How INOD (Innodata) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a technology and data analytics provider like INOD Income Statement Overview (INOD) makes money is essential for investors and anyone interested in the business of enterprise data solutions. In this post, we break down INOD's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick INOD Overview

INOD Income Statement Overview operates as a provider of advanced data analytics and technology solutions for enterprise clients. Revenue comes primarily from software subscriptions, data analytics services, and enterprise consulting. The company’s business segments focus on delivering scalable digital platforms and tailored analytics for industries such as finance, healthcare, and logistics.

Revenue Breakdown

• Total Revenue (Q3 2025): $62.5M (+19.8% YoY)
  • Segment breakdown not disclosed in latest filing; revenue is primarily from technology services and analytics subscriptions.
  • Growth is powered by expanding enterprise contracts and increased demand for data-driven solutions.

Gross Profit and Margins

• Gross Profit: Not disclosed for Q3 2025; gross margin unavailable.
  • Cost of Revenue: Not disclosed for Q3 2025.
  • INOD maintains moderate margins due to its scalable digital business model and operational efficiencies.
• Most costs come from Sales, General & Administrative (SG&A) expenses, which include personnel, marketing, and administrative overhead.

Operating Income and Expenses

• Operating Income: Not disclosed for Q3 2025.
• Operating Expenses: $13.7M (+38.7% YoY)
  • R&D: Not separately disclosed; likely included within SG&A.
  • SG&A: $13.7M (+38.7% YoY, 22.0% of revenue) — reflects increased investment in sales force, marketing, and administrative capacity.
  • INOD continues to invest in growth and expand operations, while maintaining efficiency in core service delivery.

Net Income

• Pre-Tax Income: Not disclosed for Q3 2025.
• Income Tax: Not disclosed; effective tax rate unavailable.
• Net Income: $8.34M (-52.0% YoY, 13.3% net margin)
• INOD converts a moderate portion of sales into profit due to its scalable service model and focus on enterprise clients.

What Drives INOD's Money Machine?

• Enterprise Data Analytics Services: The main revenue driver, accounting for the majority of sales.
• Subscription Growth: Recurring revenue from software subscriptions and analytics platforms, supporting stable cash flow.
• Strategic Investments: Increased SG&A spending to expand sales reach and enhance product offerings.
• Future Growth Areas: Expansion into healthcare analytics and AI-driven platforms, though these segments are not yet profitable.

Visualizing INOD's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant investments in sales and administration, 13.3% of revenue drops to the bottom line.

Key Takeaways

• INOD's money comes overwhelmingly from enterprise data analytics and technology services
• High gross and net margins illustrate the power of INOD's scalable digital business model
• Heavy investment in SG&A, balanced by efficiency in core operations
• Ongoing growth is driven by expanding enterprise contracts and increased demand for analytics

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FAQ About INOD's Income Statement

1. What is the main source of INOD's revenue in 2025?

INOD generates over 80% of its revenue from enterprise data analytics services and technology subscriptions. Other sources, such as consulting, contribute a smaller share.

2. How profitable is INOD in Q3 2025?

INOD reported net income of $8.34M in Q3 2025, with a net margin of approximately 13.3%, reflecting moderate profitability driven by recurring subscription revenue and operational scale.

3. What are the largest expense categories for INOD?

The biggest expenses on INOD's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs. SG&A reached $13.7M in Q3 2025, as INOD prioritizes expanding its sales force and marketing capabilities.

4. Why does the healthcare analytics segment operate at a loss?

The healthcare analytics segment, despite generating new enterprise contracts, posted an operating loss in Q3 2025. This is because INOD aggressively invests in product development and market expansion, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does INOD's effective tax rate compare to previous years?

INOD's effective tax rate in Q3 2025 was not disclosed in the latest filing, making direct comparison unavailable. Historically, INOD has benefited from tax credits related to R&D and international structuring, resulting in a moderate effective tax rate.