INNODATA INC, 10-Q filed on 7/31/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2025
Jul. 24, 2025
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2025  
Document Transition Report false  
Entity File Number 001-35774  
Entity Registrant Name INNODATA INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 13-3475943  
Entity Address, Address Line One 55 Challenger Road  
Entity Address, City or Town Ridgefield Park  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07660  
City Area Code 201  
Local Phone Number 371-8000  
Title of 12(b) Security Common Stock  
Trading Symbol INOD  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   31,845,622
Entity Central Index Key 0000903651  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.25.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 59,792 $ 46,897
Accounts receivable, net of allowance for credit losses 34,124 28,013
Prepaid expenses and other current assets 6,773 6,090
Total current assets 100,689 81,000
Property and equipment, net 4,710 4,101
Right-of-use-asset, net 3,830 4,238
Other assets 1,342 1,267
Deferred income taxes, net 6,036 7,492
Intangibles, net 13,930 13,353
Goodwill 2,086 1,998
Total assets 132,623 113,449
Current liabilities:    
Accounts payable 4,491 4,554
Accrued expenses 5,144 4,891
Accrued salaries, wages and related benefits 12,377 13,836
Deferred revenues 6,485 8,010
Income and other taxes 4,220 5,695
Long-term obligations - current portion 1,477 1,643
Operating lease liability - current portion 928 877
Total current liabilities 35,122 39,506
Deferred income taxes, net 71 32
Long-term obligations, net of current portion 7,493 6,744
Operating lease liability, net of current portion 3,295 3,778
Total liabilities 45,981 50,060
Commitments and contingencies
STOCKHOLDERS' EQUITY:    
Serial preferred stock; 4,998,000 shares authorized, none issued and outstanding
Common stock, $.01 par value; 75,000,000 shares authorized; 35,029,000 shares issued and 31,845,000 outstanding at June 30, 2025 and 34,484,000 shares issued and 31,300,000 outstanding at December 31, 2024 350 345
Additional paid-in capital 60,150 53,085
Retained earnings 33,983 18,977
Accumulated other comprehensive loss (1,293) (2,470)
Stockholders' equity before treasury stock, total 93,190 69,937
Less: treasury stock, 3,184,000 shares at June 30, 2025 and December 31, 2024, at cost (6,465) (6,465)
Stockholders' equity Innodata Inc. and subsidiaries 86,725 63,472
Non-controlling interests (83) (83)
Total Stockholders' equity 86,642 63,389
Total liabilities and stockholders' equity $ 132,623 $ 113,449
v3.25.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2025
Dec. 31, 2024
CONDENSED CONSOLIDATED BALANCE SHEETS    
Serial preferred stock, shares authorized 4,998,000 4,998,000
Serial preferred stock, issued 0 0
Serial preferred stock, outstanding 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 75,000,000 75,000,000
Common stock, shares issued 35,029,000 34,484,000
Common stock, shares outstanding 31,845,000 31,300,000
Treasury stock, shares 3,184,000 3,184,000
v3.25.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)        
Revenues $ 58,393 $ 32,553 $ 116,737 $ 59,057
Operating costs and expenses:        
Direct operating costs 35,370 23,202 70,462 40,071
Selling and administrative expenses 14,112 9,020 29,092 17,325
Interest expense (income), net (577) 55 (704) (29)
Total 48,905 32,277 98,850 57,367
Income before provision for income taxes 9,488 276 17,887 1,690
Provision for income taxes 2,269 285 2,881 709
Consolidated net income (loss) 7,219 (9) 15,006 981
Income attributable to non-controlling interests   5   6
Net Income (loss) attributable to Innodata Inc. and Subsidiaries $ 7,219 $ (14) $ 15,006 $ 975
Income (loss) per share attributable to Innodata Inc. and Subsidiaries:        
Basic (in dollars per share) $ 0.23 $ 0 $ 0.47 $ 0.03
Diluted (in dollars per share) $ 0.2 $ 0 $ 0.43 $ 0.03
Weighted average shares outstanding:        
Basic (in shares) 31,785 28,878 31,609 28,819
Diluted (in shares) 35,301 28,878 35,120 32,691
Comprehensive Income (Loss):        
Consolidated net income $ 7,219 $ (9) $ 15,006 $ 981
Pension liability adjustment, net of taxes (35)   (36) (1)
Foreign currency translation adjustment 582 (78) 691 (208)
Change in fair value of derivatives, net of taxes 248 (174) 522 (208)
Other comprehensive income (loss) 795 (252) 1,177 (417)
Total comprehensive income (loss) 8,014 (261) 16,183 564
Comprehensive income attributed to non-controlling interest   5   6
Comprehensive income (loss) attributable to Innodata Inc. and Subsidiaries $ 8,014 $ (266) $ 16,183 $ 558
v3.25.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Cash flows from operating activities:    
Consolidated net income $ 15,006 $ 981
Adjustments to reconcile consolidated net income to net cash provided by operating activities:    
Stock-based compensation 5,602 2,026
Depreciation and amortization 3,164 2,684
Deferred income taxes 1,355 41
Pension cost 672 395
Changes in operating assets and liabilities:    
Accounts receivable (5,716) (3,976)
Prepaid expenses and other current assets (387) 246
Other assets (76) 396
Accounts payable and accrued expenses 26 3,348
Deferred revenues (1,525) 1,247
Accrued salaries, wages and related benefits (1,490) (1,149)
Income and other taxes (1,529) 74
Net cash provided by operating activities 15,102 6,313
Cash flows from investing activities:    
Capital expenditures (4,058) (4,067)
Net cash used in investing activities (4,058) (4,067)
Cash flows from financing activities:    
Proceeds from exercise of stock options 1,468 783
Withholding taxes on net settlement of restricted stock units   (97)
Payment of long-term obligations (229) (294)
Net cash provided by financing activities 1,239 392
Effect of exchange rate changes on cash and cash equivalents 612 65
Net increase in cash and cash equivalents 12,895 2,703
Cash and cash equivalents, beginning of period 46,897 13,806
Cash and cash equivalents, end of period 59,792 16,509
Supplemental disclosures of cash flow information:    
Shares withheld for withholding taxes on net settlement for restricted stock   97
Cash paid for income taxes 2,670 459
Cash paid for operating leases 718 719
Cash paid for interest $ 20 $ 169
v3.25.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Treasury Stock
Non-Controlling Interest
Total
Balance at the beginning at Dec. 31, 2023 $ 320 $ 43,152 $ (9,683) $ (1,621) $ (6,465) $ (708) $ 24,995
Balance at the beginning (in shares) at Dec. 31, 2023         (3,184,000)    
Balance at the beginning (in shares) at Dec. 31, 2023 31,937,000            
Net income (loss) attributable to Innodata Inc. and Subsidiaries     989       989
Income attributable to non-controlling interests           1 1
Stock-based compensation   1,034         1,034
Pension liability adjustment, net of taxes       (1)     (1)
Foreign currency translation adjustment       (130)     (130)
Change in fair value of derivatives, net of taxes       (34)     (34)
Balance at the end at Mar. 31, 2024 $ 320 44,186 (8,694) (1,786) $ (6,465) (707) 26,854
Balance at the end (in shares) at Mar. 31, 2024         (3,184,000)    
Balance at the end (in shares) at Mar. 31, 2024 31,937,000            
Balance at the beginning at Dec. 31, 2023 $ 320 43,152 (9,683) (1,621) $ (6,465) (708) 24,995
Balance at the beginning (in shares) at Dec. 31, 2023         (3,184,000)    
Balance at the beginning (in shares) at Dec. 31, 2023 31,937,000            
Net income (loss) attributable to Innodata Inc. and Subsidiaries             975
Income attributable to non-controlling interests             6
Pension liability adjustment, net of taxes             (1)
Foreign currency translation adjustment             (208)
Change in fair value of derivatives, net of taxes             (208)
Balance at the end at Jun. 30, 2024 $ 322 45,862 (8,708) (2,038) $ (6,465) (702) 28,271
Balance at the end (in shares) at Jun. 30, 2024         (3,184,000)    
Balance at the end (in shares) at Jun. 30, 2024 32,172,000            
Balance at the beginning at Mar. 31, 2024 $ 320 44,186 (8,694) (1,786) $ (6,465) (707) 26,854
Balance at the beginning (in shares) at Mar. 31, 2024         (3,184,000)    
Balance at the beginning (in shares) at Mar. 31, 2024 31,937,000            
Net income (loss) attributable to Innodata Inc. and Subsidiaries     (14)       (14)
Income attributable to non-controlling interests           5 5
Stock-based compensation   992         992
Stock option exercises $ 2 781         783
Stock option exercises (in shares) 235,000            
Shares withheld for restricted stock unit net settlement   (97)         (97)
Foreign currency translation adjustment       (78)     (78)
Change in fair value of derivatives, net of taxes       (174)     (174)
Balance at the end at Jun. 30, 2024 $ 322 45,862 (8,708) (2,038) $ (6,465) (702) 28,271
Balance at the end (in shares) at Jun. 30, 2024         (3,184,000)    
Balance at the end (in shares) at Jun. 30, 2024 32,172,000            
Balance at the beginning at Dec. 31, 2024 $ 345 53,085 18,977 (2,470) $ (6,465) (83) $ 63,389
Balance at the beginning (in shares) at Dec. 31, 2024         (3,184,000)   3,184,000
Balance at the beginning (in shares) at Dec. 31, 2024 34,484,000            
Net income (loss) attributable to Innodata Inc. and Subsidiaries     7,787       $ 7,787
Stock-based compensation   2,881         2,881
Stock option exercises $ 2 961         963
Stock option exercises (in shares) 261,000            
Issuance of restricted stock units $ 2 (2)          
Issuance of restricted stock units (in shares) 184,000            
Pension liability adjustment, net of taxes       (1)     (1)
Foreign currency translation adjustment       109     109
Change in fair value of derivatives, net of taxes       274     274
Balance at the end at Mar. 31, 2025 $ 349 56,925 26,764 (2,088) $ (6,465) (83) 75,402
Balance at the end (in shares) at Mar. 31, 2025         (3,184,000)    
Balance at the end (in shares) at Mar. 31, 2025 34,929,000            
Balance at the beginning at Dec. 31, 2024 $ 345 53,085 18,977 (2,470) $ (6,465) (83) $ 63,389
Balance at the beginning (in shares) at Dec. 31, 2024         (3,184,000)   3,184,000
Balance at the beginning (in shares) at Dec. 31, 2024 34,484,000            
Net income (loss) attributable to Innodata Inc. and Subsidiaries             $ 15,006
Stock option exercises (in shares)             353,416
Pension liability adjustment, net of taxes             $ (36)
Foreign currency translation adjustment             691
Change in fair value of derivatives, net of taxes             522
Balance at the end at Jun. 30, 2025 $ 350 60,150 33,983 (1,293) $ (6,465) (83) $ 86,642
Balance at the end (in shares) at Jun. 30, 2025         (3,184,000)   3,184,000
Balance at the end (in shares) at Jun. 30, 2025 35,029,000            
Balance at the beginning at Mar. 31, 2025 $ 349 56,925 26,764 (2,088) $ (6,465) (83) $ 75,402
Balance at the beginning (in shares) at Mar. 31, 2025         (3,184,000)    
Balance at the beginning (in shares) at Mar. 31, 2025 34,929,000            
Net income (loss) attributable to Innodata Inc. and Subsidiaries     7,219       7,219
Stock-based compensation   2,721         2,721
Stock option exercises $ 1 504         505
Stock option exercises (in shares) 92,000            
Issuance of restricted stock units (in shares) 8,000            
Pension liability adjustment, net of taxes       (35)     (35)
Foreign currency translation adjustment       582     582
Change in fair value of derivatives, net of taxes       248     248
Balance at the end at Jun. 30, 2025 $ 350 $ 60,150 $ 33,983 $ (1,293) $ (6,465) $ (83) $ 86,642
Balance at the end (in shares) at Jun. 30, 2025         (3,184,000)   3,184,000
Balance at the end (in shares) at Jun. 30, 2025 35,029,000            
v3.25.2
Summary of Significant Accounting Policies and Estimates
 6 Months Ended
Jun. 30, 2025
Summary of Significant Accounting Policies and Estimates  
Summary of Significant Accounting Policies and Estimates

1.Summary of Significant Accounting Policies and Estimates

Basis of Presentation - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the consolidated financial position of Innodata Inc. (including its subsidiaries, the “Company”) as of June 30, 2025 and December 31, 2024, the results of its operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024, cash flows for the six months ended June 30, 2025 and 2024, and stockholders’ equity for the three and six months ended June 30, 2025 and 2024. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year.

Certain information and note disclosures normally included in or with financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the notes to the consolidated financial statements for the year ended December 31, 2024.

Principles of Consolidation - The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates and assumptions used in the preparation of the condensed consolidated financial statements are reasonable. Actual results could differ from those estimates. Significant estimates include those related to the allowance for credit losses and billing adjustments, useful life of long-lived assets, useful life of intangible assets, impairment of goodwill and intangible assets, valuation of deferred tax assets, valuation of stock-based compensation, pension benefit plan assumptions, litigation accruals and estimated accruals for various tax exposures.

