Innodata Reviews Third Quarter 2025 Outcomes

• Income up 20% 12 months-Over-12 months

• Reiterates Prior Steering of 45% or Extra YoY Development in 2025

• Anticipates Transformative Development in 2026 Based mostly on New Wins and Sturdy Momentum

NEW YORK CITY, NY / ACCESS Newswire / November 6, 2025 / INNODATA INC. (Nasdaq:INOD) at present reported outcomes for the third quarter ended September 30, 2025.

• Income of $62.6 million for the three months ended September 30, 2025, representing 20% year-over-year natural income development.

• Income of $179.3 million for the 9 months ended September 30, 2025, representing 61% year-over-year natural income development.

• Adjusted EBITDA of $16.2 million for the three months ended September 30, 2025, a rise of $2.3 million, or 17%, from $13.9 million in the identical interval final 12 months.*

• Adjusted EBITDA of $42.2 million for the 9 months ended September 30, 2025, a rise of $21.8 million, or 106%, from $20.4 million in the identical interval final 12 months.*

• Internet earnings of $8.3 million, or $0.26 per fundamental share and $0.24 per diluted share, for the three months ended September 30, 2025, in comparison with internet earnings of $17.4 million, or $0.60 per fundamental share and $0.51 diluted share, in the identical interval final 12 months. The prior-year interval’s earnings per share benefited by roughly $0.34 fundamental and $0.27 diluted from a tax profit associated to the utilization of internet working loss carryforwards (NOLCOs).

• Internet earnings of $23.3 million, or $0.74 per fundamental share and $0.67 per diluted share, for the 9 months ended September 30, 2025, in comparison with internet earnings of $18.4 million, or $0.64 per fundamental share and $0.55 per diluted share, in the identical interval final 12 months. The prior-year interval’s earnings per share benefited by roughly $0.18 fundamental and $0.16 diluted from a tax profit associated to the utilization of NOLCOs.

• Money, money equivalents and short-term investments had been $73.9 million as of September 30, 2025 and $46.9 million as of December 31, 2024.

* Adjusted EBITDA is outlined beneath.

Jack Abuhoff, CEO, stated, “Our third quarter marked one other record-setting efficiency for Innodata, with income, profitability, and money all at all-time highs. Trying forward, in 2026, we anticipate a continuation of our transformative development, fueled by (1) deepening relationships with the world’s main Massive Tech and AI innovation labs, as evidenced by verbal affirmation of an growth with our largest buyer that might doubtlessly lead to substantial income, verbal affirmation of a take care of one other Massive Tech which might doubtlessly lead to $6.5 million of annualized income runrate, and 5 new Massive Tech clients we’ve both landed or anticipate to finalize shortly, two of that are international leaders in commerce, cloud and AI; and (2) sturdy early returns from seven main funding areas, a number of of which we’re asserting at present, together with:

• Pre-Coaching Information: Earlier this 12 months we acknowledged that mannequin high quality is more and more tied to the standard of pre-training knowledge. Performing early, we invested in new pre-training knowledge capabilities, and that guess is already paying off. We’ve since signed contracts we consider might lead to roughly $42 million of income, and we anticipate to quickly signal contracts we consider might lead to roughly $26 million of further income. In order that’s $68 million of potential income from these packages which are both signed or prone to be signed quickly. These packages are ramping now.

• Federal Apply: As introduced at present, we’ve launched Innodata Federal, led by AI veterans with deep protection and intelligence expertise. The enterprise unit has engaged a brand new, high-profile buyer. We consider the preliminary mission with this buyer will lead to roughly $25 million of income, principally in 2026. We have now further tasks beneath dialogue with this buyer. We see this new relationship as a possible main catalyst for development and visibility because the U.S. authorities accelerates AI adoption throughout companies.

  As we introduced at present, Common (Retired) Richard D. Clarke, a retired four-star Military common and former Commander of U.S. Particular Operations Command, has joined the Innodata board. We’re enthusiastic about his experience and relationships in serving to information the trajectory of Innodata Federal.

• Sovereign AI: All over the world, governments are transferring to construct sovereign AI functionality – controlling the complete know-how stack from silicon to knowledge. Innodata is in lively discussions with a number of sovereign AI packages and expects to announce a number of strategic partnerships in 2026. We view this as some of the vital structural shifts within the international AI ecosystem and an unlimited medium-term alternative for us.

• Enterprise AI: Our Enterprise AI Apply helps corporations embed generative AI into merchandise and operations. We’re working with main platforms to automate workflows, combine real-time analytics into data-center operations, and re-engineer enterprise processes utilizing GenAI. We’re happy with the fast acceleration in enterprise we’re experiencing on this market.

