Core Insights - Innodata Inc. (INOD) is transitioning from scale data to smart data to enhance the potential of large language models (LLMs) and is focusing on providing Agentic AI services to clients, capitalizing on the strong prospects of agent-based AI [1][2] Group 1: Business Strategy and Market Positioning - The company is adopting a smart data approach to improve factuality, safety, coherence, and reasoning in AI applications, which is expected to boost demand for simulation data and evaluation services [2] - Innodata plans to invest in growth opportunities through short-cycle, high-return initiatives, including custom annotation pipelines, verticalized agent development, and global delivery expansion [3] - The company aims to provide advisory and integration services for AI-native systems and expand into new domains such as multi-agent systems and robotics [3] Group 2: Financial Performance - In the first half of 2025, Innodata reported a 97.7% year-over-year revenue growth to $116.7 million, driven by increased demand from existing clients and higher subscription volumes in its Agility AI-enabled platform [4][9] - The stock has gained 20.8% over the past three months, outperforming the Zacks Computer - Services industry and the broader S&P 500 index [8][9] - Innodata's stock is currently trading at a premium compared to industry peers, with a forward 12-month price-to-sales (P/S) ratio of 4.91, indicating strong market potential [10] Group 3: Earnings Estimates - Earnings estimates for Innodata have increased for 2025 and 2026, with projected earnings of 71 cents and $1.05 per share, respectively [11] - The revised estimate for 2025 reflects a 20.2% year-over-year decline, while the estimate for 2026 indicates a growth of 48.2% [11]

Core Insights - Innodata Inc. (INOD) reported a strong second quarter in 2025, with revenues increasing by 79% year over year to $58.4 million, surpassing estimates by 3.6% [1][9] - Adjusted EBITDA rose 375% to $13.2 million, accounting for 23% of revenue, compared to 9% a year prior [1][9] - Net income improved to $7.2 million, a significant recovery from last year's minimal loss [1] Revenue Growth and Client Engagement - The revenue growth was driven by expanding relationships with major tech clients, with one customer expected to contribute $10 million in revenue in the second half of the year, up from $200,000 in the previous 12 months [2] - Management has raised its 2025 organic growth guidance to at least 45%, citing a strong pipeline and increasing demand for complex training data essential for generative and agentic AI [2] Strategic Positioning and Market Opportunities - CEO Jack Abuhoff emphasized that Innodata is evolving from data provision to include model evaluation, trust and safety monitoring, and simulation data for robotics, positioning the company for emerging AI and automation opportunities [3] - The market disruption following Meta's acquisition of Scale AI could create additional opportunities for Innodata as large tech buyers seek alternative partners [3] Financial Health and Investment Capacity - Innodata has $59.8 million in cash, no debt, and a $30 million credit facility, providing financial flexibility for growth investments [4] - Although increased spending in the third quarter may pressure near-term margins, the company's expanding role in the AI value chain suggests continued operating leverage [4] Competitive Landscape - Innodata competes in the AI services market against major players like Palantir Technologies Inc. and C3.ai, Inc. [5] - While Palantir focuses on full-stack AI solutions, Innodata differentiates itself through expertise in high-quality training data and advanced model evaluation, which are increasingly important for generative AI [5] - C3.ai specializes in AI application development across various industries, but Innodata's focus on smart data strategies and trust and safety services addresses a niche segment of the AI lifecycle [6] Stock Performance and Valuation - INOD shares have increased by 23.7% over the past three months, outperforming the Zacks Computer - Services industry [7] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 48.45, indicating a premium compared to industry peers [11] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has risen to 71 cents from 69 cents in the past week, with a projected sales growth of 42.8% [14] - The consensus estimate for 2025 EPS is expected to decline by 20.2% from the previous year [14]

Core Insights - Innodata Inc. (INOD) is positioned as a key player in the AI revolution by providing essential data for training advanced language models [1] - The company reported Q2 2025 adjusted earnings per share of $0.20, exceeding the Zacks Consensus Estimate of $0.11 [1] - Quarterly revenues reached $58.39 million, reflecting a 79% year-over-year increase and surpassing estimates by 3.6% [2] Revenue Growth and Guidance - Following strong Q2 performance, Innodata raised its 2025 revenue growth guidance to over 45% year-over-year, up from a previous forecast of 40% [2] - The expected revenue growth rate for the current year is 41.9%, while the earnings growth rate is projected at -23.6% [6] AI Demand and Market Position - Innodata is set to benefit from the increasing demand for data engineering services in large language model development, supporting five of the seven major hyperscalers [3] - The company has diversified its customer base, which is expected to support long-term growth across various sectors including technology, healthcare, and federal agencies [4] New Product Launch - Innodata introduced a GenAI Test and Evaluation Platform aimed at validating large language models, with MasterClass as the first customer [5] - The platform is designed to enhance integration with major tech companies' upcoming GenAI investments [5] Stock Performance and Estimates - Innodata's stock is currently trading 38.6% below its 52-week high, despite a year-to-date return of 10.3%, outperforming the S&P 500 [7] - Brokerage targets suggest a potential upside of 72.1%, with average short-term price targets indicating a 53.2% increase from the last closing price of $43.58 [10] Consensus Estimates - The Zacks Consensus Estimate for current-year earnings has remained stable over the last 30 days, while next-year earnings estimates have improved by 2.9% [6]

