Recent News
On September 9, 2025, Investors.com/IBD placed Innodata on a list of AI-focused technology leaders. Throughout October and into early November 2025, multiple contractor and contributor forums reported delayed payments and invoicing disputes, with participants posting unresolved payment complaints and slow responses from corporate contacts.
Technical Analysis
ADX at 18.78 indicates no discernible trend strength, which reduces conviction behind directional moves and increases sensitivity to short-term swings tied to momentum shifts.
DI+ at 25.02 with DI+ decreasing signals bearish directional pressure; DI- at 22.85 with a peak-and-reversal signals bullish counterpressure, producing mixed directional cues for near-term price action.
MACD at 1.77 trending lower while below the signal line at 3.35 indicates bearish momentum and suggests downward bias in momentum-driven moves unless MACD crosses back above the signal.
MRO at 28.37 positive indicates price sits above model target, implying scope for mean reversion and potential downward pressure on the market price.
RSI at 57.71 and decreasing reflects fading upside momentum despite remaining inside neutral-to-mildly-favoring range, aligning with other momentum indicators that point toward weakening buying strength.
Price sits at $74.61 below the 20-day average of $77.00 and under the 12-day EMA which shows a peak-and-reversal, yet above the 50-day average of $67.52 and well above the 200-day average of $49.14; this configuration supports a medium-term uptrend while signaling a near-term pullback risk.
Bollinger bands place the close near the lower 1x band ($73.59), volume runs below 10-, 50- and 200-day averages, and Ichimoku tenkan/kijun levels near $78–$79 keep resistance overhead, all reinforcing short-term subdued liquidity and upside resistance.
Fundamental Analysis
Revenue totaled $58,393,000 with operating income (EBIT) of $8,911,000 and EBITDA of $10,512,000, producing an operating/EBIT margin of 15.26%.
EBIT margin rose QoQ by 7.63% and registered a YoY change of 1,400.49% per the provided metric; the margin of 15.26% stands slightly above the industry peer mean of 15.181% and slightly below the industry peer median of 16.705%, which supports a valuation premium relative to some peers yet does not justify extreme multiples alone.
Earnings per share came in at $0.20 versus an estimate of $0.13, producing an EPS surprise of 53.85% and an EPS difference of $0.07; that beat provides near-term fundamental momentum but reflects a small absolute dollar change versus market capitalization.
Valuation multiples present a material disconnect: P/E at 227.58 and enterprise multiple at 124.88 register well above the industry peer mean and median values, while price-to-book at 15.78 sits above the industry peer mean of 4.47. Free cash flow yield at 0.185% falls below the industry peer mean of 1.197%, indicating weak cash return relative to price.
Balance sheet strength appears robust: cash and short-term investments of $59,792,000, current ratio 2.87 (above the industry peer mean of 1.673), cash ratio 1.70, total debt $4,223,000 and debt-to-assets 3.184%. Interest coverage approximated at 342.73 signals extensive ability to service debt.
Operational efficiency shows asset turnover of 0.453, above the industry peer mean of 0.241, and gross margin at 39.43% versus an industry peer mean of 29.25%, supporting higher margin economics in core services despite strained top-line growth metrics; revenue growth registered near flat at 0.084% while revenue growth YoY registered -99.63% in the provided metric.
Free cash flow declined YoY and free cash growth registered -70.33%, creating tension between profitable operations and cash generation trends at current price levels.
