Revenue growth remains inconsistent, with operating margins fluctuating significantly from a -5.3% loss in 2023Q4 to a 9.0% profit in 2026Q1, reflecting the inherent volatility of a labor-intensive advisory model.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Sales/Revenue | 246.32M | 244.72M | 247.59M | 291.05M | 286.27M | 277.83M | 249.13M | 265.76M | 275.77M | 269.55M | 216.5M | 209.24M | 209.62M | 210.98M | 192.75M | 184.43M | 132.01M | 132.74M | 174.79M | 18.9M | 0 |
| Revenue Growth % | 1.41% | -1.16% | -14.94% | 1.67% | 3.04% | 11.52% | -6.26% | -3.63% | 2.31% | 24.51% | 3.47% | -0.18% | -0.65% | 9.46% | 4.51% | 39.7% | -0.55% | -24.06% | 824.79% | - | - |
| Cost of Goods Sold | 145.78M | 143.86M | 150.31M | 178.91M | 169.65M | 168.47M | 149.88M | 153.18M | 159.92M | 156.63M | 132.36M | 124.7M | 124.13M | 123.98M | 114.43M | 104.82M | 71.53M | 67.67M | 96.31M | 12.25M | 0 |
| COGS % of Revenue | - | 58.78% | 60.71% | 61.47% | 59.26% | 60.64% | 60.16% | 57.64% | 57.99% | 58.11% | 61.14% | 59.6% | 59.22% | 58.77% | 59.37% | 56.84% | 54.18% | 50.98% | 55.1% | 64.79% | - |
| Gross Profit | 100.54M | 100.87M | 97.28M | 112.14M | 116.62M | 109.36M | 99.25M | 112.58M | 115.85M | 112.92M | 84.14M | 84.54M | 85.48M | 87M | 78.32M | 79.6M | 60.48M | 65.07M | 78.48M | 6.66M | 0 |
| Gross Margin % | 40.82% | 41.22% | 39.29% | 38.53% | 40.74% | 39.36% | 39.84% | 42.36% | 42.01% | 41.89% | 38.86% | 40.4% | 40.78% | 41.23% | 40.63% | 43.16% | 45.82% | 49.02% | 44.9% | 35.21% | - |
| Gross Profit Growth % | - | 3.69% | -13.25% | -3.84% | 6.64% | 10.18% | -11.84% | -2.82% | 2.59% | 34.21% | -0.47% | -1.11% | -1.74% | 11.08% | -1.62% | 31.61% | -7.05% | -17.09% | 1079.32% | - | - |
| Operating Expenses | 80.63M | 83.07M | 91.52M | 97.53M | 87.14M | 84.09M | 89.98M | 99.23M | 103.17M | 103.77M | 86.73M | 74.92M | 72.81M | 75.3M | 71.77M | 78.75M | 59.73M | 57.46M | 61.97M | 8.32M | 51.16K |
| OpEx % of Revenue | - | 33.94% | 36.97% | 33.51% | 30.44% | 30.27% | 36.12% | 37.34% | 37.41% | 38.5% | 40.06% | 35.81% | 34.73% | 35.69% | 37.23% | 42.7% | 45.25% | 43.28% | 35.45% | 44.01% | - |
| Selling, General & Admin | 81.24M | 83.07M | 85.63M | 91.27M | 81.77M | 78.76M | 83.78M | 92.52M | 95.4M | 91.05M | 78.86M | 67.84M | 65.43M | 67.82M | 62.91M | 67.72M | 49.89M | 47.89M | 51.97M | 7.41M | 51.16K |
| SG&A % of Revenue | - | 33.94% | 34.59% | 31.36% | 28.56% | 28.35% | 33.63% | 34.81% | 34.59% | 33.78% | 36.43% | 32.42% | 31.22% | 32.15% | 32.64% | 36.72% | 37.79% | 36.08% | 29.73% | 39.2% | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 503K | 0 | 5.89M | 6.26M | 5.37M | 5.33M | 6.2M | 6.71M | 7.77M | 12.72M | 7.87M | 7.08M | 7.37M | 7.47M | 8.86M | 11.03M | 9.85M | 57.46M | 10M | 910K | 0 |
