Then on a governance standpoint, we will run into some of the technology providers out into the market. Now, we also are known in the industry and have been known now for 87 consecutive quarters as the authoritative voice in the sourcing industry. We do an index call each quarter. It is all analytics: who are the winners, who are the losers, what are the trends, what are the number of technology contracts out in the market—Accenture, IBM, HCL, Cognizant, and others. We have a lot of stakeholders that are on this call. They're ones that follow as analysts that follow the technology companies as well as the providers and enterprise clients. We're pleased to say that we've done this for 87 consecutive quarters for the industry. This is also broadcast out in the technology world with all of the analysts that follow these technology companies.
We also are very proud of our people. We have a set of values that we live by. We have long-term partnerships with our clients year in and year out. And our firm in 2006, when I founded it, we were born virtual. We were born virtual because we either were going to work from home or we were going to work from the client premises. We have very few real estate around the world. And so when COVID hit, we knew how to work virtual. Then we just educated our clients on our ability to deliver a lot of our work on a virtual basis. And that's really helped us on a productivity standpoint. And as you can see, as many do, we get a lot of accolades around our people and around our business.
So let me, I'll close here with one chart on our growth plan and then hand it over to Michael to go through some of our financials. But our growth plan is around driving recurring revenue streams. Our target is to get to $150 million of recurring revenue stream as we enter 2026. Very important. We're at $125 million today. That's up from about $40 million just four or five years ago. We are leading with AI and research and advisory. We understand the sourcing market better than anyone in the world. We were the architect and the pioneer of this back when EDS separated from General Motors. We are well known in the industry as the world leader there. And we've now added a platform called ISG Tango. We continue our transformation work, though it's a little slower at the moment because of the macro environment globally.
Everyone is on a digital transformation journey, and it will accelerate as the macro environment clears up. So that is kind of how we look at things. We also have a workforce that we use. We call it ISG iFlex. This is where post-COVID, we're able to utilize our resources globally because we do not have to be on premises doing our work with our clients nearly as much as we did pre-COVID. In fact, over 80% of our work is now delivered in a remote environment. So that's a little bit about our firm. And with that, I'm going to turn it over to Michael.
Thank you, Mike. And good morning, everyone. I think Mike did a great job of taking you through a bit of who we are and I think what differentiates us. What I'd like to do now is really take you through the financials and specifically how who we are translates into our financials. So this is a chart that we're particularly proud of as you look at our three-year performance. I'll start with revenue. Revenue growth of 20%, which puts us over those three years in the upper single digits, which is a level that we target and we remain comfortable with. Probably more importantly, our Adjusted EBITDA, as you can see, we've flowed through over 2x what we drove in revenue. So we've seen very strong margin expansion, which is obviously important as we march towards our longer-term target that Mike shared with you.
And then lastly is EPS up 43%, pretty much in line with that EBITDA growth as we continue to flow it through. If I look at shareholder returns, we're very focused, obviously, on buyback and on dividend. We've returned over $60 million since 2020. About a third of that has been in the form of dividend. And we continue to be, I believe, opportunistic with how we use our operating cash flow and our balance sheet to provide shareholder returns to you. And then specifically on the capital structure, and this is as of the end of the first quarter, we are very comfortable with our current debt position. Our net debt of $60 million, I think based on where the analysts are right now for the year, puts us at about 2x net debt on an EBITDA basis, so a level we are comfortable with.
We will continue to look at our capital structure and what we can do with it to create value over time. Lastly, I think just to conclude and really some of what Mike said with regard to the overall investment thesis, five things. The first is really just our leading position. Mike noted the 50% market share, the index call, et cetera, an extremely important piece to the story. The second is our, we call it, the data moat. And I think this is an area that remains underappreciated. We are truly differentiated in the data we have and how we use that data and how it allows us to bring a very unique value proposition to our clients.
Third, the customer advocacy, that 98% number that Mike mentioned and the client opportunity that that presents to us in terms of the permission that gives us to work with our clients and to continue to expand our presence. We have really a growth plan in place to take advantage of it. For those of you that have followed us, the recent launch of ISG Tango, I think is extremely exciting. The growth of AI as we move forward and then just the existing initiatives on recurring revenue and so forth really gives us a very strong business plan to move forward. And then lastly, as I touched on just a few minutes ago, strong record and prudent use of capital as we look at how we create shareholder value, both historically and as we go forward. With that, I will turn it back to Mark to take questions.
