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Innodata (INOD) investor relations material

Innodata Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary26 Feb, 2026

Executive summary

  • Q4 2025 revenue reached $72.4M, up 22% year-over-year, and full-year revenue was $251.7M, up 48% year-over-year.

  • Adjusted EBITDA for Q4 was $15.7M (22% of revenue), and $57.9M for the year, up 68% year-over-year.

  • Net income for Q4 was $8.8M; full-year net income was $32.2M, up from $28.7M.

  • Ended 2025 with $82.2M in cash and short-term investments, up from $46.9M a year earlier.

  • Innovations in generative AI, agentic AI, physical AI, and dataset creation are driving new business opportunities and customer diversification.

Financial highlights

  • Q4 adjusted gross profit was $30.1M, up 6% year-over-year and 9% sequentially.

  • Adjusted Gross Profit for 2025 was $108M, with an adjusted gross margin of 43%.

  • Cash flow from operations was $46.8M for 2025, up from $34.9M in 2024.

  • No drawdown on the $30M credit facility; cash balance increased to $82.2M at year-end.

  • Adjusted EBITDA margin improved, with $15.7M in Q4 and $57.9M for the year.

Outlook and guidance

  • Forecasting 35% or more year-over-year revenue growth for 2026, with potential for significant upside and expanding customer diversification.

  • Early 2026 adjusted gross margins expected in the 35%-40% range, normalizing to 40%+ as new programs scale.

  • Expects continued momentum in AI, LLM, and robotics data services.

Detail commercialization of AI performance gains
How does customer diversification impact 2026 growth?
Quantify margin expansion from automation/synthetic data?
2026 customer diversification strategy details
How will innovation affect gross margins?
Reinvestment strategy impact on EBITDA margin
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Innodata Inc provides data engineering and digital transformation services. The company offers AI training data, data annotation, content management, and analytics services for enterprises in technology, finance, healthcare, and publishing. It is headquartered in Ridgefield Park, New Jersey, and its shares are listed on the NASDAQ.

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