Why Innodata Stock Jumped 29% in 2025

Core Insights - Innodata (NASDAQ: INOD) experienced significant stock performance due to strong growth, interest in AI stocks, and a reasonable valuation, finishing last year up 28.9% [1][2] Financial Performance - Revenue for Innodata increased by 61% to $179.3 million through the first three quarters of the year, although growth slowed to 20% in the third quarter [3] - Adjusted EBITDA rose 106% to $42.2 million during the same period [4] Market Position and Strategy - Innodata is a small-cap stock in the AI sector, distinguishing itself from larger mega-cap stocks, and it remains profitable [3] - The company has expanded into a federal practice, capitalizing on government interest in AI [5][6] Future Outlook - For 2026, Innodata anticipates further growth opportunities, including a new high-profile customer expected to generate $25 million in revenue [8] - Investments in pre-training data capabilities are projected to yield $68 million in revenue from signed or expected contracts [8] - Despite customer concentration risks, there is significant upside potential as the company enters new markets [9]