Concentration of Credit Risk - The Company maintains its cash with highly rated financial institutions, located in the United States and in foreign locations where the Company has its operations. At June 30, 2025, the Company had cash and cash equivalents of $59.8 million, of which $16.4 million was held by its foreign subsidiaries and $43.4 million was held in the United States. To the extent that such cash exceeds the maximum insurance levels, the Company is uninsured. The Company has not experienced any losses in such accounts.

Accounts Receivable  - Accounts receivable is generally recorded at the invoiced amounts, net of an allowance for expected losses. The Company establishes credit terms for new customers based upon management’s review of their credit information and project terms, and performs ongoing credit evaluations of its customers, adjusting credit terms when management believes appropriate based upon payment history and an assessment of the customer’s current creditworthiness.

The Company records an allowance for credit losses for estimated losses resulting from the failure of our customers to make the required payments and provisions for billing adjustments relating to quality issues on delivered services, service penalties, discounts and price adjustments. The allowance for credit losses is based on a review of specifically identified accounts and an overall aging analysis applied to accounts pooled based on similar risk characteristics. Judgments are made with respect to the collectability of accounts receivable within each pool based on historical experience, current payment practices, and current economic trends based on our expectations over the expected life of the receivables, generally ninety days or less. Actual credit losses could differ from those estimates.

Revenue Recognition - The Company’s revenue is recognized when services are rendered or goods are delivered to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods as per the agreement with the customer. In cases where there are agreements with multiple performance obligations, the Company identifies each performance obligation and evaluates whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. For agreements with distinct performance obligations, the Company allocates the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluates how the services are performed for the customer to determine the timing of revenue recognition.

For the Digital Data Solutions segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenue from agreements billed on a time-and-materials basis is recognized as services are performed. Revenue from fixed-fee agreements, which is not significant to overall revenues, is recognized based on the proportional performance method of accounting, as services are performed, or milestones are achieved.

For the Synodex segment, revenue is recognized primarily based on the quantity delivered in the period in which services are performed and performance conditions are satisfied as per the agreement. A portion of the Synodex segment revenue is derived from licensing the Company’s functional software and providing access to the Company’s hosted software platform. Revenue from such services is recognized monthly when all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; access to the service is provided to the end user; and collection is probable.

The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenue from reseller agreements is recognized at the gross amount received for the goods in accordance with the Company functioning as a principal due to the Company meeting the following criteria: the Company acts as the primary obligor in the sales transaction; assumes the credit risk; sets the price; can select suppliers; and is involved in the execution of the services, including after sales service.

Revenue includes reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs.

Revenue associated with the services provided in one period and billed in a subsequent period is commonly referred to as unbilled revenues and is included under Accounts receivable.

The Company considers U.S. GAAP criteria for determining whether to report gross revenue as a principal versus net revenue as an agent. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement.

Contract acquisition costs, which are included in prepaid expenses and other current assets, are amortized over the term of a subscription agreement or contract that normally has a duration of 12 months or less. The Company reviews these prepaid acquisition costs on a periodic basis to determine the need to adjust the carrying values for early terminated contracts. Included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets are contract acquisition costs amounting to $1.0 million and $1.1 million as of June 30, 2025 and December 31, 2024, respectively. These acquisition costs relate to our Agility segment and are amortized over the term of the subscription agreement.

Foreign Currency Translation - The functional currency of the Company’s subsidiaries in the Philippines, India, Sri Lanka, Israel, Hong Kong, the United Kingdom and Canada (other than the Agility subsidiaries) is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees, Israeli shekels, United Kingdom Pound Sterling and Canadian dollars are translated to U.S. dollars at rates which approximate those in effect on the transaction dates. Monetary assets and all liabilities denominated in foreign currencies on June 30, 2025 and December 31, 2024 are translated at the exchange rate in effect as of those dates. Non-monetary assets and stockholders’ equity are translated at the appropriate historical rates. Included in direct operating costs were foreign exchange (gains) losses resulting from such transactions of approximately $0.2 million and ($0.4) million for the three months ended June 30, 2025 and 2024, and $0.3 million and ($0.3) million for the six months ended June 30, 2025 and 2024, respectively.

The functional currency for the Company’s subsidiary in Germany is the Euro. The functional currencies for the Company’s Agility subsidiaries in the United Kingdom and Canada are the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in their respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the Company’s condensed consolidated financial statements. Income, expenses, and cash flows are translated at weighted-average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive income or loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

Derivative Instruments - The Company accounts for derivative transactions in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 825, “Financial Instruments”. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument is recorded in other comprehensive income (loss). When the amounts recorded in other comprehensive income (loss) are reclassified to earnings, they are included as part of direct operating costs. For derivative instruments that are not designated as hedges, any change in fair value is recorded directly in earnings as part of direct operating costs.

Capitalized Developed Software - The Company incurs development costs related to software it develops for its internal use. Qualifying costs incurred during the application development stage are capitalized. These costs primarily consist of internal labor and third-party development costs and are amortized using the straight-line method over the estimated useful life of the capitalized developed software, which generally ranges from three to ten years. All other research and maintenance costs are expensed as incurred. Capitalized developed software in progress was $4.9 million and $3.6 million as of June 30, 2025 and December 31, 2024, respectively. The cumulative completed capitalized developed software was $19.9 million and $19.8 million as of June 30, 2025 and December 31, 2024, respectively.

Income Taxes - Estimated deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the estimated deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company anticipates that it will be able to realize the estimated deferred tax assets in the future in excess of its net recorded amount, an adjustment to the provision for deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company anticipates that it will not be able to realize the estimated deferred tax assets in the future considering future taxable income, an adjustment to the provision for deferred tax assets would decrease income in the period such determination was made. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. If such earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the Company would have to accrue as a liability the applicable amount of foreign jurisdiction withholding taxes associated with such remittances.

In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the deferred tax assets of subsidiaries in Canada and Germany will be realizable or not.

In the first quarter of 2025, the Company assessed one of its Canadian subsidiaries and the assessment yielded positive evidence enabling the release of the valuation allowance for the Canadian deferred tax assets of the subsidiary under “ASC Topic 740-30-22 – Accounting for Income Taxes”.

In the second quarter of 2025, the Company assessed its German subsidiary and the assessment yielded positive evidence enabling the release of the valuation allowance for the German deferred tax assets of the subsidiary under “ASC Topic 740 - 30 - 22 - Accounting for Income Taxes”.

As the expectation of future taxable income of the second Canadian subsidiary cannot be predicted with reasonable accuracy, the Company continues to maintain a valuation allowance against the deferred tax assets of this subsidiary.

The Company accounts for income taxes regarding uncertain tax positions and recognizes interest and penalties related to uncertain tax positions in income tax expense in the condensed consolidated statements of operations and comprehensive income.

Deferred Revenue - Deferred revenue represents payments received from customers in advance of providing services and amounts deferred if conditions for revenue recognition have not been met. The Company expects to recognize substantially all of these performance obligations over the next 12 months. The table below summarizes the deferred revenue balances as of June 30, 2025 and December 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 

    

December 31, 

​

​

2025

​

2024

Deferred revenues

​

$

6,485

​

$

8,010

​

The table below provides information about contract liabilities (deferred revenue) and the changes in the balances for the three and six months ended as of June 30, 2025 and 2024 were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

    

Six Months Ended

​

​

June 30, 

​

June 30, 

​

​

2025

    

2024

    

2025

    

2024

Balance at the beginning of period

​

$

8,028

​

$

6,668

​

$

8,010

​

$

3,523

Net deferred revenue in the period

​

 

6,110

​

​

580

​

 

12,575

​

 

15,316

Revenue recognized

​

 

(8,001)

​

​

(2,467)

​

 

(14,608)

​

 

(13,957)

Currency translations and other adjustments

​

 

348

​

​

(11)

​

 

508

​

 

(112)

Balance at the end of period

​

$

6,485

​

$

4,770

​

$

6,485

​

$

4,770

​

Recently Issued Accounting Pronouncements Not Yet Adopted - On December 14, 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The effective date of this ASU is for fiscal years beginning after December 15, 2024 and interim periods beginning after December 15, 2025. The adoption of ASU 2023-09 will enhance quantitative and qualitative disclosures related to rate reconciliation of significant components and income tax paid. The Company does not anticipate any material impact from the adoption of this new standard.

​

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), fourth amendment via ASU 2025-01: Disaggregation of Income Statement Expenses”. ASU No. 2024-03 does not change or remove existing expense disclosure requirements but requires disaggregated disclosures about certain expense categories and captions, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. ASU No. 2024-03 will be effective for the Company starting in fiscal year 2027, and for interim financial reporting beginning in the first quarter of fiscal year 2028. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the Company’s disclosures within the consolidated financial statements.
v3.25.2
Accounts Receivable
 6 Months Ended
Jun. 30, 2025
Accounts Receivable  
Accounts Receivable

2.Accounts Receivable

Accounts receivable consists of the following (in thousands):

​

​

​

​

​

​

​

​

    

June 30,

    

December 31,

​

​

2025

​

2024

Gross Accounts receivable

​

$

35,681

​

$

29,772

Allowance for credit losses

​

 

(1,274)

​

 

(1,256)

Allowance for billing adjustments

​

​

(283)

​

​

(503)

Accounts receivable, net

​

$

34,124

​

$

28,013

​

Activity in the allowance for the credit losses for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

    

Six Months Ended

​

​

June 30,

​

June 30,

​

​

2025

    

2024

​

2025

    

2024

Balance at beginning of period

​

$

1,205

​

$

1,000

​

$

1,256

​

$

992

Additions charged to expense

​

​

79

​

​

91

​

​

79

​

 

106

Write-offs against allowance

​

​

(16)

​

​

(10)

​

​

(71)

​

 

(17)

Foreign currency translation adjustment

​

​

6

​

​

-

​

​

10

​

 

-

Balance at end of period

​

$

1,274

​

$

1,081

​

$

1,274

​

$

1,081

​
v3.25.2
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

3.Goodwill and Intangible Assets

​

Goodwill

​

The change in the carrying amount of goodwill for the six months ended June 30, 2025 was as follows (in thousands):

​

​

​

​

​

Balance - January 1, 2025

    

$

1,998

Foreign currency translation adjustment

​

 

88

Balance - June 30, 2025

​

$

2,086

​

The fair value measurement of goodwill of the Agility segment was conducted on September 30, 2024 and was classified within Level 3 of the fair value hierarchy because the Company used the income approach, which utilizes significant inputs that are unobservable in the market and the market multiple approach using comparable entities to further validate the carrying values. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the impairment test measurement date. The carrying value of Goodwill was $2.1 million and $2.0 million for the periods ended June 30, 2025 and December 31, 2024.

Intangibles

Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2025

​

​

​

​

​

​

​

​

Foreign

​

​

​

​

​

Gross

​

​

​

​

Currency

​

Net

​

​

Carrying

​

Accumulated

​

Translation

​

Carrying

​

    

Value

   

Amortization

   

Adjustment

   

Value

Acquired Intangible Assets

​

​

​

​

​

​

​

​

​

​

​

​

Developed technology

​

$

2,881

​

$

(2,784)

​

$

4

​

$

101

Customer relationships

 

​

1,965

 

​

(1,789)

 

​

10

 

​

186

Trademarks and tradenames

 

​

840

 

​

(820)

 

​

1

 

​

21

Patents

 

​

40

 

​

(40)

 

​

-

 

​

-

Media Contact Database

​

​

3,528

​

​

(3,177)

​

​

17

​

​

368

Total Acquired Intangible Assets

​

$

9,254

​

$

(8,610)

​

$

32

​

$

676

​

​

​

​

​

​

​

​

​

​

​

​

​

Capitalized Developed Software

​

 

​

​

 

​

​

 

​

​

 

​

Capitalized Developed Software

​

$

19,940

​

$

(11,845)

​

$

253

​

$

8,348

Capitalized Developed Software - in Progress

​

 

4,899

​

 

-

​

 

7

​

 

4,906

Total Capitalized Developed Software

​

$

24,839

​

$

(11,845)

​

$

260

​

$

13,254

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

$

34,093

​

$

(20,455)

​

$

292

​

$

13,930

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

​

​

​

​

​

​

Foreign

​

​

​

​

​

Gross

​

​

​

​

Currency

​

Net

​

 

Carrying

 

Accumulated

 

Translation

​

Carrying

​

    

Value

    

Amortization

    

Adjustment

    

Value

Acquired Intangible Assets

 

​

  

 

​

  

 

​

  

 

​

  

Developed technology

​

$

3,060

​

$

(2,911)

​

$

(3)

​

$

146

Customer relationships

​

​

2,144

​

​

(1,856)

​

​

(29)

​

​

259

Trademarks and tradenames

​

​

862

​

​

(826)

​

​

-

​

​

36

Patents

​

 

44

​

 

(44)

​

​

-

​

​

-

Media Contact Database

​

​

3,546

​

​

(3,016)

​

​

(1)

​

​

529

Total Acquired Intangible Assets

​

$

9,656

​

$

(8,653)

​

$

(33)

​

$

970

​

​

​

​

​

​

​

​

​

​

​

​

​

Capitalized Developed Software

​

​

​

​

​

​

​

​

​

​

​

​

Capitalized Developed Software

​

$

19,811

​

$

(10,507)

​

$

(463)

​

$

8,841

Capitalized Developed Software - in Progress

​

​

3,552

​

​

-

​

​

(10)

​

​

3,542

Total Capitalized Developed Software

​

$

23,363

​

$

(10,507)

​

$

(473)

​

$

12,383

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

$

33,019

​

$

(19,160)

​

$

(506)

​

$

13,353

​

Amortization expense relating to acquired intangible assets was $0.2 million for each of the three-month periods ended June 30, 2025 and 2024. Amortization expense relating to acquired intangible assets was $0.4 million for each of the six-month periods ended June 30, 2025 and 2024.

