 and December 31, 2025, 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. In the first quarter of 2026, the Company borrowed $20.0 million and subsequently repaid $20.0 million of the outstanding balance on its revolving credit facility. The Company is currently in compliance with its financial covenants.

**Recently Issued Accounting Pronouncements**

*Income Statement Disaggregation*

In November 2024, the Financial Accounting Standards Board (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.

*Intangibles-Goodwill and Other-Internal-Use Software*

In September 2025, the FASB issued ASU 2025-06 to modernize the accounting for software costs. Under the new guidance, internal-use software costs are capitalized when management has authorized and committed to funding the project, and it is probable that the software will be completed and used for its intended function. This updated guidance addresses challenges in applying outdated guidance to modern software development methods, such as agile programming, which are incremental and iterative rather than sequential. The ASU is effective on a prospective basis, with the option for

retrospective application, for annual periods beginning after December 15, 2027. The Company is currently evaluating the impact on our consolidated financial statements.

**NOTE 4—ACQUISITION**

*AI Maturity Index Acquisition* 

On January 13, 2026, ISG entered into an asset purchase agreement to acquire substantially all of the assets of AI Maturity Index, a SaaS (Software as a Service) platform that allows organizations to assess the AI readiness of their workforces and improve their employees' ability to leverage AI technology, for total consideration of $750,000, consisting of $500,000 paid at closing and $250,000 of fixed deferred consideration payable two years from the signing date. The assets acquired consist primarily of developed software and related intellectual property that will be integrated into ISG's AI-related offerings, including the ISG AI Maturity Index. The acquired assets will not operate as a standalone business post-acquisition. The related software acquired, which is capitalized within "Furniture, fixtures and equipment, net," will be amortized on a straight-line basis over four years.

*Martino & Partners Acquisition*

On September 1, 2025, the Company completed the acquisition of Martino & Partners s.r.l. ("Martino & Partners"), a strategic advisory firm serving public and private sectors clients in Italy, for total consideration of EUR 2.0 million (USD 2.3 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 (USD 0.4 million) in cash, to be paid no later than April 30, 2028. Martino & Partners will also have the right to receive additional consideration paid via earn-out payments if certain financial targets are met. The acquisition was accounted for as a business combination in accordance with Accounting Standards Codification ("ASC") 805, *Business Combinations*.

The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):

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| | |
|:---|:---|
| Cash | $2331 |
| Deferred purchase consideration | 410 |
| Contingent liabilities | 468 |
| ISG common stock | 250 |
| Total allocable purchase price | $3459 |
| Current assets | $1050 |
| Intangible assets | 1020 |
| Fixed assets | 22 |
| Current liabilities | (376) |
| Debt assumed | (34) |
| Net assets acquired | $1682 |
| Goodwill | $1777 |

---

The primary factors that drove the goodwill recognized, the majority of which is deductible for tax purposes, were the inclusion of legacy Martino & Partners workforce and the expansion of the Company's client base, geographic footprint and capabilities in the European market.

Costs associated with this acquisition are included in the selling, general and administrative expenses in the Consolidated Statement of Income and Comprehensive Income and were immaterial.

Based on the valuation and other factors as described above, the purchase price assigned to intangible assets and the amortization period were as follows:

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| | | |
|:---|:---|:---|
|  | **Purchase Price**<br>**Allocation** | **Estimated**<br>**Useful Lives** |
| Amortizable intangible assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trademark and trade name | $220 | 3 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer relationships | 760 | 7 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncompete agreements | 40 | 4 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets | $1020 |  |

---

**NOTE 5—REVENUE**

The majority of our revenue is derived from contracts that can span from a few months to several years. We enter 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 our contracts have a single performance obligation as the 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 our 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.

Our 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). Our clients are billed based on the type of arrangement. A portion of our services are billed monthly based on hourly or daily rates. There are also client engagements in which we bill a fixed amount for our 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, we sometimes receive 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 sales contracts with annual invoicing, we perform a significant financing component calculation and recognize the associated interest income throughout the duration of the financing period. In addition, we reclassify 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 contract assets and contract liabilities.

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| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Contract assets  | $19944 | $14489 |
| Contract liabilities  | $7336 | $9788 |

---

Non-current contract assets of $1.0 million as of March 31, 2026 and $1.3 million as of December 31, 2025 are included in "Other assets" on the Consolidated Balance Sheet.

Revenue recognized for the three months ended March 31, 2026 that was included in the contract liability balance at January 1, 2026 was $5.9 million, primarily representing revenue from the Company's subscription, fixed-fee, and research contracts.

