Revenue growth accelerated for the third consecutive quarter to 57.8% YoY in 2026Q2, with gross margin expanding to 46.1% and operating margin reaching 17.2%, though SBC of $13.1M (14.2% of revenue) tempers reported EPS quality.
Innodata Inc. (INOD) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 317.16M | 251.66M | 170.46M | 86.78M | 79M | 69.75M | 58.24M | 55.86M | 57.42M | 60.93M | 63.07M | 58.52M | 59.08M | 64.25M | 86.59M | 73.94M | 61.51M | 79.33M | 75M | 67.73M | 40.95M | 42.05M | 53.95M | 36.71M | 36.38M | 58.28M | 50.73M | 27.5M | 19.6M | 20.1M | 20.5M |
| Revenue Growth % | 39.02% | 47.64% | 96.44% | 9.84% | 13.26% | 19.77% | 4.26% | -2.72% | -5.76% | -3.4% | 7.78% | -0.94% | -8.05% | -25.8% | 17.11% | 20.21% | -22.46% | 5.77% | 10.73% | 65.39% | -2.61% | -22.05% | 46.94% | 0.9% | -37.57% | 14.88% | 84.48% | 40.31% | -2.49% | -1.95% | -1.44% |
| Cost of Goods Sold | 181.97M | 151.84M | 103.53M | 54.86M | 51.34M | 43.49M | 38.4M | 37.18M | 38.89M | 45.27M | 47.01M | 43.72M | 43.81M | 47.68M | 56.34M | 51.38M | 47.28M | 54.76M | 53.27M | 48.58M | 34.14M | 30.92M | 33.05M | 27.03M | 32.01M | 44.35M | 31.5M | 16.1M | 11.8M | 14.7M | 15.4M |
| COGS % of Revenue | - | 60.33% | 60.73% | 63.22% | 64.99% | 62.35% | 65.93% | 66.56% | 67.74% | 74.31% | 74.53% | 74.7% | 74.15% | 74.21% | 65.07% | 69.49% | 76.87% | 69.03% | 71.03% | 71.73% | 83.37% | 73.53% | 61.26% | 73.62% | 87.96% | 76.11% | 62.09% | 58.55% | 60.2% | 73.13% | 75.12% |
| Gross Profit | 135.2M | 99.83M | 66.93M | 31.91M | 27.66M | 26.26M | 19.84M | 18.68M | 18.52M | 15.65M | 16.07M | 14.81M | 15.27M | 16.57M | 30.25M | 22.56M | 14.23M | 24.57M | 21.73M | 19.15M | 6.81M | 11.13M | 20.9M | 9.69M | 4.38M | 13.92M | 19.23M | 11.4M | 7.8M | 5.4M | 5.1M |
| Gross Margin % | 42.63% | 39.67% | 39.27% | 36.78% | 35.01% | 37.65% | 34.07% | 33.44% | 32.26% | 25.69% | 25.47% | 25.3% | 25.85% | 25.79% | 34.93% | 30.51% | 23.13% | 30.97% | 28.97% | 28.27% | 16.63% | 26.47% | 38.74% | 26.38% | 12.04% | 23.89% | 37.91% | 41.45% | 39.8% | 26.87% | 24.88% |
| Gross Profit Growth % | - | 49.15% | 109.73% | 15.37% | 5.33% | 32.35% | 6.23% | 0.83% | 18.33% | -2.57% | 8.52% | -3.03% | -7.83% | -45.23% | 34.07% | 58.57% | -42.08% | 13.06% | 13.48% | 181.12% | -38.81% | -46.73% | 115.79% | 121.12% | -68.54% | -27.6% | 68.71% | 46.15% | 44.44% | 5.88% | -34.62% |
| Operating Expenses | 81.39M | 59.61M | 42.74M | 30.98M | 37.94M | 27.8M | 18.66M | 19.48M | 15.85M | 20.3M | 19.29M | 16.8M | 16.31M | 17.3M | 22.09M | 19.08M | 15.66M | 16.32M | 15.91M | 15.28M | 14.26M | 13.68M | 9.24M | 8.9M | 10.04M | 11.28M | 10.21M | 8.6M | 6.3M | 6.6M | 6.2M |
| OpEx % of Revenue | - | 23.68% | 25.07% | 35.7% | 48.02% | 39.86% | 32.04% | 34.88% | 27.6% | 33.32% | 30.58% | 28.7% | 27.61% | 26.92% | 25.51% | 25.81% | 25.46% | 20.57% | 21.22% | 22.56% | 34.81% | 32.54% | 17.13% | 24.24% | 27.59% | 19.35% | 20.12% | 31.27% | 32.14% | 32.84% | 30.24% |