Core Insights - Innodata reported Q2 2025 results that exceeded analyst expectations in both revenue and profits, with GAAP revenue of $58.4 million, a 79% year-over-year increase, and diluted earnings per share of $0.20, surpassing the expected $0.11 [1][2][5] Financial Performance - Revenue (GAAP) reached $58.4 million, exceeding the consensus estimate of $56.35 million and up from $32.6 million in Q2 2024, reflecting a 79% year-over-year growth [2][5] - Adjusted EBITDA increased significantly to $13.2 million, compared to $2.8 million in Q2 2024, marking a 371% year-over-year rise [2][5] - Net income (GAAP) improved to $7.2 million from a loss of $14,000 in Q2 2024, indicating enhanced operational leverage [5] Business Model and Growth Factors - Innodata specializes in data engineering services for AI and machine learning, focusing on data collection, annotation, and management for training large language models [3] - The company has emphasized proprietary platform development and advanced data annotation, with a focus on trust and safety testing for AI [4] - Key growth factors include maintaining data quality, expanding relationships with large tech clients, continuous innovation, and developing recurring revenue streams through platform products [4] Segment Performance - The Digital Data Solutions (DDS) segment was the main growth driver, with revenue of $50.6 million, up from $25.4 million in Q2 2024, and an adjusted gross margin of 41%, up from 26% [6] - The Synodex segment generated $2.065 million in revenue with a 26% adjusted gross margin, while Agility, the media intelligence platform, produced $5.75 million in revenue at a 69% adjusted gross margin [6] Strategic Developments - The company launched an AI trust and evaluation platform aimed at testing AI model safety, which is expected to create a recurring revenue stream [7] - Expansion with existing and new customers was highlighted, with several minor accounts scaling rapidly and new enterprise customers onboarding [8] Future Outlook - Management raised the organic revenue growth target for FY2025 to at least 45%, up from the previous target of 40% [10] - Cash and short-term investments totaled $59.8 million as of Q2 2025, reflecting a $12.9 million increase since the start of the year, with a strong balance sheet and minimal long-term obligations [11]

Company Overview - Innodata (INOD) is set to report its second-quarter 2025 results on July 31, with expected revenues of $56.36 million, reflecting a 73.13% increase year-over-year [1][9] - The consensus estimate for second-quarter earnings remains at 11 cents per share, unchanged over the past 30 days [1] Performance Drivers - The second-quarter performance is anticipated to benefit from strong momentum in generative AI solutions, expanded customer engagements, and strategic investments [3] - A second master statement of work (SOW) with its largest customer is expected to significantly drive revenue growth in the upcoming quarter [3][9] Investment Strategy - The company plans to invest $2 million in AI technology to support its largest customer, enhancing capabilities to meet evolving customer needs [4] - Innodata is also focusing on expanding its salesforce to capitalize on growth opportunities [4] Industry Context - The company is positioned to benefit from AI-driven capital expenditure trends among major tech companies, enhancing its role in the growing AI services market [5] - Innodata's strong balance sheet, with $56.6 million in cash at the end of Q1 2025, provides the flexibility to execute its expansion strategy [5] Stock Performance - INOD shares have increased by 25.1% year-to-date, outperforming the Zacks Computer and Technology sector's 10.9% and the Computer - Services industry's 1.2% [6] - Compared to competitors like Cognizant Technology Solutions, Infosys, and ExlService, which have seen declines of 2%, 21.7%, and 4.9% respectively, Innodata has shown stronger performance [7] Future Prospects - Innodata expects revenues to grow by 40% year-over-year in 2025, reaching $238.6 million, driven by an expanding clientele [14] - The launch of the Generative AI Test & Evaluation Platform aims to help enterprises assess the safety and reliability of large language models (LLMs) [13] Margin Outlook - Despite strong revenue growth prospects, near-term margins may be pressured due to significant investments and a projected 5% sequential revenue dip [9][15] - The company targets an adjusted gross margin of 40%, lower than the 43% reported in Q1 2025 and 41% in the same quarter last year [15]