• Agentic AI: We consider Agentic AI will unlock the subsequent wave of enterprise productiveness. We’re working with main corporations to develop and benchmark autonomous brokers throughout real-world use circumstances – measuring consistency, reliability, and effectivity.

• Mannequin Security: As fashions and brokers acquire autonomy, making certain security, reliability, and moral integrity turns into mission important. We’re engaged with main corporations to stress-test their multimodal AI merchandise in opposition to dangers like knowledge exfiltration, instruction manipulation, and privilege escalation. Our work on this space is knowledgeable by insights we’ve gathered and applied sciences we’ve developed working with frontier mannequin builders.

Based mostly on up to date forecasts, we reiterate steerage we offered final quarter of 45% or extra year-over-year natural income development in 2025, and we anticipate continued transformative development in 2026 primarily based on new wins and robust momentum.”

Abuhoff concluded, “Taken collectively, we consider the developments we’re asserting at present mark an organization getting into its subsequent section of transformative development – worthwhile, more and more diversified, and positioned squarely on the heart of the AI revolution.”

Quantities on this press launch have been rounded. All percentages have been calculated utilizing unrounded quantities.

Timing of Convention Name with Q&A

Innodata will conduct an earnings convention name, together with a question-and-answer interval, at 5:00 PM jap time at present. You possibly can take part on this name by dialing the next call-in numbers:

The decision-in numbers for the convention name are:

(+1) 800 549 8228 North America

(+44) 800 279 7040 United Kingdom
(+1) 289 819 1520 Worldwide
Participant Entry Code 42719 #

Replay dial-In

(+1) 888 660 6264 North America
(+1) 289 819 1325 Worldwide:
Replay Passcode 42719 #

It is suggested that contributors dial in roughly 10 minutes previous to the beginning of the decision. Buyers are additionally invited to entry a stay Webcast of the convention name on the Investor Relations part of Innodata’s web site at https://investor.innodata.com/events-and-presentations/. Please notice that the Webcast function will probably be in listen-only mode.

Name-in replay will probably be obtainable for seven days following the convention name, and Webcast replay will probably be obtainable for 30 days following the convention name, on the Investor Relations part of Innodata’s web site at https://investor.innodata.com/events-and-presentations/.

About Innodata

Innodata (Nasdaq: INOD) is a worldwide knowledge engineering firm. We consider that knowledge and Synthetic Intelligence (AI) are inextricably linked. That’s why we’re on a mission to assist the world’s main know-how corporations and enterprises drive Generative AI / AI innovation. We offer a variety of transferable options, platforms, and companies for Generative AI / AI builders and adopters. In each relationship, we honor our 35+ 12 months legacy delivering the best high quality knowledge and excellent outcomes for our clients.

Go to http://www.innodata.com to be taught extra.

Ahead-Trying Statements

This press launch might comprise sure forward-looking statements inside the which means of Part 21E of the Securities Alternate Act of 1934, as amended, and Part 27A of the Securities Act of 1933, as amended. These forward-looking statements embody, with out limitation, statements regarding our operations, financial efficiency, monetary situation, developmental program growth and place within the generative AI companies market. Phrases resembling “mission,” “forecast,” “consider,” “anticipate,” “can,” “proceed,” “might,” “intend,” “might,” “ought to,” “will,” “anticipate,” “point out,” “information,” “predict,” “doubtless,” “estimate,” “plan,” “potential,” “attainable,” “guarantees,” or the negatives thereof, and different comparable expressions usually establish forward-looking statements.

These forward-looking statements are primarily based on administration’s present expectations, assumptions and estimates and are topic to quite a few dangers and uncertainties, together with, with out limitation, impacts ensuing from ongoing geopolitical conflicts; investments in giant language fashions; that contracts could also be terminated by clients; projected or dedicated volumes of labor might not materialize; pipeline alternatives and buyer discussions which can not materialize into work or anticipated volumes of labor; the probability of continued growth of the markets, significantly new and rising markets, that our companies assist; the flexibility and willingness of our clients and potential clients to execute enterprise plans that give rise to necessities for our companies; persevering with reliance on project-based work within the Digital Information Options (“DDS”) section and the primarily at-will nature of such contracts and the flexibility of those clients to cut back, delay or cancel tasks; potential lack of ability to interchange tasks which are accomplished, canceled or diminished; our DDS section’s income focus in a restricted variety of clients; our dependency on content material suppliers in our Agility section; our means to realize income and development targets; issue in integrating and deriving synergies from acquisitions, joint ventures and strategic investments; potential undiscovered liabilities of corporations and companies that we might purchase; potential impairment of the carrying worth of goodwill and different acquired intangible belongings of corporations and companies that we purchase; a continued downturn in or depressed market situations; adjustments in exterior market components; the potential results of U.S. international buying and selling and financial coverage, together with the rate of interest insurance policies of the Federal Reserve; adjustments in our enterprise or development technique; the emergence of recent, or development in present rivals; numerous different aggressive and technological components; our use of and reliance on data know-how methods, together with potential safety breaches, cyber-attacks, privateness breaches or knowledge breaches that end result within the unauthorized disclosure of client, buyer, worker or Firm data, or service interruptions; and different dangers and uncertainties indicated on occasion in our filings with the Securities and Alternate Fee (“SEC”).

