Companies /Technology

Innodata Inc

NASDAQ: INOD Information Technology Services
$59.30
â–² $3.46 (+6.20%) today
Markets open · 3:10pm ET

Q4 2025 Earnings

Reported Feb 26, 2026, 4:18pm ET · SEC source
$0.25
Miss −3.85%
EPS · est. $0.26
$72.4M
Beat +4.19%
Revenue · est. $69.5M
−7.4%
Trailing market
INOD vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Feb 26Feb 27report 4:18pm ETearnings−0.7%−2.4%
−4%0+4%Feb 26Feb 27earnings−0.7%−2.4%
INOD −2.4%S&P 500 −0.7%
−4%0+4%Feb 26Feb 27report 4:18pm ETearnings−0.6%−2.4%
−4%0+4%Feb 26Feb 27earnings−0.6%−2.4%
INOD −2.4%NASDAQ −0.6%
−4%0+4%Feb 25Mar 6report 4:18pm ETearnings−2.3%−0.4%
−4%0+4%Feb 25Mar 6earnings−2.3%−0.4%
INOD −0.4%S&P 500 −2.3%
−4%0+4%Feb 25Mar 6report 4:18pm ETearnings−1.4%−0.4%
−4%0+4%Feb 25Mar 6earnings−1.4%−0.4%
INOD −0.4%NASDAQ −1.4%
−7.17%
Day of report
+0.66%
Next session
+2.22%
One week
−12.57%
30 days

S&P 500 over the same 30 days: −5.20%.

Did INOD Beat Earnings? Q4 2025 Results

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.

Key Takeaways
  • 48% full-year organic revenue growth driven by DDS segment
  • 22% year-over-year Q4 organic revenue growth
  • Demand acceleration across frontier model training, agentic AI, and physical AI
  • Expanding customer diversification

“2025 was a defining year for Innodata. We delivered $72.4 million in fourth-quarter revenue and $251.7 million for the full year - representing 48% annual growth - while exceeding margin targets and analyst consensus across key metrics and investing aggressively in innovation to strengthen our platform, accelerate customer outcomes, and reinforce our leadership in the generative AI value chain.”

Innodata CEO, on the earnings call

Forward Guidance & Outlook

Innodata anticipates approximately 35% or more revenue growth in 2026, with potential upside as programs scale. Management cited accelerating demand across frontier model training, agentic AI, and physical AI, along with expanding customer diversification. The company expects margin expansion through automation, synthetic data generation, and evaluation platforms.

INOD YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$20.0M$40.0M$60.0M$59.2M$72.4MRevenue$26.8M$27.7MGross Profit$11.3M$11.4MOperating Income$10.3M$8.8MNet Income
$0$20.0M$40.0M$60.0MRevenueGross ProfitOperating IncomeNet Income

INOD Revenue by Segment

Digital Data Solutions$64.6M
Agility$6.1M
Synodex$1.6M

Figures from SEC filings and company reports. Not investment advice.