Innodata
A training-data contractor for Big Tech's AI labs, growing about 50% a year and profitable. Two customers bring in 71% of revenue, and October's reported layoffs may mean one is pulling back.
10-Q Q2 2026, concentrations- Revenue
- $251.7M in 2025, up 48%. The April to June 2026 quarter grew 58%.
- Profit
- +$39.9M operating profit in 2025, up from $24.3M.
- Debt
- $0 drawn on a $50M Wells Fargo line. About $11M of other long-term obligations.
- Watch
- 71% of April to June revenue came from just two customers (37% and 34%).
- AI
- It is the product builds training and test data for five of the "Magnificent Seven".
- Staff
- 10,107 employees at end of 2025, across eight countries led by the Philippines and India.
- Hiring
- 93 → 96 remote listings since Oct 10.
Nearly 9 dollars in 10 are AI data work.
Innodata began as a document conversion shop. Today its Digital Data Solutions unit, which creates and checks the data big AI models learn from, is almost the whole company. A PR software unit (Agility) and a medical records unit (Synodex) are small. From 2026 it reports everything as one segment.
- 1A seat inside the biggest AI budgetsThe 10-K says its customers include five of the Magnificent Seven tech companies, plus other AI labs.10-K FY2025, business
- 2A large, trained workforce at low-cost locations10,107 employees working mainly from the Philippines, India, Sri Lanka and five other countries, which is hard for a new rival to copy fast.10-K FY2025, human capital
- 3Research the labs take seriouslyTwo papers accepted at ICML 2026, one a Spotlight, and two public benchmarks built to catch failures that leaderboards miss.Q2 2026 results release
Innodata brought in $92 million in 91 days.
That is about $34 million more than the same three months a year earlier. Each of its 10,107 employees brought in about $0.02 million over the year, about $70 a day.
Revenue is not profit. It is the money that came in before Innodata pays any of its costs.
10-Q Q2 2026; employees from 10-K FY2025Operating profit grew from $300,000 to $40 million.
Revenue more than doubled in two years. In FY2025 it kept 16 cents of every revenue dollar as operating profit.
- FY2023: about even on every $1
- FY2024: kept 14¢ of every $1
- FY2025: kept 16¢ of every $1
Customers prepaid $67M for project costs Innodata had not yet paid out. The company itself puts cash net of those prepayments at about $134M. Still a strong cushion.
What the filings say, and what we think it means.
The fact is the filing's. The read, in italics, is ours.
- 01Watch
About 550 jobs cut in India, reported but not confirmed.
Inc42, Oct 28, 2026Reports say staff in India lost system access on Oct 26, 2026, with cuts in the Philippines too. Termination emails cited a "ramp-down" of a business assignment. Innodata had not commented.
That is about 5% of the 2025 workforce. If a big client ended a project, it would show in the Nov 5 results. Until then, treat the cause as unknown.
- 02Watch
Two customers are 71% of revenue, and they can leave fast.
10-Q Q2 2026, concentrationsThe largest customer was 37% of Q2 revenue (58% of all 2025), the second 34%. Contracts can generally be ended on 30 to 90 days' notice.
The top customer's share is falling as a second giant ramps up, which is healthier. But two companies still decide most of this business.
- 03Watch
The stock fell about 28% on the layoff reports.
TIKR, Oct 27, 2026Shares dropped about 28% after the reports surfaced in late October 2026, ahead of Q3 results due after the close on Nov 5.
Investors read the cuts as a customer pulling back. That matters for anyone weighing equity in an offer.
- 04Neutral
Cash tripled, but much of it is a customer's prepayment.
Q2 2026 results release; 10-Q note 1Cash and investments hit $250.4M at June 30, from $82.2M at year end. Advances from customers rose to $67.0M from $1.8M, and $61.8M of project costs were incurred but unpaid.
Innodata itself says net cash is about $134M. Large pass-through programs inflate both revenue and cash for a while.
- 05Watch
It can sell up to $300M of new stock.
8-K, Aug 6, 2026On Aug 6, 2026 Innodata set up an at-the-market program with five banks, led by Goldman Sachs, to sell up to $300M of shares over time.
It is not obliged to sell any. If it does, existing shares are diluted, while the cash could fund deals or bigger programs.
- 06Watch
Stock pay nearly tripled in a year.
10-Q Q2 2026, stock compensationStock-based pay was $7.2M in Q2 2026 against $2.7M a year earlier, almost all in sales and admin. Selling and admin costs rose 88% to $26.6M.
Equity is becoming a bigger part of pay, mostly for leaders and sales staff. The share count rose about 8% in a year.
- 07Neutral
The founder handed over the CEO job.
8-K, Aug 2026; 8-K/A, Sept 30, 2026Jack Abuhoff became Executive Chairman on Sept 30, 2026. President Rahul Singhal, at Innodata since at least 2019, became CEO. A new CFO started July 6 after an interim period.
An insider successor suggests continuity rather than a reset. Both top executives now have a $600K-plus base salary and a 100% target bonus.
- 08Good
A shareholder lawsuit was thrown out.
10-Q Q2 2026, contingenciesOn June 10, 2026 the court dismissed the D'Agostino securities class action with prejudice. An old Philippine labor judgment of about $5.3M plus interest is still open but blocked from US enforcement.