Company Overview - Innodata (INOD) shares closed at $50.10, approximately 29.4% below the 52-week high of $71 reached on February 21, 2025, with a year-to-date appreciation of 26.8% [1][9] - The company has outperformed competitors such as Cognizant, Infosys, and ExlService, whose shares have declined by 1.8%, 15.8%, and 4.3% respectively [2] Investment and Growth Strategy - Innodata is set to benefit from significant investments from major tech companies, including Microsoft's $80 billion and Meta Platforms' $64-$72 billion, focusing on AI technology [3] - The company plans to invest $2 million in the second quarter of 2025 to support its largest customer [3] - Expected revenues for 2025 are projected to rise by 40% year-over-year to $238.6 million, driven by growing enterprise demand and contracts with eight Big Tech firms for LLM data work [9][14] Market Position and Client Expansion - Innodata is expanding its Generative AI capabilities, targeting a market expected to be worth $200 billion by 2029 [12] - The company is enhancing its relationships with key clients, securing approximately $8 million in new engagements from four Big Tech customers [13] - New customer acquisitions are anticipated to provide significant upside to both revenue and earnings [14] Financial Performance and Valuation - The Zacks Consensus Estimate for second-quarter 2025 earnings is 11 cents per share, unchanged over the past 60 days, compared to break-even earnings in the year-ago quarter [16] - The forward 12-month Price/Sales ratio for Innodata is 5.84X, significantly higher than the Zacks Computer Services industry's 1.76X, indicating a premium valuation [19] Conclusion - Current shareholders may find justification in holding the stock due to Innodata's strong positioning in the generative AI safety domain and impressive revenue growth prospects [22] - New investors might consider waiting for a more favorable entry point as the stock remains overvalued [22]

Core Insights - Innodata reported a 79% year-over-year revenue growth in Q2 2025, reaching $58.4 million, and a 375% increase in adjusted EBITDA to $13.2 million [1] - The company raised its full-year 2025 organic revenue growth forecast from 40% to at least 45%, driven by large-scale project wins and increased demand from major tech customers [1][3] Financial Performance - Adjusted gross margin improved to 43% from 33% year-over-year, with net income rising to $7.2 million from a loss of $14,000 in the same period last year [2] - Cash reserves increased to $59.8 million, with an additional $8 million collected post-quarter, and the $30 million credit facility remains undrawn [2][3] Customer Dynamics - Revenue from the largest customer reached $33.9 million, while a new big tech customer is projected to contribute $10 million in the second half of 2025 [4] - Competitive shifts, particularly the acquisition of Scale AI by Meta, have created growth opportunities for Innodata among large technology clients [4][5] Strategic Investments - The company invested $1.4 million in new hires focused on delivery, product innovation, and talent acquisition, targeting opportunities in agentic AI and simulation data services [6] - Management plans to invest in high-return growth initiatives, including custom annotation pipelines and advisory services for enterprises building AI-native systems [7][8] Future Outlook - The company anticipates continued growth with a robust deal pipeline and expects adjusted EBITDA to exceed 2024 levels despite increased expenses [9] - The projected tax rate for upcoming quarters is estimated at 27%-28% [9]

Company Performance - Innodata Inc. reported quarterly earnings of $0.2 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, compared to break-even earnings per share a year ago, resulting in an earnings surprise of +81.82% [1] - The company posted revenues of $58.39 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.62%, and showing a significant increase from year-ago revenues of $32.55 million [2] - Over the last four quarters, Innodata has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Innodata shares have increased approximately 22.7% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $61.69 million, and for the current fiscal year, it is $0.69 on revenues of $241.66 million [7] Industry Outlook - The Computer - Services industry, to which Innodata belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $58.4 million, representing a year-over-year increase of 79% [6][16] - Adjusted EBITDA grew 375% to $13.2 million, reflecting an adjusted EBITDA margin of 23% compared to 9% in the same quarter last year [6][16] - Net income was $7.2 million, a significant improvement from a loss of $14,000 in the same period last year [16] - Cash increased from $56.6 million at the end of Q1 to $59.8 million at the end of Q2, with an additional $8 million collected shortly after the quarter close [7][17] Business Line Data and Key Metrics Changes - The company reported strong performance from its largest customer, generating approximately $33.9 million in revenue from this account in Q2 [33][34] - New projects with the largest customer are expected to significantly increase revenue, with forecasts indicating $10 million from another Big Tech customer in the second half of the year [10][33] Market Data and Key Metrics Changes - The company is experiencing strong demand across a diverse range of existing and new customers, positioning itself well for future growth [8][11] - The competitive landscape is shifting due to the acquisition of Scale AI by Meta, which may create new opportunities for the company [22][23] Company Strategy and Development Direction - The company is raising its full-year 2025 revenue