| Operating Income | 19.91M | 17.8M | 5.76M | 14.61M | 29.48M | 25.27M | 9.27M | 13.36M | 12.68M | 9.16M | -2.59M | 9.62M | 12.68M | 11.7M | 6.55M | -60.84M | -51.74M | 814K | -57.64M | -1.66M | -51.16K |
| Operating Margin % | 8.08% | 7.27% | 2.33% | 5.02% | 10.3% | 9.09% | 3.72% | 5.03% | 4.6% | 3.4% | -1.2% | 4.6% | 6.05% | 5.55% | 3.4% | -32.99% | -39.19% | 0.61% | -32.98% | -8.8% | - |
| Operating Income Growth % | - | 209.12% | -60.6% | -50.43% | 16.67% | 172.6% | -30.61% | 5.37% | 38.44% | 453.28% | -126.96% | -24.16% | 8.35% | 78.64% | 110.77% | -17.59% | -6456.39% | 101.41% | -3364.06% | -3152.48% | - |
| EBITDA | 24.39M | 22.33M | 11.64M | 20.87M | 34.85M | 30.6M | 15.46M | 20.07M | 20.45M | 21.88M | 5.28M | 16.7M | 20.05M | 19.17M | 15.41M | -49.81M | -41.9M | 10.38M | -47.64M | -682K | -49.5K |
| EBITDA Margin % | 9.9% | 9.13% | 4.7% | 7.17% | 12.17% | 11.01% | 6.21% | 7.55% | 7.41% | 8.12% | 2.44% | 7.98% | 9.57% | 9.09% | 7.99% | -27.01% | -31.74% | 7.82% | -27.26% | -3.61% | - |
| EBITDA Growth % | 43.39% | 91.79% | -44.2% | -40.11% | 13.89% | 97.85% | -22.93% | -1.87% | -6.54% | 314.59% | -68.4% | -16.72% | 4.57% | 24.45% | 130.93% | -18.89% | -503.77% | 121.78% | -6885.63% | -1277.86% | - |
| D&A (Non-Cash Add-back) | 4.48M | 4.54M | 5.89M | 6.26M | 5.37M | 5.33M | 6.2M | 6.71M | 7.77M | 12.72M | 7.87M | 7.08M | 7.37M | 7.47M | 8.86M | 11.03M | 9.85M | 9.56M | 10M | 982K | 1.66K |
| EBIT | 20.64M | 17.8M | 11.06M | 14.95M | 29.84M | 25.45M | 9.43M | 13.42M | 13.29M | 10.39M | -2.66M | 9.62M | 12.68M | 11.76M | 6.39M | -60.8M | -51.85M | 936K | -55.76M | -1.66M | -50.87K |
| Net Interest Income | -3.76M | -3.92M | -5.05M | -5.69M | -2.97M | -2.2M | -3.3M | -6.07M | -6.57M | -6.71M | -2.64M | -1.77M | -2.21M | -2.69M | -3.1M | -3.38M | -3.08M | -4.29M | -5.63M | 9.28M | -3.66K |
| Interest Income | 128K | 151K | 782K | 497K | 189K | 142K | 260K | 194K | 116K | 107K | 27K | 14K | 18K | 20K | 45K | 75K | 159K | 262K | 1.3M | 10.45M | 294 |
| Interest Expense | 3.89M | 4.07M | 5.84M | 6.19M | 3.16M | 2.34M | 3.56M | 6.27M | 6.69M | 6.82M | 2.66M | 1.79M | 2.23M | 2.71M | 3.15M | 3.46M | 3.24M | 4.55M | 6.93M | 1.17M | 3.95K |
| Other Income/Expense | -3.45M | -3.26M | -530K | -5.85M | -2.8M | -2.16M | -3.4M | -6.22M | -6.57M | -7.06M | -2.73M | -1.47M | -2.21M | -2.66M | -3.31M | -3.42M | -3.35M | -4.43M | -79.2M | 9.36M | -3.66K |
| Pretax Income | 16.46M | 14.54M | 5.23M | 8.76M | 26.68M | 23.11M | 5.87M | 7.14M | 6.11M | 2.1M | -5.32M | 8.14M | 10.47M | 9.04M | 3.24M | -64.26M | -55.09M | -3.61M | -62.69M | 7.7M | 0 |
| Pretax Margin % | 6.68% | 5.94% | 2.11% | 3.01% | 9.32% | 8.32% | 2.36% | 2.69% | 2.22% | 0.78% | -2.46% | 3.89% | 4.99% | 4.29% | 1.68% | -34.84% | -41.73% | -2.72% | -35.87% | 40.73% | - |
