Information Services Group Inc. Leases Disclosure
NOTE 9—LEASES
The Company recognizes lease expense in the Consolidated Statements of Income and Comprehensive Income on a straight-line basis over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the lease payments.
The Company leases its office space and office equipment under long-term operating lease agreements that expire at various dates through November 2036, some of which include options to extend the leases for up to 5 years, and some of which included options to terminate the leases within one year. Under the operating leases, the Company pays certain operating expenses relating to the office equipment and leased property.
In April 2025, the Company entered into a new operating ten-year lease for approximately 17,500 square feet of office space in Stamford, Connecticut and includes annual base rent of $0.9 million, subject to annual escalation of 2% with an option to terminate the lease effective on the seventh anniversary of the rent commencement date. The lease commencement date was September 2025, and the rent commencement date is expected to be November 2026.
The components of lease expense were as follows:
December 31, | ||||||
| 2025 | | 2024 | |||
Lease cost | ||||||
Operating lease cost | $ | 2,620 | $ | 2,604 | ||
Finance lease cost: | ||||||
Amortization of right-of-use assets | 158 | 150 | ||||
Interest on lease liabilities | 26 | 17 | ||||
Short-term lease cost |
| 24 |
| 46 | ||
Variable lease cost |
| 302 |
| 289 | ||
Total lease cost | $ | 3,130 | $ | 3,106 | ||
Supplemental cash flow information related to leases was as follows | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||
Operating cash flows from finance leases | $ | 26 | $ | 17 | ||
Operating cash flows from operating leases | $ | 2,521 | $ | 2,708 | ||
Financing cash flows from finance leases | $ | 183 | $ | 161 | ||
Supplemental balance sheet information related to leases was as follows:
(In thousands, except lease term and discount rate) | December 31, | December 31, | ||||
| 2025 | | 2024 | |||
Operating lease | ||||||
Operating lease right-of-use asset | $ | 10,809 | $ | 5,437 | ||
$ | 2,137 | $ | 2,328 | |||
Non-current operating lease liabilities |
| 9,007 |
| 3,416 | ||
Total operating lease liabilities | $ | 11,144 | $ | 5,744 | ||
Finance leases | ||||||
$ | 199 | $ | 139 | |||
$ | 132 | $ | 106 | |||
| 80 |
| 36 | |||
Total finance lease liabilities | $ | 212 | $ | 142 | ||
Weighted average remaining lease term (in years) | ||||||
Operating lease | 8.5 | 4.3 | ||||
Finance leases | 1.8 | 1.6 | ||||
Weighted average discount rate | ||||||
Operating lease | 8.0% | 9.7% | ||||
Finance leases | 10.7% | 10.9% | ||||
| (1) | Current lease liabilities are included in “Accrued expenses and other current liabilities.” |
| (2) | Finance lease right-of-assets are included in “Furniture, fixtures and equipment, net.” |
Maturities of lease liabilities were as follows:
Operating | Finance | |||||
| Leases | Leases | ||||
Year Ending December 31, | ||||||
2026 | $ | 2,232 | $ | 139 | ||
2027 | 1,790 | 74 | ||||
2028 | 1,529 | 18 | ||||
2029 |
| 1,491 |
| 1 | ||
2030 |
| 1,524 |
| — | ||
Thereafter | 5,783 | — | ||||
Total lease payments |
| 14,349 |
| 232 | ||
Less imputed interest | (3,205) | (20) | ||||
Total | $ | 11,144 | $ | 212 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 11, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.