Innodata (INOD) Q4 2025 earnings summary

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.