ISG Closes Out 2025 with Strong Q4 Results, Driven by AI Adoption and Recurring Revenues
The Information Services Group (ISG) capped off an outstanding year with a solid fourth quarter performance, driven by double-digit growth in Europe and its recurring revenues. In a conference call on March 6, ISG Chairman and Chief Executive Officer Michael Connors outlined the company's strong Q4 results, which saw nearly 35% of revenues coming from AI-related Research and Advisory services.
Connors noted that technology disruption has always fueled ISG's growth, as enterprises struggle to adapt to change and turn to trusted advisors for insights and expertise. The company is still in the early stages of AI adoption, but it's rapidly being mainstreamed as a core aspect of traditional technology transformation work.
"We're seeing our AI clients leverage our entire value chain, Research, benchmarking, Advisory, and governance," Connors said. "They can navigate this new paradigm quickly and effectively."
ISG delivered revenues of $61.2 million in Q4, at the top end of its guidance and up 6% versus the prior year. The company's growth was led by Europe, which saw Q4 revenues jump 28%, and recurring revenues, which were up 13% globally, driven by Research and platform businesses.
Recurring revenues played a significant role in ISG's Q4 performance, accounting for $112 million of the company's total revenue for the year. This represented 46% of its total revenue, up from previous years.
The company's strong operating discipline also contributed to the acceleration of its profitability in Q4. Propelled by a more profitable mix of business and improved operating efficiency, ISG saw continued growth in adjusted EBITDA and net earnings.
"We delivered a strong Q4 to cap off an outstanding year," Connors said. "Our results reflect the value we bring to clients as trusted advisors for their technology transformation needs."
As the company looks to 2026, ISG is poised to continue its growth trajectory, driven by increasing demand for AI-centered transformation services and recurring revenues.
