INNODATA INC (INOD) FY2025 10-K Annual Report

Filed: Feb 26, 2026
Information Technology
Services-Computer Processing & Data PreparationSEC EDGAR

INNODATA INC (INOD) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

INNODATA INC FY2025 10-K Analysis

Business Overview

  • Core business: global data engineering and AI system services supporting full AI lifecycle from training data to deployment
  • New Federal Practice launched 2025 for U.S. government AI programs with high security, compliance, and evaluation demands
  • Strategic emphasis on agentic and behavioral model evaluations beyond output correctness, enhancing trust and safety frameworks
  • Workforce of 12,200 professionals across 70+ countries enabling multilingual, follow-the-sun delivery and operational resilience
  • 2025 revenue concentration: one DDS segment customer accounted for 58% of total revenues, up from 48% in 2024

Management Discussion & Analysis

  • Revenue $251.7M in 2025, up 48% YoY from $170.5M; DDS up 57% to $220.9M, Synodex down 8% to $7.3M, Agility up 9% to $23.5M
  • Operating margin 15.8% in 2025 vs 14.3% in 2024; consolidated gross margin 40% vs 39%; DDS margin 39% vs 37%; Synodex margin down to 18% from 27%
  • Best segment DDS: revenue $220.9M (+$79.8M), gross profit $85.4M (+$32.6M); worst segment Synodex: revenue $7.3M (-$0.6M), gross profit $1.3M (-$0.8M)
  • Net income $32.2M in 2025 vs $28.7M in 2024; selling/admin expenses $59.6M (+40%); adjusted EBITDA $57.9M vs $34.6M; no goodwill impairment recorded
  • Income tax provision $9.2M in 2025, effective tax rate 22.3% vs benefit of $4.2M and -17.1% in 2024; outlook includes investments in AI, R&D, and sales to drive growth

Risk Factors

  • Regulatory risk: evolving AI regulations and data privacy laws impacting international operations, including India, Philippines, Sri Lanka, US and Europe
  • Geopolitical risk: political unrest, terrorism and natural calamities in India, Israel, Philippines, Sri Lanka threatening operational continuity
  • Operational risk: 63% of accounts receivable ($29.2M) concentrated with one customer, posing significant credit risk if unpaid
  • Competitive risk: risk from new vendors with lean cost and flexible cost models challenging Innodata’s services and platforms
  • Financial risk: Revolving Credit Facility requires fixed charge coverage ratio ≥1.10, restrictive covenants may limit business flexibility

INNODATA INC FY2025 Key Financial Metrics
XBRL

Revenue

$252M

+47.6% YoY

Net Income

$32M

+12.3% YoY

Gross Margin

39.5%

+18bp YoY

Operating Margin

15.8%

+157bp YoY

Net Margin

12.8%

-403bp YoY

ROE

30.0%

-1512bp YoY

Total Assets

$169M

+48.6% YoY

EPS (Diluted)

$0.92

+3.4% YoY

Operating Cash Flow

$47M

+33.5% YoY

Source: XBRL data from INNODATA INC FY2025 10-K filing on SEC EDGAR. All figures in USD.

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