📊 INOD Key Takeaways
Is Innodata Inc. (INOD) a Good Investment?
INOD demonstrates exceptional financial health with strong revenue growth of 47.6% YoY and solid profitability metrics across all margins. The company maintains fortress-like balance sheet strength with minimal debt (0.06x D/E), substantial cash reserves ($82.2M), and impressive returns on equity (30%) and assets (19.1%), while generating robust free cash flow of $35.6M.
Innodata shows strong fundamental momentum, with revenue up 47.6% year over year, solid double-digit operating and net margins, and healthy free cash flow generation. The balance sheet is very strong, with high liquidity, minimal leverage, and substantial cash, which supports resilience and reinvestment capacity. The main constraint on a more aggressive view is that net income was flat despite rapid top-line growth, so sustained earnings conversion still needs to be proven.
Why Buy Innodata Inc. Stock? INOD Key Strengths
- Exceptional revenue growth of 47.6% YoY with net income stable at $32.2M demonstrates scale achievement
- Industry-leading profitability with 39.5% gross margin, 15.8% operating margin, and 12.8% net margin
- Balance sheet fortress: $82.2M cash, minimal debt ($6.0M), 2.68x current ratio, and 0.06x debt-to-equity
- Outstanding capital efficiency: 30% ROE and 19.1% ROA indicate superior asset management
- Strong free cash flow generation of $35.6M (14.2% FCF margin) supports growth investments and shareholder returns
- Exceptional interest coverage of 463.6x demonstrates zero financial distress risk
- Rapid revenue growth paired with solid 39.5% gross margin indicates strong demand and scalable service economics
- Excellent financial health with $82.23M cash, low long-term debt, 2.68x current ratio, and very low 0.06x debt-to-equity
- Strong profitability and cash generation, including 15.8% operating margin, 30.0% ROE, and 14.2% free cash flow margin
INOD Stock Risks: Innodata Inc. Investment Risks
- Revenue growth deceleration risk: 47.6% growth rate may not be sustainable long-term in mature data services markets
- Net income flat YoY despite 47.6% revenue growth suggests margin compression and operational leverage challenges
- Sector cyclicality: Data processing services sensitive to enterprise IT spending cycles and outsourcing trends
- Customer concentration and pricing power risks in competitive data services industry
- Execution risk on converting strong cash generation into accretive growth investments
- Net income was flat year over year despite strong revenue growth, which may signal rising operating costs or lower earnings conversion
- As a computer processing and data preparation company, growth may depend heavily on a concentrated set of large clients or project cycles
- Maintaining current margins could become harder if expansion requires heavier hiring, infrastructure, or pricing concessions
Key Metrics to Watch
- Gross margin stability amid revenue scale (target: maintain 39%+ as volume increases)
- Operating margin trajectory (monitor if 15.8% margin expansion continues or stabilizes)
- Free cash flow conversion and capital allocation efficiency
- Revenue growth sustainability and growth rate deceleration patterns
- Return on equity maintenance as company scales and deploys cash reserves
- Operating margin and net margin trend as revenue scales
- Free cash flow conversion relative to net income and revenue growth
Innodata Inc. (INOD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.68x current ratio provides a solid financial cushion.
INOD Profit Margin, ROE & Profitability Analysis
INOD vs Technology Sector: How Innodata Inc. Compares
How Innodata Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Innodata Inc. Stock Overvalued? INOD Valuation Analysis 2026
Based on fundamental analysis, Innodata Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Innodata Inc. Balance Sheet: INOD Debt, Cash & Liquidity
INOD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Innodata Inc.'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.89 reflects profitable operations.
INOD Revenue Growth, EPS Growth & YoY Performance
INOD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $52.2M | -$14.0K | $0.24 |
| Q2 2025 | $32.6M | -$14.0K | $0.00 |
| Q1 2025 | $26.5M | $989.0K | $0.03 |
| Q3 2024 | $22.2M | -$14.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Innodata Inc. Dividends, Buybacks & Capital Allocation
INOD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Innodata Inc. (CIK: 0000903651)
📋 Recent SEC Filings
❓ Frequently Asked Questions about INOD
What is the AI rating for INOD?
Innodata Inc. (INOD) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are INOD's key strengths?
Claude: Exceptional revenue growth of 47.6% YoY with net income stable at $32.2M demonstrates scale achievement. Industry-leading profitability with 39.5% gross margin, 15.8% operating margin, and 12.8% net margin. ChatGPT: Rapid revenue growth paired with solid 39.5% gross margin indicates strong demand and scalable service economics. Excellent financial health with $82.23M cash, low long-term debt, 2.68x current ratio, and very low 0.06x debt-to-equity.
What are the risks of investing in INOD?
Claude: Revenue growth deceleration risk: 47.6% growth rate may not be sustainable long-term in mature data services markets. Net income flat YoY despite 47.6% revenue growth suggests margin compression and operational leverage challenges. ChatGPT: Net income was flat year over year despite strong revenue growth, which may signal rising operating costs or lower earnings conversion. As a computer processing and data preparation company, growth may depend heavily on a concentrated set of large clients or project cycles.
What is INOD's revenue and growth?
Innodata Inc. reported revenue of $251.7M.
Does INOD pay dividends?
Innodata Inc. does not currently pay dividends.
Where can I find INOD SEC filings?
Official SEC filings for Innodata Inc. (CIK: 0000903651) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is INOD's EPS?
Innodata Inc. has a diluted EPS of $0.92.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is INOD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Innodata Inc. has a BUY rating with 84% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is INOD stock overvalued or undervalued?
Valuation metrics for INOD: ROE of 30.0% (sector avg: 22%), net margin of 12.8% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy INOD stock in 2026?
Our dual AI analysis gives Innodata Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is INOD's free cash flow?
Innodata Inc.'s operating cash flow is $46.8M, with capital expenditures of $11.1M. FCF margin is 14.2%.
How does INOD compare to other Technology stocks?
Vs Technology sector averages: Net margin 12.8% (avg: 18%), ROE 30.0% (avg: 22%), current ratio 2.68 (avg: 2.5).
Why is INOD's return on equity (ROE) so high?
Innodata Inc. has a return on equity of 30.0%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 12.8% net margin.