Innodata Inc
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
The business works — profitable, debt-free, with first-tier customers. What remains open is the one operational question everything hinges on: will the two major customers, who together bring roughly 71 percent of revenue and can cancel on 30 to 90 days’ notice, stay? Losing one would not threaten the company’s existence on the figures as of June 30, 2026 — about $134 million in cash net of customer funds and an unused credit line see to that — but it would reverse growth in one stroke. The next quarterly report will bring clarity: how are customer shares distributed, how many shares were sold under the $300 million program, and is revenue growing faster than costs again? The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Innodata benefits measurably from the AI boom: revenue nearly tripled from 2023 to 2025, the company makes money (Q2 2026: $14.4 million net) and has no drawn debt. But the foundation is narrow: two customers carry roughly 71 percent of quarterly revenue and can generally cancel on 30 to 90 days’ notice, about half of the record cash is earmarked for customer programs, and quarter-over-quarter growth is slowing. Between May and September 2026, insiders sold stock, properly reported on Form 4; separately, the company secured a program to sell new shares. Not investment advice.
Growth & earnings power
Revenue from $86.8 million (2023) to $251.7 million (2025), $92.1 million in Q2 2026 (up 58 percent) with $14.4 million in net income. Pre-tax income rose to $41.4 million in 2025 (2024: $24.5 million). The growth is real and profitable.
Customer concentration
Two customers generated roughly 71 percent of Q2 2026 revenue (37 and 34 percent); the largest alone about 58 percent in 2025. Per the 2025 annual report (10-K), agreements are generally terminable on 30 to 90 days’ notice and do not obligate future purchases.
Balance sheet & liquidity
No drawn credit line, equity of $159.6 million (June 30, 2026). The $250.4 million in cash and short-term investments is set against $67.0 million in customer advances and $61.8 million in unpaid project costs; net of prepayments, the company cites about $134 million — still a solid cushion.
Growth momentum & costs
From Q1 to Q2 2026, revenue grew only a little over 2 percent; full-year guidance (at least 40 percent, about $352 million) is met with just over $85 million in each second-half quarter. Selling and administrative expenses rose about 89 percent in Q2.
Insiders & dilution
CEO Jack Abuhoff sold stock worth about $121.9 million in May and June 2026; since August 6, 2026 the company may issue up to $300 million in new shares — at the October 29, 2026 close, almost one fifth of the share count. The filings do not show any link between the two. Plus a CEO transition on September 30, 2026.
Worth Noting
This analysis was triggered by our in-house Reddit hype scanner: 15 mentions, first recorded on October 28, 2026 at a market value of about $1.54 billion — one day after the stock closed at $44.74, down from $59.91. There was no current report (8-K) for that drop; the only filing that day was a registration of plan shares (S-8).
The latest periodic report is the quarterly report (10-Q) for June 30, 2026 (filed August 6, 2026); all current reports through October 31, 2026 were also reviewed (latest company filing: Form S-8 of October 27, 2026; on October 30, 2026 Vanguard Capital Management also reported a 4.98 percent stake as of September 30, 2026 on Schedule 13G/A). Q3 2026 results were not yet available as of that date. Innodata does not name its customers in its filings; neither do we.
The analyst price target of $122.75 (the average, i.e. all 4 estimates added up and divided by four; fundamental data, as of 10/30/2026) is a third-party figure for context, not a price target of ours. Company-adjusted metrics (adjusted EBITDA of $25.4 million in Q2 2026) are not GAAP figures and are mentioned for context only.
