Innodata (INOD) investor relations material

Executive summary

• Record Q3 revenue of $95.6M, up 53% YoY and 15% above analyst consensus; this marked the 13th consecutive quarter of YoY growth.

• Adjusted EBITDA was $17.7M and net income was $10.3M; diluted EPS of $0.29 exceeded consensus.

• FY2026 revenue growth guidance increased to 42% or more, despite a Q4 revenue impact from a program ending.

Financial highlights

• Q3 net income was $10.3M versus $8.3M YoY; basic and diluted EPS were $0.30 and $0.29, versus $0.26 and $0.24.

• Q3 GAAP gross margin was 37% versus 41% YoY; adjusted gross profit was $38.3M and adjusted gross margin was 40% versus 44%.

• Adjusted EBITDA was $17.7M, or 18.5% of revenue, versus $16.2M and 15% of revenue YoY.

• 9M revenue was $277.9M versus $179.3M YoY; net income was $39.6M versus $23.3M, and diluted EPS was $1.13 versus $0.67.

• 9M Adjusted EBITDA was $68.1M versus $42.2M YoY; operating cash flow was $80.5M versus $33.7M.

Outlook and guidance

• FY2026 revenue growth guidance rose from 40%-42% to 42% or more; the increase was tempered by an expected $12M Q4 impact from a large customer program ending in October.

• Replacement work at that customer is expected by Q1, but timing is uncertain; late-stage programs are being pursued across business units.

• A new hyperscaler customer is forecast to contribute more than $20M in 2027, versus $3.1M in trailing-12-month revenue; 2027 guidance is expected with Q4 results.

• Guidance includes active programs, new awards and smaller pipeline items with clear revenue visibility; larger opportunities are excluded until awarded and timing is known.