ISG’s shares declined modestly by 0.7% following the Q1 report, reflecting a lukewarm market response despite revenue growth and margin expansion, indicating investor reservations amid mixed regional trends and cautious near-term visibility.

• Revenue increased 3% to $61.2 million, driven by 25% growth in Europe and 9% growth in recurring revenues.
• Adjusted EBITDA rose 12% year over year to $8.3 million, with adjusted EBITDA margin expanding over 100 basis points to 13.5%.
• AI-related revenue grew from $12 million a year ago to $21 million, representing about one-third of total firm-wide revenue.
• Americas revenue declined ~3% year over year to $40 million, offsetting strong European performance.
• The company secured its largest-ever deal, a multiyear $17 million governance contract linked to a major AI transformation for a global manufacturer.