| Selling, General & Admin | 80.39M | 59.61M | 42.74M | 30.98M | 37.94M | 27.91M | 18.66M | 19.48M | 15.85M | 20.2M | 19.29M | 16.8M | 16.31M | 17.3M | 22.09M | 19.08M | 15.66M | 16.32M | 16.13M | 15.28M | 13.33M | 13.68M | 9.24M | 8.9M | 10.04M | 11.28M | 7.25M | 6.8M | 5M | 5.3M | 4.8M |
| SG&A % of Revenue | - | 23.68% | 25.07% | 35.7% | 48.02% | 40.01% | 32.04% | 34.88% | 27.6% | 33.15% | 30.58% | 28.7% | 27.61% | 26.92% | 25.51% | 25.81% | 25.46% | 20.57% | 21.51% | 22.56% | 32.56% | 32.54% | 17.13% | 24.24% | 27.59% | 19.35% | 14.29% | 24.73% | 25.51% | 26.37% | 23.41% |
| Research & Development | 1M | 0 | 3.5M | 0 | 0 | 0 | 0 | 0 | 100K | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 922K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 2.05% | - | - | - | - | - | 0.17% | 0.16% | - | - | - | - | - | - | - | - | - | - | 2.25% | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -2K | 0 | -3.5M | 0 | 0 | -108K | 0 | 0 | -100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -220K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.96M | 1.8M | 1.3M | 1.3M | 1.4M |
| Operating Income | 53.81M | 40.22M | 24.19M | 939K | -10.28M | -1.54M | 1.18M | -803K | 2.68M | -4.64M | -3.22M | -1.99M | -1.04M | -728K | 8.16M | 3.48M | -1.43M | 8.25M | 5.82M | 3.87M | -7.44M | -2.55M | 11.66M | 787K | -5.9M | 1.78M | 9.03M | 2.8M | 1.5M | -1.2M | -1.1M |
| Operating Margin % | 16.97% | 15.98% | 14.19% | 1.08% | -13.01% | -2.21% | 2.03% | -1.44% | 4.67% | -7.62% | -5.11% | -3.4% | -1.76% | -1.13% | 9.42% | 4.71% | -2.32% | 10.4% | 7.76% | 5.71% | -18.17% | -6.07% | 21.61% | 2.14% | -16.22% | 3.05% | 17.79% | 10.18% | 7.65% | -5.97% | -5.37% |
| Operating Income Growth % | - | 66.25% | 2476.57% | 109.14% | -566.11% | -230.76% | 246.95% | -129.97% | 157.67% | -44.21% | -61.94% | -90.88% | -43.13% | -108.92% | 134.44% | 343.43% | -117.33% | 41.83% | 50.35% | 151.98% | -191.65% | -121.89% | 1381.19% | 113.33% | -431.57% | -80.28% | 222.35% | 86.67% | 225% | -9.09% | -144% |
| EBITDA | 63.19M | 47.11M | 29.99M | 5.66M | -6.39M | 1.33M | 3.45M | 1.89M | 6.05M | -1.17M | -26K | 784K | 2M | 2.92M | 12.06M | 6.89M | 2.27M | 11.96M | 9.52M | 7.03M | -4.01M | 608K | 15.58M | 5.32M | -674K | 6.57M | 11.98M | 4.6M | 2.8M | 100K | 300K |
| EBITDA Margin % | 19.92% | 18.72% | 17.59% | 6.52% | -8.09% | 1.9% | 5.92% | 3.39% | 10.54% | -1.91% | -0.04% | 1.34% | 3.39% | 4.55% | 13.93% | 9.32% | 3.7% | 15.08% | 12.69% | 10.37% | -9.78% | 1.45% | 28.88% | 14.48% | -1.85% | 11.27% | 23.62% | 16.73% | 14.29% | 0.5% | 1.46% |
| EBITDA Growth % | 34.93% | 57.09% | 430.33% | 188.51% | -581.83% | -61.52% | 81.94% | -68.71% | 619.57% | -4380.77% | -103.32% | -60.88% | -31.49% | -75.74% | 74.88% | 203.34% | -81% | 25.67% | 35.5% | 275.36% | -758.88% | -96.1% | 193.15% | 888.58% | -110.26% | -45.18% | 160.54% | 64.29% | 2700% | -66.67% | -91.43% |
| D&A (Non-Cash Add-back) | 9.38M | 6.89M | 5.8M | 4.72M | 3.89M | 2.87M | 2.27M | 2.7M | 3.37M | 3.48M | 3.19M | 2.77M | 3.05M | 3.65M | 3.9M | 3.41M | 3.7M | 3.71M | 3.7M | 3.16M | 3.44M | 3.16M | 3.92M | 4.53M | 5.23M | 4.79M | 2.96M | 1.8M | 1.3M | 1.3M | 1.4M |