*Remaining Performance Obligations*

As of March 31, 2026, the Company had $123.0 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. As a result, the Company 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 $4.9 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 such period. As of March 31, 2026, $1.3 million of the reserve on the other multi-year project remains. The Company commenced legal action against the client in April 2024 to collect the outstanding receivables on the other multi-year project. On September 3, 2025, the court issued its final non-appealable judgment holding the client liable to the Company for approximately $5.6 million, plus applicable legal interest at 5% per annum until full payment is made. The Company is continuing to aggressively pursue collection on this judgement against the former client through asset discovery authorized by court orders, though no assets have yet been identified to satisfy the judgement. As collection efforts are ongoing, actual collections from the client may differ from the Company's estimate. It is unclear at this time if the court judgement will be satisfied by this client's assets.

Separately, the Company is currently engaged in litigation with a client over a disputed accounts receivable balance for services rendered. The Company is pursuing collection of the full outstanding balance of $4.7 million in litigation. As of March 31, 2026, we have not recorded material reserves against this balance. The Company will continue to reassess ultimate collectability and the need for reserves in future periods.

**NOTE 6—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 months ended March 31, 2026 and March 31, 2025, 0.2 million and 1.1 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:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| **Basic:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $2716 | $1488 |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares | 47746 | 48369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earnings per share  | $0.06 | $0.03 |
| **Diluted:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $2716 | $1488 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic weighted average common shares | 47746 | 48369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Potential common shares | 2429 | 1883 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted weighted average common shares | 50175 | 50252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per share | $0.05 | $0.03 |

---

**NOTE 7—INCOME TAXES**

The Company's effective tax rate for the three months ended March 31, 2026 and March 31, 2025 was 37.2% and 37.9%, respectively, based on pretax income of $4.3 million and $2.4 million, respectively. The Company's effective tax rate for the quarter ended March 31, 2026 was impacted by non-deductible expenses and earnings and losses in certain foreign jurisdictions.

On July 4, 2025, H.R. 1, "An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14" (the "Act"), commonly referred to as the "One Big Beautiful Bill Act," was enacted in the United States. The legislation includes several changes to corporate taxation, including modifications to depreciation deductions and the limitation on interest expense deductions, as well as the reinstatement of 100% bonus depreciation for certain fixed assets acquired and placed in service after January 19, 2025.

**NOTE 8—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 March 31, 2026 and December 31, 2025.

**Martino & Partners Contingent Consideration**

As of March 31, 2026, the Company has recorded a liability of EUR 0.3 million (USD 0.4 million) representing the estimated fair value of contingent consideration related to the acquisition of Martino & Partners, which was classified as non-current and included in other liabilities on the consolidated balance sheet.

*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 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 9—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:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
|  | **March 31,**  | **March 31,**  |
|  | **2026** | **2025** |
| **Revenues** |  |  |
| Americas | $39814 | $41002 |
| Europe | 17284 | 13794 |
| Asia Pacific | 4085 | 4787 |
|  | $61183 | $59583 |

---

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:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
|  | **March 31,**  | **March 31,**  |
|  | **2026** | **2025** |
| Revenue | $61183 | $59583 |
| Less: |  |  |
| Compensation expense | 39132 | 39988 |
| Contract labor | 5139 | 4279 |
| Third-party costs | 594 | 519 |
| Travel and entertainment | 2694 | 2376 |
| Professional fees | 1981 | 1895 |
| Computer expense | 1250 | 1123 |
| Restructuring costs | 425 | 383 |
| Other segment expenses (1) | 3905 | 4519 |
| Depreciation and amortization | 1046 | 1105 |
| Interest income | (32) | (55) |
| Interest expense | 878 | 1056 |
| Foreign currency translation | (152) | (3) |
| Income tax provision | 1607 | 910 |
| Net income | $2716 | $1488 |

---

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

**NOTE 10—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 Secured Overnight Financing Rate ("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. During the fourth quarter of 2025, the applicable margin was decreased by 0.25 percentage of the revolving loans maintaining a Base Rate loans of 1.50% 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 March 31, 2026 and December 31, 2025, 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 $59.5 million at both March 31, 2026 and December 31, 2025. 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 5.3% at both March 31, 2026 and December 31, 2025, 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. In the first quarter of 2026, the Company borrowed $20.0 million and subsequently repaid $20.0 million of the outstanding balance on its revolving credit facility. The Company is currently in compliance with its financial covenants.

**NOTE 11—SUBSEQUENT EVENTS**

On May 5, 2026, the Company's Board of Directors (the "Board") approved a second-quarter dividend of $0.045 per share, payable June 26, 2026, to shareholders of record as of June 5, 2026. The dividends are accounted for as a decrease to Stockholders' Equity. All future dividends will be subject to the Board's prior approval.

