Innodata Posts 22% Q4 Revenue Growth to $72.4M, Projects 35%+ 2026 Growth
Fourth-quarter revenue rose 22% year-over-year to $72.4 million, with adjusted gross profit of $30.1 million (42% margin), $15.7 million of adjusted EBITDA and $82.2 million in cash. Management forecasts 2026 revenue growth of about 35% plus, with early adjusted gross margins of 35–40% rising toward 40%+ as new programs scale.
1. Fourth-Quarter Financial Highlights
The company delivered $72.4 million in Q4 revenue, up 22% year-over-year, driven by demand for data engineering services. Adjusted gross profit reached $30.1 million, equating to a 42% gross margin, while adjusted EBITDA was $15.7 million and cash balances rose to $82.2 million at year end.
2. 2026 Outlook and Guidance
Management expects full-year 2026 revenue growth of approximately 35% or more based on active programs and recent wins. Early-2026 adjusted gross margins are projected at 35–40%, with normalization above 40% as new customer engagements scale.
3. Innovation and Capacity Investments
Executives emphasized investments in hybrid AI-and-human data solutions, including agent evaluation, optimization pipelines and adversarial simulation. The company has built capacity in engineering and data science to support expansion and improve operating leverage as programs ramp.