Innodata Inc. INOD
Innodata's fundamental trajectory remains exceptional—revenue grew 47.6% to $251.7M in FY2025 with operating margin expanding to 16.0%, management has reaffirmed at least 40% revenue growth for 2026, and the balance sheet carries minimal debt ($4.4M) with $35.6M in free cash flow. The stock's sharp correction from June 2026 highs near $113 to $57.17 as of 2026-08-25 has created a more compelling entry point, with RSI at 38.2 signaling oversold conditions and the PE of 40.0x trading at a 34.5% discount to the peer median of 61.0x.
However, heavy insider net selling of $279.4M over 24 months and the stock trading below both its 50-day ($68.94) and 200-day ($60.96) moving averages warrant caution on timing, making this a buy for investors who can tolerate near-term technical weakness.
What could go wrong
- Customer concentration. News coverage explicitly flags customer concentration as a tempering factor despite record Q2 results and 40%+ growth outlook, meaning a single large AI-lab client loss could materially impair revenue.
- Persistent insider selling. Insiders net sold $279.4M of stock over 24 months across 197 dispositions versus 75 acquisitions, including CEO sales at $107–113 per share in June 2026.
- Technical downtrend. Stock at $57.17 trades below both the 50-day MA of $68.94 and 200-day MA of $60.96 as of 2026-08-25, with MACD histogram marginally negative at -0.008.
- Growth deceleration risk. Revenue growth slowed from 96.4% in FY2024 to 47.6% in FY2025; if the reaffirmed 40% 2026 outlook disappoints, the 40.0x PE could compress sharply.
What would change my mind
Where this comes from: FMP FY2025 fundamentals + derived_metrics · derived_metrics FY2025 · FMP FY2025 fundamentals · FMP FY2025 fundamentals. Orin's read on INOD; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All INOD filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $105.1M | 0.0% of fund |
| D. E. Shaw & | $66.4M | 0.0% of fund |
| Geode Capital Management | $63.2M | 0.0% of fund |
| State Street | $61.3M | 0.0% of fund |
| Jpmorgan Chase & | $36.8M | 0.0% of fund |
| Two Sigma Investments | $30.9M | 0.0% of fund |
50 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 280 Form 4 filings, net −$280.5M. Of the 50 on hand, 0 were open-market purchases and 25 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about INOD
Orin answers questions about INOD from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 50.3× | — | 53.3× |
| EV/EBITDA | 31.3× | — | — |
| P/S | 7.40× | — | — |
| P/B | 15.1× | — | — |
24.0%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$120
$120 – $120 · +71% against today's price
- 4 buy or overweight
- 2 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| INODInnodata Inc. | $2B | 50.3× | 31.3× | 42.6% | 14.7% | 38% |
| VICRVicor Corporation | $13B | 86.5× | 94.6× | 56.6% | 30.6% | 20% |
The median is of the 1 peers listed above and nothing else — check it against the column. This company trades 41.9% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.