ISG (III) Q4 2025 Earnings Call Transcript

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Friday, March 6, 2026 astatine 9 a.m. ET

• Chairman and Chief Executive Officer — Michael P. Connors

• Chief Financial Officer — Michael Sherrick

During this call, we volition sermon definite non-GAAP fiscal measures, which ISG believes improves the comparability of the company's fiscal results betwixt periods and provides for greater transparency of cardinal measures utilized to measure the company's performance. The non-GAAP measures, which we volition interaction connected contiguous see adjusted EBITDA, adjusted nett net and the presumption of selected fiscal information connected a changeless currency basis. Non-GAAP measures are provided arsenic further accusation and should not beryllium considered successful isolation oregon arsenic a substitute for fiscal results prepared successful accordance with GAAP.

A the reconciliation of each non-GAAP measures presented to the astir intimately applicable GAAP measure, delight notation to our existent study connected Form 8-K, which was filed past nighttime with the SEC. And present I would similar to crook the telephone implicit to Michael Connors, who volition beryllium followed by Michael Sherrick. Mike?

Michael P. Connors: Thank you, Will, and bully morning, everyone. I should enactment that Will is present handling the opening of our telephone aft the passing of a long-time colleague, Barry Holt successful December. Barry was with maine erstwhile I started the steadfast successful 2006 and was heard connected each of our capitalist calls up until now. Our condolence is again to the full family. Today, we volition reappraisal our coagulated Q4 results driven by double-digit maturation successful Europe and successful our recurring revenues. Progress connected our AI initiatives, our presumption of the existent request situation and our outlook for Q1. ISG delivered a beardown Q4 to headdress disconnected successful an outstanding year, powered by continuing lawsuit involvement successful our AI-centered translation services.

In the 4th quarter, astir 35% of our revenues were from AI-related probe and advisory services. For the afloat year, that fig was astir 30%, up 3x from 2024. This shows that AI is rapidly being mainstreamed arsenic a halfway facet of our accepted exertion translation work. Technology disruption has ever fueled our maturation successful times of important change, enterprises often conflict to adapt, truthful they crook to a trusted advisor for insights and expertise to illustration the way guardant and our results bespeak that. We are inactive successful the aboriginal stages of AI adoption volition proceed to accelerate arsenic the exertion and its governance matures.

For our clients, it's not a question of if they volition leverage AI, it's a question of how. Success requires the close information engineering, due governance and workers acceptable to clasp the operating exemplary changes AI is creating. We're seeing our AI clients leverage our full worth chain, research, benchmarking, advisory and governance, truthful they tin navigate this caller paradigm rapidly and effectively. For the 4th quarter, ISG delivered revenues of $61.2 million, astatine the apical extremity of our guidance and up 6% versus the anterior year.