Innodata Q2 revenue rises 58%, beating estimates as customer base diversifies

Innodata

06/08/2026 21:47

Overview
US data engineering firm's Q2 revenue up 58% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 up 92% yr/yr, beating analyst expectations
Company announces planned CEO transition effective September 30, 2026

Outlook
Innodata reiterates full-year 2026 revenue growth guidance of 40% or more year-over-year
Company says large potential programs from new and existing customers not yet included in guidance
Company expects continued diversification of customer base and research-driven growth in AI

Result Drivers
REVENUE MIX SHIFT - Co said higher adjusted gross margin was driven by increased sales of off-the-shelf datasets and high-value pre-training programs
CUSTOMER BASE DIVERSIFICATION - Co said revenue was less concentrated, with largest customer accounting for 37% of revenue, down from 56% in Q1, and Big Tech customer increasing to 34%
RESEARCH-DRIVEN GROWTH - Co cited new programs in agentic reinforcement learning and release of AI datasets and benchmarks as supporting growth

Company press release: ID:nACSFNLGLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$92.10 mln
$86.31 mln (4 Analysts)
Q2 Net Income
 
$14.40 mln
 
Q2 Adjusted EBITDA
Beat
$25.40 mln
$16.85 mln (3 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Innodata Inc. is $120.00, about 73% above its August 5 closing price of $69.37
The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 42 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)