WMDST values the stock as over-valued, driven by exceptionally high multiples, modest free cash flow yield, and a mismatch between margin strength and cash generation versus the market price.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-11-07 |
| CASH FLOW | Begin Period Cash Flow | $ 56.6 M |
| Operating Cash Flow | $ 4.2 M | |
| Capital Expenditures | $ -1.71 M | |
| Change In Working Capital | $ -8.84 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 3.2 M | |
| End Period Cash Flow | $ 59.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 58.4 M | |
| Forward Revenue | $ 7.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 35.4 M | |
| Depreciation | $ 1.6 M | |
| Depreciation and Amortization | $ 1.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 49.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 23.0 M | |
| EBITDA | $ 10.5 M | |
| EBIT | $ 8.9 M | |
| Operating Income | $ 8.9 M | |
| Interest Income | $ 577.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 577.0 K | |
| Income Before Tax | $ 9.5 M | |
| Tax Provision | $ 2.3 M | |
| Tax Rate | 23.914 % | |
| Net Income | $ 7.2 M | |
| Net Income From Continuing Operations | $ 7.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.13 | |
| EPS Actual | $ 0.20 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 53.846 % | |
| Forward EPS | $ 0.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 132.6 M | |
| Intangible Assets | $ 16.0 M | |
| Net Tangible Assets | $ 70.7 M | |
| Total Current Assets | $ 100.7 M | |
| Cash and Short-Term Investments | $ 59.8 M | |
| Cash | $ 59.8 M | |
| Net Receivables | $ 34.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 4.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 35.1 M | |
| Net Debt | — | |
| Total Debt | $ 4.2 M | |
| Total Liabilities | $ 46.0 M | |
| EQUITY | ||
| Total Equity | $ 86.7 M | |
| Retained Earnings | $ 34.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.72 | |
| Shares Outstanding | 31.845 M | |
| Revenue Per-Share | $ 1.83 | |
| VALUATION | Market Capitalization | $ 1.4 B |
| Enterprise Value | $ 1.3 B | |
| Enterprise Multiple | 124.882 | |
| Enterprise Multiple QoQ | 2.852 % | |
| Enterprise Multiple YoY | -47.99 % | |
| Enterprise Multiple IPRWA | high: 140.798 INOD: 124.882 median: 58.931 mean: 51.559 low: -43.256 |
|
| EV/R | 22.482 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.529 | |
| Asset To Liability | 2.884 | |
| Debt To Capital | 0.046 | |
| Debt To Assets | 0.032 | |
| Debt To Assets QoQ | -10.335 % | |
| Debt To Assets YoY | 153.705 % | |
| Debt To Assets IPRWA | high: 1.14 mean: 0.251 median: 0.129 INOD: 0.032 low: 0.006 |
|
| Debt To Equity | 0.049 | |
| Debt To Equity QoQ | -17.334 % | |
| Debt To Equity YoY | 70.364 % | |
| Debt To Equity IPRWA | high: 4.622 mean: 0.853 median: 0.253 INOD: 0.049 low: -2.941 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 15.778 | |
| Price To Book QoQ | -4.436 % | |
| Price To Book YoY | 4.929 % | |
| Price To Book IPRWA | INOD: 15.778 high: 12.822 median: 4.588 mean: 4.466 low: -1.349 |
|
| Price To Earnings (P/E) | 227.578 | |
| Price To Earnings QoQ | 27.53 % | |
| Price To Earnings YoY | -100.757 % | |
| Price To Earnings IPRWA | INOD: 227.578 high: 170.061 median: 76.338 mean: 62.666 low: -69.969 |
|
| PE/G Ratio | -25.033 | |
| Price To Sales (P/S) | 23.433 | |
| Price To Sales QoQ | 9.702 % | |
| Price To Sales YoY | 75.097 % | |
| Price To Sales IPRWA | INOD: 23.433 high: 17.197 median: 11.089 mean: 9.121 low: 0.008 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 341.999 | |
| Forward PE/G | -37.62 | |
| Forward P/S | 173.456 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 91.979 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.453 | |
| Asset Turnover Ratio QoQ | -7.359 % | |
| Asset Turnover Ratio YoY | -9.873 % | |