| EBIT | 58.44M | 41.42M | 24.48M | 318K | -10.48M | -1.65M | 1.18M | -948K | 1.59M | -5.17M | -4.72M | -2.18M | -1.52M | -7.38M | 6.84M | 5.36M | -1.21M | 8.31M | 5.6M | 4.55M | -7.39M | -2.1M | 11.12M | 787K | -5.66M | 2.65M | 9.03M | 2.79M | 1.49M | -1.2M | -1.1M |
| Net Interest Income | -825K | 1.55M | 149K | -179K | 0 | 108K | -135K | -120K | -33K | 23K | -63K | 31K | 95K | 313K | 324K | 587K | 215K | 30K | 206K | 645K | 676K | 439K | 62K | 21K | 60K | 207K | 111.52K | 0 | -100K | 0 | 0 |
| Interest Income | 870K | 1.55M | 149K | 0 | 0 | 108K | 0 | 0 | 0 | 23K | 0 | 31K | 95K | 313K | 324K | 673K | 224K | 58K | 262K | 678K | 683K | 457K | 87K | 30K | 89K | 216K | 154.41K | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 179K | 0 | 0 | 135K | 120K | 33K | 0 | 63K | 0 | 0 | 0 | 0 | 86K | 9K | 28K | 56K | 33K | 7K | 18K | 25K | 9K | 29K | 9K | 42.88K | 0 | 100K | 0 | 0 |
| Other Income/Expense | 4.63M | 1.2M | 291K | -800K | -205K | 580K | -135K | -265K | -1.12M | -529K | -1.56M | -192K | -478K | -6.66M | -1.32M | 1.79M | 215K | 30K | -269K | 645K | 43K | 439K | -563K | 21K | 60K | 207K | 111.52K | 100K | 500K | -2.9M | 100K |
| Pretax Income | 58.44M | 41.42M | 24.48M | 139K | -10.48M | -963K | 1.04M | -1.07M | 1.56M | -5.17M | -4.79M | -2.18M | -1.52M | -7.38M | 6.84M | 5.27M | -1.22M | 8.28M | 5.55M | 4.51M | -7.4M | -2.11M | 11.09M | 808K | -5.84M | 1.99M | 9.14M | 2.9M | 2M | -4.1M | -1M |
| Pretax Margin % | 18.42% | 16.46% | 14.36% | 0.16% | -13.27% | -1.38% | 1.79% | -1.91% | 2.72% | -8.49% | -7.59% | -3.73% | -2.57% | -11.49% | 7.9% | 7.13% | -1.98% | 10.44% | 7.4% | 6.66% | -18.07% | -5.02% | 20.56% | 2.2% | -16.06% | 3.41% | 18.01% | 10.55% | 10.2% | -20.4% | -4.88% |
| Income Tax | 11.95M | 9.24M | -4.19M | 1.03M | 1.52M | 842K | 401K | 1.09M | 1.81M | 185K | 1.13M | 1.2M | 406K | 5.45M | 1.15M | 1.36M | -468K | 967K | -2.04M | -52K | -77K | -462K | 3.24M | 333K | -677K | 639K | 2.97M | 800K | -300K | 100K | -400K |
| Effective Tax Rate % | 20.45% | 22.32% | -17.11% | 739.57% | -14.52% | -87.44% | 38.37% | -102.15% | 115.75% | -3.58% | -23.53% | -55.16% | -26.71% | -73.82% | 16.82% | 25.82% | 38.52% | 11.68% | -36.7% | -1.15% | 1.04% | 21.86% | 29.18% | 41.21% | 11.59% | 32.16% | 32.49% | 27.59% | -15% | -2.44% | 40% |
| Net Income | 46.48M | 32.18M | 28.66M | -908K | -11.94M | -1.67M | 617K | -2.14M | -253K | -5.05M | -5.52M | -2.83M | -974K | -10.63M | 7.47M | 4.47M | -747K | 7.31M | 7.58M | 4.57M | -7.32M | -1.65M | 7.86M | 475K | -5.17M | 1.35M | 6.17M | 2.1M | 2.3M | -4.2M | -600K |
| Net Margin % | 14.66% | 12.79% | 16.81% | -1.05% | -15.11% | -2.4% | 1.06% | -3.83% | -0.44% | -8.3% | -8.76% | -4.83% | -1.65% | -16.55% | 8.63% | 6.05% | -1.21% | 9.22% | 10.11% | 6.74% | -17.88% | -3.93% | 14.56% | 1.29% | -14.2% | 2.31% | 12.16% | 7.64% | 11.73% | -20.9% | -2.93% |
| Net Income Growth % | 8.89% | 12.29% | 3256.39% | 92.39% | -613.39% | -371.15% | 128.8% | -746.64% | 95% | 8.49% | -95.47% | -190.14% | 90.84% | -242.27% | 67.14% | 698.53% | -110.21% | -3.57% | 66.1% | 162.35% | -343.55% | -121.01% | 1554.11% | 109.2% | -483.16% | -78.15% | 193.72% | -8.7% | 154.76% | -600% | -140% |