| Income Tax | 5.89M | 5.2M | 2.39M | 2.61M | 6.96M | 7.58M | 3.11M | 3.8M | 435K | 4.2M | 1.05M | 3.19M | 4.16M | 4.27M | 2.64M | -8.33M | -1.93M | -778K | -4.78M | 3.23M | 3.66K |
| Effective Tax Rate % | 35.79% | 35.74% | 45.69% | 29.76% | 26.07% | 32.81% | 53.05% | 53.2% | 7.12% | 199.9% | -19.8% | 39.16% | 39.78% | 47.19% | 81.39% | 12.96% | 3.5% | 21.53% | 7.63% | 41.9% | - |
| Net Income | 10.57M | 9.34M | 2.84M | 6.15M | 19.73M | 15.53M | 2.75M | 3.34M | 5.68M | -2.13M | -6.5M | 4.84M | 6.18M | 4.78M | 603K | -55.94M | -53.16M | -2.84M | -57.91M | 4.47M | -54.82K |
| Net Margin % | 4.29% | 3.82% | 1.15% | 2.11% | 6.89% | 5.59% | 1.11% | 1.26% | 2.06% | -0.79% | -3% | 2.31% | 2.95% | 2.26% | 0.31% | -30.33% | -40.27% | -2.14% | -33.13% | 23.67% | - |
| Net Income Growth % | 37% | 229.02% | -53.87% | -68.8% | 27.03% | 463.67% | -17.54% | -41.15% | 366.53% | 67.26% | -234.37% | -21.64% | 29.36% | 692.04% | 101.08% | -5.21% | -1774.65% | 95.1% | -1394.63% | 8259.58% | - |
| Net Income (Continuing) | 10.57M | 9.34M | 2.84M | 6.15M | 19.73M | 15.53M | 2.75M | 3.34M | 5.68M | -2.1M | -6.38M | 4.95M | 6.3M | 4.78M | 603K | -55.94M | -53.16M | -2.84M | -57.91M | 4.47M | -54.82K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.38M | 939K | 747K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.21 | 0.19 | 0.06 | 0.12 | 0.39 | 0.30 | 0.06 | 0.07 | 0.12 | -0.05 | -0.18 | 0.13 | 0.16 | 0.13 | 0.02 | -1.54 | -1.66 | -0.09 | -1.85 | 0.12 | -0.01 |
| EPS Growth % | 37.67% | 216.67% | -50% | -69.23% | 30% | 400% | -14.53% | -41.5% | 342.42% | 72.5% | -238.46% | -18.75% | 23.08% | 550% | 101.3% | 7.23% | -1742.4% | 95.13% | -1641.67% | - | - |
| EPS (Basic) | - | 0.19 | 0.06 | 0.13 | 0.41 | 0.32 | 0.06 | 0.07 | 0.13 | -0.05 | -0.18 | 0.13 | 0.17 | 0.13 | 0.02 | -1.54 | -1.66 | -0.09 | -1.85 | 0.12 | -0.01 |
| Diluted Shares Outstanding | 50.17M | 50.33M | 50.05M | 50.17M | 50.42M | 51.76M | 49.97M | 47.62M | 46.07M | 43.02M | 36.63M | 38.94M | 38.69M | 38.69M | 37.63M | 36.26M | 32.05M | 31.49M | 31.28M | 38.38M | 7.1M |
| Basic Shares Outstanding | 47.75M | 48.16M | 48.78M | 48.61M | 48.17M | 48.64M | 47.72M | 46.92M | 44.67M | 42.6M | 36.14M | 37.19M | 37.09M | 36.81M | 36.2M | 36.26M | 32.05M | 31.49M | 31.28M | 36.47M | 7.1M |
| Dividend Payout Ratio | - | - | 330.86% | 141.16% | 37.82% | 28.57% | - | - | - | - | - | 107.19% | - | - | - | - | - | - | - | - | - |
Consultant utilization volatility
According to the provided quarterly data, III's revenue growth has fluctuated significantly, oscillating between a 2.7% increase in 2026Q1 and a 18.1% contraction in 2024Q1, suggesting that the firm's top-line performance remains highly sensitive to the cyclical nature of enterprise IT spending and project-based advisory demand.
