Innodata (INOD) AI Stock Analysis

• Market Cap: $1.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 59.6
• Beta (1Y): 3.63
• Revenue Growth: 73.57%
• EPS Growth: 56.21%
• Country: US
• Employees: 6,597
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.24
• Shares Outstanding: 31,860,950
• 10 Day Avg. Volume: 852,508
• 30 Day Avg. Volume: 1,279,145
• PEG Ratio: -0.01
• Price to Book (P/B): 18.16
• Price to Sales (P/S): 6.76
• P/FCF Ratio: 42.26
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 11.11
• Enterprise Value/Gross Profit: 26.72
• Enterprise Value/Ebitda: 56.74
• 1Y Price Target: $93.75
• Price Target Upside: 62.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.88
• Revenue Forecast (FY): $248.85M

• Rating: 69 Neutral
• Price Target: $63.00 ▲(9.03% Upside)

Innodata's overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth prospects. However, technical analysis and valuation concerns, such as a high P/E ratio and potential overbought conditions, temper the score. The company's strategic focus on AI and leadership changes are positive, but the stock's current valuation may limit immediate upside potential.

Positive Factors

Revenue Growth

Innodata's strong revenue growth indicates robust market demand and effective business strategies, supporting long-term expansion and competitiveness.

Strategic Partnerships

Strategic partnerships and new contracts enhance Innodata's market position and revenue streams, providing a foundation for sustained growth.

Cash Position

Improved cash reserves strengthen Innodata's financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Net Income Decrease

A decrease in net income could signal challenges in maintaining profitability, potentially impacting future financial performance if not addressed.

Incremental SG&A Spending

Increased SG&A spending may pressure margins if revenue growth does not offset these costs, affecting profitability and cash flow.

Gross Profit Margin Decline

A declining gross profit margin suggests potential cost management issues, which could erode profitability if not managed effectively.

Innodata Business Overview & Revenue Model

Company Description

Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment offers AI-enabled software platforms and managed services to companies that require data for training AI and machine learning (ML) algorithms, and AI digital transformation solutions to help companies apply AI/ML for problems relating to analyzing and deriving insights from documents. This segment provides a range of data engineering support services, including data annotation, data transformation, data transformation, data curation, data hygiene, data consolidation, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that provides marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.

How the Company Makes Money

Innodata generates revenue through a combination of service contracts, project-based work, and subscription models. Key revenue streams include the provision of data management and analytics services, where clients pay for customized solutions that address specific business needs. The company also earns income from licensing proprietary technologies and tools that facilitate data processing and content management. Significant partnerships with major corporations in the publishing and media sectors further bolster its revenue, as these collaborations often lead to long-term contracts and recurring revenue. Additionally, the increasing demand for digital transformation services in various industries contributes to Innodata's earnings, as organizations seek to optimize their data usage and improve operational workflows.

Innodata Financial Statement Overview

Summary

Innodata's financial performance is commendable, with consistent revenue growth and strong profitability metrics. The balance sheet reflects low leverage and high return on equity, while cash flow statements indicate robust cash generation. Continued focus on cost management and maintaining growth momentum will be crucial for sustained success.

Income Statement

Innodata has demonstrated strong revenue growth with a 4.53% increase in TTM, indicating a positive trajectory. The company maintains healthy profitability margins, with a net profit margin of 14.11% and an EBIT margin of 12.26%. However, the gross profit margin has decreased from previous years, suggesting potential cost management issues.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.14, indicating low leverage. The return on equity is robust at 41.67%, reflecting efficient use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 12.82% in TTM, supporting operational sustainability. The operating cash flow to net income ratio of 1.15 indicates good cash conversion. The free cash flow to net income ratio of 0.79 suggests efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	238.47M	170.46M	86.78M	79.00M	69.75M	58.24M
Gross Profit	99.14M	66.93M	31.91M	27.66M	26.26M	19.84M
EBITDA	46.68M	30.28M	5.03M	-6.59M	1.22M	3.45M
Net Income	33.64M	28.66M	-908.00K	-11.94M	-1.67M	617.00K
Balance Sheet
Total Assets	152.92M	113.45M	59.43M	48.04M	59.22M	57.25M
Cash, Cash Equivalents and Short-Term Investments	73.86M	46.90M	13.82M	10.30M	18.90M	17.57M
Total Debt	4.68M	4.66M	5.48M	4.73M	6.31M	7.32M
Total Liabilities	55.68M	50.06M	34.44M	30.00M	32.81M	31.00M
Stockholders Equity	97.32M	63.47M	25.70M	18.77M	29.93M	29.64M
Cash Flow
Free Cash Flow	40.70M	27.27M	339.00K	-7.74M	783.00K	4.25M
Operating Cash Flow	51.20M	35.02M	5.90M	-1.22M	5.15M	5.66M
Investing Cash Flow	-10.51M	-7.74M	-5.07M	-7.03M	-4.37M	-1.38M
Financing Cash Flow	7.00M	6.06M	2.87M	-307.00K	773.00K	2.31M

Innodata Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INOD, the sentiment is Negative. The current price of 57.78 is below the 20-day moving average (MA) of 58.00, below the 50-day MA of 70.10, and above the 200-day MA of 51.20, indicating a neutral trend. The MACD of -2.90 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INOD.

Innodata Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INOD	69 Neutral	$1.84B	59.57	46.40%	―	73.57%	56.21%
GLOB	67 Neutral	$3.14B	31.49	4.91%	―	5.56%	-42.38%
ASGN	66 Neutral	$1.94B	15.33	7.25%	―	-4.86%	-25.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BBAI	47 Neutral	$2.98B	-4.80	-111.83%	―	-6.95%	-53.69%
AI	45 Neutral	$2.08B	―	-46.77%	―	1.84%	-27.74%
APX	39 Underperform	AU$188.58M	―	-24.40%	―	-9.02%	80.67%

Innodata Corporate Events

Innodata Appoints New Leadership to Drive AI Growth

Innodata announced significant leadership changes to support its growth and expansion in the AI sector. On November 6, 2025, Rahul Singhal was appointed as President and Chief Revenue Officer, while Daniel H. Callahan and General (Retired) Richard Clarke joined the Board as independent directors. These appointments aim to strengthen Innodata’s strategic direction and enhance its capabilities in generative AI solutions, with Jack Abuhoff taking on the role of Chairman and Stewart Massey as Lead Independent Director. The changes reflect Innodata’s commitment to innovation and its mission to lead in AI solutions, as it continues to expand customer engagements and develop new relationships.