Innodata Inc.

Revenue for Q1 2026 was $90.1 million, up 54% year over year and 24% sequentially from $72.4 million in Q4 2025, and above analyst consensus of $76.5 million by approximately $13.6 million. Adjusted gross profit was $42.6 million with adjusted gross margin of 47%, up 6 percentage points sequentially and 7 points above the company’s 40% target. Adjusted EBITDA was $25 million, or 28% of revenue, up about 96% year over year and above consensus of $10.4 million by approximately 139%. Net income was $14.9 million and fully diluted EPS was $0.42 versus consensus of $0.08. Cash ended at $117.4 million, up from $82.2 million at year-end 2025, and the company remained undrawn on its Wells Fargo facility, which was expanded from $30 million to $50 million. For 2026, management raised revenue growth guidance to approximately 40% or more, versus 35% or more previously, and said the outlook is still prudent because several potential large programs are not yet included.

Jack Abuhoff framed the quarter as a step-change result and said the business is now translating its strategic position into scale, margin expansion, and cash generation. He emphasized customer diversification, saying a new big-tech relationship could become the company’s second-largest customer this year and that broader tech-customer revenue grew 453% year over year in Q1. His tone was highly confident, with repeated references to a “golden age of innovation” and a belief that 2026 and beyond can continue to surprise to the upside.

Marissa Espineli focused on the hard financial results: $90.1 million of revenue, $42.6 million of adjusted gross profit, 47% adjusted gross margin, and $25 million of adjusted EBITDA. She highlighted that cash increased by $35.1 million to $117.4 million, helped by profitability, working capital discipline, and customer prepayments related to pretraining programs. She also noted the company renewed and expanded its Wells Fargo credit facility from $30 million to $50 million on a three-year term and stayed fully undrawn.

Analysts asked how much of the new $51 million customer win could broaden over time, and management said the relationship already spans pretraining, mid-training, post-training, and evaluation, with additional work under discussion. Questions also focused on whether Q1 had any one-time revenue and whether investment spending would step up; management said the quarter was strong but not an aberration, next quarter should also be strong, and they do not expect a step change in investment. On segment reporting, management said results are now reported on a consolidated basis, though Synodex and Agility still have meaningful transformation opportunities.