INOD · Innodata Inc.

Innodata Inc. delivered exceptional Q1 2026 results, with revenue surging 54% year-over-year to $90.1 million, surpassing a single quarter's revenue from three years prior and demonstrating robust operating leverage as Adjusted EBITDA nearly doubled to $25.0 million, or 28% of revenue. GAAP net income rose to $14.9 million, or $0.42 diluted EPS, more than doubling from the prior year. Key drivers included strong demand from Big Tech customers, with aggregate revenue from other Big Tech clients exploding 453% YoY, and new engagements with a leading Big Tech company projected to contribute ~$51 million in 2026 revenue, elevating it to the second-largest customer from zero a year ago. Diversification is materializing as the top customer grows in absolute dollars but represents a smaller revenue share. Margin expansion was evident with Adjusted Gross Margin reaching 47%, reflecting scale efficiencies in the company's shift to a single operating segment focused on agentic AI technologies. Balance sheet strength improved markedly, with cash and equivalents climbing to $117.4 million, up $35.1 million quarter-over-quarter, supported by an undrawn $50 million Wells Fargo credit facility renewed during the period. Management raised full-year 2026 revenue growth guidance to ~40% or more from prior ~35%+, citing increasing visibility and excluding several large potential programs, signaling confidence amid rapid innovation including the beta launch of its Evaluation and Observability Platform, which secured a $1 million hyperscaler deal. CEO Jack Abuhoff highlighted record-setting performance and a 'golden age of innovation,' positioning Innodata for sustained growth into 2027 and beyond.