Thank you very much. As a reminder, if you would like to submit a question, just click on the Q&A button at the bottom of your screen. Feel free to do so, and we'll get those taken care of for you. We do have some that are already in queue, so we can sort of get started here. The first is around if you could sort of comment on long-term targets for the recurring revenues and what your plans are to get to that target?
Okay. Good. Thanks, Mark. So our strategy around recurring revenues, our first is a hard number to get to $150 million of recurring revenue. We hope to get to that on a run rate basis by the end of next year. That's pretty dramatically different than we were in just 2022 when we were sitting around $100 million. Once we kind of get to the $150 million range, we'll continue to look to drive that number up. So recurring, very key part of our overall strategy. It represents about 40% of our revenue today. We'd like to get that number, of course, up 50% or more. But our first hurdle is to get to $150 million mark.
Okay. Excellent. Our next question in queue is around if you could sort of talk a little bit about what you're seeing. And actually, it's one of the questions I ask you all the time around what you're seeing from different industry verticals as far as and I'm sure they're probably talking about customer behavior and what you're seeing in different areas with your customers.
Right. Good question. It does vary a bit by industry. What we do is kind of almost each quarter, we put together really a four-box matrix. That four-box matrix is really kind of putting the industry segments in terms of what their key drivers are and the state of their industry is. So for example, kind of what we call in the stabilization category at the bottom left, a lot of the specialty retail, the travel, the tourism, the hospitality is really just wanting to be sure they have a stable environment in which to operate in. The hot markets around health sciences and around energy in particular are very hot. Public sector has picked up in the United States in particular. Oil and gas also has picked up. What we're seeing is there's two kind of pieces of work going on.
There's the cost optimization, and that's those industries that are a bit more affected by the macro environment, the spending environment, et cetera. And it's the other environment where business is in good shape, and they're looking to transformation, if you will. Our mix right now is about 50% optimization and about 50% transformation. But before this kind of macro environment, both in Europe and the U.S. and those two markets in particular started kind of softening up here in the last really 3, 4 quarters, our market was about 30% optimization and 70% transformation. So you can see how the dollars have been redirected. And part of this redirection is because of AI. And one of the AI things, the great news about it is it will be a great productivity enhancer.
However, it also is allowing companies now to pause a little bit to have them better understand how AI may impact them. And so instead of kind of moving at great speed, they might slow that speed down to get a better understanding of AI. I hope that helps a little bit, Mark.
Excellent. The next question is around Tango. Maybe you can sort of bring us up to date on some of the recent developments there and some of the catalysts for those developments.
Good. So first of all, ISG is the world leader in sourcing advisory. And because of that sourcing advisory, because we're the leader, we do over 50% of the advised market in the world every year. And that means about $20 billion of contracts flow through ISG. We launched ISG Tango to essentially digitize that whole process using AI kind of powered behind it. And what it does is it allows the enterprise clients, so think about somebody like a Stanley Black & Decker, and technology providers who are looking to get work from a Stanley Black & Decker, so think of Accenture or an IBM. And then the ISG advisors who are trying to put the ecosystem together, create a contract for applications or infrastructure, everything will now be on this Tango platform.
In the first couple of months, as we communicated just a few weeks ago, we already have $2.8 billion of contracts on the platform. What this will do is that we think it will really allow our clients to have speed to value. With something that may have taken 20-25 weeks, with Tango, we believe it will shorten the period, allow the enterprise client to get solutions faster, more efficiently. The enterprise client or the technology providers, the Accentures, the IBMs, will be able to generate work from that enterprise quicker. From an ISG standpoint, the productivity is stronger, it's better, and the margin will be higher. That's where we are. We're in very early stages, but we expect to have somewhere between $10 billion-$20 billion of contracts flowing through that sometime in the early part of next year.
Okay. Excellent. Now, we do have a couple of more questions in queue, but I did want to touch on something before we get to those. I don't know if you can go back to the slide that had the AI plans that you referenced. And I did want to sort of touch on that because that was certainly really helpful. I think it was the next one that I think it was like 55%. That was it. I was wondering if you could talk a little. Yeah, that's a nice one to talk about.