Stock Watch
This analysis is as of October 31, 2026. Stock Watch will tell you what's changed at INOD since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 34.50 $ to 121.50 $ · Last price: 43.80 $ (As of: October 30, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 10/30/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Information Technology Services
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Innodata Inc INOD | 1.4 | 33.5 | 28.5 | 43.2 | 18.8 | 47.6 | -41.3 |
| International Business Machines IBM | 230.7 | 22.2 | 16.9 | 58.0 | 13.8 | 7.6 | -14.7 |
| Accenture plc ACN | 159.9 | 20.6 | 12.3 | 32.1 | 17.0 | 7.4 | 3.3 |
| Infosys Ltd INFY | 51.0 | 15.6 | 9.0 | 29.8 | 21.2 | 4.6 | -26.2 |
| Cognizant Technology Solutions Corporation CTSH | 30.8 | 13.4 | 8.0 | 33.4 | 15.6 | 7.0 | -7.8 |
| Wipro Limited WIT | 21.4 | 16.7 | 7.7 | 28.9 | 15.7 | 4.0 | -18.0 |
| Broadridge Financial Solutions Inc BR | 20.7 | 19.4 | 12.5 | 31.8 | 18.4 | 5.9 | -17.2 |
| Fidelity National Information Services, Inc. FIS | 20.0 | 7.6 | 9.5 | 35.8 | 16.4 | 5.4 | -35.9 |
| CDW Corp CDW | 19.7 | 17.4 | 13.3 | 21.4 | 6.6 | 6.8 | 0.1 |
| Median of companies shown | 21.4 | 17.4 | 12.3 | 32.1 | 16.4 | 6.8 | -17.2 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 63 | -3 | -6 | -0.22 | -3 | 34 | 48 |
| 2017 | 61 | -5 | -5 | -0.20 | 1 | 31 | 48 |
| 2018 | 57 | 3 | 0 | -0.01 | 4 | 31 | 46 |
| 2019 | 56 | -1 | -2 | -0.08 | 4 | 26 | 50 |
| 2020 | 58 | 1 | 1 | 0.02 | 6 | 30 | 57 |
| 2021 | 70 | -2 | -2 | -0.06 | 5 | 26 | 59 |
| 2022 | 79 | -10 | -12 | -0.44 | -1 | 18 | 48 |
| 2023 | 87 | 1 | -1 | -0.03 | 6 | 26 | 59 |
| 2024 | 170 | 24 | 29 | 0.89 | 35 | 63 | 113 |
| 2025 | 252 | 40 | 32 | 0.92 | 47 | 107 | 169 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.31 | 492.80 | 59 | 126.60 | 17.40 | 17 | 15 |
| 2025: Q1 | 0.22 | 626.30 | 58 | 120.10 | 13.30 | 11 | 9 |
| 2025: Q2 | 0.20 | – | 58 | 79.40 | 12.40 | 4 | 3 |
| 2025: Q3 | 0.24 | -53.70 | 63 | 19.80 | 13.30 | 19 | 15 |
| 2025: Q4 | 0.25 | -18.70 | 72 | 22.30 | 12.20 | 13 | 10 |
| 2026: Q1 | 0.42 | 88.00 | 90 | 54.40 | 16.50 | 37 | 35 |
| 2026: Q2 | 0.41 | 105.00 | 92 | 57.70 | 15.60 | 127 | 124 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 7 of our scanner strategies — each hit links to the scanner.
Backtested Scanners
Quality & Balance Sheet
Aktien.Guide
Research
Value & GARP
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 1.65 | 1.32 – 1.97 | 360 | 78.8% | 2 |
| 12/31/2027 | 2.09 | 1.92 – 2.23 | 460 | 26.9% | 3 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly -8.0% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $218.6M |
|---|---|
| Market cap | $1.43B |
| Free cash flow in year ten | $94.7M |
| Terminal value as a share of market value | 34.9% |
For comparison: over the past five years free cash flow grew by 53.1% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Innodata verkauft KI-Dienstleistungen als Kerngeschäft: Laut Geschäftsbericht (10-K) für 2025 und Quartalsbericht (10-Q) zum 30.06.2026 unterstützt das Unternehmen Entwicklung, Training, Nachtraining, Bewertung und Einsatz fortgeschrittener KI-Systeme für Technologiekonzerne und KI-Labore. Der Umsatzanstieg im Kernsegment Digital Data Solutions (2025: 220,9 Mio. US-Dollar, +57 Prozent) geht laut 10-K vor allem auf höhere Volumina dieser KI-Dienste zurück.
View the full file — quotes, sources, reviewed filings
„Innodata Inc. (Nasdaq: INOD) (together with its subsidiaries, the “Company”, “Innodata”, “we”, “us” or “our”) is a global data engineering and AI systems services company that supports the development, training, post-training, evaluation, and deployment of advanced artificial intelligence systems."
Innodata Inc. (Nasdaq: INOD) (zusammen mit seinen Tochtergesellschaften „das Unternehmen“, „Innodata“, „wir“, „uns“ oder „unser“) ist ein weltweit tätiges Unternehmen für Datenaufbereitung und KI-Systemdienstleistungen, das die Entwicklung, das Training, das Nachtraining, die Bewertung und den Einsatz fortgeschrittener Systeme künstlicher Intelligenz unterstützt.