The inconsistency in revenue growth indicates that III struggles to maintain a consistent pipeline of large-scale advisory engagements. Investors should monitor whether the recent return to positive growth in early 2026 represents a durable recovery or merely a temporary rebound from the depressed levels observed throughout 2024.
As reported in the financial statements, III's gross margin has hovered near the 40% threshold, with a recent peak of 43.1% in 2025Q1, reflecting the inherent limitations of a labor-intensive advisory model where billable utilization rates directly dictate the profitability of each engagement delivered to clients.
The inability to consistently expand gross margins suggests that the company lacks significant pricing power in its core advisory business. This margin profile appears vulnerable to wage inflation, as the firm must balance competitive compensation for specialized consultants against the pressure to maintain attractive billing rates for enterprise clients.
Based on the income statement history, III's operating income has shown extreme volatility, ranging from a loss of $3.5 million in 2023Q4 to a profit of $5.5 million in 2026Q1, which indicates that the company has yet to achieve the operating leverage necessary to scale earnings efficiently.
The high variability in operating margins suggests that SG&A expenses are not sufficiently decoupled from revenue fluctuations. This lack of operating leverage implies that management may struggle to protect the bottom line during periods of revenue contraction, as fixed overhead costs remain a persistent burden on profitability.
Data from the provided income statements reveals that III consistently issues stock-based compensation, with quarterly charges frequently exceeding $2 million, which warrants investigation into the true economic cost of talent retention and the potential for ongoing shareholder dilution despite the company's modest net income performance.
The reliance on stock-based compensation as a primary tool for talent management may mask the true cash-based operating expenses of the firm. Investors should carefully assess whether these non-cash charges are effectively aligned with long-term value creation or if they serve primarily to offset the lack of competitive cash compensation.
While the ISG Index provides a unique data moat, the company's net margin of 3.82% suggests that the business model remains fragile, as even minor disruptions in consultant utilization or unexpected project delays could quickly push the firm back into a net loss position, as seen in 2024Q1.
Short-term observers may argue that the company's valuation is overly optimistic given the persistent revenue stagnation and thin profitability. The reliance on project-based advisory work creates a recurring risk that the firm will be unable to successfully transition to a higher-margin, software-driven revenue model before competitive pressures intensify.
Quick answers to the most common questions about buying III stock.
For fiscal year 2025, Information Services Group, Inc. (III) reported total revenue of $244.7M.
Information Services Group, Inc. (III) is profitable, generating $9.3M in net income for the fiscal year ending 2025 with a net profit margin of 3.8%.
Information Services Group, Inc. (III) reported an operating income of $17.8M, resulting in an operating profit margin of 7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Information Services Group, Inc. (III) generated $100.9M in gross profit for the year, representing a gross profit margin of 41.2%. This demonstrates the company's core pricing power and production efficiency.