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Innodata
(NASDAQ:INOD)
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Rating:72Outperform
Price Target:
$66.00
▲(15.45% Upside)
Action:Upgraded
Date:09/23/26
INOD scores solidly on strong recent financial execution (expanded margins, strong cash flow, low leverage), which is the primary driver. The score is held back by a mixed technical backdrop with elevated volatility and a rich valuation (high P/E), while the recent board appointment provides a modest positive strategic tailwind.
Positive Factors
Scaling revenue and margins
The combination of higher revenue and materially improved margins indicates stronger operating leverage and a more profitable delivery model. If sustained, this earnings base can support reinvestment, deepen customer capabilities, and strengthen Innodata’s position in growing AI data-services workflows.
Negative Factors
Historical earnings volatility
Prior losses show that Innodata’s profitability has not yet been consistently resilient across periods. This history raises the risk that current margins reflect a strong phase rather than a fully proven earnings model, making sustained execution and repeatable customer demand important over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaling revenue and margins
The combination of higher revenue and materially improved margins indicates stronger operating leverage and a more profitable delivery model. If sustained, this earnings base can support reinvestment, deepen customer capabilities, and strengthen Innodata’s position in growing AI data-services workflows.
Read all positive factors
Innodata Key Performance Indicators (KPIs)
Innodata (INOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.89B
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)42.3
Beta (1Y)4.05
Revenue Growth39.02%
EPS Growth0.49%
CountryUS
Employees10,064
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.43
Shares Outstanding34,382,652
10 Day Avg. Volume963,230
30 Day Avg. Volume1,414,094
Financial Highlights & Ratios
PEG Ratio16.48
Price to Book (P/B)15.14
Price to Sales (P/S)6.44
P/FCF Ratio45.46
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue7.51
Enterprise Value/Gross Profit17.61
Enterprise Value/Ebitda34.61
Forecast
1Y Price Target
$113.67Price Target Upside98.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.23
Revenue Forecast (FY)$357.63M
Innodata Business Overview & Revenue Model
Company Description
Innodata Inc. is a global enterprise specializing in data engineering, with operations spanning the United States, the United Kingdom, the Netherlands, Canada, and other international locations. The firm conducts its business across three distinct...
How the Company Makes Money
Innodata makes money primarily by delivering services to enterprise and institutional customers that require high-volume, quality-controlled data work to support AI and digital information systems. Revenue is typically generated through (1) projec...
Innodata Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 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
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 317.16M | 251.66M | 170.46M | 86.78M | 79.00M | 69.75M |
| Gross Profit | 135.20M | 99.83M | 66.93M | 31.91M | 27.66M | 26.26M |
| EBITDA | 68.81M | 48.31M | 30.28M | 5.03M | -6.59M | 1.22M |
| Net Income | 46.48M | 32.18M | 28.66M | -908.00K | -11.94M | -1.67M |
Balance Sheet | ||||||
| Total Assets | 356.67M | 168.59M | 113.45M | 59.43M | 48.04M | 59.22M |
| Cash, Cash Equivalents and Short-Term Investments | 250.37M | 82.23M | 46.90M | 13.82M | 10.30M | 18.90M |
| Total Debt | 15.03M | 4.43M | 4.66M | 5.48M | 4.73M | 6.31M |
| Total Liabilities | 197.14M | 61.53M | 50.06M | 34.44M | 30.00M | 32.81M |
| Stockholders Equity | 159.53M | 107.06M | 63.47M | 25.70M | 18.77M | 29.93M |
Cash Flow | ||||||
| Free Cash Flow | 218.57M | 35.65M | 27.27M | 339.00K | -7.74M | 783.00K |
| Operating Cash Flow | 233.35M | 46.75M | 35.02M | 5.90M | -1.22M | 5.15M |
| Investing Cash Flow | -24.86M | -11.10M | -7.74M | -5.07M | -7.03M | -4.37M |
| Financing Cash Flow | 9.20M | -426.00K | 6.06M | 2.87M | -307.00K | 773.00K |
Innodata Technical Analysis
Neutral
57.17
Price Trends
60.31
Negative
68.60
Negative
61.79
Negative
Market Momentum
-1.49
Positive
49.06
Neutral
65.86
Neutral
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 57.17 is below the 20-day moving average (MA) of 62.03, below the 50-day MA of 60.31, and below the 200-day MA of 61.79, indicating a bearish trend. The MACD of -1.49 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 65.86 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.58B | 11.57 | 22.91% | 1.86% | 6.89% | 11.22% | |
76 Outperform | $6.19B | 25.80 | 28.49% | ― | 13.63% | 9.52% | |
74 Outperform | $19.75B | 14.84 | 15.94% | 4.04% | 0.38% | -8.33% | |
72 Outperform | $1.89B | 42.35 | 37.78% | ― | 39.02% | 0.49% | |
72 Outperform | $6.91B | 18.08 | 11.19% | ― | 10.76% | 4.93% | |
72 Outperform | $784.84M | 7.19 | 24.65% | 55.81% | 11.38% | 69.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
INOD
Innodata
59.69
-14.21
-19.23%
EPAM
Epam Systems
138.67
-18.06
-11.52%
EXLS
Exlservice Holdings
42.91
1.59
3.85%
G
Genpact
41.78
2.78
7.12%
WIT
Wipro
2.19
-0.43
-16.48%
TASK
TaskUs
8.69
-0.41
-4.47%
Innodata Corporate Events
Business Operations and StrategyExecutive/Board Changes
Innodata Adds Cybersecurity Leader to Board for AI Strategy
Positive
Sep 15, 2026
On September 10, 2026, Innodata’s Board of Directors elected retired Admiral Michael S. Rogers, former Director of the National Security Agency and Commander of U.S. Cyber Command, as an independent director, with standard non-employee direc...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Innodata Establishes $300 Million At-The-Market Equity Program
Neutral
Aug 6, 2026
On August 6, 2026, Innodata Inc. entered into an equity distribution agreement with Goldman Sachs, Craig-Hallum Capital Group, Wells Fargo Securities, Maxim Group and Wedbush Securities that allows it to offer and sell up to $300 million of common...
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.