**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 2026 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, such as the conflict in Iran. 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, 2025 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) 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 and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its approximately 1,500 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 the 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. We typically have fewer business workdays available in the fourth quarter of the year, which can impact revenues during that period. 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 MARCH 31, 2026 AND MARCH 31, 2025**

***Revenues***

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
| <br>**Geographic Area** | **2026** | **2025** | <br>**Change** | **Percent**<br>&nbsp;&nbsp;&nbsp;&nbsp; **Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Americas | $39814 | $41002 | $(1188) | (3)% |
| Europe | 17284 | 13794 | 3490 | 25% |
| Asia Pacific | 4085 | 4787 | (702) | (15)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $61183 | $59583 | $1600 | 3% |

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Revenues increased $1.6 million, or approximately 3%, in the first quarter of 2026 compared to the first quarter of 2025. The increase in revenues in Europe was primarily due to increases in the Consulting and Network & Software ("NaSa") service lines. The decrease in revenues in the Americas was primarily due to the decline in the NaSa and the Consulting service lines, partially offset by an increase in GovernX and Research service lines. The decrease in revenues in Asia Pacific was attributable to a decrease in the Consulting and Research service lines. The translation of foreign currency revenues into U.S. dollars positively impacted performance compared to the prior year by $1.8 million.

***Operating Expenses***

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
| <br>**Operating Expenses** | **2026** | **2025** | <br>**Change** | **Percent**<br>**Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Direct costs and expenses for advisors | $34803 | $33927 | $876 | 3% |
| Selling, general and administrative | 20317 | 21155 | (838) | (4)% |
| Depreciation and amortization | 1046 | 1105 | (59) | (5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $56166 | $56187 | $(21) | (0)% |

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Total operating expenses were relatively consistent for the first quarter of 2026 compared to the first quarter of 2025. The increase in operating expenses was primarily driven by higher contract labor of $0.9 million, travel and entertainment of $0.3 million, and computer expense of $0.2 million. These increases were partially offset by lower compensation expense of $0.8 million, stock-based compensation expense of $0.7 million, and professional fees of $0.1 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 expenses were $1.0 million and $1.1 million for the first quarters of 2026 and 2025, respectively. 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 March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
| <br>**Other income (expense), net** | **2026** | **2025** | <br>**Change** | **Percent**<br>**Change** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| Interest income | $32 | $55 | $(23) | (42)% |
| Interest expense | (878) | (1056) | 178 | 17% |
| Foreign currency transaction gain | 152 | 3 | 149 | 4672% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | $(694) | $(998) | $304 | 30% |

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The total decrease in other expenses of $0.3 million, or approximately 30% in the first quarter of 2026 compared to the first quarter of 2025, was primarily due to lower interest expense attributable to lower interest rates, and fluctuations in foreign exchange rates.

***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 March 31, 2026 was 37.2% compared to 37.9% for the quarter ended March 31, 2025. The difference for the quarter ended March 31, 2026 was primarily due to the impact of an increase in pre-tax earnings. The Company's effective tax rate for the quarter ended March 31, 2026 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 during the quarter ended March 31, 2026.

**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, gain on assets disposal 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, gain on assets disposal and 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.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
|  | **($ in thousands)** | **($ in thousands)** |
| Net income  | $2716 | $1488 |
| Plus: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense (net of interest income) | 846 | 1001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes provision | 1607 | 910 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1046 | 1105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on assets disposal | (47) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accretion associated with contingent consideration | 5 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and disposition-related costs (1) | 72 | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, integration and other expense | 425 | 383 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction gain | (152) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock compensation | 1754 | 2420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $8272 | $7396 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
|  | **($ in thousands)** | **($ in thousands)** |
| Net income  | $2716 | $1488 |
| Plus: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock compensation | 1754 | 2420 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible amortization | 235 | 318 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on assets disposal | (47) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accretion associated with contingent consideration | 5 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and disposition-related costs (1) | 72 | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, integration and other expense | 425 | 383 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction gain | (152) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect (2) | (733) | (1027) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income | $4275 | $3671 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| Net income per diluted share | $0.05 | $0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock compensation | 0.03 | 0.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible amortization | 0.00 | 0.00  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on assets disposal | (0.00) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accretion associated with contingent consideration | 0.00 | 0.00  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and disposition-related costs (1) | 0.00 | 0.00  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance, integration and other expense | 0.02 | 0.01  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction gain | (0.00) | (0.00) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect (2) | (0.01) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income per diluted share | $0.09 | $0.07 |

---

&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 March 31, 2026, our cash, cash equivalents and restricted cash totaled $22.8 million compared to $28.8 million as of December 31, 2025, a net decrease of $6.0 million, which was primarily attributable to the following:

● net cash used in operating activities of $0.7 million;

● repayment of outstanding debt of $20.0 million;

● proceeds from revolving facility of $20.0 million;

● cash dividends paid to shareholders of $2.2 million;

