Innodata

INOD Q2 2025 Earnings

Reported Jul 31, 2025 at 4:27 PM ET · SEC Source

Q2 25 EPS

$0.20

BEAT +60.00%

Est. $0.13

Q2 25 Revenue

$58.4M

BEAT +3.62%

Est. $56.4M

vs S&P Since Q2 25

+52.0%

BEATING MARKET

INOD +69.9% vs S&P +17.9%

Market Reaction

Did INOD Beat Earnings? Q2 2025 Results

Innodata delivered a decisive beat across the board in Q2 2025, posting earnings of $0.20 per diluted share against a consensus estimate of $0.13, a 60% positive surprise, while revenue of $58.39 million edged past the $56.35 million estimate and sur… Read more Innodata delivered a decisive beat across the board in Q2 2025, posting earnings of $0.20 per diluted share against a consensus estimate of $0.13, a 60% positive surprise, while revenue of $58.39 million edged past the $56.35 million estimate and surged 79.4% year over year. The primary engine behind the quarter's strength was the company's Digital Data Solutions segment, which nearly doubled revenue to $50.58 million from $25.41 million a year ago as demand for AI-related data engineering services accelerated; DDS gross margins expanded to 38% from 24%, reflecting improved project mix and operating leverage at scale. The company also swung to GAAP net income of $7.22 million from a near-breakeven position in the prior-year period, with adjusted EBITDA reaching $13.23 million versus $2.79 million a year earlier. Although rising operational costs and customer concentration remain watchpoints for investors, management raised full-year 2025 revenue guidance to 45% or more organic growth, up from 40%, citing a robust pipeline with significant deal values not yet reflected in the forecast.

Key Takeaways

  • 79% year-over-year organic revenue growth driven by DDS segment
  • DDS segment revenue nearly doubled year-over-year from $25.4M to $50.6M
  • Consolidated gross margin expanded to 39% from 29% year-over-year
  • Adjusted EBITDA increased by $10.4 million year-over-year to $13.2 million
  • Significant new deal wins across diverse new and existing customers
24/7 Wall St

INOD YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

INOD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q4 25

“Q2 was another outstanding quarter. We beat analysts' expectations across the board on key metrics – revenue, Adjusted EBITDA, net income, and fully-diluted EPS. As a result of strong demand and momentum, which includes significant new deal wins across a diversity of new and existing customers, we are increasing our revenue guidance to 45% or more organic revenue growth in 2025, up from 40%. We have a robust pipeline that includes significant dollar values positioning us for a strong second half of the year. Many of these deals are not incorporated in our forecast, leaving room for possible further increases.”

— Jack Abuhoff, Q2 2025 Earnings Press Release