Innodata (INOD) investor relations material

Executive summary

• Q4 2025 revenue reached $72.4M, up 22% year-over-year, and full-year revenue was $251.7M, up 48% year-over-year, driven by expanding relationships with major technology companies and enterprise clients.

• Adjusted EBITDA was $15.7M in Q4 (22% margin) and $57.9M for the year (23% margin), with net income for FY2025 at $32.2M and Q4 net income at $8.8M.

• Ended 2025 with $82.2M in cash and short-term investments, up from $46.9M a year earlier, with no external debt.

• Innovation in generative AI, agentic AI, physical AI, and regulatory change management platforms is driving new business opportunities and customer diversification.

• Positioned as a key data engineering partner for generative AI and LLM initiatives, with contracts across five of the "Magnificent Seven" tech firms.

Financial highlights

• Adjusted gross margin was 43% for FY2025 and 42% for Q4 2025; adjusted EBITDA margin was 23% for FY2025 and 22% for Q4 2025.

• Adjusted gross profit for Q4 was $30.1M, and for FY2025 was $108M.

• Cash flow from operations was $46.8M for 2025, up from $34.9M in 2024.

• Basic EPS for 2025 was $1.01; diluted EPS was $0.92.

• No drawdown on the $30M credit facility; cash balance increased to $82.2M at year-end.

Outlook and guidance

• Forecasting 35% or more year-over-year revenue growth for 2026, targeting at least $340M in revenue, with customer base expected to diversify further.

• Early 2026 adjusted gross margins expected in the 35%-40% range, normalizing to 40%+ as new programs scale.

• Generative AI remains a structural enterprise priority, supporting long-term demand for AI data and enablement.