F

Information Services Group, Inc — Earnings Quality Grade F

III · Technology

Major red flags

Revenue
$245M
2025
Net Income
$9M
2025
Gross Margin
43.1%
Free Cash Flow
$25M
01

Screening Summary

12
Passed
3
Watch
2
Failed
-2.8
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 67 days, change +7 days YoY

!
A2AR vs Revenue Growth

AR growth 11.0% exceeds revenue growth -1.2%

A3Revenue vs CFFO

Revenue -1.2%, CFFO 46.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

!
B2CapEx vs Revenue

CapEx growth 42.1% is >2x revenue growth -1.2%

!
B3SG&A Ratio

SG&A/Gross Profit = 78.8%, exceeds 70%

B4Gross Margin

Gross margin 43.1%, change +3.8pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 3.11. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 2.68

C3Accruals Ratio

Accruals ratio = -9.3%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 41% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 98% of equity. Over 50%

D2Leverage

Debt/EBITDA = 3.0x. Healthy

D3Soft Asset Growth

Other assets -50.4% vs revenue -1.2%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 2% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.80 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.8
-4.0 Clean-2.22 Grey-1.78 Danger0
1.123
DSRI
AR growing faster than revenue?
0.912
GMI
Gross margin declining?
0.949
AQI
Asset quality deteriorating?
0.988
SGI
Revenue growth rate
1.625
DEPI
Depreciation slowing?
0.981
SGAI
SG&A ratio changing?
-0.0932
TATA
Accruals level
0.987
LVGI
Leverage increasing?
05

Altman Z-Score

1.72
Grey Zone
0 Distress1.102.605.0+ Safe
0.2555
Liquidity
-0.429
Cumulative profit
0.0882
Operating efficiency
0.8139
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25