One legal cloud is gone. The Philippine case dates to 2008 and has been stuck for years.
- 09Neutral
It stopped breaking out its three businesses.
10-Q Q2 2026, segment noteFrom Q1 2026 Innodata reports one segment instead of three (AI data, Agility, Synodex), citing its agentic AI focus.
Harder to see how the smaller PR software and medical units are doing. In 2025 Agility ran at a small loss.
- 10Good
Growing fast and staying profitable.
10-Q Q2 2026; Q2 release for marginOperating profit was $32.8M in the first half of 2026, nearly double a year earlier. The company reported a 49% adjusted gross margin in Q2, against its 40% target.
Rare for a fast-growing services firm. Profit gives room to absorb a customer slowdown without deep cuts, though the October reports show cuts can still happen.
Data is paid 61% under market.
We save every company's roles, pay by team and level, AI share and churn every day, so each month this page can say more. Sparklines use their own scale.
Can AI agents do business with Innodata?
We checked the agent payment programs, developer docs and site rules an AI assistant would meet.
Builds for agents, does not sell through them. Its site is open to AI crawlers.
Still Remote read- YesSells tools to test and monitor AI agentsIts Evaluation and Observability Platform launched in beta in Q1 2026, with a first $1M hyperscaler deal and 15 companies evaluating it.Q1 2026 results release
- YesBuilds training environments for computer-use agentsWon programs on long-horizon agent personalization and reinforcement-learning environments for computer-use tasks in Q2 2026.Q2 2026 results release
- Not foundAn MCP server, API or SDK agents can callThe agent platform page mentions CI/CD integration only. No MCP server, public API or SDK is described.checked Nov 3, 2026
- Not foundListed in a cloud or AI marketplaceNo AWS, Google Cloud or Azure listing found. Talks with two hyperscalers on channel deals were reported in May, not signed.Q1 2026 release; searched Nov 3, 2026
- Not foundA site index that AI tools can readinnodata.com/llms.txt returns 404. There are no public developer docs.checked Nov 3, 2026
- YesLets AI crawlers read its siterobots.txt explicitly allows GPTBot, ClaudeBot, PerplexityBot, Google-Extended and six other AI bots everywhere.checked Nov 3, 2026
Where Innodata puts AI to work.
- 1AI work still runs on peopleIts 10,107 staff create, label and judge the data models learn from. The 10-K calls this a distributed global resource model, mostly outside the US.10-K FY2025
- 2A research team that publishesIn Q2 2026 it released two public benchmarks and an AI Cyber Training Suite of twelve datasets for training coding agents to write secure code.Q2 2026 results release
- 3October's cuts were tied to a client, not to AIReported termination emails blamed a ramp-down of a business assignment and said performance was not the reason. The company has not explained.Inc42, Oct 28, 2026
More listings than on Sep 9, most of them in data.
The signals, and which way they push.
- TailwindA second Big Tech customer took off.
A Big Tech customer with no revenue a year earlier went from 17% to 34% of revenue in one quarter. Other Big Tech revenue grew 453% in Q1.
- TailwindNew work on AI agents and a new frontier lab.
Q2 brought a fast-scaling frontier lab as a customer, plus agent personalization and computer-use programs. Guidance of 40% or more growth leaves out some large programs.
- HeadwindA big client may be pulling back.
About 550 India layoffs were reported on Oct 26, citing a ramp-down. Two customers are 71% of revenue, so one cut hurts.
- TailwindMoving into robot training data.
A motion-capture lab built with Vicon opened in New Jersey on Sept 30, 2026, after egocentric data pilots with robotics companies.
- HeadwindMore shares on the way.
A $300M at-the-market program is in place, stock pay nearly tripled, and shares outstanding rose about 8% in a year.
Where Innodata ends up, if we had to bet.
Our calls, not facts. Each one is tied to something that already happened, so you can judge the reasoning.
- 1
No single customer is more than 30% of Innodata's revenue.
Likely 72%CompetitionThe top customer fell from 58% of 2025 revenue to 37% in Q2 2026 as a second Big Tech buyer reached 34%. A new frontier lab joined in Q2.
10-Q Q2 2026; Q2 release - 2
Software, not services, brings in a quarter of Innodata's revenue.
Long shot 16%ProductsThe agent evaluation platform's first deal was $1M, against $92M of revenue in one quarter. The model is still people doing project work.
Q1 2026 release; 10-Q Q2 2026 - 3
Innodata earns more per employee because AI does much of the labeling its staff do today.
Coin flip 50%AIIt already sells AI judges and automated evaluators on its platform. October's reported cuts show headcount can move fast when work changes.
Innodata platform page; Inc42 - 4
Rules for AI agents make outside testing a must-buy, and Innodata is one of the testers.
Coin flip 50%RegulationIts platform is pitched on custom regulatory criteria and audit-ready reports. A retired admiral joined the board as it pitches the federal government.
8-K, Sept 15, 2026; platform page - 5
A bigger AI or IT services company buys Innodata.
Coin flip 50%M&AIt is profitable, has no debt and sells to the largest AI buyers, which makes it a clean target. The founder just stepped back to chairman, and a $300M share program could also fund its own buying.
8-K, Aug 2026; 8-K, Aug 6, 2026
Read by the Still Remote research agent on November 3, 2026 from the sources linked on this page. Facts and scenarios only, not investment advice.