📊 INOD Key Takeaways
Is INOD a Good Investment? Thesis Analysis
INOD demonstrates exceptional financial health with strong revenue growth of 47.6% YoY and solid profitability metrics across all margins. The company maintains fortress-like balance sheet strength with minimal debt (0.06x D/E), substantial cash reserves ($82.2M), and impressive returns on equity (30%) and assets (19.1%), while generating robust free cash flow of $35.6M.
Why Buy INOD? Key Strengths
- Exceptional revenue growth of 47.6% YoY with net income stable at $32.2M demonstrates scale achievement
- Industry-leading profitability with 39.5% gross margin, 15.8% operating margin, and 12.8% net margin
- Balance sheet fortress: $82.2M cash, minimal debt ($6.0M), 2.68x current ratio, and 0.06x debt-to-equity
- Outstanding capital efficiency: 30% ROE and 19.1% ROA indicate superior asset management
- Strong free cash flow generation of $35.6M (14.2% FCF margin) supports growth investments and shareholder returns
- Exceptional interest coverage of 463.6x demonstrates zero financial distress risk
INOD Investment Risks to Consider
- Revenue growth deceleration risk: 47.6% growth rate may not be sustainable long-term in mature data services markets
- Net income flat YoY despite 47.6% revenue growth suggests margin compression and operational leverage challenges
- Sector cyclicality: Data processing services sensitive to enterprise IT spending cycles and outsourcing trends
- Customer concentration and pricing power risks in competitive data services industry
- Execution risk on converting strong cash generation into accretive growth investments
Key Metrics to Watch
- Gross margin stability amid revenue scale (target: maintain 39%+ as volume increases)
- Operating margin trajectory (monitor if 15.8% margin expansion continues or stabilizes)
- Free cash flow conversion and capital allocation efficiency
- Revenue growth sustainability and growth rate deceleration patterns
- Return on equity maintenance as company scales and deploys cash reserves
INOD Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.68x current ratio provides a solid financial cushion.
INOD Profitability Ratios
INOD vs Technology Sector
How INNODATA INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is INOD Overvalued or Undervalued?
Based on fundamental analysis, INNODATA INC has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
INOD Balance Sheet & Liquidity
INOD 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: INNODATA INC's revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.89 reflects profitable operations.
INOD Growth Metrics (YoY)
INOD Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $52.2M | -$14.0K | $0.24 |
| Q2 2025 | $32.6M | -$14.0K | $0.00 |
| Q1 2025 | $26.5M | $989.0K | $0.03 |
| Q3 2024 | $22.2M | -$14.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
INOD Capital Allocation
INOD SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for INNODATA INC (CIK: 0000903651)
📋 Recent SEC Filings
❓ Frequently Asked Questions about INOD
What is the AI rating for INOD?
INNODATA INC (INOD) has an AI rating of STRONG BUY with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are INOD's key strengths?
Claude: Exceptional revenue growth of 47.6% YoY with net income stable at $32.2M demonstrates scale achievement. Industry-leading profitability with 39.5% gross margin, 15.8% operating margin, and 12.8% net margin.
What are the risks of investing in INOD?
Claude: Revenue growth deceleration risk: 47.6% growth rate may not be sustainable long-term in mature data services markets. Net income flat YoY despite 47.6% revenue growth suggests margin compression and operational leverage challenges.
What is INOD's revenue and growth?
INNODATA INC reported revenue of $251.7M.
Does INOD pay dividends?
INNODATA INC does not currently pay dividends.
Where can I find INOD SEC filings?
Official SEC filings for INNODATA INC (CIK: 0000903651) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is INOD's EPS?
INNODATA INC has a diluted EPS of $0.92.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is INOD a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, INNODATA INC has a STRONG BUY rating with 85% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is INOD stock overvalued or undervalued?
Valuation metrics for INOD: ROE of 30.0% (sector avg: 22%), net margin of 12.8% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy INOD stock in 2026?
Our dual AI analysis gives INNODATA INC a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is INOD's free cash flow?
INNODATA INC's operating cash flow is $46.8M, with capital expenditures of $11.1M. FCF margin is 14.2%.
How does INOD compare to other Technology stocks?
Vs Technology sector averages: Net margin 12.8% (avg: 18%), ROE 30.0% (avg: 22%), current ratio 2.68 (avg: 2.5).