| Net Income (Continuing) | 46.48M | 32.18M | 28.68M | -889K | -12.01M | -1.8M | 644K | -2.16M | -246K | -5.36M | -5.91M | -3.38M | -1.93M | -12.84M | 5.69M | 3.91M | -747K | 7.31M | 7.58M | 4.57M | -7.32M | -1.65M | 7.86M | 475K | -5.17M | 1.35M | 6.17M | 2.1M | 2.3M | -4.2M | -600K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -83K | -83K | -83K | -708K | -727K | -3.52M | -3.39M | -3.42M | -3.44M | -3.94M | -3.63M | -3.51M | -2.95M | -3.65M | -1.6M | -561K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.34 | 0.92 | 0.89 | -0.03 | -0.44 | -0.07 | 0.02 | -0.06 | 0.00 | -0.20 | -0.22 | -0.11 | -0.04 | -0.43 | 0.28 | 0.18 | -0.03 | 0.28 | 0.26 | 0.18 | -0.30 | -0.07 | 0.32 | 0.02 | -0.24 | 0.05 | 0.27 | 0.11 | 0.13 | -0.23 | -0.03 |
| EPS Growth % | 6.45% | 3.37% | 3066.67% | 93.18% | -548.97% | -381.33% | 138.38% | - | 100.1% | 9.09% | -100% | -184.97% | 91.02% | -253.57% | 55.56% | 710.17% | -110.54% | 7.69% | 44.44% | 160% | -317.83% | -122.44% | 1500% | 108.33% | -580% | -81.48% | 145.45% | -15.38% | 156.52% | -607.69% | -138.46% |
| EPS (Basic) | - | 1.01 | 0.98 | -0.03 | -0.44 | -0.07 | 0.03 | -0.06 | 0.00 | -0.20 | -0.22 | -0.11 | -0.04 | -0.43 | 0.30 | 0.18 | -0.03 | 0.30 | 0.27 | 0.19 | -0.30 | -0.07 | 0.35 | 0.02 | -0.24 | 0.06 | 0.31 | 0.11 | 0.13 | -0.23 | -0.03 |
| Diluted Shares Outstanding | 34.77M | 35.02M | 32.18M | 28.13M | 27.28M | 26.63M | 25.57M | 25.77M | 25.88M | 25.82M | 25.54M | 25.4M | 25.23M | 25M | 26.23M | 25.1M | 25.36M | 25.76M | 25.14M | 25.33M | 24.02M | 23.01M | 24.82M | 23.75M | 21.52M | 26.96M | 23.06M | 19.96M | 17.76M | 17.95M | 18.46M |
| Basic Shares Outstanding | 33.47M | 31.81M | 29.16M | 28.13M | 27.28M | 26.63M | 24.61M | 25.77M | 25.3M | 25.27M | 25.11M | 25.4M | 24.35M | 24.73M | 24.89M | 24.92M | 25.36M | 24.61M | 24.39M | 24.14M | 24.02M | 23.01M | 22.29M | 23.75M | 21.52M | 22.47M | 20.19M | 19.96M | 17.76M | 17.95M | 18.46M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying INOD stock.
For fiscal year 2025, Innodata Inc. (INOD) reported total revenue of $251.7M. This represents a 1127.6% increase compared to $20.5M in 1996.
Innodata Inc. (INOD) is profitable, generating $32.2M in net income for the fiscal year ending 2025 with a net profit margin of 12.8%.
Innodata Inc. (INOD) reported an operating income of $40.2M, resulting in an operating profit margin of 16.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Innodata Inc. (INOD) generated $99.8M in gross profit for the year, representing a gross profit margin of 39.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SBC dilution and revenue concentration
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on AI Demand
Innodata's revenue surged 57.8% year-over-year to $92.1M in 2026Q2, per recent financial statements, marking the third consecutive quarter of accelerating growth from 22.3% in 2025Q4.