Amortization expense relating to capitalized developed software was $0.9 million and $0.8 million for the three months ended June 30, 2025 and 2024, respectively. Amortization expense relating to capitalized developed software was $1.9 million and $1.6 million for the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, estimated future amortization expense for intangible assets was as follows (in thousands):

​

​

​

​

​

Year

    

Amortization

2025

​

$

3,828

2026

​

​

4,950

2027

​

​

3,498

2028

​

​

843

2029

​

​

516

Thereafter

​

​

295

​

​

$

13,930

​
v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Taxes  
Income Taxes

4.Income Taxes

For the six months ended June 30, 2025, the Company recorded an income tax provision of approximately $2.9 million. The provision primarily reflects Federal and State income tax expense on U.S. operations, income tax expense attributable to the Company’s subsidiaries in foreign jurisdictions in accordance with applicable local tax regulations, including the tax impact of IRS section 162(m) adjustments and Global Intangible Low-Taxed Income (“GILTI”) inclusions. The tax provision was partially offset by the favorable effect of stock-based compensation and the release of valuation allowances on deferred tax assets of the Company’s Canadian and German subsidiaries, resulting from improved expectations of future taxable income in those jurisdictions, and the reversal of previously recorded uncertain tax positions, in accordance with ASC 740.

Although the Company generated taxable income in the United States during the period, the related current tax liability was partially offset by deferred tax assets arising from the net operating loss carryforwards (“NOLCOs”)

The estimated effective tax rate applied to the six-month period ended June 30, 2025 is lower than the U.S. federal statutory rate of 21% principally due to the favorable effect of stock-based compensation and change in valuation allowance, offset in part by IRS section 162(m) adjustments, state income tax provisions and tax effect of foreign operations.

The estimated effective tax rate applied to the six-month period ended June 30, 2024, is higher than the U.S. federal statutory rate of 21% principally due to income earned outside the United States which is subject to the U.S. tax on global intangible low taxed income (“GILTI”), tax effects of foreign operations, changes in valuation allowance, provision on uncertain tax positions, and other net increases, offset in part by a reduction in foreign exchange gains and losses, deemed interest and true up adjustment on prior year tax provision.

During the first quarter of 2025, the Company determined it was more likely than not that one of the Company’s subsidiaries in Canada would be able to realize the benefit of the deferred tax assets in Canada, resulting in the release of the valuation allowance. In reaching this determination, the Company considered the growing trend of profitability over the last three years in the Canadian subsidiary, as well as expectations regarding the generation of future taxable income.

During the second quarter of 2025, the Company determined it was more likely than not that the Company’s subsidiary in Germany would be able to realize the benefit of the deferred tax assets in Germany, resulting in the release of the valuation allowance. In reaching this determination, the Company considered the growing trend of profitability over the last three years in the German subsidiary, as well as expectations regarding the generation of future taxable income.

The reconciliations of the U.S. federal statutory rate with the Company’s effective tax rate for the six months ended June 30, 2025 and 2024, respectively, are summarized in the table below:

​

​

​

​

​

​

​

​

​

For the Six Months

​

​

​

Ended June 30,

​

​

    

2025

    

2024

​

Federal income tax expense at statutory rate

 

21.0

%

21.0

%

Effect of:

 

​

​

​

​

Section 162 (m)

​

14.3

​

-

​

State income tax net of federal benefit

​

2.5

​

0.8

​

Tax effects of foreign operations

​

1.5

​

7.1

​

GILTI provisions

​

0.8

​

17.6

​

Withholding tax

​

0.2

​

-

​

Deemed interest

​

(0.3)

​

(5.2)

​

Foreign rate differential

​

(0.4)

​

(1.4)

​

Change in tax rates

​

(0.7)

​

-

​

Change in valuation allowance

​

(2.1)

​

6.4

​

Effect of stock-based compensation

​

(21.1)

​

(2.9)

​

Increase in unrecognized tax benefits (ASC 740)

​

-

​

5.5

​

Return to provision true up

​

-

​

(3.2)

​

Foreign operations permanent differences - foreign exchange gains and losses

​

-

​

(7.9)

​

Other

​

0.4

​

4.2

​

Effective tax rate

​

16.1

%

42.0

%

​

The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the six months ended June 30, 2025 (in thousands):

​

​

​

​

​

​

    

Unrecognized

​

 

Tax Benefits

Balance - January 1, 2025

​

$

999

Increase for current period tax positions

​

 

173

Decrease for prior year tax positions

​

​

(214)

Interest accrual

​

 

28

Foreign currency remeasurement

​

 

6

Balance - June 30, 2025

​

$

992

​
v3.25.2
Operating Leases
 6 Months Ended
Jun. 30, 2025
Operating Leases  
Operating Leases

5.Operating Leases

The Company has various lease agreements for its offices and service delivery centers and has determined that the risks and benefits related to these leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. Lease agreements with a term of less than one year are treated as short-term leases and are accounted for separately as shown in the table below.

Most of these lease agreements are renewable at the mutual consent of the parties to the contract. These lease agreements are for terms ranging from three to eleven years and, in most cases, provide for rent escalations ranging from 1.75% to 15%.

The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Rent expense for long-term operating leases

​

$

314

​

$

314

​

$

629

​

$

628

Rent expense for short-term leases

​

 

48

​

 

44

​

​

89

​

​

91

Total rent expense

​

$

362

​

$

358

​

$

718

​

$

719

​

The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of June 30, 2025 (in thousands):

​

​

​

​

​

Year

    

Amount

2025

​

$

651

2026

​

 

1,329

2027

​

 

1,325

2028

​

 

957

2029

​

 

695

2030 and thereafter

​

 

174

Total lease payments

​

 

5,131

Less: Interest

​

 

(908)

Net present value of lease liabilities

​

$

4,223

​

​

 

​

Current portion

​

$

928

Long-term portion

​

 

3,295

Total

​

$

4,223

​

The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2025 were as follows:

​

​

​

​

​

Weighted-average lease term remaining

    

45 months

​

Weighted-average discount rate

 

9.39

%

​
v3.25.2
Long-term obligations
 6 Months Ended
Jun. 30, 2025
Long-term obligations  
Long-term obligations

6.Long-term obligations

Total long-term obligations as of June 30, 2025 and December 31, 2024 consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 

    

December 31, 

​

 

2025

 

2024

Pension obligations - accrued pension liability

​

$

8,655

​

$

7,945

Microsoft licenses (1)

​

 

315

​

 

442

​

​

​

8,970

​

​

8,387

Less: Current portion of long-term obligations

​

 

1,477

​

 

1,643

Total Non-Current portion of long-term obligations

​

$

7,493

​

$

6,744

​

(1)In March 2023, the Company renewed a vendor agreement to acquire certain additional software licenses, receive technical support and future software upgrades on software licenses through February 2026. Pursuant to this agreement, the Company is contractually liable to pay approximately $0.4 million annually over the term of the agreement.
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies  
Commitments and Contingencies

7.Commitments and Contingencies

Litigation – In 2008, a judgment was rendered in the Philippines against a Philippine subsidiary of the Company that is no longer active and purportedly also against Innodata Inc., in favor of certain former employees of the Philippine subsidiary. The potential payment amount aggregates to approximately $5.8 million, plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue legal interest at 6% per annum. The potential payment amount as expressed in U.S. dollars varies with the Philippine peso to U.S. dollar exchange rate. In December 2017, a group of 97 of the former employees of the Philippine subsidiary indicated that they proposed to record the judgment as to themselves in New Jersey. In January 2018, in response to an action initiated by Innodata Inc., the United States District Court for the District of New Jersey (“USDC”) entered a preliminary injunction that enjoins these former employees from pursuing or seeking recognition or enforcement of the judgment against Innodata Inc. in the United States during the pendency of the action and until further order of the USDC. In June 2018, the USDC entered a consent order administratively closing the action subject to return of the action to the active docket upon the written request of Innodata Inc. or the former employees, with the USDC retaining jurisdiction over the matter and the preliminary injunction remaining in full force and effect.

In February 2024, David D’Agostino filed a putative class action captioned D’Agostino v. Innodata Inc., et al., in the United States District Court for the District of New Jersey against the Company and certain of its current and former officers (the “Securities Class Action”). In October 2024, the presiding judge in the Securities Class Action appointed a lead plaintiff and approved the lead plaintiff’s choice of counsel. The Securities Class Action complaint, as amended, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder, and it alleges, among other things, that the defendants made false and misleading statements regarding the Company’s artificial intelligence (“AI”) technology and services. The plaintiff seeks unspecified damages, fees, interest, and costs. The Company intends to defend itself vigorously. On March 7, 2025, the Company filed a motion to dismiss the Securities Class Action complaint. On April 10, 2025, the plaintiff filed a Second Amended Complaint to the Securities Class Action complaint (the “Second Amended Complaint”) to correct purported typographical errors in the Securities Class Action complaint. On April 11, 2025, the Company filed a motion to dismiss the Second Amended Complaint. The motion to dismiss is fully briefed and pending with the USDC. The Company cannot predict the outcome of the action at this time and can give no assurance that the asserted claims will not have a material adverse effect on its financial position or results of operations.

Subsequently, in March 2024, the Company received a letter from the staff of the SEC, requesting the Company preserve certain documents and data; in August 2024 the Company received a grand jury subpoena from the U.S. Department of Justice (“DOJ”) requesting the Company to produce certain documents; and in September 2024 the Company received a subpoena from the SEC requesting certain information. The Company believes that the SEC and DOJ requests were related to the conduct alleged in the Securities Class Action. On June 12, 2025, the DOJ notified the Company that it has closed its investigation into the Company. Separately, the SEC has likewise notified the Company that it has concluded its investigation and does not intend to recommend an enforcement action against the Company.

The Company is also subject to various other legal proceedings and claims that have arisen in the ordinary course of business. While the Company believes that it has adequate reserves for those losses that it believes are probable and can be reasonably estimated, the ultimate results of legal proceedings and claims cannot be predicted with certainty.

While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s consolidated financial position or overall trends in consolidated results of operations, litigation is subject to inherent uncertainties. Substantial recovery against the Company in the above-referenced Philippine action could have a material adverse impact on the Company, and unfavorable rulings or recoveries in the other proceedings described above could have a material adverse impact on the consolidated operating results in the period in which the ruling or recovery occurs. In addition, the Company’s estimate of the potential impact on the Company’s consolidated financial position or overall consolidated results of operations for the above referenced legal proceedings could change in the future.

