INOD Q4 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025

Earnings

Innodata posted a mixed but broadly encouraging fourth quarter, beating revenue expectations while falling just short on the bottom line as heavy investment in platform capabilities weighed on profitability. The AI data engineering company generated … Read more Innodata posted a mixed but broadly encouraging fourth quarter, beating revenue expectations while falling just short on the bottom line as heavy investment in platform capabilities weighed on profitability. The AI data engineering company generated $72.38 million in Q4 2025 revenue, a 22.3% increase year over year and above the $69.47 million consensus estimate, yet earnings per diluted share of $0.25 missed the $0.26 analyst forecast by 3.85%. The shortfall on profit reflected a meaningful step-up in direct operating costs, which climbed to $44.68 million from $32.42 million a year ago, compressing consolidated gross margin to 38% from 45% and dragging GAAP net income to $8.83 million versus $10.30 million in the prior-year period. The Digital Data Solutions segment was the primary revenue engine, contributing $64.64 million of the quarter's total. Stock dipped following results as investors weighed those margin pressures against an otherwise constructive outlook; management guided for approximately 35% or more revenue growth in 2026, citing accelerating demand across frontier model training, agentic AI, and physical AI applications.