Innodata (NASDAQ:INOD) Issues Quarterly Earnings Results

Innodata (NASDAQ:INOD) released its earnings results on Thursday. The technology company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.21 by $0.04, Zacks reports. Innodata had a return on equity of 41.67% and a net margin of 14.11%.The firm had revenue of $72.38 million during the quarter, compared to the consensus estimate of $69.47 million. During the same quarter in the previous year, the company posted $0.34 earnings per share. The company’s revenue was up 22.3% compared to the same quarter last year.

Here are the key takeaways from Innodata’s conference call:

• Strong financial results: Q4 revenue was $72.4M (+22% YoY) and FY2025 revenue was $251.7M (+48% YoY), with a 42% adjusted gross margin, $15.7M adjusted EBITDA (22% of revenue), and $82.2M cash on hand.
• Ambitious 2026 growth guide: Management is guiding to approximately 35% year?over?year revenue growth for 2026 (with potential upside) based on active programs, recent wins, late?stage evaluations, and expected increased spend from its largest customer plus faster growth across other customers.
• Product and data?engineering innovations: The company emphasized advances across generative AI training, agentic AI (evaluation/observability platform, managed optimization pipeline, adversarial simulation), and physical AI (egocentric/affordance datasets and a drone detection model +6.45% vs. prior SOTA) that management says position Innodata as a lifecycle partner for model reliability and safety.
• Reinvestment and margin roadmap: Innodata is investing in COGS and SG&A (engineers, data scientists, account leaders) to capture demand, expects early?2026 adjusted gross margins of 35–40% with normalization to ?40% as programs scale, and says it will remain profitable despite ongoing reinvestment.

Innodata Stock Up 3.0%

INOD stock opened at $47.58 on Friday. Innodata has a 52 week low of $26.41 and a 52 week high of $93.85. The company has a quick ratio of 2.69, a current ratio of 2.69 and a debt-to-equity ratio of 0.08. The firm has a 50-day simple moving average of $53.64 and a 200-day simple moving average of $58.41. The stock has a market capitalization of $1.52 billion, a P/E ratio of 49.05 and a beta of 2.42.

Hedge Funds Weigh In On Innodata

A number of hedge funds have recently made changes to their positions in INOD. Geode Capital Management LLC lifted its position in shares of Innodata by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 752,795 shares of the technology company’s stock valued at $38,362,000 after acquiring an additional 2,407 shares in the last quarter. State Street Corp raised its stake in Innodata by 2.8% in the 4th quarter. State Street Corp now owns 711,180 shares of the technology company’s stock valued at $36,235,000 after purchasing an additional 19,484 shares during the last quarter. Wellington Management Group LLP lifted its holdings in Innodata by 8.1% in the 4th quarter. Wellington Management Group LLP now owns 571,987 shares of the technology company’s stock valued at $29,143,000 after purchasing an additional 42,847 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Innodata by 24.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 441,047 shares of the technology company’s stock worth $22,473,000 after purchasing an additional 87,243 shares during the last quarter. Finally, Plustick Management LLC boosted its stake in Innodata by 1.4% during the 3rd quarter. Plustick Management LLC now owns 360,000 shares of the technology company’s stock worth $27,745,000 after purchasing an additional 5,000 shares during the last quarter. Institutional investors and hedge funds own 30.75% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on INOD shares. Wedbush reiterated an “outperform” rating and issued a $90.00 price objective on shares of Innodata in a research note on Friday, January 30th. Zacks Research lowered shares of Innodata from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 9th. BWS Financial reaffirmed a “top pick” rating and set a $110.00 price target on shares of Innodata in a research report on Friday, January 30th. Finally, Weiss Ratings cut Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, January 12th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $100.00.

Innodata Company Profile

Innodata Inc (NASDAQ: INOD) is a digital services and technology company that specializes in data engineering and artificial intelligence solutions. Founded in 1988 and headquartered in East Brunswick, New Jersey, the company provides structured content and digital transformation services to publishers, media companies, legal and compliance organizations, and other information-intensive industries. Innodata’s platform enables clients to convert unstructured text, images and multimedia into high?quality, machine?readable formats that support search, analytics and AI model training.

The firm’s offerings include content enrichment, metadata management, taxonomy development, digital asset management and data annotation services.