Forensic Analysis · Technology / Software · as of Aug 11, 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
4
Forensic signals
52.9
P / E (ttm)
30.0%
ROE
$2.2B
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). 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. 4 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 total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by PP&E up +94% against revenue +48% and receivables up +66% against revenue +48%. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 71% of net operating assets, diverging from the balance-sheet accrual read.
+8.7%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +28% over the last 3 years to FY2025 (+8.7%/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 ~8.7% 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 FY2022 has been diluted ~22%.
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. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 8.8% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
$2,000
FY2022–FY2022
Goodwill impairments.Took $2,000 of goodwill writedowns across 1 year (FY2022 ($2,000)). Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$251.7M
Revenue Growth YoY+47.6%
Revenue CAGR (3yr)+47.1%
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?