Innodata Stock Earnings Reports

Innodata reported a record Q1 2026: revenue $90.1M (up 54% YoY, +18% vs. consensus), adjusted gross margin 47%, adjusted EBITDA $25M (28% of revenue, +96% YoY), net income $14.9M, EPS $0.42, and cash of $117.4M (undrawn $50M credit facility). Management raised full‑year 2026 revenue growth guidance to ~40%+ (up from 35%+), citing stronger-than-expected program wins and visibility. Key commercial developments include a new set of engagements with a leading big tech customer that could generate ~$51M this year (this customer had generated zero revenue a year ago and is on track to be the company’s second-largest customer), selection as a global trust & safety partner by a large hyperscaler (~$3M potential ARR initially), a $1M initial engagement for its newly launched agent observability platform, and continued traction across frontier AI labs, federal/government customers (including a position under the Missile Defense Agency SHIELD program), and enterprise AI opportunities. Management emphasized diversification—other tech customers grew 453% YoY—and operating leverage: revenue grew 54% while adjusted EBITDA grew ~96%. Strategic focus areas are high-quality pretraining and evaluation data, agent observability/control plane, synthetic/off‑the‑shelf datasets, and research (notably ICML recognition). The company consolidated reporting to a single operating segment. Management reiterated that visibility is improving but quarter-to-quarter timing of programs can vary and forward-looking statements remain subject to risks disclosed in SEC filings.