INOD
Innodata Inc.

Innodata Inc.INOD

Technology · Information Technology Services
44.74USD
-25.32%
Oct 28, 2026
INOD overview ready
Direct AI-Data-Services Enabler Providing Training, Evaluation, and Safety Testing
Innodata is a direct AI-data-services enabler: its Digital Data Solutions business supplies training and post-training data, human preference optimization, evaluation, safety testing, and related data-engineering work for AI builders and adopters.
Narrative is still early
Exposed to the AI Model Development and Deployment narrative through AI Training Data, Post-Training and Model Evaluation Services — enabling supplier.
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on AI technology adoption rates.
Market Oct 27Filing Jun 30Price action Sep 10Research Aug 14

Conviction Level

CompanyFit8.0PriceAction3.4Valuation8.5CompanyPosition7.3BusinessQuality8.3

Conviction uses Company Fit, Price Action, Valuation, Business Quality. Company Position is research context, not an input.

Theme leadershipGroup context · not a Conviction input
AI Data Services has only one or two eligible stocks — no leadership reading
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$1.5B
Avg Volume (60D)
1.5M
60 sessions
Revenue Growth YoY
+47.6%
FY2025 vs FY2024
Gross Margin
+43.2%
Operating Margin
+17.1%
Trailing twelve months
Free Cash Flow Yield
+12.0%
P/E
33.1x
Market metrics as of Oct 27, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

One of the two valuation perspectives says cheap; peers is the dissenting view.
Innodata Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 8.9% free-cash-flow yield, which the underlying economics comfortably support.

What changed

  • INOD fell 25.3% in one session
    INOD closed -25.3% while the broad market was close to flat (+0.6%).
    2026-10-27

Company Research

Thesis
Innodata is a direct AI-data-services enabler: its Digital Data Solutions business supplies training and post-training data, human preference optimization, evaluation, safety testing, and related data-engineering work for AI builders and adopters.
Opportunity
High opportunity
Spending by frontier-model developers and enterprise AI adopters on the specialized data creation, annotation, human-feedback, fine-tuning, safety testing, red-teaming, and evaluation workflows required to build, improve, and deploy reliable AI systems.
Key risk
Dependence on AI technology adoption rates.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Information Technology Services
What they do

Innodata Inc. provides data engineering services internationally, operating through three segments that focus on AI data solutions, medical record digitization, and AI-enabled platforms.

How it earns

The company generates revenue primarily through project-based and service contracts related to data processing and AI solutions.

Products & services
AI training and post-training data
Medical record digitization platform
AI model deployment and integration
Customers & end markets
Technology companies requiring AI data services
Healthcare and insurance providers
Market position

Niche player specializing in AI data engineering and healthcare data digitization.

Demand drivers
Medium cyclicality

Demand for AI and healthcare data services can fluctuate with technology adoption and healthcare industry cycles.