Highlights

  • Revenues were $92.1 million for the three months ended June 30, 2026, against $58.4 million in the same quarter of 2025.
  • Net income was $14.4 million, with basic earnings per share of $0.43 and diluted earnings per share of $0.41.
  • One customer generated approximately 37% of second quarter revenues and another customer generated approximately 34%, per the filing.
  • Cash and cash equivalents were $240,278 thousand at June 30, 2026, against $82,216 thousand at December 31, 2025.

Innodata Inc. (NASDAQ: INOD) shares were trading at USD 43.81 on October 27, 2026, down 26.88%, with a relative volume at time of 17.30. The AI data engineering company dismissed a securities class action in court on June 10, 2026 and filed its Form 10-Q for the quarter ended June 30, 2026 on August 6, 2026, which reports quarterly revenues of $92.1 million and no guidance.

Innodata is incorporated in Delaware and lists its principal executive offices at 55 Challenger Road in Ridgefield Park, New Jersey. The company describes itself as a global data engineering and AI systems services company that supports the development, training, post-training, evaluation and deployment of artificial intelligence systems. It also offers AI-enabled platforms for healthcare data conversion and media intelligence. Innodata operates under one single segment. Its fiscal year ends December 31. The filing does not disclose a headcount.

Second Quarter Results

Innodata reported total revenues of $92.1 million for the three months ended June 30, 2026, compared with $58.4 million for the three months ended June 30, 2025, an increase of $33.7 million. The company attributed the increase to higher volume for AI data engineering services from existing customer programs.

Gross profit was $42.4 million, compared with $23.0 million, and gross margin was 46%, compared with 39%. Selling and administrative expenses were approximately $26.6 million, compared with $14.1 million, an increase of $12.5 million.

Net income was $14.4 million, compared with $7.2 million a year earlier. Basic and diluted earnings per share were $0.43 and $0.41, compared with $0.23 and $0.20.

Adjusted EBITDA, a non-GAAP measure, was $25.4 million, compared with $13.2 million.

For the six months ended June 30, 2026, total revenues were $182.2 million and net income was $29.3 million.

Customer Concentration and Legal Matters

One customer generated approximately 37% of total revenues in the second quarter of 2026 and approximately 58% in the second quarter of 2025. Another customer generated approximately 34% of total revenues in the second quarter of 2026. No other customer accounted for 10% or more of total revenues.

On June 10, 2026, the United States District Court for the District of New Jersey dismissed with prejudice the putative securities class action captioned D'Agostino v. Innodata Inc., et al.

The filing also describes a 2008 judgment in the Philippines against a former Philippine subsidiary, and purportedly against Innodata Inc., with a potential payment amount of approximately $5.3 million plus legal interest. The company said adverse outcomes of approximately $650,000 in the aggregate beyond recorded amounts are reasonably possible.

Liquidity and Capital

Cash and cash equivalents were $240.3 million at June 30, 2026, including amounts received in advance for customer programs. At June 30, 2026, $67.0 million remained recorded within advances from customers, while $61.8 million of related project costs that had been incurred but remained unpaid was included in accounts payable and accrued expenses. Working capital was approximately $135.2 million.

Cash provided by operating activities for the six months ended June 30, 2026 was $164.4 million. Cash provided by financing activities was $10.0 million.

Innodata maintains a secured revolving line of credit of up to the lesser of the borrowing base and $50.0 million. A Form S-3 registration statement allows offerings of securities up to an aggregate public offering price of $50.0 million. The company said it did not have any material commitments for capital expenditures at June 30, 2026, and that it anticipates capital expenditures of approximately $13.1 million during the next 12 months.

Outlook

The filing does not provide quantitative guidance. Management stated that it believes existing cash and cash equivalents and internally generated funds will provide sufficient liquidity for at least the next 12 months from the date of the report. It said that in the event of a prolonged reduction in revenues it would use the revolving credit facility and reduce costs.