Information Services Group’s Q3 confirms the turn, stock still undervalued

Information Services Group (NASDAQ: III) delivered a strong third‑quarter 2025, reinforcing its turnaround narrative and underscoring investor opportunities in its valuation. The company reported GAAP revenues of approximately $62.4 million, up roughly 2% from the same period a year ago; when excluding the results of its divested automation unit, revenue grew around 8%. Adjusted EBITDA rose 19% year‑over‑year to about $8.4 million, driving the margin up by nearly 200 basis points to 13.5%. Recurring revenue remains robust— accounting for roughly 45% of total sales—highlighting the firm’s shift toward higher‑visibility, higher‑margin streams. On the regional front, the Americas led growth with an 11% increase (excluding the automation business), Europe returned to growth at +7%, while Asia Pacific remained a drag with a reported contraction (‑15%). From a valuation standpoint, shares trade at about 9.2 × EV/EBITDA, a level the author labels attractive given the company’s recurring revenue base and expanding AI‑driven services. While macro risks—particularly in APAC and Europe—remain, Information Services Group’s solid fundamentals and capital‑return actions (dividends and buybacks) mark it as a compelling long‑term value play. #AIservices #TechConsulting #ValueStocks #ThirdQuarterResults #SlimScan #GrowthStocks #CANSLIM