Core Insights - Innodata Inc. (INOD) is set to release its fourth-quarter 2025 results on February 26, 2026, after market close [1] Financial Performance - Innodata reported a record third-quarter 2025, with adjusted earnings per share (EPS) of 24 cents, exceeding the Zacks Consensus Estimate by 71.4%. This is a decrease from the adjusted EPS of 51 cents in the same quarter last year [2] - Revenues for the third quarter reached $62.6 million, surpassing the consensus estimate by 4.6% and reflecting a year-over-year growth of 19.8% [2] - Adjusted EBITDA increased to $16.2 million from $13.9 million a year ago, indicating operational leverage [2] - The company maintains guidance for 45% or more year-over-year organic revenue growth in 2025 [2] Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter EPS remains unchanged at 21 cents, indicating a 32.3% decline from the year-ago EPS of 31 cents. Revenue estimates for the quarter are pegged at $69.5 million, suggesting a 17.4% year-over-year growth [5] - For 2026, revenues are expected to increase by 25.9%, with EPS projected to grow by 27.8% [6] Market Dynamics - Fourth-quarter revenues are likely supported by ongoing expansion with large technology customers and strong demand for generative AI data engineering services. The company has highlighted significant deal momentum [8] - Anticipated contracts related to high-quality pre-training data could represent approximately $68 million in potential revenue across multiple customers, with some scaling expected through 2026 [9] - The launch of Innodata Federal and engagement with a new high-profile customer may contribute to early mobilization revenues in the fourth quarter [10] Profitability Factors - Scale benefits from expanding engagements with big tech and higher-value services are expected to support gross margin dynamics [12] - Investments in new capabilities, including federal expansion and advanced model safety offerings, may pressure selling and administrative costs in the near term [13] Stock Performance - INOD stock has gained 18.5% over the past six months, outperforming some industry peers but underperforming the Zacks Engineering - R and D Services industry [16] - Compared to competitors like Cognizant Technology Solutions and Infosys, INOD has shown stronger price resilience [17] - The stock is currently trading at a premium forward P/E compared to its industry [20] Investment Outlook - Despite solid operating momentum and strong organic growth expectations, the fourth-quarter EPS is projected to decline year over year, and the Earnings ESP stands at 0.00%, indicating no clear signal for another earnings beat [22]

Core Insights - The artificial intelligence boom has created distinct investment opportunities, with Innodata (INOD) and BigBear.ai (BBAI) representing different approaches to capitalize on this trend [1][2]. Company Overview - Innodata has positioned itself as a high-growth data engineering partner for Big Tech and AI model builders, acting as a "picks and shovels" enabler of generative AI [2]. - BigBear.ai focuses on mission-ready AI solutions for defense and intelligence, recently expanding its capabilities through acquisitions [2]. Financial Performance - Innodata reported third-quarter revenues of $62.6 million, a 20% increase year over year, with adjusted EBITDA of $16.2 million, and anticipates 45% or more revenue growth in 2025 [7][10]. - In contrast, BigBear.ai's third-quarter revenue declined 20% year over year to $33.1 million, with a gross margin decrease to 22.4% [8][10]. Growth Potential - Innodata's revenue for the first nine months of 2025 reached $179.3 million, up 61% year over year, driven by demand for high-quality data [9]. - The company has a potential revenue pipeline of approximately $68 million from new contracts, positioning it well for future growth [11]. - BigBear.ai's recent acquisition of Ask Sage for $250 million aims to enhance its secure AI capabilities, although operational performance remains under pressure [14][17]. Valuation Metrics - Innodata trades at a forward price-to-sales ratio of 4.39X, while BigBear.ai trades at 9.95X, despite BigBear's weaker growth trajectory and negative EBITDA [10][18]. - Innodata's lower valuation multiple aligns with its profitable growth profile and clearer earnings visibility [18]. Earnings Outlook - The consensus estimate for Innodata's 2026 earnings per share is $1.12, indicating a 27.8% growth from 2025, with revenues expected to rise 25.9% [21]. - BigBear.ai is projected to narrow its loss to 25 cents per share in 2026, with revenues expected to grow 30.2% [22]. Investment Considerations - Both companies are positioned to benefit from expanding AI budgets, particularly in generative AI and federal deployments [23]. - However, Innodata is seen as having a clearer path to sustained profitability and diversified growth drivers, making it a more compelling investment opportunity at current levels [24][25].

