Innodata Inc (NASDAQ: INOD)

Innodata Inc. is a global data engineering and AI systems services company that supports the development, training, post training, evaluation, and deployment of advanced artificial intelligence systems. The company partners with leading technology companies, frontier AI laboratories, and enterprises to help enable AI systems that perform reliably, align with intended objectives, and operate safely in real world environments. The firm’s mission is to enable responsible advancement of artificial intelligence by supplying the data, evaluation frameworks, and human expertise needed to build AI systems that can be trusted at scale.

Innodata generates revenue by providing data engineering services, AI training and post training data preparation, alignment and preference optimization, model evaluation and safety testing, and AI enablement solutions. The company also earns income from its Synodex platform, which converts medical records into structured digital data for insurance and healthcare workflows, and from its Agility platform, which offers media intelligence and public relations software with AI driven monitoring analytics and content capabilities. A large share of the company’s revenue is derived from the Digital Data Solutions segment, where a single customer represented about 58% of total sales in 2025 and about 48% in 2024.

The company operates through the following segments: Digital Data Solutions (DDS), Synodex, and Agility.

• Digital Data Solutions: This segment provides data engineering services, AI training and post training data preparation, alignment and preference optimization, model evaluation and safety testing, and AI enablement solutions including support for agentic and tool using systems. It also handles data curation, validation, and scaling for large language models and multimodal models.

• Synodex: This segment operates the Synodex platform that transforms medical records into structured digital data for insurance and healthcare workflows. The platform uses natural language processing and machine learning to extract clinical information and convert it into usable formats for claims processing and patient care.

• Agility: This segment runs the Agility PR Solutions platform that delivers media intelligence and public relations software with AI driven monitoring analytics and content capabilities. The software helps users track media coverage, analyze public sentiment, and manage communication campaigns across digital and traditional channels.

Innodata holds a competitive position in the AI data and evaluation market due to its proprietary platforms, global delivery network, and deep expertise across the AI lifecycle. The company faces competition from specialized AI data providers such as Appen, CloudFactory, Surge AI, Invisible Technologies, Turing, Mercor, Define a, TELUS Digital, and Scale AI, as well as from large consulting firms including Accenture, Cognizant, EXL Services, Genpact, Infosys, PwC, QuantumBlack, and Tata Consultancy Services. Innodata differentiates itself by offering end to end solutions that cover data preparation, model alignment, safety evaluation, and deployment support, and by leveraging its large scale of human experts and secure infrastructure. Its ability to operate across multiple stages of the AI pipeline allows the firm to embed itself within customer workflows and to build long term relationships based on trust and reliability.

Innodata serves a diverse customer base that includes leading technology companies, AI innovators, banks, insurance providers, financial services firms, digital retailers, and media organizations. A substantial portion of revenue comes from the largest global technology firms, among which are five of the companies commonly referred to as the Magnificent Seven, as well as from prominent AI research labs and model developers worldwide. Revenues from customers located outside the United States represented approximately 16% of total sales in 2025 and 21% in 2024, highlighting the firm’s international reach.