The Company’s legal accruals related to legal proceedings and claims are based on the Company’s determination of whether or not a loss is probable. The Company reviews outstanding proceedings and claims with external counsel to assess probability and estimates of loss. The accruals are adjusted if necessary. While the Company intends to defend these matters vigorously, adverse outcomes that it estimates could reach approximately $450,000 in the aggregate beyond recorded amounts are reasonably possible. If circumstances change, the Company may be required to record adjustments that could be material to its reported consolidated financial condition and results of operations.
v3.25.2
Stock Options and Restricted Stock Units
 6 Months Ended
Jun. 30, 2025
Stock Options and Restricted Stock Units  
Stock Options and Restricted Stock Units

8.Stock Options and Restricted Stock Units

The stock-based compensation expense related to the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the “2013 Plan”) and the Innodata Inc. 2021 Equity Compensation Plan, as amended and restated effective as of April 11, 2022 (the “2021 Plan”, and together with the 2013 Plan, collectively, the “Equity Plans”) were allocated as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Direct operating costs

​

$

441

​

$

73

​

$

868

​

$

157

Selling and administrative expenses

​

 

2,280

​

 

919

​

 

4,734

​

 

1,869

Total stock-based compensation

​

$

2,721

​

$

992

​

$

5,602

​

$

2,026

​

Stock Options

​

2013 Plan

A summary of option activity under the 2013 Plan and changes during each of the six-month periods ended June 30, 2025 and 2024 are presented below:

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

 

​

 

Weighted-Average

 

​

​

​

Number of

 

Weighted - Average

 

Remaining Contractual

​

Aggregate

​

    

Options

    

Exercise Price

    

Term (years)

    

Intrinsic Value

Outstanding at January 1, 2025

 

3,165,193

​

$

3.67

 

6.32

 

$

113,458,326

Granted

 

-

​

 

-

 

-

 

​

-

Exercised

 

(236,542)

​

 

4.48

 

-

 

​

-

Forfeited/Expired

 

-

​

 

-

 

-

 

​

-

Outstanding at June 30, 2025

 

2,928,651

​

$

3.61

 

5.85

​

$

139,434,371

​

 

​

​

 

​

 

​

​

 

​

Exercisable at June 30, 2025

 

2,830,316

​

$

3.62

​

5.80

​

$

134,732,975

​

 

​

​

 

​

 

​

​

 

​

Vested and Expected to vest at June 30, 2025

 

2,928,651

​

$

3.61

 

5.85

​

$

139,434,371

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Weighted-Average

    

​

​

​

​

Number of

​

Weighted - Average

​

Remaining Contractual

​

Aggregate

​

​

Options

​

Exercise Price

​

Term (years)

​

Intrinsic Value

Outstanding at January 1, 2024

​

5,339,162

​

$

3.22

​

6.38

​

$

28,640,009

Granted

 

-

 

​

-

 

-

 

​

-

Exercised

 

(155,899)

 

​

4.00

 

-

 

​

-

Forfeited/Expired

 

(4,001)

 

​

6.96

 

-

 

​

-

Outstanding at June 30, 2024

 

5,179,262

​

$

3.19

 

5.87

​

$

60,291,271

​

​

​

​

​

​

​

​

​

​

​

Exercisable at June 30, 2024

 

3,402,382

​

$

2.20

 

4.92

​

$

42,967,259

​

​

​

​

​

​

​

​

​

​

​

Vested and Expected to vest at June 30, 2024

 

5,179,262

​

$

3.19

 

5.87

​

$

60,291,271

​

2021 Plan

A summary of option activity under the 2021 Plan and changes during the six-month periods ended June 30, 2025 and 2024 are presented below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-Average

​

​

​

​

Number of

​

Weighted - Average

​

Remaining Contractual

​

Aggregate

​

    

Options

    

Exercise Price

    

Term (years)

    

Intrinsic Value

Outstanding at January 1, 2025

 

842,271

​

$

15.86

 

8.46

 

$

20,847,471

Granted

 

-

​

 

-

 

-

 

​

-

Exercised

 

(116,874)

​

 

3.51

 

-

 

​

-

Forfeited/Expired

 

(16,335)

​

 

3.41

 

-

 

​

-

Outstanding at June 30, 2025

 

709,062

​

$

18.19

 

8.09

​

$

23,423,424

​

​

​

​

​

​

​

​

​

​

​

Exercisable at June 30, 2025

 

198,204

​

$

3.32

 

7.23

​

$

9,494,233

​

​

​

​

​

​

​

​

​

​

​

Vested and Expected to vest at June 30, 2025

 

709,062

​

$

18.19

 

8.09

​

$

23,423,424

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Weighted-Average

    

​

​

​

​

Number of 

​

Weighted - Average

​

Remaining Contractual

​

Aggregate

​

​

Options

​

Exercise Price

​

Term (years)

​

Intrinsic Value

Outstanding at January 1, 2024

 

923,571

​

$

3.41

​

8.76

 

$

4,786,252

Granted

 

-

​

 

-

​

-

 

​

-

Exercised

 

(46,430)

​

 

3.41

​

-

 

​

-

Forfeited/Expired

 

(7,668)

​

 

3.41

​

-

 

​

-

Outstanding at June 30, 2024

 

869,473

​

$

3.41

​

8.27

​

$

9,927,362

​

​

​

​

​

​

​

​

​

​

​

Exercisable at June 30, 2024

 

339,779

​

$

3.33

​

8.24

​

$

3,907,176

​

​

​

​

​

​

​

​

​

​

​

Vested and Expected to vest at June 30, 2024

 

869,473

​

$

3.41

​

8.27

​

$

9,927,362

​

There were no options granted during the six months ended June 30, 2025 and 2024.

During the six months ended June 30, 2025, a total of 353,416 options were exercised at an average exercise price of $4.16.

The compensation cost related to non-vested stock options not yet recognized as of June 30, 2025 totaled approximately $7.3 million. The weighted-average period over which these costs will be recognized is 29 months.

Restricted Stock Units

Restricted stock unit activity under the Equity Plans during each of the six-month periods ended June 30, 2025 and 2024 are presented below:

​

​

​

​

​

​

​

​

​

Number of 

 

Weighted-Average

​

​

Restricted Stock

​

Grant Date

​

    

Units

    

 Fair Value

Unvested at January 1, 2025

​

1,249,079

​

$

20.98

Granted

 

14,580

 

​

44.81

Vested

 

(213,173)

 

​

6.36

Forfeited/Expired

 

(541,250)

 

​

7.07

Unvested at June 30, 2025

 

509,236

​

$

42.57

​

​

​

​

​

​

​

​

    

Number of

    

Weighted-Average

​

​

Restricted Stock

​

Grant Date

​

​

Units

​

Fair Value

Unvested at January 1, 2024

 

749,756

​

$

5.77

Granted

 

28,973

​

 

15.10

Vested

 

(48,761)

​

 

8.42

Forfeited/Expired

 

(995)

​

 

8.29

Unvested at June 30, 2024

 

728,973

​

$

5.96

​

There were a total of 11,829 restricted stock units granted to non-employee directors during the six months ended June 30, 2025.

The compensation cost related to non-vested restricted stock units not yet recognized as of June 30, 2025 totaled approximately $17.9 million. The weighted-average period over which these costs will be recognized is 29 months.
v3.25.2
Comprehensive loss
 6 Months Ended
Jun. 30, 2025
Comprehensive loss  
Comprehensive loss

9.Comprehensive loss

Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustment and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive loss as of June 30, 2025 and 2024, and reclassifications from accumulated other comprehensive loss for the three and six-month periods, are presented below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at April 1, 2025

​

$

(234)

​

$

(121)

​

$

(1,733)

​

$

(2,088)

Other comprehensive income (loss) before reclassifications, net of taxes

​

​

(36)

 

​

265

 

​

582

 

​

811

Total other comprehensive income (loss) before reclassifications, net of taxes

​

​

(270)

 

​

144

 

​

(1,151)

 

​

(1,277)

Net amount reclassified to earnings

​

​

1

 

​

(17)

 

​

-

 

​

(16)

Balance at June 30, 2025

​

$

(269)

​

$

127

​

$

(1,151)

​

$

(1,293)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at January 1, 2025

​

$

(233)

​

$

(395)

​

$

(1,842)

​

$

(2,470)

Other comprehensive income (loss) before reclassifications, net of taxes

 

 

(36)

​

 

386

​

 

691

​

 

1,041

Total other comprehensive loss before reclassifications, net of taxes

 

 

(269)

​

 

(9)

​

 

(1,151)

​

 

(1,429)

Net amount reclassified to earnings

 

 

-

​

 

136

​

 

-

​

 

136

Balance at June 30, 2025

​

$

(269)

​

$

127

​

$

(1,151)

​

$

(1,293)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at April 1, 2024

​

$

(413)

​

$

7

​

$

(1,380)

​

$

(1,786)

Other comprehensive loss before reclassifications, net of taxes

​

 

-

​

 

(193)

​

 

(78)

​

 

(271)

Total other comprehensive income (loss) before reclassifications, net of taxes

​

 

(413)

​

 

(186)

​

 

(1,458)

​

 

(2,057)

Net amount reclassified to earnings

​

 

-

​

 

19

​

 

-

​

 

19

Balance at June 30, 2024

​

$

(413)

​

$

(167)

​

$

(1,458)

​

$

(2,038)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at January 1, 2024

​

$

(412)

​

$

41

​

$

(1,250)

​

$

(1,621)

Other comprehensive loss before reclassifications, net of taxes

​

 

-

​

 

(206)

​

 

(208)

​

 

(414)

Total other comprehensive loss before reclassifications, net of taxes

​

 

(412)

​

 

(165)

​

 

(1,458)

​

 

(2,035)

Net amount reclassified to earnings

​

 

(1)

​

 

(2)

​

 

-

​

 

(3)

Balance at June 30, 2024

​

$

(413)

​

$

(167)

​

$

(1,458)

​

$

(2,038)

​

Taxes related to each component of other comprehensive loss were not material for each of the three and six-month periods presented and therefore not disclosed separately.

All reclassifications from accumulated other comprehensive income (loss) had an impact on direct operating costs in the condensed consolidated statements of operations and comprehensive income.
v3.25.2
Segment reporting and concentrations
 6 Months Ended
Jun. 30, 2025
Segment reporting and concentrations  
Segment reporting and concentrations

10.Segment reporting and concentrations

The Company’s operations are classified in three reporting segments: Digital Data Solutions (“DDS”), Synodex and Agility.

The DDS segment provides AI data preparation services, collecting or creating training data, annotating training data, and training AI algorithms for its customers, and AI model deployment and integration. The DDS segment also provides a range of data engineering support services including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management.

The Synodex segment provides an industry platform that transforms medical records into useable digital data organized in accordance with its proprietary data models or customer data models.

The Agility segment provides an industry platform that provides marketing communications and public relations professionals with the ability to target and distribute content to journalists and social media influencers world-wide and to monitor and analyze global news channels (print, web, radio and TV) and social media channels.

A significant portion of the Company’s revenues is generated from its locations in the Philippines, India, Sri Lanka, Canada, Germany, Israel, United States and the United Kingdom.

The Company’s chief operating decision maker (“CODM”) is the senior executive committee that includes the chief executive officer, the chief operating officer, and the chief financial officer (interim).

The U.S. GAAP measures used by the Company’s CODM to evaluate segment performance and allocate resources—such as employees, property, and financial or capital resources during the annual budgeting and forecasting process, are Revenues, Gross Profit and Income before provision for income taxes. Performance results are monitored, reviewed, and measured monthly and quarterly by comparing budget and forecast to actual results for profit measures, assessing returns on investment, compensation decisions and changing strategies, if required.

The accounting policies used by the DDS, Synodex and Agility segments are the same as those described in the summary of significant accounting policies.

The measure of segment assets is reported on the balance sheet as total consolidated assets shown in the table below (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 2025

    

December 31, 2024*

Total assets:

 

​

  

 

​

  

DDS

​

$

112,159

​

$

91,588

Synodex

​

 

4,828

​

 

4,790

Agility(1)

​

 

15,636

​

 

17,071

Total Consolidated

​

$

132,623

​

$

113,449

​

*Prior period segment assets of DDS, Synodex and Agility segments have been reclassified to align with the current period presentation, with no impact on the Company’s consolidated results.

(1)Agility assets include goodwill of $2.1 million and $2.0 million for each of the periods ended June 30, 2025 and December 31, 2024, respectively.
(2)Segment assets consist of cash, receivables, prepaid and other assets, property and equipment, right of-use-assets, deferred income tax and intangibles.

The table below shows segment information for other significant income statement items (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2025

​

   

​

DDS

​

​

Synodex

   

Agility

   

Total

Revenues

 

$

50,576

 

$

2,065

​

$

5,752

​

$

58,393

Direct operating costs (1) (3)

​

​

31,177

​

​

1,618

​

​

2,575

​

​

35,370

Gross profit

​

 

19,399

​

 

447

​

​

3,177

​

​

23,023

Selling and administrative expenses (2) (4)

​

 

10,430

​

 

140

​

​

3,542

​

​

14,112

Segment operating income (loss)

​

​

8,969

​

​

307

​

​

(365)

​

​

8,911

Interest income, net

​

 

(577)

​

 

-

​

​

-

​

​

(577)

Income (loss) before provision for income taxes

​

$

9,546

​

$

307

​

$

(365)

​

$

9,488

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2024

​

    

DDS

​

Synodex

​

Agility

​

Total

Revenues

​

$

25,410

    

$

1,986

    

$

5,157

    

$

32,553

Direct operating costs (1) (3)

​

 

19,331

​

 

1,530

 

 

2,341

 

 

23,202

Gross profit

​

 

6,079

​

 

456

 

 

2,816

 

 

9,351

Selling and administrative expenses (2) (4)

​

 

6,197

​

 

140

 

 

2,683

 

 

9,020

Segment operating income (loss)

​

 

(118)

​

 

316

 

 

133

 

 

331

Interest (income) expense, net

​

 

54

​

 

-

 

 

1

 

 

55

Income (loss) before provision for income taxes

​

$

(172)

​

$

316

 

$

132

 

$

276

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Six Months Ended June 30, 2025

​

​

DDS

    

Synodex

    

Agility

    

Total

Revenues

 

$

101,406

 

$

4,079

​

$

11,252

​

$

116,737

Direct operating costs (1) (3)

​

​

62,279

​

​

3,079

​

​

5,104

​

​

70,462

Gross profit

​

​

39,127

​

​

1,000

​

​

6,148

​

​

46,275

Selling and administrative expenses (2) (4)

​

​

22,025

​

​

427

​

​

6,640

​

​

29,092

Segment operating income (loss)

​

​

17,102

​

​

573

​

​

(492)

​

​

17,183

Interest (income) expense, net

​

​

(705)

​

​

-

​

​

1

​

​

(704)

Income (loss) before provision for income taxes

​

$

17,807

​

$

573

​

$

(493)

​

$

17,887

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2024

​

​

DDS

​

Synodex

​

Agility

​

Total

Revenues

    

$

45,116

    

$

3,857

    

$

10,084

    

$

59,057

Direct operating costs (1) (3)

​

 

32,479

​

 

3,002

​

 

4,590

​

 

40,071

Gross profit

​

 

12,637

​

 

855

​

 

5,494

​

 

18,986

Selling and administrative expenses (2) (4)

​

 

11,992

​

 

263

​

 

5,070

​

 

17,325

Segment operating income

​

 

645

​

 

592

​

 

424

​

 

1,661

Interest (income) expense, net

​

 

(31)

​

 

—

​

 

2

​

 

(29)

Income before provision for income taxes

​

$

676

​

$

592

​

$

422

​

$

1,690

​

(1)Direct operating costs consist of direct and indirect labor costs, occupancy costs, data center hosting fees, cloud services, content acquisition costs, depreciation and amortization, travel, telecommunications, computer services and supplies, realized (gain) loss on forward contracts, foreign currency revaluation (gain) loss, recruitment costs and other direct expenses that are incurred in providing services to our customers.
(2)Selling and administrative expenses consist of payroll and related costs including commissions, bonuses, and stock-based compensation; marketing, advertising, trade conferences and related expenses; new services research and related software development expenses, software subscriptions, professional and consultant fees, provision for credit losses and other administrative overhead expenses.
(3)Includes non-cash expenses which consist mainly of depreciation, amortization of capitalized software development costs and stock-based compensation expense.
(4)Includes non-cash expenses which consist mainly of stock-based compensation expense.

