Innodata (NASDAQ:INOD) Announces Earnings Results, Beats Expectations By $0.03 EPS

Innodata (NASDAQ:INOD) released its quarterly earnings data on Thursday. The technology company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.03, Zacks reports. The company had revenue of $72.38 million during the quarter, compared to the consensus estimate of $69.47 million. Innodata had a net margin of 14.11% and a return on equity of 41.67%. Innodata’s revenue for the quarter was up 22.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.34 earnings per share.

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 Price Performance

Shares of INOD stock traded up $1.39 during midday trading on Thursday, reaching $47.58. 1,685,620 shares of the company traded hands, compared to its average volume of 1,476,259. The firm’s 50 day simple moving average is $53.64 and its two-hundred day simple moving average is $58.41. The firm has a market cap of $1.52 billion, a PE ratio of 49.05 and a beta of 2.42. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.69 and a quick ratio of 2.69. Innodata has a 1-year low of $26.41 and a 1-year high of $93.85.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Innodata

Hedge funds and other institutional investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. acquired a new stake in Innodata in the fourth quarter valued at $26,000. US Bancorp DE boosted its position in shares of Innodata by 15,500.0% in the 3rd quarter. US Bancorp DE now owns 1,092 shares of the technology company’s stock worth $84,000 after buying an additional 1,085 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in Innodata in the 4th quarter valued at about $109,000. Advisory Services Network LLC purchased a new position in Innodata during the 3rd quarter valued at about $118,000. Finally, Lazard Asset Management LLC increased its holdings in Innodata by 11,640.9% during the 2nd quarter. Lazard Asset Management LLC now owns 2,583 shares of the technology company’s stock valued at $132,000 after acquiring an additional 2,561 shares in the last quarter. 30.75% of the stock is owned by institutional investors and hedge funds.

About Innodata

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.