Innodata (NASDAQ: INOD), which went public in 1993, was once considered a slow-growth provider of content digitization, digital publishing, and data enrichment services. But in 2018, it launched a suite of task-specific microservices that could efficiently annotate large amounts of high-quality data for AI applications. The market's demand for these services skyrocketed as the AI market expanded, and its stock soared 2,750% over the past six years. Image source: Getty Images. Where to invest $1,000 right n ...

Innodata (NASDAQ: INOD) has existed as a company since 1988. However, a shift into artificial intelligence (AI) remade the data engineering company as a low-code software platform that helped with data collection and helped to streamline business processes for customers in specific industries. Not surprisingly, its rising popularity has helped boost the stock, and investors who bought shares five years ago and held them are likely happy with their gains. Where to invest $1,000 right now? Our analyst team j ...

Core Insights - Innodata Inc.'s relationship with Big Tech is evolving, characterized by expansion and increased spending on AI capabilities [1] Financial Performance - In Q3 2025, Innodata's revenue increased by 20% year-over-year to $62.6 million, with year-to-date revenue rising 61% to $179.3 million [2][9] - Management anticipates full-year growth of 45% or more, with expectations for "transformative growth" in 2026 [2] Customer Expansion - Six out of eight major Big Tech customers are expected to grow next year, with significant expansions from the largest customer, projected to generate a $6.5 million annualized run rate [3][9] - Innodata has secured or is close to finalizing five additional Big Tech customers, including two global leaders in commerce, cloud, and AI, which diversifies its client base and reduces reliance on any single program [4] Revenue Opportunities - Innodata has signed contracts in pre-training data that could yield approximately $42 million in revenue, with an additional $26 million expected, totaling around $68 million across five customers [5][9] - The company's selection by Palantir for specialized annotation and data engineering indicates its growing role in advanced AI deployments [5] Market Positioning - As generative AI budgets increase, Innodata is becoming more integrated into customer workflows, positioning itself for expansion driven by existing relationships rather than just acquiring new clients [6] - Competitors like Cognizant and C3.ai are also expanding in the AI data-services market, highlighting the competitive landscape [7][8] Valuation and Estimates - Innodata's shares have increased by 5.1% over the past six months, outperforming the Zacks Technology Services industry's growth of 0.2% [10] - The company trades at a forward price-to-earnings ratio of 37.74, significantly higher than the industry average of 23.5 [13] - The Zacks Consensus Estimate for Innodata's 2026 earnings remains at $1.20, indicating a projected growth of 35.6% from 2025 [15]

Core Insights - Innodata Inc. (INOD) has gained significant attention as a small-cap AI services stock, with a stock price increase of 22.3% over the past six months, outperforming the Zacks Technology Services industry and the S&P 500 [1][6] - The company's valuation is currently at 45.2 times forward earnings, nearly double the industry average of 23.47 times, raising questions about the sustainability of its growth [2][14] Financial Performance - In Q3 2025, Innodata reported revenue of $62.6 million, reflecting nearly 20% year-over-year organic growth, with adjusted EBITDA at $16.2 million, or 26% of revenue [7] - The company ended the quarter with approximately $73.9 million in cash and short-term investments, providing flexibility for future investments [8] Growth Drivers - Innodata's early investment in high-quality pre-training data has resulted in contracts worth around $68 million, expected to generate revenue in 2026 [9] - The company is expanding into government and defense markets, with a prime contract position on the Missile Defense Agency's SHIELD IDIQ program, which may enhance revenue visibility [11] - Recent partnerships, such as with Palantir Technologies, highlight Innodata's ability to meet high standards in AI applications, reinforcing its strategic relevance [12][13] Valuation Concerns - The premium valuation of Innodata is driven by confidence in its execution and long-term positioning, but stable earnings expectations raise caution among investors [15][21] - The Zacks Consensus Estimate for 2026 earnings per share remains unchanged at $1.20, indicating strong growth but suggesting that much of the positive outlook is already priced in [15][17] Competitive Landscape - Innodata competes with firms like Accenture and Cognizant, with its specialization in high-stakes AI workloads contributing to its premium valuation [20][21] - The competitive environment is intensifying as generative AI spending increases, leading to potential pricing pressure and talent competition [19][20]