The sequential acceleration from 2025Q4's 22.3% to 2026Q2's 57.8% suggests a step-change in demand, likely tied to AI data services. Revenue nearly tripled from $26.5M in 2024Q1 to $92.1M in 2026Q2, indicating a durable growth trajectory rather than a one-off spike. The consistency across quarters, with 2026Q1 at 54.4% and 2026Q2 at 57.8%, points to sustained volume expansion, though pricing power remains unverified from the data alone.
Gross Margin Expansion Signals Pricing Power
Gross margin improved from 28.7% in 2024Q2 to 46.1% in 2026Q2, as reported in quarterly filings, reflecting a 17.4 percentage point expansion that outpaces revenue growth.
The margin expansion from 28.7% to 46.1% over eight quarters suggests the company is scaling efficiently, likely benefiting from higher-margin AI-related services or improved cost absorption. The 2026Q2 gross margin of 46.1% exceeds the peer average of roughly 38-40% for IT services, indicating potential competitive advantage. However, the dip to 38.3% in 2025Q4 shows some volatility, warranting monitoring for sustainability as revenue mix evolves.
Operating Leverage Drives Margin Expansion
Operating income grew from $331K in 2024Q2 to $15.9M in 2026Q2, per income statement data, with operating margin expanding from 1.0% to 17.2% as SG&A grew slower than revenue.
SG&A increased from $9.0M to $26.6M over the period, but as a percentage of revenue it declined from 27.6% to 28.9% in 2026Q2, indicating overhead efficiency. The operating margin of 17.2% in 2026Q2 is near the peak of 18.0% in 2026Q1, suggesting the company is approaching a scale where fixed costs are well absorbed. The absence of R&D expenses in most quarters implies a services-led model, where operating leverage is driven by delivery capacity rather than product investment.
SBC Dilution Tempers Reported EPS Growth
Stock-based compensation jumped to $13.1M in 2026Q2 from $2.7M a year earlier, per financial statements, representing 14.2% of revenue and potentially inflating reported EPS growth of 105%.
The SBC spike in 2026Q2 is notable, as it exceeds the $5.9M in 2026Q1 and suggests aggressive equity compensation, possibly tied to performance bonuses. While net income grew to $14.4M, the SBC expense reduces cash-based earnings quality, and investors should adjust for this to assess true profitability. The tax rate appears favorable, with net margin of 15.6% close to operating margin of 17.2%, implying minimal tax drag, but this may not persist.
COGS Dominates Cost Structure, SG&A Scales
COGS accounted for 54% of revenue in 2026Q2, per income statement data, while SG&A grew 89% year-over-year to $26.6M, reflecting investment in sales capacity ahead of revenue.
The COGS ratio of 53.9% in 2026Q2 is down from 71.3% in 2024Q2, indicating improved cost efficiency in service delivery. SG&A growth outpaced revenue growth in 2026Q2 (89% vs 57.8%), suggesting deliberate investment in go-to-market infrastructure, which may pressure near-term margins. The lack of R&D spending is consistent with a services model, but investors should question whether this limits future product differentiation.
2024Q3 Marks Operational Turning Point
Innodata's inflection occurred in 2024Q3, when revenue jumped 60% sequentially to $52.2M and net income surged to $17.4M, per quarterly data, driven by a one-time gain or margin spike.
The 2024Q3 net margin of 33.3% was anomalous, with net income of $17.4M exceeding operating income of $11.9M, suggesting non-operating income such as a tax benefit or gain. This quarter marked the transition from sub-$30M revenue to sustained growth, with subsequent quarters maintaining $58M+ revenue. The lasting impact is a higher revenue base, but the 2024Q3 earnings quality was distorted, and investors should focus on the normalized trajectory from 2025 onward.
SBC and Concentration Threaten Earnings Quality
The 2026Q2 SBC of $13.1M, per income statement data, nearly equals net income of $14.4M, suggesting reported EPS may overstate cash profitability and dilution could accelerate.
Short-sellers would highlight that SBC as a percentage of revenue rose from 4.6% in 2025Q2 to 14.2% in 2026Q2, a threefold increase that may indicate management is using equity to compensate for cash constraints. Additionally, revenue growth of 57.8% may be concentrated in a few AI clients, as the data shows no diversification metrics, and any client loss could reverse the margin gains. The 2026Q2 gross margin of 46.1% is near the high end of the range, and if competition intensifies, pricing pressure could compress margins, making the current valuation vulnerable.