# Innodata (INOD.US)

Canonical: https://gigainvestors.com/s/INOD

Analysis as of: 2026-10-16T07:29:21.171Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $56.57 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 7

- Operating margin variation: 11.08×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.05×

- FY2017: -0.08×

- FY2018: 0.05×

- FY2019: -0.01×

- FY2020: 0.02×

- FY2021: -0.02×

- FY2022: -0.13×

- FY2023: 0.01×

- FY2024: 0.14×

- FY2025: 0.16×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 0.8%

- ROIC, second-lowest year: -17.5%

- Typical minus recent gross margin: -4.7 pp

- Typical gross margin (annual median): 34.5%

- Recent gross margin (lower of latest and 3-year median): 39.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: -4.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -11.6%

- FY2017: -17.5%

- FY2018: 7.8%

- FY2019: -2.5%

- FY2020: 4.4%

- FY2021: -7.6%

- FY2022: -66.5%

- FY2023: 4.0%

- FY2024: >100%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $45M

- Net income, five-year total: $46M

- Return on incremental invested capital: 91.4%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -0.5 pp

- Working capital / revenue, final three-year average: 13.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.11×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -11.6% vs 114.6%

- Per-share earnings: -0.20 to 0.89 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.3%

- Ordinary dilution, 5-year annual growth: 6.5%

- Market cap gain: $1.6B

- Cumulative retained earnings: $39M

- Diluted shares, 10-year annual growth: 3.3%

- Diluted shares, 5-year annual growth: 6.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.09

- Per-share value, starting three-year median: -$0.20

- Per-share value, ending three-year median: $0.89

- Buybacks concentrated in cheaper years (correlation): -0.60

- Average buyback yield: 1.5%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: $14M

- Cumulative net income, 10 years: $34M

- ROIC, first three-year median: -11.6%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.22

- FY2017: -$0.20

- FY2018: -$0.01

- FY2019: -$0.08

- FY2020: $0.02

- FY2021: -$0.06

- FY2022: -$0.44

- FY2023: -$0.03

- FY2024: $0.89

- FY2025: $0.92

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.6%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 23.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.45×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.9%

- FY2017: -12.1%

- FY2018: -8.4%

- FY2019: -13.0%

- FY2020: -8.8%

- FY2021: -11.5%

- FY2022: -22.3%

- FY2023: -11.5%

- FY2024: -5.6%

- FY2025: -8.6%

## Holders

- [Duan Yongping](https://gigainvestors.com/HH): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 46% since May 2026 · sales +47.6%

Story as of 2026-10-16T09:58:57.146Z; price observation 2026-10-15.

- 2025-07-03: Innodata Q1 2025 slides reveal explosive growth as AI data engineering demand surges ([investing.com](https://www.investing.com/news/company-news/innodata-q1-2025-slides-reveal-explosive-growth-as-ai-data-engineering-demand-surges-93CH-4122122))

### Sales · FY2024–2025

sales +47.6%; source https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm; observed 2026-02-26.

- FY2016: $63M 

- FY2017: $61M 

- FY2018: $57M 

- FY2019: $56M 

- FY2020: $58M 

- FY2021: $70M 

- FY2022: $79M 

- FY2023: $87M 

- FY2024: $170M 

- FY2025: $252M 

### Gross margin · FY2025

gross margin 39.7%; source https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm; observed 2026-02-26.

- FY2016: 25.5% 

- FY2017: 24.8% 

- FY2018: 32.3% 

- FY2019: 33.4% 

- FY2020: 34.1% 

- FY2021: 37.6% 

- FY2022: 35.0% 

- FY2023: 36.8% 

- FY2024: 39.3% 

- FY2025: 39.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 251.7 million.

- Source: https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm (filed 2026-02-26); FY2025: revenue 251663000; grossProfit 99828000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); INOD.US: Innodata Inc. operates as a data engineering company in the United States, the United Kingdom, the Netherlands, Canada, Germany, Belgium, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) training and post-training data, model evaluation, alignment, safety, AI model deployment and integration, and AI-enabled platforms. The Synodex segment offers an industry platform that transforms medical records into structured digital data for insurance and healthcare workflows. The company also provides Agility PR Solutions platform that provides media intelligence and public relations workflow software enhanced with AI-driven monitoring, analytics, and content capabilities; and operates R&D laboratory that generate the data needed to train the human-like robots and validate the performance data. It serves banking, insurance, financial services, technology, digital retailing, and information media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen Inc. and changed its name to Innodata Inc. in November 2003. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.

### Why customers stay

Margins ranged from 36.8% to 39.7% during 2023–25; it earns 0.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 36.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 39.3%.

- Source: https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 39.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,-0.1161117955738079],[2017,-0.17512416822511198],[2018,0.07827347507529105],[2019,-0.024555624370983974],[2020,0.044492139915308315],[2021,-0.07555755284200087],[2022,-0.6651064875491481],[2023,0.03991563664900922],[2024,1.2580074875207987],[2025,1.1459858349851422]]; median 0.007680006139012622. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 13.1% of cash earnings on expansion; earns 91.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 2033000; owner earnings 1088000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 1414000; owner earnings 1469000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 1945000; upkeep 5796000; owner earnings 28660000. Growth capex / owner earnings = 0.06786461967899511.

- Source: https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm (filed 2026-02-26); FY2025: growth capex 4215000; upkeep 6889000; owner earnings 32181000. Growth capex / owner earnings = 0.1309779062179547.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Incremental return on capital 0.9140099112611472, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,2000],[2019,11000],[2020,0],[2021,773000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm (filed 2026-02-26); FY2025: cash repurchases 3337000 USD.

