Innodata Lifts 2026 Growth Guide After Record Quarter

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter revenue reached $95.6 million, up 53% from a year earlier, and the company raised full-year 2026 growth guidance to 42% or more.

Innodata Inc. (INOD), a global data engineering company, reported third-quarter revenue of $95.6 million, up 53% from a year earlier, and raised its full-year 2026 revenue growth guidance to 42% or more, from 40% or more.

The result was a 13th consecutive quarter of year-over-year growth and exceeded analyst consensus by about $12.3 million, or 15%, Chief Executive Officer Rahul Singhal said. Sequential revenue rose only 4% from $92.1 million in the second quarter, and year-over-year growth slowed from 58% in that period.

Adjusted EBITDA was $17.7 million, or 18.5% of revenue, up $1.5 million from $16.2 million a year earlier and beating consensus by about 15%. The EBITDA margin compressed from 27.5% of revenue in the second quarter. Adjusted gross profit was $38.3 million, with adjusted gross margin of 40%, down from 49% in the second quarter and from 44% a year earlier.

Net income was $10.3 million, or $0.29 a share on a diluted basis, up 24% from $8.3 million, or $0.24 a share diluted, a year earlier. Diluted earnings per share beat consensus by about 70%, Singhal said.

The company said it is raising the 2026 growth outlook even after absorbing the wind-down of a program at one large customer that it expects to be replaced by new programs in the first quarter. Singhal said the company believes it is positioned at the center of the move to agents, reinforcement learning and embodied intelligence, and of the trust-and-safety work required for that transition.

A customer that represented less than 5% of revenue a year ago became Innodata’s largest customer in the third quarter, giving the company two customers of comparable scale. Innodata has already signed an additional fourth-quarter program with that customer valued at approximately $18 million.

The company also won five new programs with a large hyperscaler from which it generated about $3.1 million of revenue in the trailing 12 months. Based on those wins, Innodata is forecasting more than $20 million of revenue from that customer in 2027. It added five new logos in the quarter, including model builders and an enterprise data platform.

Innodata launched a motion capture lab in September for humanoid robot and world-model training and said it is in pilots with leading frontier and robotics labs. It anticipates that just one of those pilots, if successful, will yield approximately $7 million in revenue in 2027. In enterprise AI it added relationships with a global technology hardware company and a major financial services firm. In Federal, it has a verbal win for a contract valued at $5 million a year for five years, which it expects to sign by the end of the fourth quarter; the company said it would be the third program the Federal practice has won through prime partners in its first year.

Cash and cash equivalents were $164.0 million as of September 30, 2026, up $81.7 million from $82.2 million at December 31, 2025. Cash includes customer prepayments related to pass-through costs; net of those prepayments, cash was approximately $153.7 million.

Singhal said 2026 will finish as a strong year for Innodata and that 2027 will prove even more exciting.