Our precise outcomes might differ materially from the outcomes referred to in any forward-looking statements. Components that might trigger or contribute to such variations embody, however are usually not restricted to, the dangers mentioned in Half I, Merchandise 1A. “Danger Components,” Half II, Merchandise 7. “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations,” and different components of our Annual Report on Kind 10-Okay, filed with the SEC on February 24, 2025, and in our different filings that we might make with the SEC. In gentle of those dangers and uncertainties, there will be no assurance that the outcomes referred to in any forward-looking statements will happen, and you shouldn’t place undue reliance on these forward-looking statements. These forward-looking statements converse solely as of the date hereof.

We undertake no obligation to replace or evaluation any steerage or different forward-looking statements, whether or not on account of new data, future developments or in any other case, besides as could also be required by the U.S. federal securities legal guidelines.

Firm Contact

Aneesh Pendharkar
[email protected]
(201) 371-8000

Non-GAAP Monetary Measures

Along with the monetary data ready in conformity with U.S. GAAP (“GAAP”), we offer sure non-GAAP monetary data. We consider that these non-GAAP monetary measures help traders in making comparisons of period-to-period working outcomes. In some respects, administration believes non-GAAP monetary measures are extra indicative of our ongoing core working efficiency than their GAAP equivalents by making changes that administration believes are reflective of the continuing efficiency of the enterprise.

We consider that the presentation of this non-GAAP monetary data offers traders with better transparency by offering traders a extra full understanding of our monetary efficiency, aggressive place, and prospects for the long run, significantly by offering the identical data that administration and our Board of Administrators use to judge our efficiency and handle the enterprise. Nevertheless, the non-GAAP monetary measures introduced on this press launch have sure limitations in that they don’t mirror the entire prices related to the operations of our enterprise as decided in accordance with GAAP. Due to this fact, traders ought to think about non-GAAP monetary measures along with, and never as an alternative choice to, or as superior to, measures of monetary efficiency ready in accordance with GAAP. Additional, the non-GAAP monetary measures that we current might differ from comparable non-GAAP monetary measures utilized by different corporations.

Adjusted Gross Revenue and Adjusted Gross Margin

We outline Adjusted Gross Revenue as revenues much less direct working prices attributable to Innodata Inc. and its subsidiaries in accordance with U.S. GAAP, plus depreciation and amortization of intangible belongings, stock-based compensation, non-recurring severance and different one-time prices included inside direct working value.

We outline Adjusted Gross Margin by dividing Adjusted Gross Revenue over whole U.S. GAAP revenues.

We use Adjusted Gross Revenue and Adjusted Gross Margin to judge outcomes of operations and tendencies between fiscal intervals and consider that these measures are essential parts of our inside efficiency measurement course of.

A reconciliation of Adjusted Gross Revenue and Adjusted Gross Margin to probably the most straight comparable GAAP measure is included within the tables that accompany this launch.

Adjusted EBITDA

We outline Adjusted EBITDA as internet earnings (loss) attributable to Innodata Inc. and its subsidiaries in accordance with U.S. GAAP earlier than curiosity expense, earnings taxes, depreciation and amortization of intangible belongings (which derives EBITDA), plus further changes for loss on impairment of intangible belongings and goodwill, stock-based compensation, earnings (loss) attributable to non-controlling pursuits, non-recurring severance, and different one-time prices.

We use Adjusted EBITDA to judge core outcomes of operations and tendencies between fiscal intervals and consider that these measures are essential parts of our inside efficiency measurement course of.

A reconciliation of Adjusted EBITDA to probably the most straight comparable GAAP measure is included within the tables that accompany this launch.

INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In 1000’s, besides per-share quantities)

INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In 1000’s)

INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In 1000’s)

INNODATA INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In 1000’s)
Adjusted Gross Revenue and Adjusted Gross Margin

INNODATA INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In 1000’s)
Adjusted EBITDA

INNODATA INC. AND SUBSIDIARIES
CONSOLIDATED REVENUE BY SEGMENT
(Unaudited)
(In 1000’s)

SOURCE: Innodata Inc.