Information Services Group(III) - 2025 Q3 - Quarterly Results

Financial Performance - Third-quarter GAAP revenues were $62.4 million, an 8% increase year-over-year, excluding results from the divested automation unit[4] - Adjusted EBITDA for the third quarter was $8.4 million, up 19% compared to the prior year, with an adjusted EBITDA margin of 13.5%, an increase of 196 basis points[9] - Net income for the third quarter was $3.1 million, compared to $1.1 million in the prior year, resulting in a GAAP EPS of $0.06, up from $0.02[7] - Operating income for the third quarter was $4.6 million, compared to $4.3 million in the prior year[7] - Adjusted net income for the third quarter was $4.7 million, or $0.09 per share, compared to $2.5 million, or $0.05 per share, in the prior year[8] - Revenue for Q3 2025 was $62,364 million, compared to $61,277 million in Q3 2024, indicating a year-over-year increase of 1.8%[28] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $24,116 million, up from $18,606 million in the same period of 2024, reflecting a growth of 29.6%[24] - Adjusted net income for the nine months ended September 30, 2025, was $12,489 million, compared to $6,979 million in the same period of 2024, marking an increase of 78.5%[24] - Basic adjusted earnings per share for Q3 2025 was $0.10, up from $0.05 in Q3 2024, representing a 100% increase[24] - Operating income for the nine months ended September 30, 2025, was $12,650 million, compared to $5,574 million in the same period of 2024, showing a substantial increase of 127.5%[28] Cash Flow and Operations - Cash generated from operations was $11.1 million, an increase from $8.8 million in the prior year, with a cash balance of $28.7 million as of September 30, 2025[10] - Non-cash stock compensation for Q3 2025 amounted to $1,756 million, down from $2,329 million in Q3 2024, a decrease of 24.6%[24] - Interest expense (net of interest income) for Q3 2025 was $1,028 million, a decrease from $1,382 million in Q3 2024, reflecting a reduction of 25.5%[24] - The weighted average diluted shares outstanding for Q3 2025 was 50,437 million, slightly up from 50,158 million in Q3 2024[24] Revenue Guidance and Dividends - Fourth-quarter revenue guidance is set between $60.5 million and $61.5 million, with adjusted EBITDA expected to be between $7.5 million and $8.5 million[11] - The company declared a fourth-quarter dividend of $0.045 per share, payable on December 19, 2025[12] Market Conditions - The firm reported a modest improvement in the macro environment, with stronger demand in the U.S. for AI adoption and cost optimization[3] Regional Performance - Revenues in the Americas were $42.2 million, up 11% year-over-year, while Europe saw revenues of $16.0 million, up 7% excluding automation results[6] Foreign Currency Impact - The company reported a foreign currency transaction loss of $81 million in Q3 2025, compared to a loss of $30 million in Q3 2024, indicating a worsening of 170%[24]