Innodata (INOD)
NASDAQ:INOD
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Innodata
(NASDAQ:INOD)
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Rating:68Neutral
Price Target:
$43.00
▼(-8.37% Downside)
Action:ReiteratedDate:03/25/26
The score is driven primarily by improved fundamentals (profitability, cash flow, and low leverage) and a positive earnings-call outlook for continued strong growth, partially offset by a weak technical setup (below key moving averages with negative MACD) and a high P/E that raises the bar for sustained execution amid noted concentration and timing risks.
Positive Factors
Revenue Growth Momentum
A large, sustained revenue inflection (FY2025 +48% and Q4 +22%) indicates stronger product-market fit and expanding client engagements. Durable top-line growth supports scale economies, recurring managed-service revenue, and a multi-quarter runway for cash generation and margin expansion if execution continues.
Negative Factors
Customer Concentration Risk
Dependence on one large customer amplifies revenue and cashflow volatility and reduces bargaining resilience. Structural concentration creates persistent execution and forecasting risk: any slowdown, reprioritization, or contract change by that customer could materially affect multi-quarter revenue and margin trajectories.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
A large, sustained revenue inflection (FY2025 +48% and Q4 +22%) indicates stronger product-market fit and expanding client engagements. Durable top-line growth supports scale economies, recurring managed-service revenue, and a multi-quarter runway for cash generation and margin expansion if execution continues.
Read all positive factors
Innodata (INOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.49B
Dividend YieldN/A
Average Volume (3M)900.71K
Price to Earnings (P/E)46.3
Beta (1Y)3.68
Revenue Growth47.64%
EPS Growth3.64%
CountryUS
Employees6,597
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.02
Shares Outstanding32,602,398
10 Day Avg. Volume1,036,746
30 Day Avg. Volume900,713
Financial Highlights & Ratios
PEG Ratio16.45
Price to Book (P/B)15.14
Price to Sales (P/S)6.44
P/FCF Ratio45.46
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue5.60
Enterprise Value/Gross Profit14.08
Enterprise Value/Ebitda29.88
Forecast
1Y Price Target
$105.00Price Target Upside123.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.12
Revenue Forecast (FY)$313.21M
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. Th...
How the Company Makes Money
Innodata primarily makes money by delivering services and solutions under commercial contracts where clients pay for the creation, preparation, and ongoing maintenance of data and content assets used in AI and digital products. Key revenue streams...
Innodata Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Provides a view of operating performance by segment, excluding non-cash items and one-time charges, to assess underlying profitability and cash flow potential.
Provides a view of operating performance by segment, excluding non-cash items and one-time charges, to assess underlying profitability and cash flow potential.
Data provided by:
The Fly
The FlyInnodata Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized strong fiscal 2025 results (robust revenue growth, expanded margins, healthy cash build) and showcased multiple technical and commercial innovations with clear potential to drive further growth and margin expansion. Management also acknowledged short-term execution and timing risks — including depreciation of legacy workflows (~$20M run rate), dependence on a largest customer, and several initiatives that remain early-stage — and noted near-term margin normalization due to reinvestment. On balance, the positives (strong growth, profitability, cash position, measurable technical improvements and a constructive 2026 outlook) outweigh the highlighted risks.Positive Updates
Strong Top-Line Growth
Q4 revenue of $72.4M, up 22% year-over-year; FY2025 revenue of $251.7M, up 48% year-over-year; Q4 sequential revenue growth of 15.7% vs Q3 ($62.6M).
Negative Updates
Deprecation of Legacy Workflows (~$20M Run Rate)
Company deprecated post-training workflows representing ~ $20M of annualized revenue run rate for its largest customer; while replaced by new pretraining and post-training programs with a net positive effect, this highlights revenue churn and the need to re-platform workstreams.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Q4 revenue of $72.4M, up 22% year-over-year; FY2025 revenue of $251.7M, up 48% year-over-year; Q4 sequential revenue growth of 15.7% vs Q3 ($62.6M).