Revenues for the three and six-month periods ended June 30, 2025, and 2024 by geographic region (determined based upon customer’s domicile), were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

United States

​

$

48,563

​

$

23,804

​

$

97,460

​

$

41,673

Canada

​

 

2,955

​

 

2,284

​

 

5,678

​

 

4,510

United Kingdom

​

 

2,470

​

 

2,364

​

 

4,897

​

 

4,614

The Netherlands

​

​

2,277

​

​

2,005

​

​

4,442

​

​

4,044

Others - principally other European countries

​

 

2,128

​

 

2,096

​

 

4,260

​

 

4,216

Totals

​

$

58,393

​

$

32,553

​

$

116,737

​

$

59,057

​

Long-lived assets as of June 30, 2025 and December 31, 2024 by geographic region were comprised of (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 

    

December 31, 

​

 

2025

 

2024

United States

​

$

10,859

​

$

10,182

​

​

 

​

​

 

​

Foreign countries:

​

 

​

​

 

​

Canada

​

 

6,442

​

 

6,265

United Kingdom

​

 

772

​

 

806

Philippines

​

 

3,435

​

 

3,532

India

​

 

2,257

​

 

2,251

Sri Lanka

​

 

721

​

 

587

Israel

​

 

66

​

 

63

Germany

​

​

4

​

​

4

Total foreign

​

 

13,697

​

 

13,508

Totals

​

$

24,556

​

$

23,690

​

Long-lived assets include the unamortized balance of right-of-use assets amounting to $3.8 million and $4.2 million as of June 30, 2025 and December 31, 2024, respectively.

One customer in the DDS segment generated approximately 58% and 38% of the Company’s total revenues for the three months ended June 30, 2025 and 2024, respectively. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. customers accounted for 17% and 27% of the Company’s total revenues for the three months ended June 30, 2025 and 2024, respectively.

One customer in the DDS segment generated approximately 59% and 31% of the Company’s total revenues for the six months ended June 30, 2025 and 2024, respectively. No other customer accounted for 10% or more of total revenues during these periods. Further, revenues from non - U.S. customers accounted for 17% and 29% of the Company’s total revenues for the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, approximately 20% of the Company’s accounts receivable was due from foreign (principally European) customers and 60% of the Company’s accounts receivable was due from one customer. As of December 31, 2024, approximately 16% of the Company’s accounts receivable was due from foreign (principally European) customers and 61% of the Company’s accounts receivable was due from two customers. No other customer accounted for 10% or more of the accounts receivable as of June 30, 2025 and December 31, 2024.
v3.25.2
Income Per Share
 6 Months Ended
Jun. 30, 2025
Income Per Share  
Income Per Share

11.Income Per Share

​

The calculation of the dilutive effect of outstanding options is shown in the table below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Net income (loss) attributable to Innodata Inc. and Subsidiaries

​

$

7,219

​

$

(14)

​

$

15,006

​

$

975

Weighted average common shares outstanding

​

 

31,785

​

 

28,878

​

 

31,609

​

 

28,819

Dilutive effect of outstanding options

​

 

3,516

​

 

-

​

 

3,511

​

 

3,872

Adjusted for dilutive computation

​

 

35,301

​

 

28,878

​

 

35,120

​

 

32,691

​

Basic income per share is computed using the weighted-average number of common shares outstanding during the year. Diluted income per share is computed by considering the impact of the potential issuance of common shares, using the treasury stock method, on the weighted-average number of shares outstanding. For those securities that are not convertible into a class of common stock, the “two-class” method of computing income per share is used.

Options to purchase 3.4 million shares of common stock for the three month and six months ended June 30, 2025 were outstanding and included in the computation of diluted income per share. Also included in the computation of diluted income per share are 469,483 restricted stock units using the treasury stock method to determine the dilutive effect of restricted stock units outstanding as of June 30, 2025.

Options to purchase 6.0 million shares of common stock for the three months ended June 30, 2024 were outstanding but not included in the computation of diluted loss per share because the effect would have been anti - dilutive. Options to purchase 3,000 shares of common stock for the six months ended June 30, 2024 were outstanding but not included in the computation of diluted income per share because the exercise price of the options was greater than the average market price of the common shares.
v3.25.2
Derivatives
 6 Months Ended
Jun. 30, 2025
Derivatives  
Derivatives

12.Derivatives

The Company conducts a large portion of its operations in international markets, which subjects it to foreign currency fluctuations. The most significant foreign currency exposures occur when revenue and associated accounts receivable are collected in one currency and expenses to generate that revenue are incurred in another currency. The Company is also subject to wage inflation and other government mandated increases and operating expenses in Asian countries where the Company has the majority of its operations. The Company’s primary inflation and exchange rate exposure relates to payroll, other payroll costs and operating expenses in the Philippines, India, Sri Lanka and Israel.

In addition, although most of the Company’s revenue is denominated in U.S. dollars, a portion of total revenues is denominated in Canadian dollars, Pound Sterling and Euros.

The Company’s policy is to enter derivative instrument contracts with terms that coincide with the underlying exposure being hedged for a period of up to 12 months. As such, the Company’s derivative instruments are expected to be highly effective. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument is recorded to other comprehensive income (loss). Upon settlement of these contracts, the change in the fair value recorded in other comprehensive income (loss) is reclassified to earnings and included as part of direct operating costs. For derivative instruments that are not designated as hedges, any change in fair value is recorded directly in earnings as part of direct operating costs.

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company does not hold or issue derivatives for trading purposes. All derivatives are recognized at their fair value and classified based on the instrument’s maturity date. The total notional amount for outstanding derivatives designated as hedges was $14.8 million and $22.5 million as of June 30, 2025 and December 31, 2024, respectively.

The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Balance Sheet Location

​

Fair Value

​

​

​

​

June 30, 

​

December 31,

​

    

​

    

2025

    

2024

Derivatives designated as hedging instruments:

 

  

 

​

  

 

​

  

​

​

​

​

​

​

​

​

​

Foreign currency forward contracts

 

Accrued expenses

​

$

-

​

$

499

Foreign currency forward contracts

 

Prepaid expenses and other current assets

​

$

161

​

$

-

​

The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

For the Three Months Ended

​

For the Six Months Ended

​

 

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Net gain (loss) recognized in OCI(1)

​

$

265

​

$

(193)

​

$

(386)

​

$

(206)

Net (gain) loss reclassified from accumulated OCI into income(2)

​

$

(17)

​

$

19

​

$

136

​

$

(2)

Net gain recognized in income(3)

​

$

-

​

$

-

​

$

-

​

$

-

​

(1)

Net change in fair value of the effective portion classified into other comprehensive income (“OCI”).

(2)

Effective portion classified within direct operating costs.

(3)

There were no ineffective portions for the periods presented.

v3.25.2
Line of Credit
 6 Months Ended
Jun. 30, 2025
Line of Credit  
Line of Credit

13.Line of Credit

On April 4, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as lender, and Innodata Inc., Innodata Synodex, LLC, Innodata docGenix, LLC and Agility PR Solutions LLC as co-borrowers. On July 21, 2023, Innodata Services, LLC signed a Joinder Agreement to join the Credit Agreement as a co-borrower. On August 5, 2024, the Company entered into a second amendment to the Credit Agreement (together with the Credit Agreement, the “Amended Credit Agreement”). The Amended Credit Agreement provides for a secured revolving line of credit (the “Revolving Credit Facility”) up to an amount equal to the lesser of the borrowing base and $30.0 million (the “Maximum Credit”) and provides that a Borrower may request an increase to the Revolving Credit Facility’s Maximum Credit of up to, but not to exceed $50.0 million, subject to the approval of the Lender. The Revolving Credit Facility’s borrowing base is calculated on the basis of (i) 85% of eligible accounts (other than eligible foreign accounts and unbilled accounts), plus (ii) the lesser of (a) 80% of eligible accounts that are unbilled accounts and (b) 30% of all eligible accounts, plus (iii) the lesser of (a) 85% of eligible foreign accounts, (b) 20% of all eligible accounts and (c) $4.0 million, minus (iv) certain other reserves and adjustments. As of June 30, 2025, such borrowing base calculation equaled approximately $25.2 million. The Credit Agreement contains a financial covenant that requires the Borrowers, on a consolidated basis, to maintain a fixed charge coverage ratio of not less than 1.10 to 1.00. Except as set forth in the Credit Agreement, borrowings under the Revolving Credit Facility bear interest at a rate equal to the daily simple secured overnight financing rate (“SOFR”) plus 2.25%. The Company did not utilize the Revolving Credit Facility during the six months ended June 30, 2025 or during the subsequent period through the filing date of this Report.
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure            
Net Income (Loss) $ 7,219 $ 7,787 $ (14) $ 989 $ 15,006 $ 975
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Summary of Significant Accounting Policies and Estimates (Policies)
 6 Months Ended
Jun. 30, 2025
Summary of Significant Accounting Policies and Estimates  
Basis of Presentation

Basis of Presentation - The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the consolidated financial position of Innodata Inc. (including its subsidiaries, the “Company”) as of June 30, 2025 and December 31, 2024, the results of its operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024, cash flows for the six months ended June 30, 2025 and 2024, and stockholders’ equity for the three and six months ended June 30, 2025 and 2024. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year.

Certain information and note disclosures normally included in or with financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the notes to the consolidated financial statements for the year ended December 31, 2024.
Principles of Consolidation

Principles of Consolidation - The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates

Use of Estimates - In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates and assumptions used in the preparation of the condensed consolidated financial statements are reasonable. Actual results could differ from those estimates. Significant estimates include those related to the allowance for credit losses and billing adjustments, useful life of long-lived assets, useful life of intangible assets, impairment of goodwill and intangible assets, valuation of deferred tax assets, valuation of stock-based compensation, pension benefit plan assumptions, litigation accruals and estimated accruals for various tax exposures.
Concentration of Credit Risk

Concentration of Credit Risk - The Company maintains its cash with highly rated financial institutions, located in the United States and in foreign locations where the Company has its operations. At June 30, 2025, the Company had cash and cash equivalents of $59.8 million, of which $16.4 million was held by its foreign subsidiaries and $43.4 million was held in the United States. To the extent that such cash exceeds the maximum insurance levels, the Company is uninsured. The Company has not experienced any losses in such accounts.
Accounts Receivable

Accounts Receivable  - Accounts receivable is generally recorded at the invoiced amounts, net of an allowance for expected losses. The Company establishes credit terms for new customers based upon management’s review of their credit information and project terms, and performs ongoing credit evaluations of its customers, adjusting credit terms when management believes appropriate based upon payment history and an assessment of the customer’s current creditworthiness.

The Company records an allowance for credit losses for estimated losses resulting from the failure of our customers to make the required payments and provisions for billing adjustments relating to quality issues on delivered services, service penalties, discounts and price adjustments. The allowance for credit losses is based on a review of specifically identified accounts and an overall aging analysis applied to accounts pooled based on similar risk characteristics. Judgments are made with respect to the collectability of accounts receivable within each pool based on historical experience, current payment practices, and current economic trends based on our expectations over the expected life of the receivables, generally ninety days or less. Actual credit losses could differ from those estimates.
Revenue Recognition

Revenue Recognition - The Company’s revenue is recognized when services are rendered or goods are delivered to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services or goods as per the agreement with the customer. In cases where there are agreements with multiple performance obligations, the Company identifies each performance obligation and evaluates whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. For agreements with distinct performance obligations, the Company allocates the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation, if any, and then evaluates how the services are performed for the customer to determine the timing of revenue recognition.