growth guidance to 45% or more, up from 40%, based on a robust pipeline of new deals [8][57] - Investments will focus on custom annotation pipelines, agent development, and expanding global delivery capabilities, particularly for LLM testing and deployment [14][18] - The company aims to align with the growing demand for high-quality complex training data and agentic AI, which is expected to drive future growth [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum, describing it as "nothing short of amazing" and indicating a strong outlook for the second half of the year [17][18] - The company is committed to investing in capabilities that will compound value over the next decade, despite incurring approximately $1.4 million in operating expenses viewed as investments in Q2 [14][18] Other Important Information - The company has not drawn on its $30 million credit facility, providing additional financial flexibility [7][17] - Management emphasized the importance of organic growth, distinguishing it from inorganic growth strategies employed by other companies [44] Q&A Session Summary Question: Impact of Scale AI's acquisition by Meta - Management congratulated Scale AI and noted that their success highlights the importance of data in model performance, suggesting that the shift in focus could accelerate market opportunities for the company [22][23] Question: Timing of business shifts post-acquisition - Management indicated that they are actively engaging with market participants and have stepped up outreach efforts, anticipating exciting opportunities in the coming months [24] Question: Variance in revenue expectations - Management clarified that previous guidance was cautious due to dependencies on engineering teams, but they are optimistic about the current pipeline and opportunities [31][34] Question: Go-to-market strategy for enterprises - Management stated that they are already targeting enterprises and finding receptivity across various markets, with a focus on integrating new technologies into workflows [36][38] Question: Future investment scale - Management plans to increase investments in sales and delivery capabilities by approximately $1.5 million in Q3, capitalizing on significant market opportunities [39][40] Question: Organic growth and competitive pressures - Management highlighted that while there is competitive pressure, the quality of their data and services is the primary focus for customers, making them less price-sensitive [46][47] Question: Revenue opportunities and customer relationships - Management confirmed that there is a larger pipeline of opportunities compared to the previous quarter, with many projects progressing well [48][49]

[Part I – Financial Information](index=2&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial position strengthened significantly as of June 30, 2025, with total assets increasing to **$132.6 million** from **$113.4 million** at year-end 2024, driven by a rise in cash and accounts receivable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $59,792 | $46,897 | +$12,895 | | Accounts receivable, net | $34,124 | $28,013 | +$6,111 | | Total current assets | $100,689 | $81,000 | +$19,689 | | Total assets | $132,623 | $113,449 | +$19,174 | | Total current liabilities | $35,122 | $39,506 | -$4,384 | | Total liabilities | $45,981 | $50,060 | -$4,079 | | Total Stockholders' equity | $86,642 | $63,389 | +$23,253 | Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $58,393 | $32,553 | $116,737 | $59,057 | | Net Income (loss) | $7,219 | $(14) | $15,006 | $975 | | Diluted EPS | $0.20 | $(0.00) | $0.43 | $0.03 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,102 | $6,313 | | Net cash used in investing activities | $(4,058) | $(4,067) | | Net cash provided by financing activities | $1,239 | $392 | | Net increase in cash and cash equivalents | $12,895 | $2,703 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key accounting policies remain consistent with the 2024 annual report, with valuation allowances released for deferred tax assets in Canadian and German subsidiaries due to improved profitability outlooks, and a single customer in the DDS segment accounting for a significant portion of revenue - In Q1 and Q2 2025, the company released valuation allowances on deferred tax assets for its Canadian and German subsidiaries, respectively, due to expectations of future profitability[56](index=56&type=chunk)[57](index=57&type=chunk) - The DOJ and SEC have concluded their investigations related to the securities class action and do not intend to recommend enforcement actions against the company[65](index=65&type=chunk) Segment Revenue (in thousands) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | YTD 2025 Revenue | YTD 2024 Revenue | | :--- | :--- | :--- | :--- | :--- | | DDS | $50,576 | $25,410 | $101,406 | $45,116 | | Synodex | $2,065 | $1,986 | $4,079 | $3,857 | | Agility | $5,752 | $5,157 | $11,252 | $10,084 | - A single customer in the DDS segment accounted for **58%** of total revenue in Q2 2025 and **59%** in H1 2025, also representing **60%** of accounts receivable as of June 30, 2025[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - The company has a secured revolving line of credit for up to **$30.0 million**, with an available borrowing base of approximately **$25.2 million** as of June 30, 2025, and the facility was not used during the first six months of 2025[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant **97%** year-over-year revenue growth for the first six months of 2025 primarily to increased