| Asset Turnover Ratio IPRWA | high: 0.719 INOD: 0.453 median: 0.287 mean: 0.241 low: 0.038 |
|
| Receivables Turnover | 1.833 | |
| Receivables Turnover Ratio QoQ | -9.517 % | |
| Receivables Turnover Ratio YoY | -9.253 % | |
| Receivables Turnover Ratio IPRWA | high: 3.883 INOD: 1.833 mean: 1.537 median: 1.268 low: 0.415 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 49.772 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.891 | |
| CapEx To Revenue | -0.029 | |
| CapEx To Depreciation | -1.067 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 86.7 M | |
| Net Invested Capital | $ 86.7 M | |
| Invested Capital | $ 86.7 M | |
| Net Tangible Assets | $ 70.7 M | |
| Net Working Capital | $ 65.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.702 | |
| Current Ratio | 2.867 | |
| Current Ratio QoQ | 21.489 % | |
| Current Ratio YoY | 97.225 % | |
| Current Ratio IPRWA | high: 3.358 INOD: 2.867 mean: 1.673 median: 1.461 low: 0.34 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.402 | |
| Cost Of Debt | 0.456 % | |
| Interest Coverage Ratio | 342.731 | |
| Interest Coverage Ratio QoQ | 7.725 % | |
| Interest Coverage Ratio YoY | 5594.924 % | |
| Interest Coverage Ratio IPRWA | INOD: 342.731 high: 46.876 median: 27.435 mean: 26.176 low: -32.337 |
|
| Operating Cash Flow Ratio | 0.121 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 11.69 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.92 % | |
| Revenue Growth | 0.084 % | |
| Revenue Growth QoQ | -105.945 % | |
| Revenue Growth YoY | -99.632 % | |
| Revenue Growth IPRWA | high: 15.386 % median: 6.33 % mean: 4.375 % INOD: 0.084 % low: -11.52 % |
|
| Earnings Growth | -9.091 % | |
| Earnings Growth QoQ | -68.686 % | |
| Earnings Growth YoY | -91.055 % | |
| Earnings Growth IPRWA | high: 116.406 % median: 18.932 % mean: 0.754 % INOD: -9.091 % low: -122.222 % |
|
| MARGINS | ||
| Gross Margin | 39.428 % | |
| Gross Margin QoQ | -1.066 % | |
| Gross Margin YoY | 37.26 % | |
| Gross Margin IPRWA | high: 60.369 % INOD: 39.428 % median: 32.867 % mean: 29.248 % low: 3.216 % |
|
| EBIT Margin | 15.26 % | |
| EBIT Margin QoQ | 7.632 % | |
| EBIT Margin YoY | 1400.492 % | |
| EBIT Margin IPRWA | high: 40.753 % median: 16.705 % INOD: 15.26 % mean: 15.181 % low: -4.292 % |
|
| Return On Sales (ROS) | 15.26 % | |
| Return On Sales QoQ | 7.632 % | |
| Return On Sales YoY | 1400.492 % | |
| Return On Sales IPRWA | high: 19.395 % median: 16.057 % INOD: 15.26 % mean: 14.64 % low: -5.114 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 2.5 M | |
| Free Cash Flow Yield | 0.185 % | |
| Free Cash Flow Yield QoQ | -72.914 % | |
| Free Cash Flow Yield YoY | -125.342 % | |
| Free Cash Flow Yield IPRWA | high: 5.903 % median: 1.788 % mean: 1.197 % INOD: 0.185 % low: -10.517 % |
|
| Free Cash Growth | -70.33 % | |
| Free Cash Growth QoQ | 61.156 % | |
| Free Cash Growth YoY | -55.662 % | |
| Free Cash Growth IPRWA | high: 539.652 % median: 20.62 % mean: 13.368 % INOD: -70.33 % low: -467.291 % |
|
| Free Cash To Net Income | 0.35 | |
| Cash Flow Margin | 7.302 % | |
| Cash Flow To Earnings | 0.591 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 5.6 % | |
| Return On Assets QoQ | -14.189 % | |
| Return On Assets YoY | -25554.545 % | |
| Return On Assets IPRWA | high: 8.172 % INOD: 5.6 % median: 2.924 % mean: 2.556 % low: -6.078 % |
|
| Return On Capital Employed (ROCE) | 9.139 % | |
| Return On Equity (ROE) | 0.083 | |
| Return On Equity QoQ | -19.31 % | |
| Return On Equity YoY | -17441.667 % | |
| Return On Equity IPRWA | high: 0.157 INOD: 0.083 median: 0.071 mean: 0.056 low: -0.051 |
|
| DuPont ROE | 8.901 % | |
| Return On Invested Capital (ROIC) | 7.818 % | |
| Return On Invested Capital QoQ | -23.051 % | |
| Return On Invested Capital YoY | -569.268 % | |
| Return On Invested Capital IPRWA | high: 7.923 % INOD: 7.818 % mean: 4.403 % median: 4.105 % low: -7.46 % |
|