For the Digital Data Solutions segment, revenue is recognized primarily based on the quantity delivered or resources utilized in the period in which services are performed and performance conditions are satisfied as per the agreement. Revenue from agreements billed on a time-and-materials basis is recognized as services are performed. Revenue from fixed-fee agreements, which is not significant to overall revenues, is recognized based on the proportional performance method of accounting, as services are performed, or milestones are achieved.

For the Synodex segment, revenue is recognized primarily based on the quantity delivered in the period in which services are performed and performance conditions are satisfied as per the agreement. A portion of the Synodex segment revenue is derived from licensing the Company’s functional software and providing access to the Company’s hosted software platform. Revenue from such services is recognized monthly when all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; access to the service is provided to the end user; and collection is probable.

The Agility segment derives its revenue primarily from subscription arrangements and provision of enriched media analysis services. It also derives revenue as a reseller of corporate communication solutions. Revenue from subscriptions is recognized monthly when access to the service is provided to the end user; all parties to the agreement have agreed to the agreement; each party’s rights are identifiable; the payment terms are identifiable; the agreement has commercial substance; and collection is probable. Revenue from enriched media analysis services is recognized when the services are performed, and performance conditions are satisfied. Revenue from reseller agreements is recognized at the gross amount received for the goods in accordance with the Company functioning as a principal due to the Company meeting the following criteria: the Company acts as the primary obligor in the sales transaction; assumes the credit risk; sets the price; can select suppliers; and is involved in the execution of the services, including after sales service.

Revenue includes reimbursement of out-of-pocket expenses, with the corresponding out-of-pocket expenses included in direct operating costs.

Revenue associated with the services provided in one period and billed in a subsequent period is commonly referred to as unbilled revenues and is included under Accounts receivable.

The Company considers U.S. GAAP criteria for determining whether to report gross revenue as a principal versus net revenue as an agent. The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement.

Contract acquisition costs, which are included in prepaid expenses and other current assets, are amortized over the term of a subscription agreement or contract that normally has a duration of 12 months or less. The Company reviews these prepaid acquisition costs on a periodic basis to determine the need to adjust the carrying values for early terminated contracts. Included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets are contract acquisition costs amounting to $1.0 million and $1.1 million as of June 30, 2025 and December 31, 2024, respectively. These acquisition costs relate to our Agility segment and are amortized over the term of the subscription agreement.
Foreign Currency Translation

Foreign Currency Translation - The functional currency of the Company’s subsidiaries in the Philippines, India, Sri Lanka, Israel, Hong Kong, the United Kingdom and Canada (other than the Agility subsidiaries) is the U.S. dollar. Transactions denominated in Philippine pesos, Indian and Sri Lankan rupees, Israeli shekels, United Kingdom Pound Sterling and Canadian dollars are translated to U.S. dollars at rates which approximate those in effect on the transaction dates. Monetary assets and all liabilities denominated in foreign currencies on June 30, 2025 and December 31, 2024 are translated at the exchange rate in effect as of those dates. Non-monetary assets and stockholders’ equity are translated at the appropriate historical rates. Included in direct operating costs were foreign exchange (gains) losses resulting from such transactions of approximately $0.2 million and ($0.4) million for the three months ended June 30, 2025 and 2024, and $0.3 million and ($0.3) million for the six months ended June 30, 2025 and 2024, respectively.

The functional currency for the Company’s subsidiary in Germany is the Euro. The functional currencies for the Company’s Agility subsidiaries in the United Kingdom and Canada are the Pound Sterling and the Canadian dollar, respectively. The financial statements of these subsidiaries are prepared in their respective currencies. Financial information is translated from the applicable functional currency to the U.S. dollar (the reporting currency) for inclusion in the Company’s condensed consolidated financial statements. Income, expenses, and cash flows are translated at weighted-average exchange rates prevailing during the fiscal period, and assets and liabilities are translated at fiscal period-end exchange rates. Resulting translation adjustments are included as a component of accumulated other comprehensive income or loss in stockholders’ equity. Foreign exchange transaction gains or losses are included in direct operating costs in the accompanying condensed consolidated statements of operations and comprehensive income (loss).
Derivative Instruments

Derivative Instruments - The Company accounts for derivative transactions in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 825, “Financial Instruments”. For derivative instruments that are designated and qualify as cash flow hedges, the entire change in fair value of the hedging instrument is recorded in other comprehensive income (loss). When the amounts recorded in other comprehensive income (loss) are reclassified to earnings, they are included as part of direct operating costs. For derivative instruments that are not designated as hedges, any change in fair value is recorded directly in earnings as part of direct operating costs.
Capitalized Developed Software

Capitalized Developed Software - The Company incurs development costs related to software it develops for its internal use. Qualifying costs incurred during the application development stage are capitalized. These costs primarily consist of internal labor and third-party development costs and are amortized using the straight-line method over the estimated useful life of the capitalized developed software, which generally ranges from three to ten years. All other research and maintenance costs are expensed as incurred. Capitalized developed software in progress was $4.9 million and $3.6 million as of June 30, 2025 and December 31, 2024, respectively. The cumulative completed capitalized developed software was $19.9 million and $19.8 million as of June 30, 2025 and December 31, 2024, respectively.
Income Taxes

Income Taxes - Estimated deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities, using enacted tax rates, as well as any net operating loss or tax credit carryforwards expected to reduce taxes payable in future years. A valuation allowance is provided when it is more likely than not that all or some portion of the estimated deferred tax assets will not be realized. While the Company considers future taxable income in assessing the need for the valuation allowance, in the event that the Company anticipates that it will be able to realize the estimated deferred tax assets in the future in excess of its net recorded amount, an adjustment to the provision for deferred tax assets would increase income in the period such determination was made. Similarly, in the event that the Company anticipates that it will not be able to realize the estimated deferred tax assets in the future considering future taxable income, an adjustment to the provision for deferred tax assets would decrease income in the period such determination was made. Changes in the valuation allowance from period to period are included in the Company’s tax provision in the period of change. The Company indefinitely reinvests the foreign earnings in its foreign subsidiaries. If such earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the Company would have to accrue as a liability the applicable amount of foreign jurisdiction withholding taxes associated with such remittances.

In assessing the realization of deferred tax assets, management considered whether it is more likely than not that all or some portion of the deferred tax assets of subsidiaries in Canada and Germany will be realizable or not.

In the first quarter of 2025, the Company assessed one of its Canadian subsidiaries and the assessment yielded positive evidence enabling the release of the valuation allowance for the Canadian deferred tax assets of the subsidiary under “ASC Topic 740-30-22 – Accounting for Income Taxes”.

In the second quarter of 2025, the Company assessed its German subsidiary and the assessment yielded positive evidence enabling the release of the valuation allowance for the German deferred tax assets of the subsidiary under “ASC Topic 740 - 30 - 22 - Accounting for Income Taxes”.

As the expectation of future taxable income of the second Canadian subsidiary cannot be predicted with reasonable accuracy, the Company continues to maintain a valuation allowance against the deferred tax assets of this subsidiary.

The Company accounts for income taxes regarding uncertain tax positions and recognizes interest and penalties related to uncertain tax positions in income tax expense in the condensed consolidated statements of operations and comprehensive income.
Deferred Revenue

Deferred Revenue - Deferred revenue represents payments received from customers in advance of providing services and amounts deferred if conditions for revenue recognition have not been met. The Company expects to recognize substantially all of these performance obligations over the next 12 months. The table below summarizes the deferred revenue balances as of June 30, 2025 and December 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 

    

December 31, 

​

​

2025

​

2024

Deferred revenues

​

$

6,485

​

$

8,010

​

The table below provides information about contract liabilities (deferred revenue) and the changes in the balances for the three and six months ended as of June 30, 2025 and 2024 were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

    

Six Months Ended

​

​

June 30, 

​

June 30, 

​

​

2025

    

2024

    

2025

    

2024

Balance at the beginning of period

​

$

8,028

​

$

6,668

​

$

8,010

​

$

3,523

Net deferred revenue in the period

​

 

6,110

​

​

580

​

 

12,575

​

 

15,316

Revenue recognized

​

 

(8,001)

​

​

(2,467)

​

 

(14,608)

​

 

(13,957)

Currency translations and other adjustments

​

 

348

​

​

(11)

​

 

508

​

 

(112)

Balance at the end of period

​

$

6,485

​

$

4,770

​

$

6,485

​

$

4,770
Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted - On December 14, 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The effective date of this ASU is for fiscal years beginning after December 15, 2024 and interim periods beginning after December 15, 2025. The adoption of ASU 2023-09 will enhance quantitative and qualitative disclosures related to rate reconciliation of significant components and income tax paid. The Company does not anticipate any material impact from the adoption of this new standard.

​

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), fourth amendment via ASU 2025-01: Disaggregation of Income Statement Expenses”. ASU No. 2024-03 does not change or remove existing expense disclosure requirements but requires disaggregated disclosures about certain expense categories and captions, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. ASU No. 2024-03 will be effective for the Company starting in fiscal year 2027, and for interim financial reporting beginning in the first quarter of fiscal year 2028. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the Company’s disclosures within the consolidated financial statements.
v3.25.2
Summary of Significant Accounting Policies and Estimates (Tables)
 6 Months Ended
Jun. 30, 2025
Summary of Significant Accounting Policies and Estimates  
Schedule of deferred revenue The table below summarizes the deferred revenue balances as of June 30, 2025 and December 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 

    

December 31, 

​

​

2025

​

2024

Deferred revenues

​

$

6,485

​

$

8,010
Schedule of information about contract liabilities (deferred revenue)

The table below provides information about contract liabilities (deferred revenue) and the changes in the balances for the three and six months ended as of June 30, 2025 and 2024 were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

    

Six Months Ended

​

​

June 30, 

​

June 30, 

​

​

2025

    

2024

    

2025

    

2024

Balance at the beginning of period

​

$

8,028

​

$

6,668

​

$

8,010

​

$

3,523

Net deferred revenue in the period

​

 

6,110

​

​

580

​

 

12,575

​

 

15,316

Revenue recognized

​

 

(8,001)

​

​

(2,467)

​

 

(14,608)

​

 

(13,957)

Currency translations and other adjustments

​

 

348

​

​

(11)

​

 

508

​

 

(112)

Balance at the end of period

​

$

6,485

​

$

4,770

​

$

6,485

​

$

4,770
v3.25.2
Accounts Receivable (Tables)
 6 Months Ended
Jun. 30, 2025
Accounts Receivable  
Schedule of accounts receivable

Accounts receivable consists of the following (in thousands):

​

​

​

​

​

​

​

​

    

June 30,

    

December 31,

​

​

2025

​

2024

Gross Accounts receivable

​

$

35,681

​

$

29,772

Allowance for credit losses

​

 

(1,274)

​

 

(1,256)

Allowance for billing adjustments

​

​

(283)

​

​

(503)

Accounts receivable, net

​

$

34,124

​

$

28,013
Schedule of activity in allowance for credit losses

Activity in the allowance for the credit losses for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

    

Six Months Ended

​

​

June 30,

​

June 30,

​

​

2025

    

2024

​

2025

    

2024

Balance at beginning of period

​

$

1,205

​

$

1,000

​

$

1,256

​

$

992

Additions charged to expense

​

​

79

​

​

91

​

​

79

​

 

106

Write-offs against allowance

​

​

(16)

​

​

(10)

​

​

(71)

​

 

(17)

Foreign currency translation adjustment

​

​

6

​

​

-

​

​

10

​

 

-

Balance at end of period

​

$

1,274

​

$

1,081

​

$

1,274

​

$

1,081

​
v3.25.2
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2025
Goodwill and Intangible Assets  
Schedule of changes in carrying amount of goodwill

The change in the carrying amount of goodwill for the six months ended June 30, 2025 was as follows (in thousands):

​

​

​

​

​

Balance - January 1, 2025

    

$

1,998

Foreign currency translation adjustment

​

 

88

Balance - June 30, 2025

​

$

2,086
Schedule of Company's acquired intangible assets and capitalized developed software

Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2025

​

​

​

​

​

​

​

​

Foreign

​

​

​

​

​

Gross

​

​

​

​

Currency

​

Net

​

​

Carrying

​

Accumulated

​

Translation

​

Carrying

​

    

Value

   

Amortization

   

Adjustment

   

Value

Acquired Intangible Assets

​

​

​

​

​

​

​

​

​

​

​

​

Developed technology

​

$

2,881

​

$

(2,784)

​

$

4

​

$

101

Customer relationships

 

​

1,965

 

​

(1,789)

 

​

10

 

​

186

Trademarks and tradenames

 

​

840

 

​

(820)

 

​

1

 

​

21

Patents

 

​

40

 

​

(40)

 

​

-

 

​

-

Media Contact Database

​

​

3,528

​

​

(3,177)

​

​

17

​

​

368

Total Acquired Intangible Assets

​

$

9,254

​

$

(8,610)

​

$

32

​

$

676

​

​

​

​

​

​

​

​

​

​

​

​

​

Capitalized Developed Software

​

 

​

​

 

​

​

 

​

​

 

​

Capitalized Developed Software

​

$

19,940

​

$

(11,845)

