Innodata Inc. (INOD)
NASDAQ:INOD
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Innodata
(NASDAQ:INOD)
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Rating:82Outperform
Price Target:
$107.00
▲(128.00% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by strong financial execution (profitability and accelerating free cash flow) and an outsized positive earnings update (material beats and raised growth guidance). Technicals are supportive but overbought, and valuation is only moderate with no dividend support and very high beta, which tempers the overall rating.
Positive Factors
Cash generation
Innodata's TTM operating cash flow and free cash flow levels show durable high cash conversion. Strong cash generation funds platform investment, supports working capital for large client ramps, reduces reliance on external financing, and provides runway for scaling over the next several months.
Negative Factors
Customer concentration
Rapid growth tied to a single large client increases concentration risk: adverse pricing, scope reductions, or contract changes with that customer could materially affect revenue and margins. Dependence on a few large programs raises execution and retention risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Innodata's TTM operating cash flow and free cash flow levels show durable high cash conversion. Strong cash generation funds platform investment, supports working capital for large client ramps, reduces reliance on external financing, and provides runway for scaling over the next several months.
Read all positive factors
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 (INOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.91B
Dividend YieldN/A
Average Volume (3M)2.42M
Price to Earnings (P/E)82.5
Beta (1Y)3.84
Revenue Growth40.10%
EPS Growth2.61%
CountryUS
Employees6,597
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.23
Shares Outstanding32,655,357
10 Day Avg. Volume2,267,519
30 Day Avg. Volume2,416,947
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 Cap1.08
Enterprise Value/Revenue11.05
Enterprise Value/Gross Profit27.00
Enterprise Value/Ebitda56.17
Forecast
1Y Price Target
$100.25Price Target Upside113.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.11
Revenue Forecast (FY)$335.82M
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational and financial progress: a record quarter with substantial revenue, margin, EBITDA, cash generation, and multiple new high-value engagements and platform traction. Management raised full-year revenue guidance and highlighted durable operating leverage, product milestones, research recognition, and federal and trust & safety wins. Noted caution points include quarter-to-quarter phasing variability, certain one-time items (prepayments and tax benefits) supporting results, reduced segment disclosure, and potential concentration from a rapid-rise large customer. Overall, the positive operational momentum and sizable beats materially outweigh the cautions.Positive Updates
Record Quarter Across Key Metrics
Revenue of $90.1M, up 54% year-over-year and 24% sequentially; adjusted gross profit $42.6M (adjusted gross margin 47%), a 6 percentage-point sequential improvement and 7 points above the 40% target; adjusted EBITDA $25M (28% of revenue), representing ~96% growth in adjusted EBITDA versus 54% revenue growth.
Negative Updates
Quarterly Variability and Phasing Risk
Management noted that work phases (pretraining, mid-training, post-training) start and stop unevenly, creating quarter-to-quarter variability; company declined to issue quarter-by-quarter revenue guidance due to timing uncertainty of program phases.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarter Across Key Metrics
Revenue of $90.1M, up 54% year-over-year and 24% sequentially; adjusted gross profit $42.6M (adjusted gross margin 47%), a 6 percentage-point sequential improvement and 7 points above the 40% target; adjusted EBITDA $25M (28% of revenue), representing ~96% growth in adjusted EBITDA versus 54% revenue growth.
Read all positive updates
Company Guidance
Management raised 2026 revenue growth guidance to approximately 40% or more (up from 35%+ ten weeks ago), citing a record Q1 that delivered $90.1M revenue (+54% YoY, +24% QoQ), beating consensus ~$76.5M by ~$13.6M (≈18%); adjusted gross profit of $42.6M (47% adjusted gross margin, +6 pts QoQ and +7 pts above the 40% public target); adjusted EBITDA $25M (28% of revenue, ≈96% YoY growth vs. 54% revenue growth, and ~6-pt margin expansion QoQ), which exceeded consensus $10.4M by ~139%; net income $14.9M, diluted EPS $0.42 (vs. $0.08 consensus), effective tax rate ~14% (below the 23–25% long‑term target), cash $117.4M (up $35.1M QoQ from $82.2M), undrawn $50M Wells Fargo facility (expanded from $30M), and noted upside not included in the baseline—including a potential $51M big‑tech engagement this year, ~453% YoY growth from other tech customers, a ~$3M annual run‑rate trust & safety SOW, a $1M platform deal and 15 active platform trials.Innodata Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 283.42M | 251.66M | 170.46M | 86.78M | 79.00M | 69.75M |
| Gross Profit | 115.98M | 99.83M | 66.93M | 31.91M | 27.66M | 26.26M |
| EBITDA | 55.74M | 48.31M | 30.28M | 5.03M | -6.59M | 1.22M |
| Net Income | 39.29M | 32.18M | 28.66M | -908.00K | -11.94M | -1.67M |
Balance Sheet | ||||||
| Total Assets | 210.41M | 168.59M | 113.45M | 59.43M | 48.04M | 59.22M |
| Cash, Cash Equivalents and Short-Term Investments | 117.37M | 82.23M | 46.90M | 13.82M | 10.30M | 18.90M |
| Total Debt | 4.10M | 4.43M | 4.66M | 5.48M | 4.73M | 6.31M |
| Total Liabilities | 82.23M | 61.53M | 50.06M | 34.44M | 30.00M | 32.81M |
| Stockholders Equity | 128.26M | 107.06M | 63.47M | 25.70M | 18.77M | 29.93M |
Cash Flow | ||||||
| Free Cash Flow | 61.97M | 35.65M | 27.27M | 339.00K | -7.74M | 783.00K |
| Operating Cash Flow | 73.14M | 46.75M | 35.02M | 5.90M | -1.22M | 5.15M |
| Investing Cash Flow | -11.18M | -11.10M | -7.74M | -5.07M | -7.03M | -4.37M |
| Financing Cash Flow | -385.00K | -426.00K | 6.06M | 2.87M | -307.00K | 773.00K |
Innodata Technical Analysis
Positive
46.93
Price Trends
56.62
Positive
54.04
Positive
57.36
Positive
Market Momentum
12.79
Negative
67.51
Neutral
59.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INOD, the sentiment is Positive. The current price of 46.93 is below the 20-day moving average (MA) of 79.13, below the 50-day MA of 56.62, and below the 200-day MA of 57.36, indicating a bullish trend. The MACD of 12.79 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 59.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.91B | 82.49 | 37.48% | ― | 40.10% | 2.61% | |
65 Neutral | $1.68B | 15.74 | 5.14% | ― | -0.20% | -28.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | AU$314.92M | -6.99 | -26.36% | ― | 0.60% | 4.13% | |
52 Neutral | $2.09B | -8.09 | -50.67% | ― | -20.34% | -8.67% | |
51 Neutral | $1.39B | -3.26 | -55.55% | ― | -16.22% | -41.59% |
* Technology Sector Average
INOD
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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.