10-Q · 2026-08-06 · View SEC filing
„Revenues from the DDS segment were $220.9 million and $141.1 million for the years ended December 31, 2025 and 2024, respectively, an increase of $79.8 million or approximately 57%. Revenues increased primarily due to higher volume of our data engineering and AI systems services."
Die Umsätze des Segments DDS beliefen sich in den Geschäftsjahren bis zum 31. Dezember 2025 bzw. 2024 auf 220,9 Mio. bzw. 141,1 Mio. US-Dollar, ein Anstieg um 79,8 Mio. US-Dollar oder rund 57 %. Die Umsätze stiegen vor allem aufgrund höherer Volumina unserer Dienstleistungen für Datenaufbereitung und KI-Systeme.
10-K · 2026-02-26 · View SEC filing
Filings Reviewed: 10-Q 2026-08-06 · 10-Q 2026-05-07 · 10-Q 2025-11-06 · 10-Q 2025-07-31 · 10-K 2026-02-26 · 10-K 2025-02-24
Rated on October 31, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 47.1%
- More than 10% revenue growth is expected for the coming year 28.4%
- Share count grows by less than 3% a year 8.7%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 61.8%
- Gross margin at 40% or higher and without meaningful erosion 39.7%
- Goodwill from acquisitions does not grow faster than revenue 1.2%
- Net debt below twice EBITDA 78 m net cash
- Operating cash flow covers the profits of the last three years 28 m
- Return on capital at 15% or higher, or up versus two years ago 34.1%
- Insiders hold at least 10% or are net buyers 5.1%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
7/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 16.6%
- Exp. sales growth 3Y > 5% 35.2%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 50.7%
- Net debt < 4x EBIT -1.9x
- EBIT positive, 10Y straight 5
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 35.4%
- ROCE > 15% 34.1%
- Expected return > 10% 54.5%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Oct 8, 2026 | Rogers Michael S | Director | Other | 2,159 | 0.00 | – |
| Sep 14, 2026 | Forlenza Louise C | Director | Sell | 10,000 | 53.54 | 535,400 |
| Sep 14, 2026 | Forlenza Louise C | Director | Other | 10,000 | 1.42 | 14,200 |
| Sep 4, 2026 | Forlenza Louise C | Director | Sell | 10,000 | 55.01 | 550,100 |
| Sep 4, 2026 | Forlenza Louise C | Director | Other | 8,000 | 1.42 | 11,360 |
| Sep 4, 2026 | Forlenza Louise C | Director | Other | 2,000 | 1.24 | 2,480 |
The company
About the Company
Innodata Inc. ist als Data-Engineering-Unternehmen in den USA, dem Vereinigten Königreich, den Niederlanden, Kanada, Deutschland, Belgien und international tätig.
- Employees
- 10,020
- Headquarters
- Ridgefield Park, NJ
- Address
- 55 Challenger Road, 07660 Ridgefield Park, United States
- Phone
- 201 371 8000
- Website
- innodata.com
- IPO Date
- 08/10/1993
- ISIN
- US4576422053
- Stock Split
- 2:1 on 03/26/2001
- Stock Split
- 2:1 on 12/04/2000
- Stock Split
- 959692:319897 on 09/10/1999
Management
| Name | Title | Birth Year |
|---|---|---|
| Jack S. Abuhoff J.D. | Executive Chairman of the Board | 1961 |
| Rahul Singhal | CEO, President, Principal Executive Officer & Director | 1974 |
| Ashok Kumar Mishra | Executive VP & COO | 1955 |
| Marissa B. Espineli | Chief Accounting Officer & Principal Accounting Officer | 1963 |
| Jayant Chauhan | CFO, Executive VP & Principal Financial Officer | 1975 |
| Amy R. Agress J.D. | Senior VP, General Counsel & Corporate Secretary | 1965 |
| Marcia Novero | Director of Human Resources | – |
| R. Douglas Kemp | Senior Vice President of Synodex | – |
| Martin Lyster | Chief Executive Officer of AgilityPR Solutions | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 09/15/2026 INNODATA INC (INOD): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Financial Statements and Exhibits SEC ↗
- 08/06/2026 INNODATA INC (INOD): Entry into a Material Definitive Agreement; Financial Statements and Exhibits SEC ↗
- 08/06/2026 INNODATA INC (INOD): Results of Operations and Financial Condition; Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Financial Statements and Exhibits SEC ↗
Data as of: October 30, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.