I just wanted to maybe if we could delve into that a little bit more and maybe talk a little bit about those findings and sort of to give a sense for folks who are sort of looking at the big picture and kind of what this means for you.
Right. No, good point. So we just completed a survey with the largest enterprises around the world, and we found that just a bit over 50% of them are now actively putting an AI roadmap together. Intuitively, you might ask the question, "Well, isn't everybody doing that?" Well, the reality is, no, they're not. It's just like, has everybody always outsourced something? You would think by now they have. The answer, no, they haven't. So that 55% of the companies are putting together an AI roadmap. And what does that mean? And what does it mean for ISG? Well, from an ISG standpoint, what we are doing is helping them think through this roadmap. So the front end is assessing and helping them strategize an AI roadmap.
And what that also does is, "Hey, hey, look, if you take one area, take applications." Applications today is a large piece of the spending in technology. It might be half the spending right now. And in that spending, if you think about a client, take an insurance company we're working with today, they spend $250 million a year on over 2,000 apps in their company globally. What they're asking is, "Well, how might I be able to use AI, number one? How can I modernize my applications?
And then who can help me on an ongoing basis do that work?" And so what we're helping them do is to think about first the costs they're using and spending today, what we estimate using AI and other technology capabilities can do using our benchmark data, and then who, out there in the market, there are the technology providers, could help them move their applications and modernize them. So all of that helps. It does slow the process down a little bit. So instead of going right into modernizing the applications, as you might expect, clients are wanting to be educated. They want to be further understood. They may want to do some proof of concepts. So that is how we are thinking about the AI. That is what we are seeing from the client base.
Over half of them are working on a roadmap as we speak, Mark.
No, that was really helpful. I appreciate you taking some time on that point. One of the other questions in queue, and you talked about some of the recent acquisitions that you've done. Maybe we can talk about the potential pipeline that you're seeing out there, what you're seeing with valuations, or if there are any particular areas geographically or practice area that are looking attractive at the moment.
Okay. Good. We've done 14 acquisitions in our 17-year history at ISG. I'll just comment on the last two, and then it kind of informs our go forward. We are part of a company called Change 4 Growth, which was all around enterprise change at the end of 2022. And what we were seeing with clients is with all of the technology change that's happening in these large enterprises, they wanted us to put kind of a wrapper around that change to help them manage enterprise change. And so this capability has come to us. It's growing double digits, as you can imagine, with all the technology change. And we integrated that in to have an ISG enterprise change practice around the world. Very successful team of people that enabled us to expand globally.
The second one that we most recently did was a company called Ventana Research, which was in October of last year. It's all about software. If you think about the large software spin that we talked about earlier, this enables us to inform enterprises around the software, the changing of the software, how AI is going into the sales forces of the world's products, etc. It's informing us and will allow us to play in that software market. Then that leads us to kind of our blueprint for going forward on acquisitions. We think about it as a string of pearls.
Those pearls were focused around anything around recurring revenue that we could take and acquire and accelerate growth using our current distribution channels into the CIO, into the CFO, into the C-suites, or anything around digital capabilities that we could expand faster. That's our focus primarily would be U.S. and Western Europe, Mark.
Excellent. Are we seeing much in the way of changes in valuations, maybe what's currently out there versus what you've dealt with in the past?
Yeah, I would say expectations have been diminished a little bit in terms of value, which is a good thing for us. We are very disciplined around our acquisitions. We want it to be accretive by the end of year one or sooner. So all of ours are primarily private companies. Therefore, it's both a financial sale and an emotional sale. And we're very proud to say that the management of these companies that we've acquired, other than in a few retirements, are still with our firm today. And I think that plays to kind of the culture that they come in to play in ISG. So yes, I think values are a bit down from where they were maybe 18 months ago. And we are actively in the market.
Okay. Excellent. Well, that brings us to the end of our time together, at least for now. So I do want to thank you for joining us and thank all of our participants. And everybody have a wonderful and productive remainder of the day. Thank you so much, gentlemen.
Yep. Thank you.