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Why Innodata Stock Jumped 29% in 2025

The Motley Fool Logo The Motley Fool By Jeremy Bowman
Why Innodata Stock Jumped 29% in 2025

Innodata, a data-labeling specialist, saw its stock surge 29% in 2025 driven by strong revenue growth (61% YoY through Q3), profitability with 106% EBITDA growth, expansion into federal government services, and investor confidence in the AI sector. However, growth decelerated in Q3 to 20%, and the company faces challenges from customer concentration and potential AI market saturation concerns.

Insights
INOD   positive

Strong 61% revenue growth through Q3, 106% EBITDA growth, profitable operations, expansion into federal government with $25M contract, and $68M in expected pre-training data revenue. Stock gained 29% in 2025 despite Q3 growth deceleration to 20%.