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INOD

Innodata Inc.

INOD

Innodata Inc. • NASDAQ
$57.47 ▲ 0.23% (+0.13)
Market Cap $1.83 B
52w High $93.85
52w Low $26.41
Dividend Yield 0%
P/E 56.9
Volume 394.92K
Outstanding Shares 31.86M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $62.55M ▲ $15.128M ▲ $8.342M ▲ 13.337% ▲ $0.26 ▲ $12.928M ▲
Q2-2025 $58.393M ▲ $14.112M ▼ $7.219M ▼ 12.363% ▼ $0.23 ▼ $11.09M ▲
Q1-2025 $58.344M ▼ $14.98M ▼ $7.787M ▼ 13.347% ▼ $0.25 ▼ $9.835M ▼
Q4-2024 $59.18M ▲ $15.503M ▲ $10.296M ▼ 17.398% ▼ $0.34 ▼ $12.831M ▼
Q3-2024 $52.224M $9.91M $17.389M 33.297% $0.6 $12.982M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $73.859M ▲ $152.916M ▲ $55.676M ▲ $97.323M ▲
Q2-2025 $59.792M ▲ $132.623M ▲ $45.981M ▼ $86.725M ▲
Q1-2025 $56.556M ▲ $125.21M ▲ $49.808M ▼ $75.485M ▲
Q4-2024 $46.897M ▲ $113.449M ▲ $50.06M ▲ $63.472M ▲
Q3-2024 $26.378M $88.17M $41.161M $47.709M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $8.342M ▲ $18.769M ▲ $-4.228M ▼ $-97K ▼ $14.067M ▲ $14.541M ▲
Q2-2025 $7.219M ▼ $4.235M ▼ $-1.708M ▲ $379K ▼ $3.236M ▼ $2.527M ▼
Q1-2025 $7.787M ▼ $10.867M ▼ $-2.35M ▼ $860K ▼ $9.659M ▼ $8.517M ▼
Q4-2024 $10.296M ▼ $17.331M ▲ $-2.219M ▼ $5.861M ▲ $20.519M ▲ $15.112M ▲
Q3-2024 $17.389M $11.371M $-1.455M $-195K $9.855M $9.916M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Agility
Agility
 $10.00M ▲$10.00M ▲$10.00M ▲$10.00M ▲
DDS
DDS
 $50.00M ▲$50.00M ▲$50.00M ▲$50.00M ▲
Synodex
Synodex
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown steadily over the past five years and appears to have accelerated recently, suggesting the AI-focused strategy is gaining traction. Profitability has improved from roughly break-even or small losses to clearly positive operating and net income, with gross margins trending higher. That said, the history shows a business that was thinly profitable and somewhat volatile before this upswing, so the current profitability should be viewed as relatively new and still needing to prove its durability, especially given reliance on large tech customers and project-based work.

Balance Sheet

Balance Sheet The balance sheet looks cleaner and stronger than a few years ago. Cash holdings have increased meaningfully, overall assets have grown, and equity has built up, while debt is minimal to essentially negligible. This combination suggests low financial risk and good flexibility to invest in growth or weather business swings. The flip side is that the company is still relatively small in absolute scale, so even with a solid foundation, it does not have the deep balance-sheet resources of larger technology peers.

Cash Flow

Cash Flow Cash generation has moved in a positive direction. Operating cash flow has been consistently positive in recent years and has improved alongside earnings, indicating that reported profits are increasingly backed by real cash. Free cash flow has turned sustainably positive after earlier periods of weakness, helped by modest capital spending needs. The business now appears able to fund its own growth without leaning on outside capital, though cash flows are still exposed to fluctuations in large AI and data contracts.

Competitive Edge

Competitive Edge Innodata is positioning itself as a specialist infrastructure provider for AI, focusing on data preparation, annotation, and evaluation—the “picks and shovels” behind large language models. Its long history in data engineering, global expert workforce, and reputation for quality are meaningful advantages. Deep relationships with several major technology companies, including multiple leading AI players, provide validation and a strong revenue base. However, dependence on a small number of very large customers creates concentration risk, and the company operates in a highly competitive space where large tech firms and well-funded startups are also investing heavily in similar capabilities.

Innovation and R&D

Innovation and R&D The company has shifted from being primarily a traditional data-services vendor toward a more technology- and platform-driven model. It has developed proprietary tools for AI data annotation, document intelligence, testing and evaluation of large models, and is rolling out a more comprehensive generative AI workbench. Vertical offerings in areas like healthcare data and marketing/PR, plus capabilities in synthetic data generation and AI safety, add differentiation. New initiatives such as a dedicated federal/government business and expanded generative AI services show an active innovation pipeline, but execution risk is high in such a fast-moving field, and continuous investment will be needed to keep pace with larger AI and cloud players.

Summary

Innodata appears to be in the midst of a successful transition into an AI-centric data and platform company. Financial results over the past few years show a clear shift from low-margin, near break-even operations to faster growth with improving profitability, backed by a stronger balance sheet and better cash generation. Strategically, its role as an enabler of AI—rather than a direct competitor in core models—combined with long-standing data expertise and close ties to top-tier tech firms, provides a credible niche. At the same time, the business is still relatively small, customer concentration is significant, and the competitive and technological landscape around AI infrastructure is evolving quickly. Future performance will hinge on sustaining revenue growth with a more diversified customer base, maintaining its technological edge, and converting that into stable, repeatable profits and cash flows over time.

NEWS

November 6, 2025 · 4:30 PM UTC

Innodata Reports Third Quarter 2025 Results

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November 6, 2025 · 4:05 PM UTC

Innodata Announces New Leadership Appointments to Support Next Phase of Growth

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October 16, 2025 · 8:30 AM UTC

Innodata to Report Third Quarter 2025 Results

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October 1, 2025 · 8:30 AM UTC

Innodata to Host Exclusive GenAI Summit in San Francisco October 9, 2025

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