Innodata (NASDAQ:INOD – Get Free Report) posted its earnings results on Thursday. The technology company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.20, FiscalAI reports. The firm had revenue of $92.14 million during the quarter, compared to analysts’ expectations of $86.31 million. Innodata had a net margin of 13.86% and a return on equity of 37.49%. The business’s revenue was up 57.8% compared to the same quarter last year. During the same period in the previous year, the business posted $0.20 EPS.
Here are the key takeaways from Innodata’s conference call:
- Innodata reported a record second quarter, with revenue of $92.1 million, up 58% year over year, adjusted EBITDA of $25.4 million, up 92%, and diluted EPS of $0.41. All key metrics exceeded analyst consensus, marking the company’s 12th consecutive quarter of year-over-year growth.
- Adjusted gross margin rose to 49%, nine points above the company’s stated 40% target, driven by a richer mix of higher-margin pre-training programs and proprietary datasets. Management said these offerings provide more software-like leverage because the same intellectual property can be monetized across customers.
- Customer concentration improved as the largest customer declined to 37% of quarterly revenue from 56% in Q1, while a major technology customer grew to 34% and a new frontier AI lab was added. Management also cited several large potential engagements across frontier labs, enterprise customers, and government, though none are included in current guidance.
- Management reiterated its outlook for at least 40% year-over-year revenue growth in 2026 and highlighted expanding opportunities in agentic AI, model evaluation, cybersecurity, physical AI, and federal applications. New research-driven products, including reinforcement-learning environments, benchmarks, and an AI cybersecurity training suite, are intended to support future growth and recurring revenue.
- The company established an at-the-market equity program that could result in share issuance, potentially diluting existing shareholders, although management said it will be used selectively for growth initiatives and strategic opportunities. Management also cautioned that quarterly margins may fluctuate and revenue could decline sequentially if large one-time projects create delivery gaps.
Innodata Stock Performance
NASDAQ INOD opened at $65.48 on Friday. The company has a fifty day moving average of $79.62 and a two-hundred day moving average of $62.74. The company has a market capitalization of $2.14 billion, a PE ratio of 58.99 and a beta of 2.92. Innodata has a 1 year low of $34.23 and a 1 year high of $125.14. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.49 and a quick ratio of 2.49.
Wall Street Analysts Forecast Growth
View Our Latest Stock Report on Innodata
Insider Activity at Innodata
In other Innodata news, CEO Jack Abuhoff sold 200,000 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $110.20, for a total value of $22,040,000.00. Following the completion of the sale, the chief executive officer owned 1,340,456 shares of the company’s stock, valued at approximately $147,718,251.20. This trade represents a 12.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Ashok Mishra sold 242,901 shares of the company’s stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $90.15, for a total value of $21,897,525.15. Following the completion of the sale, the chief operating officer owned 95,179 shares in the company, valued at approximately $8,580,386.85. This represents a 71.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,472,885 shares of company stock worth $143,998,492 over the last quarter. Company insiders own 11.80% of the company’s stock.
Institutional Investors Weigh In On Innodata
A number of hedge funds and other institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. acquired a new stake in Innodata in the 4th quarter worth about $26,000. US Bancorp DE raised 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 during the period. Kestra Advisory Services LLC acquired a new stake in Innodata during the fourth quarter worth about $109,000. Advisory Services Network LLC purchased a new position in shares of Innodata in the 3rd quarter worth about $118,000. Finally, Lazard Asset Management LLC grew its holdings in shares of Innodata by 11,640.9% during the 2nd quarter. Lazard Asset Management LLC now owns 2,583 shares of the technology company’s stock worth $132,000 after purchasing an additional 2,561 shares during the period. 30.75% of the stock is currently owned by hedge funds and other institutional investors.
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.
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