### Are managers owners

Insiders own 4.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); INOD.US SharesStats.PercentInsiders = 4.852 percentage points; cache date 2026-10-15.

### What the price says

The price is 7.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Closing price 56.57 USD; reporting-to-trading FX 1; FY2025 annual sales per share 7.185239114917915; price multiple 7.873085237003454. FY2025 cash earnings/share 0.9188008565310493. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $2.50 per share

- 2016-11: $2.40 per share

- 2016-12: $2.45 per share

- 2017-01: $2.30 per share

- 2017-02: $2.25 per share

- 2017-03: $2.20 per share

- 2017-04: $2.10 per share

- 2017-05: $1.90 per share

- 2017-06: $1.75 per share

- 2017-07: $1.70 per share

- 2017-08: $1.55 per share

- 2017-09: $1.50 per share

- 2017-10: $1.30 per share

- 2017-11: $1.20 per share

- 2017-12: $1.36 per share

- 2018-01: $1.16 per share

- 2018-02: $1.16 per share

- 2018-03: $1.15 per share

- 2018-04: $1.15 per share

- 2018-05: $1.25 per share

- 2018-06: $1.00 per share

- 2018-07: $1.16 per share

- 2018-08: $1.45 per share

- 2018-09: $1.47 per share

- 2018-10: $1.41 per share

- 2018-11: $1.95 per share

- 2018-12: $1.50 per share

- 2019-01: $1.35 per share

- 2019-02: $1.49 per share

- 2019-03: $1.27 per share

- 2019-04: $1.15 per share

- 2019-05: $0.99 per share

- 2019-06: $0.90 per share

- 2019-07: $1.25 per share

- 2019-08: $1.28 per share

- 2019-09: $1.32 per share

- 2019-10: $1.25 per share

- 2019-11: $1.22 per share

- 2019-12: $1.14 per share

- 2020-01: $1.14 per share

- 2020-02: $1.15 per share

- 2020-03: $0.80 per share

- 2020-04: $1.05 per share

- 2020-05: $1.36 per share

- 2020-06: $1.34 per share

- 2020-07: $1.33 per share

- 2020-08: $2.10 per share

- 2020-09: $3.09 per share

- 2020-10: $2.60 per share

- 2020-11: $5.20 per share

- 2020-12: $5.30 per share

- 2021-01: $5.10 per share

- 2021-02: $5.85 per share

- 2021-03: $6.30 per share

- 2021-04: $6.27 per share

- 2021-05: $6.26 per share

- 2021-06: $7.00 per share

- 2021-07: $6.84 per share

- 2021-08: $8.26 per share

- 2021-09: $9.53 per share

- 2021-10: $10.62 per share

- 2021-11: $6.52 per share

- 2021-12: $5.92 per share

- 2022-01: $5.67 per share

- 2022-02: $5.29 per share

- 2022-03: $6.99 per share

- 2022-04: $7.29 per share

- 2022-05: $6.40 per share

- 2022-06: $4.84 per share

- 2022-07: $5.71 per share

- 2022-08: $3.37 per share

- 2022-09: $3.02 per share

- 2022-10: $3.31 per share

- 2022-11: $3.11 per share

- 2022-12: $2.97 per share

- 2023-01: $4.40 per share

- 2023-02: $6.76 per share

- 2023-03: $8.54 per share

- 2023-04: $6.62 per share

- 2023-05: $10.13 per share

- 2023-06: $11.33 per share

- 2023-07: $12.83 per share

- 2023-08: $13.00 per share

- 2023-09: $8.53 per share

- 2023-10: $7.50 per share

- 2023-11: $6.76 per share

- 2023-12: $8.14 per share

- 2024-01: $10.37 per share

- 2024-02: $7.40 per share

- 2024-03: $6.60 per share

- 2024-04: $5.84 per share

- 2024-05: $12.62 per share

- 2024-06: $14.83 per share

- 2024-07: $19.35 per share

- 2024-08: $17.28 per share

- 2024-09: $16.77 per share

- 2024-10: $20.11 per share

- 2024-11: $41.08 per share

- 2024-12: $39.52 per share

- 2025-01: $37.08 per share

- 2025-02: $52.72 per share

- 2025-03: $35.90 per share

- 2025-04: $37.82 per share

- 2025-05: $39.47 per share

- 2025-06: $51.22 per share

- 2025-07: $54.90 per share

- 2025-08: $37.98 per share

- 2025-09: $77.07 per share

- 2025-10: $74.61 per share

- 2025-11: $57.47 per share

- 2025-12: $50.95 per share

- 2026-01: $55.44 per share

- 2026-02: $44.17 per share

- 2026-03: $38.62 per share

- 2026-04: $42.23 per share

- 2026-05: $104.98 per share

- 2026-06: $75.58 per share

- 2026-07: $62.83 per share

- 2026-08: $56.42 per share

- 2026-09: $65.76 per share

- 2026-10: $56.57 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/903651/000110465926020655/inod-20251231x10k.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Duan Yongping](https://gigainvestors.com/HH): 10,000 INOD shares; USD 756,000 reported position value; 0% of portfolio; hold; quarter 2026 Q2.

# INOD — Innodata Inc.

Held by 1 investor · USD 756,000 total · 2026 Q2 · reported price USD 75.60 (split-adjusted).
Page: https://gigainvestors.com/s/INOD

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Duan Yongping (https://gigainvestors.com/HH) | USD 756,000 | 0.0% | hold |

## Total held by quarter

- 2026 Q1: USD 386,000 · 1 holder · USD 38.60
- 2026 Q2: USD 756,000 · 1 holder · USD 75.60