Core Insights - Innodata Inc. (INOD) is strategically positioning itself in the Agentic AI sector, which involves autonomous agents performing complex tasks with minimal human input, translating into commercial opportunities for the company [1][5] Group 1: Agentic AI Development - Agentic AI introduces complexities beyond basic model training, requiring agents to be tested for task success, behavioral consistency, and decision logic [2] - Innodata has developed specialized "judge" frameworks to assist tech companies in evaluating and refining autonomous agents, which are increasingly integrated into reinforcement learning processes [2] - The revenue potential in Agentic AI lies in continuous engagement with clients, as these systems require ongoing iteration and monitoring, enhancing customer lifetime value [3] Group 2: Recent Achievements - Innodata's recent selection by Palantir for advanced AI deployments demonstrates its capability in handling complex multimodal data, showcasing its role in high-stakes environments [4] Group 3: Financial Outlook - Innodata is entering this phase with strong financials, including expanding margins and robust cash generation, with expectations of over 45% revenue growth in 2025 [5][10] - The company is positioned to benefit from the transition of enterprises from pilot projects to full-scale production in Agentic AI, potentially leading to sustained revenue growth [5] Group 4: Competitive Landscape - In the Agentic AI space, competitors such as Upstart Holdings and C3.ai are also being monitored, each taking unique approaches to AI that intersect with Innodata's offerings [6] - Upstart focuses on AI-driven credit decisioning, which parallels Innodata's evaluation systems, while C3.ai provides a comprehensive enterprise AI platform that includes model deployment and monitoring [7][8] Group 5: Stock Performance and Valuation - Innodata's shares have increased by 23.1% over the past six months, significantly outperforming the Zacks Technology Services industry's growth of 3.9% [9] - The company currently has a forward price-to-earnings ratio of 45.86, which is considerably higher than the industry average of 23.64 [16]

Core Insights - Innodata (INOD) emerged as a top performer in the market on January 29th, attributed to the announcement of its federal business unit's high-profile customer, Palantir, during the Q3 earnings call [1] Company Summary - Innodata's federal business unit has secured a significant customer, Palantir, which is expected to enhance its market position and performance [1]

Core Insights - Innodata Inc. has secured a partnership with Palantir Technologies to provide specialized data engineering and high-quality training data, focusing on annotating rodeo video footage for computer vision models [1][8] - The partnership enhances Innodata's role in advanced physical AI workflows, allowing it to handle complex datasets while adhering to strict security protocols [2][3] - The collaboration reflects the growing demand for sophisticated data engineering as AI becomes integral to enterprise value and competitiveness [3] Company Overview - Innodata specializes in high-complexity data engineering and AI model training, differentiating itself from competitors like ExlService Holdings and Unisys Corporation, which focus on enterprise data transformation and workflow automation, respectively [4][5][6] - Innodata's recent stock performance shows a 72.2% increase over the past year, significantly outperforming the Zacks Business Services sector, which declined by 15.5% [7] Financial Metrics - Innodata's stock trades at a forward price-to-earnings ratio of 53.07, which is considerably higher than the industry average of 24.99 [10] - The Zacks Consensus Estimate for Innodata's 2026 earnings remains unchanged at $1.20, with current quarter and next quarter estimates at $0.22 and $0.25, respectively [12][13]

Company Overview - Innodata Inc. (INOD) shares increased by 14.4% to $63.86 in the last trading session, with a higher-than-average trading volume [1] - The stock has gained 9.6% over the past four weeks [1] Partnership and Demand - The price increase followed the announcement of a partnership with Palantir Technologies to provide high-quality training data and data engineering services, indicating a growing demand for data engineering capabilities in AI deployment [2] Earnings Expectations - Innodata is expected to report quarterly earnings of $0.22 per share, reflecting a year-over-year decline of 29%, while revenues are projected to be $69.74 million, an increase of 17.9% from the previous year [3] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Innodata holds a Zacks Rank of 3 (Hold) within the Zacks Technology Services industry [5] - Bitdeer Technologies Group (BTDR), another company in the same industry, experienced a 5.1% decline in its last trading session but has returned 24.6% over the past month [5] - BTDR's consensus EPS estimate has increased by 7.7% over the past month, indicating a significant year-over-year change of 95.7% [6]