​

$

253

​

$

8,348

Capitalized Developed Software - in Progress

​

 

4,899

​

 

-

​

 

7

​

 

4,906

Total Capitalized Developed Software

​

$

24,839

​

$

(11,845)

​

$

260

​

$

13,254

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

$

34,093

​

$

(20,455)

​

$

292

​

$

13,930

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

​

​

​

​

​

​

​

​

Foreign

​

​

​

​

​

Gross

​

​

​

​

Currency

​

Net

​

 

Carrying

 

Accumulated

 

Translation

​

Carrying

​

    

Value

    

Amortization

    

Adjustment

    

Value

Acquired Intangible Assets

 

​

  

 

​

  

 

​

  

 

​

  

Developed technology

​

$

3,060

​

$

(2,911)

​

$

(3)

​

$

146

Customer relationships

​

​

2,144

​

​

(1,856)

​

​

(29)

​

​

259

Trademarks and tradenames

​

​

862

​

​

(826)

​

​

-

​

​

36

Patents

​

 

44

​

 

(44)

​

​

-

​

​

-

Media Contact Database

​

​

3,546

​

​

(3,016)

​

​

(1)

​

​

529

Total Acquired Intangible Assets

​

$

9,656

​

$

(8,653)

​

$

(33)

​

$

970

​

​

​

​

​

​

​

​

​

​

​

​

​

Capitalized Developed Software

​

​

​

​

​

​

​

​

​

​

​

​

Capitalized Developed Software

​

$

19,811

​

$

(10,507)

​

$

(463)

​

$

8,841

Capitalized Developed Software - in Progress

​

​

3,552

​

​

-

​

​

(10)

​

​

3,542

Total Capitalized Developed Software

​

$

23,363

​

$

(10,507)

​

$

(473)

​

$

12,383

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

$

33,019

​

$

(19,160)

​

$

(506)

​

$

13,353
Schedule of estimated amortization expense for intangible assets

As of June 30, 2025, estimated future amortization expense for intangible assets was as follows (in thousands):

​

​

​

​

​

Year

    

Amortization

2025

​

$

3,828

2026

​

​

4,950

2027

​

​

3,498

2028

​

​

843

2029

​

​

516

Thereafter

​

​

295

​

​

$

13,930

​
v3.25.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2025
Income Taxes  
Schedule of reconciliation of U.S. statutory rate with Company's effective tax rate

​

​

​

​

​

​

​

​

​

For the Six Months

​

​

​

Ended June 30,

​

​

    

2025

    

2024

​

Federal income tax expense at statutory rate

 

21.0

%

21.0

%

Effect of:

 

​

​

​

​

Section 162 (m)

​

14.3

​

-

​

State income tax net of federal benefit

​

2.5

​

0.8

​

Tax effects of foreign operations

​

1.5

​

7.1

​

GILTI provisions

​

0.8

​

17.6

​

Withholding tax

​

0.2

​

-

​

Deemed interest

​

(0.3)

​

(5.2)

​

Foreign rate differential

​

(0.4)

​

(1.4)

​

Change in tax rates

​

(0.7)

​

-

​

Change in valuation allowance

​

(2.1)

​

6.4

​

Effect of stock-based compensation

​

(21.1)

​

(2.9)

​

Increase in unrecognized tax benefits (ASC 740)

​

-

​

5.5

​

Return to provision true up

​

-

​

(3.2)

​

Foreign operations permanent differences - foreign exchange gains and losses

​

-

​

(7.9)

​

Other

​

0.4

​

4.2

​

Effective tax rate

​

16.1

%

42.0

%
Schedule of roll forward of the Company's unrecognized tax benefits and associated interest

The following table presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the six months ended June 30, 2025 (in thousands):

​

​

​

​

​

​

    

Unrecognized

​

 

Tax Benefits

Balance - January 1, 2025

​

$

999

Increase for current period tax positions

​

 

173

Decrease for prior year tax positions

​

​

(214)

Interest accrual

​

 

28

Foreign currency remeasurement

​

 

6

Balance - June 30, 2025

​

$

992

​
v3.25.2
Operating Leases (Tables)
 6 Months Ended
Jun. 30, 2025
Operating Leases  
Schedule of operating lease expense recognized in financial statements

The table below summarizes the amounts recognized in the condensed consolidated financial statements related to operating leases for the periods presented (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Rent expense for long-term operating leases

​

$

314

​

$

314

​

$

629

​

$

628

Rent expense for short-term leases

​

 

48

​

 

44

​

​

89

​

​

91

Total rent expense

​

$

362

​

$

358

​

$

718

​

$

719

​
Schedule of net present value of operating lease liability

The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the condensed consolidated balance sheet as of June 30, 2025 (in thousands):

​

​

​

​

​

Year

    

Amount

2025

​

$

651

2026

​

 

1,329

2027

​

 

1,325

2028

​

 

957

2029

​

 

695

2030 and thereafter

​

 

174

Total lease payments

​

 

5,131

Less: Interest

​

 

(908)

Net present value of lease liabilities

​

$

4,223

​

​

 

​

Current portion

​

$

928

Long-term portion

​

 

3,295

Total

​

$

4,223
Schedule of weighted average remaining lease terms and discount rates

The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2025 were as follows:

​

​

​

​

​

Weighted-average lease term remaining

    

45 months

​

Weighted-average discount rate

 

9.39

%

​
v3.25.2
Long-term obligations (Tables)
 6 Months Ended
Jun. 30, 2025
Long-term obligations  
Schedule of total long-term obligations

Total long-term obligations as of June 30, 2025 and December 31, 2024 consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 

    

December 31, 

​

 

2025

 

2024

Pension obligations - accrued pension liability

​

$

8,655

​

$

7,945

Microsoft licenses (1)

​

 

315

​

 

442

​

​

​

8,970

​

​

8,387

Less: Current portion of long-term obligations

​

 

1,477

​

 

1,643

Total Non-Current portion of long-term obligations

​

$

7,493

​

$

6,744

​

(1)In March 2023, the Company renewed a vendor agreement to acquire certain additional software licenses, receive technical support and future software upgrades on software licenses through February 2026. Pursuant to this agreement, the Company is contractually liable to pay approximately $0.4 million annually over the term of the agreement.
v3.25.2
Stock Options and Restricted Stock Units (Tables)
 6 Months Ended
Jun. 30, 2025
Stock Options and Restricted Stock Units  
Schedule of stock-based compensation expense

The stock-based compensation expense related to the Innodata Inc. 2013 Stock Plan, as amended and restated effective June 7, 2016 (the “2013 Plan”) and the Innodata Inc. 2021 Equity Compensation Plan, as amended and restated effective as of April 11, 2022 (the “2021 Plan”, and together with the 2013 Plan, collectively, the “Equity Plans”) were allocated as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Direct operating costs

​

$

441

​

$

73

​

$

868

​

$

157

Selling and administrative expenses

​

 

2,280

​

 

919

​

 

4,734

​

 

1,869

Total stock-based compensation

​

$

2,721

​

$

992

​

$

5,602

​

$

2,026
Equity Plans  
Stock Options and Restricted Stock Units  
Schedule of stock option activity

2013 Plan

A summary of option activity under the 2013 Plan and changes during each of the six-month periods ended June 30, 2025 and 2024 are presented below:

​

​

​

​

​

​

​

​

​

​

​

​

​

 

​

 

​

 

Weighted-Average

 

​

​

​

Number of

 

Weighted - Average

 

Remaining Contractual

​

Aggregate

​

    

Options

    

Exercise Price

    

Term (years)

    

Intrinsic Value

Outstanding at January 1, 2025

 

3,165,193

​

$

3.67

 

6.32

 

$

113,458,326

Granted

 

-

​

 

-

 

-

 

​

-

Exercised

 

(236,542)

​

 

4.48

 

-

 

​

-

Forfeited/Expired

 

-

​

 

-

 

-

 

​

-

Outstanding at June 30, 2025

 

2,928,651

​

$

3.61

 

5.85

​

$

139,434,371

​

 

​

​

 

​

 

​

​

 

​

Exercisable at June 30, 2025

 

2,830,316

​

$

3.62

​

5.80

​

$

134,732,975

​

 

​

​

 

​

 

​

​

 

​

Vested and Expected to vest at June 30, 2025

 

2,928,651

​

$

3.61

 

5.85

​

$

139,434,371

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Weighted-Average

    

​

​

​

​

Number of

​

Weighted - Average

​

Remaining Contractual

​

Aggregate

​

​

Options

​

Exercise Price

​

Term (years)

​

Intrinsic Value

Outstanding at January 1, 2024

​

5,339,162

​

$

3.22

​

6.38

​

$

28,640,009

Granted

 

-

 

​

-

 

-

 

​

-

Exercised

 

(155,899)

 

​

4.00

 

-

 

​

-

Forfeited/Expired

 

(4,001)

 

​

6.96

 

-

 

​

-

Outstanding at June 30, 2024

 

5,179,262

​

$

3.19

 

5.87

​

$

60,291,271

​

​

​

​

​

​

​

​

​

​

​

Exercisable at June 30, 2024

 

3,402,382

​

$

2.20

 

4.92

​

$

42,967,259

​

​

​

​

​

​

​

​

​

​

​

Vested and Expected to vest at June 30, 2024

 

5,179,262

​

$

3.19

 

5.87

​

$

60,291,271

​

2021 Plan

A summary of option activity under the 2021 Plan and changes during the six-month periods ended June 30, 2025 and 2024 are presented below.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-Average

​

​

​

​

Number of

​

Weighted - Average

​

Remaining Contractual

​

Aggregate

​

    

Options

    

Exercise Price

    

Term (years)

    

Intrinsic Value

Outstanding at January 1, 2025

 

842,271

​

$

15.86

 

8.46

 

$

20,847,471

Granted

 

-

​

 

-

 

-

 

​

-

Exercised

 

(116,874)

​

 

3.51

 

-

 

​

-

Forfeited/Expired

 

(16,335)

​

 

3.41

 

-

 

​

-

Outstanding at June 30, 2025

 

709,062

​

$

18.19

 

8.09

​

$

23,423,424

​

​

​

​

​

​

​

​

​

​

​

Exercisable at June 30, 2025

 

198,204

​

$

3.32

 

7.23

​

$

9,494,233

​

​

​

​

​

​

​

​

​

​

​

Vested and Expected to vest at June 30, 2025

 

709,062

​

$

18.19

 

8.09

​

$

23,423,424

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Weighted-Average

    

​

​

​

​

Number of 

​

Weighted - Average

​

Remaining Contractual

​

Aggregate

​

​

Options

​

Exercise Price

​

Term (years)

​

Intrinsic Value

Outstanding at January 1, 2024

 

923,571

​

$

3.41

​

8.76

 

$

4,786,252

Granted

 

-

​

 

-

​

-

 

​

-

Exercised

 

(46,430)

​

 

3.41

​

-

 

​

-

Forfeited/Expired

 

(7,668)

​

 

3.41

​

-

 

​

-

Outstanding at June 30, 2024

 

869,473

​

$

3.41

​

8.27

​

$

9,927,362

​

​

​

​

​

​

​

​

​

​

​

Exercisable at June 30, 2024

 

339,779

​

$

3.33

​

8.24

​

$

3,907,176

​

​

​

​

​

​

​

​

​

​

​

Vested and Expected to vest at June 30, 2024

 

869,473

​

$

3.41

​

8.27

​

$

9,927,362
Restricted Stock Units  
Stock Options and Restricted Stock Units  
Summary of restricted stock under the company's plan

​

​

​

​

​

​

​

​

​

Number of 

 

Weighted-Average

​

​

Restricted Stock

​

Grant Date

​

    

Units

    

 Fair Value

Unvested at January 1, 2025

​

1,249,079

​

$

20.98

Granted

 

14,580

 

​

44.81

Vested

 

(213,173)

 

​

6.36

Forfeited/Expired

 

(541,250)

 

​

7.07

Unvested at June 30, 2025

 

509,236

​

$

42.57

​

​

​

​

​

​

​

​

    

Number of

    

Weighted-Average

​

​

Restricted Stock

​

Grant Date

​

​

Units

​

Fair Value

Unvested at January 1, 2024

 

749,756

​

$

5.77

Granted

 

28,973

​

 

15.10

Vested

 

(48,761)

​

 

8.42

Forfeited/Expired

 

(995)

​

 

8.29

Unvested at June 30, 2024

 

728,973

​

$

5.96
v3.25.2
Comprehensive loss (Tables)
 6 Months Ended
Jun. 30, 2025
Comprehensive loss  
Schedule of components of accumulated other comprehensive loss and reclassifications from accumulated other comprehensive loss

Accumulated other comprehensive loss, as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, foreign currency translation adjustment and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive loss as of June 30, 2025 and 2024, and reclassifications from accumulated other comprehensive loss for the three and six-month periods, are presented below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at April 1, 2025

​

$

(234)

​

$

(121)

​

$

(1,733)

​

$

(2,088)

Other comprehensive income (loss) before reclassifications, net of taxes

​

​

(36)

 

​

265

 

​

582

 

