Forensic Analysis · Technology / Software · as of Sep 25, 2026
Innodata Inc (INOD)
A forensic read on Innodata Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
18.5
Distress distance
Clean
Earnings quality
3
Forensic signals
42.3
P / E (ttm)
30.0%
ROE
$2.5B
Market cap
47.6%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Innodata Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 18.5, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+40.4%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +40.4% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by PP&E up +94% against revenue +48% and receivables up +66% against revenue +48%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 71% of net operating assets, against an accruals ratio of 40.4%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
+11.6%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +25% over the last 2 years to FY2025 (+11.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~11.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~20%.
4% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 4% of revenue and 31% of free cash flow in FY2025 — about $0.32 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 11.6% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$251.7M
Revenue Growth YoY+47.6%
Revenue CAGR (2yr)+70.2%
Net Margin12.8%
Free Cash Flow$35.6M
Return on Equity30.0%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Innodata Inc's actual 10-K/10-Q/8-K filings?