volume from a single large customer in the Digital Data Solutions (DDS) segment, which focuses on AI data services, driving gross margin up to **40%** from **32%** in the prior year period and strengthening liquidity [Business Overview](index=36&type=section&id=Business%20Overview) Innodata is a data engineering company focused on providing high-quality data for AI applications, with core offerings in AI Data Preparation, AI Model Deployment and Integration, and AI-Enabled Industry Platforms, operating through its DDS, Synodex, and Agility segments - The company's mission is to provide high-quality data engineering for AI, honed over 35+ years[114](index=114&type=chunk)[116](index=116&type=chunk) - Core offerings include AI Data Preparation, AI Model Deployment and Integration, and AI-Enabled Industry Platforms[119](index=119&type=chunk) - The company's three reporting segments are Digital Data Solutions (DDS), Synodex, and Agility[130](index=130&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) For Q2 2025, revenue increased **79%** YoY to **$58.4 million**, driven by a **99%** increase in the DDS segment from a large existing customer, leading to gross profit growth to **$23.0 million** from **$9.3 million** and gross margin expansion from **29%** to **39%**, with six-month net income reaching **$15.0 million** and Non-GAAP Adjusted EBITDA surging to **$25.9 million** Revenue by Segment - Three Months Ended June 30 (in millions) | Segment | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | DDS | $50.5 | $25.4 | +99% | | Synodex | $2.1 | $2.0 | +5% | | Agility | $5.8 | $5.2 | +12% | | **Total** | **$58.4** | **$32.6** | **+79%** | - The primary driver for the DDS segment's revenue growth was higher volume from an existing customer, which accounted for **58%** of total company revenue in Q2 2025[147](index=147&type=chunk)[150](index=150&type=chunk) Gross Profit & Margin - Three Months Ended June 30 (in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Gross Profit | $23.0 | $9.3 | | Gross Margin | 39% | 29% | Adjusted EBITDA Reconciliation - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $15,006 | $975 | | Adjustments (Taxes, Interest, D&A, etc.) | $10,943 | $5,594 | | **Adjusted EBITDA** | **$25,949** | **$6,569** | [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position improved significantly, with cash and cash equivalents reaching **$59.8 million** at June 30, 2025, up from **$46.9 million** at year-end 2024, and working capital increasing to **$65.6 million**, supported by **$15.1 million** in net cash from operating activities for the first six months of 2025 Key Liquidity Metrics (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $59,792 | $46,897 | | Working capital | $65,567 | $41,494 | - Net cash provided by operating activities was **$15.1 million** for the first six months of 2025, compared to **$6.3 million** for the same period in 2024[222](index=222&type=chunk)[223](index=223&type=chunk) - Anticipated capital expenditures for the next 12 months are approximately **$11.0 million**, primarily for software and technology upgrades[225](index=225&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company is a smaller reporting company - Disclosure is not required for smaller reporting companies[231](index=231&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and interim CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[233](index=233&type=chunk) - No material changes were made to internal control over financial reporting during the six months ended June 30, 2025[234](index=234&type=chunk) [Part II – Other Information](index=61&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a putative securities class action filed in February 2024, alleging false statements about its AI technology, but the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have both closed their related investigations without recommending enforcement actions - A putative class action lawsuit was filed against the company in February 2024 regarding alleged false and misleading statements about its AI technology, and the company filed a motion to dismiss, which is pending[64](index=64&type=chunk) - On June 12, 2025, the DOJ notified the company it has closed its investigation, and the SEC has also notified the company that it has concluded its investigation and does not intend to recommend an enforcement action[65](index=65&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) There are no new risk factors presented in this report, with the company referring to the Risk Factors section in its Annual Report on Form 10-K for the year ended December 31, 2024 - The report refers to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[237](index=237&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no sales of unregistered equity securities or repurchases of its equity securities during the second quarter of 2025 - There were no sales of unregistered equity securities or repurchases of equity securities during the three months ended June 30, 2025[238](index=238&type=chunk) [Other Information](index=61&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no directors or officers of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the quarter[241](index=241&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) The report lists the exhibits filed, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and XBRL data files - Exhibits filed include Sarbanes-Oxley Act certifications (31.1, 31.2, 32.1, 32.2) and XBRL financial data (101, 104)[243](index=243&type=chunk)