● purchase of furniture, fixtures and equipment of $0.8 million;

● treasury shares repurchased of $1.3 million;

● payments related to tax withholding for stock-based compensation of $0.8 million; and

● proceeds from issuance of employee stock purchase plan shares of $0.2 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. During the fourth quarter of 2025, the applicable margin was decreased by 0.25 percentage of the revolving loans maintaining a Base Rate loans of 1.50% 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 March 31, 2026 and December 31, 2025, 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 $59.5 million at both March 31, 2026 and December 31, 2025, respectively. 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 5.3% at both March 31, 2026 and December 31, 2025, 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 three months ended March 31, 2026, the Company borrowed $20.0 million and subsequently repaid $20.0 million of the outstanding balance on its revolving credit. 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 March 3, 2026, the Company's Board of Directors (the "Board") approved a first-quarter dividend of $0.045 per share, which was paid on March 26, 2026, to shareholders of record as of March 20, 2026 .

On May 5, 2026, the Board approved a second-quarter dividend of $0.045 per share, payable June 26, 2026, to shareholders of record as of June 5, 2026.

The dividends are accounted for as a decrease to Stockholders' Equity. All future dividends will be subject to the Board's prior 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, 2025.

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

**Interest Rate Risk**

As of March 31, 2026, the Company had $59.2 million in total debt principal outstanding. Note 10— 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 March 31, 2026 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 1.80 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 positive impact of foreign currency translation on our Statement of Stockholders' Equity of $1.9 million for the year ended December 31, 2025 and a negative impact of $0.5 million for the three months ended March 31, 2026. 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, 2025 and for the three months ended March 31, 2026, 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 March 31, 2026 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 March 31, 2026.

**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 further detailed above in Note 5 – Revenue – "Accounts Receivable and Contract Assets" and Note 8 – Commitments and Contingencies – "Legal Reserves.".

**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, 2025. 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2025 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.

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

**Dividend Program**

On March 3, 2026, the Board approved a first-quarter dividend of $0.045 per share, which was paid on March 26, 2026, to shareholders of record as of March 20, 2026.

On May 5, 2026, the Board approved a second-quarter dividend of $0.045 per share, payable June 26, 2026, to shareholders of record as of June 5, 2026.

The dividends are accounted for as a decrease to Stockholders' Equity. All future dividends will be subject to the Board's prior approval.

**Issuer Purchases of Equity Securities**

On August 1, 2023, the Board approved a 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 $3.8 million in aggregate available under its current share repurchase program as of March 31, 2026. 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 March 31, 2026.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <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)** |
| January 1 - January 31 | 151 | $5.78 | 151 | $5060 |
| February 1 - February 28 | 126 | $4.95 | 126 | $4437 |
| March 1 - March 31 | 142 | $4.17 | 142 | $3845 |

---

**Recent Sales of Unregistered Securities**

As previously reported, on September 1, 2025, the Company completed the acquisition of Martino & Partners. In September 2025, in connection with the acquisition, the Company issued 48,356 shares of ISG common stock valued at approximately $0.3 million to the Sellers of Martino & Partners. The issuance of these shares of ISG common stock was exempt from registration under Rule 4(a)(2) promulgated under the Securities Act of 1933, as amended.

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

During the three months ended March 31, 2026, 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-20260331xex31d1.htm) |
| 31.2 | \* | [Certification of Chief Financial Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a).](iii-20260331xex31d2.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-20260331xex32d1.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-20260331xex32d2.htm) |
| 101 | \* | The following materials from ISG's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 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.

---

| | |
|:---|:---|
|  | **INFORMATION SERVICES GROUP, INC.** |
| Date: May 8, 2026 | /s/ Michael P. Connors |
|  | Michael P. Connors, Chairman of the |
|  | Board and Chief Executive Officer |
| Date: May 8, 2026 | /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.

---

| | |
|:---|:---|
| May 8, 2026 | /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.

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| | |
|:---|:---|
| May 8, 2026 | /s/ MICHAEL A. SHERRICK |
|  | Michael A. Sherrick |
|  | Executive Vice President and Chief Financial Officer |
|  | (Principal Financial Officer and Principal Accounting Officer) |

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## 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 March 31, 2026 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.

---

| | |
|:---|:---|
| May 8, 2026 | /s/ MICHAEL P. CONNORS |
|  | Michael P. Connors |
|  | Chairman and Chief Executive Officer |
|  | (Principal Executive Officer) |

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## 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 March 31, 2026 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.

---

| | |
|:---|:---|
| May 8, 2026 | /s/ MICHAEL A. SHERRICK |
|  | Michael A. Sherrick |
|  | Executive Vice President and Chief Financial Officer |
|  | (Principal Financial Officer and Principal Accounting Officer) |

---

------