Key Highlights

  • Revenues were USD 65.1 million versus USD 62.4 million, an increase of about 4.4% from the third quarter of 2025.
  • Operating income rose 41% to USD 6.45 million from USD 4.59 million, as direct costs rose just 1%.
  • Net income was USD 3.37 million, or USD 0.07 per diluted share, versus USD 3.06 million, or USD 0.06.
  • Nine-month Net Income was USD 9.4 million, or USD 0.19 per diluted share, versus USD 6.7 million, or USD 0.13.

Revenue and Operating Income

Information Services Group, Inc. (NASDAQ:III) reported third-quarter 2026 revenues of USD 65,105,000 compared with USD 62,364,000. Operating Income was USD 6,450,000 versus USD 4,588,000, and net income was USD 3,370,000, or USD 0.07 per basic and diluted share, versus USD 3,056,000, or USD 0.06.

Income tax provision rose to USD 2.5 million from USD 1.1 million. Diluted weighted average shares were 50.5 million, basic shares were 48.3 million versus 48.1 million, and net income was about 5.2% of Revenue versus 4.9%. Operating Margin was about 9.9% versus 7.4%, and income before income tax was USD 5.85 million versus USD 4.20 million. Direct costs for advisors were about 56.1% of revenue versus 57.8%, and selling, general and administrative expense was about 32.3% of revenue versus 33.0%.

Cost Structure

Direct costs and expenses for advisors were USD 36.6 million versus USD 36.0 million, while selling, general and administrative expense rose to USD 21.0 million from USD 20.6 million. Depreciation and amortization eased to USD 1.07 million from USD 1.14 million. Interest income was USD 33,000 versus USD 23,000, and interest expense was USD 909,000.

Nine-month revenues were USD 191.8 million versus USD 183.5 million, a rise of about 4.5%. Operating income was USD 17.3 million versus USD 12.65 million, and net income was USD 9.4 million versus USD 6.7 million, or USD 0.19 per diluted share versus USD 0.13. Nine-month direct costs for advisors were USD 104.9 million versus USD 105.6 million, while SG&A rose to USD 66.4 million from USD 61.9 million. Nine-month operating margin was about 9.0% versus 6.9%, income before income tax was USD 15.4 million versus USD 10.2 million and the income tax provision was USD 6.0 million versus USD 3.4 million. Diluted weighted average shares for nine months were 50.2 million versus 50.3 million.

Dividend and Repurchases

The board approved a third-quarter Dividend of USD 0.045 per share, paid September 25, 2026 to holders of record on September 4. On October 30, 2026 it approved a fourth-quarter dividend of USD 0.045 per share, payable December 18 to holders of record on December 4. On August 4 the board approved an additional USD 30.0 million repurchase authorization that took effect after the prior program was exhausted, and about USD 27.9 million remained available at September 30. The report was signed by the chairman and chief executive, Michael Connors.

Margin and Capital Return Indicators

Management attributes its results to the mix of its advisory business, and the income statement shows operating leverage, with revenue up about 4.4% and operating income up about 41%. Items to watch include revenue growth, the advisor cost ratio, selling expense growth, the tax rate and the pace of repurchases.