Read all positive updates
Company Guidance
Management guided 2026 revenue growth of approximately 35% year‑over‑year (and said there could be significant upside), building on FY2025 revenue of $251.7M (+48% YoY) and Q4 revenue of $72.4M (+22% YoY, +15.7% sequential from $62.6M); Q4 adjusted gross profit was $30.1M (adjusted gross margin 42%, above the 40% target), Q4 adjusted EBITDA was $15.7M (22% of revenue; beat analyst consensus by $1.2M), Q4 net income was $8.8M, and cash totaled $82.2M (up from $73.9M QoQ and $46.9M YoY) with the $30M Wells Fargo facility undrawn; management expects early‑2026 adjusted gross margins of 35–40% with normalization toward ≥40% as new programs scale.Innodata Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 251.66M | 170.46M | 86.78M | 79.00M | 69.75M |
| Gross Profit | 99.83M | 66.93M | 31.91M | 27.66M | 26.26M |
| EBITDA | 48.31M | 30.28M | 5.03M | -6.59M | 1.22M |
| Net Income | 32.18M | 28.66M | -908.00K | -11.94M | -1.67M |
Balance Sheet | |||||
| Total Assets | 168.59M | 113.45M | 59.43M | 48.04M | 59.22M |
| Cash, Cash Equivalents and Short-Term Investments | 82.23M | 46.90M | 13.82M | 10.30M | 18.90M |
| Total Debt | 4.43M | 4.66M | 5.48M | 4.73M | 6.31M |
| Total Liabilities | 61.53M | 50.06M | 34.44M | 30.00M | 32.81M |
| Stockholders Equity | 107.06M | 63.47M | 25.70M | 18.77M | 29.93M |
Cash Flow | |||||
| Free Cash Flow | 35.65M | 27.27M | 339.00K | -7.74M | 783.00K |
| Operating Cash Flow | 46.75M | 35.02M | 5.90M | -1.22M | 5.15M |
| Investing Cash Flow | -11.10M | -7.74M | -5.07M | -7.03M | -4.37M |
| Financing Cash Flow | -426.00K | 6.06M | 2.87M | -307.00K | 773.00K |
Innodata Technical Analysis
Neutral
46.93
Price Trends
43.09
Positive
49.86
Negative
54.42
Negative
Market Momentum
-0.32
Negative
60.76
Neutral
88.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INOD, the sentiment is Neutral. The current price of 46.93 is above the 20-day moving average (MA) of 40.49, above the 50-day MA of 43.09, and below the 200-day MA of 54.42, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 88.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INOD.
Innodata Risk Analysis
Innodata disclosed 14 risk factors in its most recent earnings report. Innodata reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Innodata Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.49B | 46.26 | 35.11% | ― | 47.64% | 3.64% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.73B | 17.57 | 4.88% | ― | 1.62% | -39.03% | |
52 Neutral | AU$329.66M | -20.42 | -26.36% | ― | 0.60% | 4.13% | |
50 Neutral | $2.00B | -83.08 | -69.72% | ― | -19.32% | 19.23% | |
48 Neutral | $1.34B | -2.86 | -55.55% | ― | -16.22% | -41.59% |
* Technology Sector Average
INOD
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18.72%
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Innodata Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Innodata Expands Wells Fargo Revolving Credit Facility
Positive
Mar 24, 2026
On March 19, 2026, Innodata Inc. and several subsidiaries amended their existing credit agreement with Wells Fargo Bank to establish a secured revolving credit facility of up to the lesser of a defined borrowing base or $50 million, with a new mat...
Business Operations and StrategyExecutive/Board Changes
Innodata Updates Executive Employment Agreements and Compensation Terms
Positive
Mar 10, 2026
On March 9, 2026, Innodata Inc. entered into a new employment agreement with President and Chief Revenue Officer Rahul Singhal, effective January 1, 2026, setting a $500,000 base salary, a target bonus of at least 75% of salary, and eligibility fo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.