Innodata Inc. Q3 2026 Earnings Recap

Innodata shares fell 4.1% after earnings, likely reflecting concern that a program ending at its traditionally largest customer will reduce Q4 revenue by about $12 million, despite the company raising its 2026 growth outlook. Management expects new programs at that customer to replace the lost revenue by Q1, but that recovery is forward-looking.

Key Takeaways

• Q3 revenue was $95.6 million, up 53% year over year; adjusted EBITDA was $17.7 million, or 19% of revenue, and net income was $10.3 million.
• Innodata raised its 2026 growth guidance from 40%–42%; the transcript does not provide the new range.
• A program ending at its traditionally largest customer is expected to cost about $12 million in Q4 revenue. Management expects replacement programs at that customer by Q1.
• A new pre-training data program with the customer that became Innodata’s largest in Q3 carries a $29 million contract value; an additional Q4 program is valued at approximately $18 million.
• Innodata won five programs with another hyperscaler and forecasts that customer may contribute more than $20 million in revenue in 2027, versus approximately $3.1 million in the trailing 12 months.