Innodata reported record second quarter 2026 results, surpassing analyst expectations on both top and bottom lines. Growth was underpinned by a 58% year-over-year revenue surge and significant expansion in adjusted gross margins to 49%. Alongside the financial performance, the company announced that Rahul Singhal will succeed founder Jack Abuhoff as CEO effective September 30, 2026.
Key Highlights
- Revenue reached $92.1 million, beating the $86.3 million consensus and growing 58% year-over-year.
- Diluted EPS of $0.41 significantly outpaced the $0.21 estimate, reflecting a 105% increase compared to the prior year period.
- Customer concentration risk eased significantly as the top client’s revenue contribution fell to 37% from 56% in the previous quarter.
- Adjusted Gross Margin expanded to 49%, nine points above the company's long-term target, driven by a mix of high-value pre-training programs.