In the healthcare sector we won a large multimillion dollar technology engagement with a regional healthcare provider to support the clients’ adoption of an electronic health record system. Turning to Europe. Our Q3 revenues of $22 million were up 14% over last year. And through the first nine months, Europe is up 5%. For the quarter, Europe delivered double-digit revenue growth in our health sciences, energy, utilities, banking and public sector industry verticals and in our research business. Key client engagements in Europe in the third quarter included XSight, New Day, Winter Shaw, Red Cross and Shell. Following the merger of two high-speed rail operators in Europe, ISG was awarded a significant agreement to rationalize the client’s post-merger technology environment including infrastructure, apps, security and customer experience.
We also expanded our work in the energy sector, securing new business with a major global energy company to provide a range of tech strategy and sourcing related services for all divisions of this company. And we expanded our work with the European oil and gas company, adding $1 million of revenue SAP S/4HANA project and business transformation. Now turning to Asia Pacific. Our Q3 revenues of $7 million were down $100,000 on a reported basis and up 3% on an operating basis. FX remains a headwind in Asia Pacific. Key clients in the quarter included several departments of the Australian government, as well as such commercial clients as IAG, Australia broadband provider NBN and the Reserve Bank of Australia. During the quarter, we won a new million dollar engagement with an Australian lottery company following its spin-off from a gaming company.
We are supplying sourcing advisory and benchmarking services to this client and have also signed a contract with its former parent company. Now let me take a moment on the demand environment in term of guidance. Cost optimization in our recurring revenue businesses remain ongoing pillars of strength for ISG. Our digital transformation and tech modernization pipeline is healthy but client consulting projects and spending are being stretched out. We expect the speed of those engagements to reignite in the first half of 2024, as tech spending and market sentiment pick up based on our forecast. This underscores the importance of technology as a competitive advantage for enterprises. As ever we remain confident in our future and optimistic about our long-term prospects.
Balancing our strong pipeline and the economic factors that could impact the timing of client decision-making and the pace of our execution. For the fourth quarter, we are targeting revenues of between $68 million and $71 million and adjusted EBITDA between $9 million and $10.5 million. As you know, Michael Sherrick joined our firm this summer as our new CFO. Many of you have already spoken with Michael. But since this is his maiden voyage on our quarterly investor call, I want to officially welcome him to ISG. So let me turn it now over to Michael who will summarize our financial results. Michael?
Michael Sherrick: Thank you, Mike, and good morning, everyone. As Mike mentioned, ISG delivered record third quarter revenues. Revenues for the third quarter were $71.8 million, up 4% compared with the third quarter of last year. In the Americas, reported revenues were $42.5 million, up 1% versus the prior year. In Europe, revenues were $22.1 million, up 14% versus the prior year. And in Asia Pacific, revenues were $7.2 million, down $100,000 versus the prior year. Third quarter adjusted EBITDA was $10.6 million, down modestly from the prior year period, resulting in an EBITDA margin of 14.8%, up 120 basis points quarter-on-quarter and down 80 basis points compared with the prior year’s third quarter. Third quarter operating income was $6.2 million, compared with $7.4 million in the prior year.
Our net income for the quarter was $3.2 million or $0.06 per fully diluted share, as compared with net income of $5.6 million or $0.11 per fully diluted share in the prior year. On an adjusted basis, third quarter net income was $5.7 million or $0.11 per fully diluted share compared with adjusted net income of $7.2 million or $0.14 per fully diluted share in the prior year’s third quarter. As of September 30, headcount was 1,550, down 47 professionals versus the prior quarter. Our consulting utilization continued to increase coming in at 73% for the third quarter, up nearly 100 basis points year-on-year. Our balance sheet remains solid and continues to have the strength and flexibility to support our business over the long term. For the quarter, net cash generated from operations was $3.2 million or a positive swing of $3.5 million from a year ago.
We ended the quarter with $18.7 million of cash, down modestly from $19.6 million at the end of the second quarter. We ended the third quarter with total debt of $79.2 million unchanged from Q2. Importantly, we are comfortable with our debt-to-EBITDA ratio which remains at 1.8x. On average, our average borrowing rate for the quarter was 6.8%, up from 3.6% last year and we ended the quarter with 48.8 million shares outstanding. During the third quarter, ISG paid dividends totaling $2.3 million and repurchased nearly $1 million of shares. Our next quarterly dividend will be payable on December 20 to shareholders of record on December 5. And with that, I will turn it back to Mike to share some concluding remarks before we go to Q&A. Mike?