​

811

Total other comprehensive income (loss) before reclassifications, net of taxes

​

​

(270)

 

​

144

 

​

(1,151)

 

​

(1,277)

Net amount reclassified to earnings

​

​

1

 

​

(17)

 

​

-

 

​

(16)

Balance at June 30, 2025

​

$

(269)

​

$

127

​

$

(1,151)

​

$

(1,293)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at January 1, 2025

​

$

(233)

​

$

(395)

​

$

(1,842)

​

$

(2,470)

Other comprehensive income (loss) before reclassifications, net of taxes

 

 

(36)

​

 

386

​

 

691

​

 

1,041

Total other comprehensive loss before reclassifications, net of taxes

 

 

(269)

​

 

(9)

​

 

(1,151)

​

 

(1,429)

Net amount reclassified to earnings

 

 

-

​

 

136

​

 

-

​

 

136

Balance at June 30, 2025

​

$

(269)

​

$

127

​

$

(1,151)

​

$

(1,293)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at April 1, 2024

​

$

(413)

​

$

7

​

$

(1,380)

​

$

(1,786)

Other comprehensive loss before reclassifications, net of taxes

​

 

-

​

 

(193)

​

 

(78)

​

 

(271)

Total other comprehensive income (loss) before reclassifications, net of taxes

​

 

(413)

​

 

(186)

​

 

(1,458)

​

 

(2,057)

Net amount reclassified to earnings

​

 

-

​

 

19

​

 

-

​

 

19

Balance at June 30, 2024

​

$

(413)

​

$

(167)

​

$

(1,458)

​

$

(2,038)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Foreign Currency

    

​

​

    

Pension Liability

    

Fair Value of

    

Translation

    

Accumulated Other

​

    

Adjustment

    

Derivatives

    

Adjustment

    

Comprehensive Loss

Balance at January 1, 2024

​

$

(412)

​

$

41

​

$

(1,250)

​

$

(1,621)

Other comprehensive loss before reclassifications, net of taxes

​

 

-

​

 

(206)

​

 

(208)

​

 

(414)

Total other comprehensive loss before reclassifications, net of taxes

​

 

(412)

​

 

(165)

​

 

(1,458)

​

 

(2,035)

Net amount reclassified to earnings

​

 

(1)

​

 

(2)

​

 

-

​

 

(3)

Balance at June 30, 2024

​

$

(413)

​

$

(167)

​

$

(1,458)

​

$

(2,038)

​
v3.25.2
Segment reporting and concentrations (Tables)
 6 Months Ended
Jun. 30, 2025
Segment reporting and concentrations  
Reconciliation of Assets from Segment to Consolidated

The measure of segment assets is reported on the balance sheet as total consolidated assets shown in the table below (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 2025

    

December 31, 2024*

Total assets:

 

​

  

 

​

  

DDS

​

$

112,159

​

$

91,588

Synodex

​

 

4,828

​

 

4,790

Agility(1)

​

 

15,636

​

 

17,071

Total Consolidated

​

$

132,623

​

$

113,449

​

*Prior period segment assets of DDS, Synodex and Agility segments have been reclassified to align with the current period presentation, with no impact on the Company’s consolidated results.

(1)Agility assets include goodwill of $2.1 million and $2.0 million for each of the periods ended June 30, 2025 and December 31, 2024, respectively.
(2)Segment assets consist of cash, receivables, prepaid and other assets, property and equipment, right of-use-assets, deferred income tax and intangibles.
Segment information for other significant income statement

The table below shows segment information for other significant income statement items (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2025

​

   

​

DDS

​

​

Synodex

   

Agility

   

Total

Revenues

 

$

50,576

 

$

2,065

​

$

5,752

​

$

58,393

Direct operating costs (1) (3)

​

​

31,177

​

​

1,618

​

​

2,575

​

​

35,370

Gross profit

​

 

19,399

​

 

447

​

​

3,177

​

​

23,023

Selling and administrative expenses (2) (4)

​

 

10,430

​

 

140

​

​

3,542

​

​

14,112

Segment operating income (loss)

​

​

8,969

​

​

307

​

​

(365)

​

​

8,911

Interest income, net

​

 

(577)

​

 

-

​

​

-

​

​

(577)

Income (loss) before provision for income taxes

​

$

9,546

​

$

307

​

$

(365)

​

$

9,488

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2024

​

    

DDS

​

Synodex

​

Agility

​

Total

Revenues

​

$

25,410

    

$

1,986

    

$

5,157

    

$

32,553

Direct operating costs (1) (3)

​

 

19,331

​

 

1,530

 

 

2,341

 

 

23,202

Gross profit

​

 

6,079

​

 

456

 

 

2,816

 

 

9,351

Selling and administrative expenses (2) (4)

​

 

6,197

​

 

140

 

 

2,683

 

 

9,020

Segment operating income (loss)

​

 

(118)

​

 

316

 

 

133

 

 

331

Interest (income) expense, net

​

 

54

​

 

-

 

 

1

 

 

55

Income (loss) before provision for income taxes

​

$

(172)

​

$

316

 

$

132

 

$

276

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Six Months Ended June 30, 2025

​

​

DDS

    

Synodex

    

Agility

    

Total

Revenues

 

$

101,406

 

$

4,079

​

$

11,252

​

$

116,737

Direct operating costs (1) (3)

​

​

62,279

​

​

3,079

​

​

5,104

​

​

70,462

Gross profit

​

​

39,127

​

​

1,000

​

​

6,148

​

​

46,275

Selling and administrative expenses (2) (4)

​

​

22,025

​

​

427

​

​

6,640

​

​

29,092

Segment operating income (loss)

​

​

17,102

​

​

573

​

​

(492)

​

​

17,183

Interest (income) expense, net

​

​

(705)

​

​

-

​

​

1

​

​

(704)

Income (loss) before provision for income taxes

​

$

17,807

​

$

573

​

$

(493)

​

$

17,887

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2024

​

​

DDS

​

Synodex

​

Agility

​

Total

Revenues

    

$

45,116

    

$

3,857

    

$

10,084

    

$

59,057

Direct operating costs (1) (3)

​

 

32,479

​

 

3,002

​

 

4,590

​

 

40,071

Gross profit

​

 

12,637

​

 

855

​

 

5,494

​

 

18,986

Selling and administrative expenses (2) (4)

​

 

11,992

​

 

263

​

 

5,070

​

 

17,325

Segment operating income

​

 

645

​

 

592

​

 

424

​

 

1,661

Interest (income) expense, net

​

 

(31)

​

 

—

​

 

2

​

 

(29)

Income before provision for income taxes

​

$

676

​

$

592

​

$

422

​

$

1,690

​

(1)Direct operating costs consist of direct and indirect labor costs, occupancy costs, data center hosting fees, cloud services, content acquisition costs, depreciation and amortization, travel, telecommunications, computer services and supplies, realized (gain) loss on forward contracts, foreign currency revaluation (gain) loss, recruitment costs and other direct expenses that are incurred in providing services to our customers.
(2)Selling and administrative expenses consist of payroll and related costs including commissions, bonuses, and stock-based compensation; marketing, advertising, trade conferences and related expenses; new services research and related software development expenses, software subscriptions, professional and consultant fees, provision for credit losses and other administrative overhead expenses.
(3)Includes non-cash expenses which consist mainly of depreciation, amortization of capitalized software development costs and stock-based compensation expense.
(4)Includes non-cash expenses which consist mainly of stock-based compensation expense.
Schedule of revenue by geographic region

Revenues for the three and six-month periods ended June 30, 2025, and 2024 by geographic region (determined based upon customer’s domicile), were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

United States

​

$

48,563

​

$

23,804

​

$

97,460

​

$

41,673

Canada

​

 

2,955

​

 

2,284

​

 

5,678

​

 

4,510

United Kingdom

​

 

2,470

​

 

2,364

​

 

4,897

​

 

4,614

The Netherlands

​

​

2,277

​

​

2,005

​

​

4,442

​

​

4,044

Others - principally other European countries

​

 

2,128

​

 

2,096

​

 

4,260

​

 

4,216

Totals

​

$

58,393

​

$

32,553

​

$

116,737

​

$

59,057
Schedule of long-lived assets by geographic region

Long-lived assets as of June 30, 2025 and December 31, 2024 by geographic region were comprised of (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30, 

    

December 31, 

​

 

2025

 

2024

United States

​

$

10,859

​

$

10,182

​

​

 

​

​

 

​

Foreign countries:

​

 

​

​

 

​

Canada

​

 

6,442

​

 

6,265

United Kingdom

​

 

772

​

 

806

Philippines

​

 

3,435

​

 

3,532

India

​

 

2,257

​

 

2,251

Sri Lanka

​

 

721

​

 

587

Israel

​

 

66

​

 

63

Germany

​

​

4

​

​

4

Total foreign

​

 

13,697

​

 

13,508

Totals

​

$

24,556

​

$

23,690
v3.25.2
Income Per Share (Tables)
 6 Months Ended
Jun. 30, 2025
Income Per Share  
Schedule of loss per share, basic and diluted

The calculation of the dilutive effect of outstanding options is shown in the table below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

For the Six Months Ended

​

​

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Net income (loss) attributable to Innodata Inc. and Subsidiaries

​

$

7,219

​

$

(14)

​

$

15,006

​

$

975

Weighted average common shares outstanding

​

 

31,785

​

 

28,878

​

 

31,609

​

 

28,819

Dilutive effect of outstanding options

​

 

3,516

​

 

-

​

 

3,511

​

 

3,872

Adjusted for dilutive computation

​

 

35,301

​

 

28,878

​

 

35,120

​

 

32,691
v3.25.2
Derivatives (Tables)
 6 Months Ended
Jun. 30, 2025
Derivatives  
Schedule of fair value of derivative instruments included within the condensed consolidated balance sheets

The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Balance Sheet Location

​

Fair Value

​

​

​

​

June 30, 

​

December 31,

​

    

​

    

2025

    

2024

Derivatives designated as hedging instruments:

 

  

 

​

  

 

​

  

​

​

​

​

​

​

​

​

​

Foreign currency forward contracts

 

Accrued expenses

​

$

-

​

$

499

Foreign currency forward contracts

 

Prepaid expenses and other current assets

​

$

161

​

$

-
Schedule of effect of foreign currency forward contracts designated as cash flow hedges on condensed consolidated statements of operations

The effect of foreign currency forward contracts designated as cash flow hedges on the condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

For the Three Months Ended

​

For the Six Months Ended

​

 

June 30, 

​

June 30, 

​

    

2025

    

2024

    

2025

    

2024

Net gain (loss) recognized in OCI(1)

​

$

265

​

$

(193)

​

$

(386)

​

$

(206)

Net (gain) loss reclassified from accumulated OCI into income(2)

​

$

(17)

​

$

19

​

$

136

​

$

(2)

Net gain recognized in income(3)

​

$

-

​

$

-

​

$

-

​

$

-

​

(1)

Net change in fair value of the effective portion classified into other comprehensive income (“OCI”).

(2)

Effective portion classified within direct operating costs.

(3)

There were no ineffective portions for the periods presented.

v3.25.2
Summary of Significant Accounting Policies and Estimates (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Description of Business and Summary of Significant Accounting Estimates and Policies          
Cash and cash equivalents $ 59,792   $ 59,792   $ 46,897
Amortization period 12 months   12 months    
Prepaid expenses and other current assets on contract acquisition costs $ 1,000   $ 1,000   1,100
Foreign exchange (gains) losses 200 $ (400) 300 $ (300)  
Goodwill impairment     2,100   2,000
In process research and development          
Description of Business and Summary of Significant Accounting Estimates and Policies          
Cost 4,900   4,900   3,600
Capitalized software development          
Description of Business and Summary of Significant Accounting Estimates and Policies          
Cost $ 19,900   $ 19,900   $ 19,800
Minimum | Capitalized Developed Software          
Description of Business and Summary of Significant Accounting Estimates and Policies          
Estimated useful life of intangibles 3 years   3 years    
Maximum | Capitalized Developed Software          
Description of Business and Summary of Significant Accounting Estimates and Policies          
Estimated useful life of intangibles 10 years   10 years    
Asia          
Description of Business and Summary of Significant Accounting Estimates and Policies          
Cash and cash equivalents $ 16,400   $ 16,400    
United States          
Description of Business and Summary of Significant Accounting Estimates and Policies          
Cash and cash equivalents $ 43,400   $ 43,400    
v3.25.2
Summary of Significant Accounting Policies and Estimates - Deferred revenue balances (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Summary of Significant Accounting Policies and Estimates            
Deferred revenues $ 6,485 $ 8,028 $ 8,010 $ 4,770 $ 6,668 $ 3,523
v3.25.2
Summary of Significant Accounting Policies and Estimates - Deferred revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Summary of Significant Accounting Policies and Estimates        
Balance at the beginning of period $ 8,028 $ 6,668 $ 8,010 $ 3,523
Net deferred revenue in the period 6,110 580 12,575 15,316
Revenue recognized (8,001) (2,467) (14,608) (13,957)
Currency translations and other adjustments 348 (11) 508 (112)
Balance at the end of period $ 6,485 $ 4,770 $ 6,485 $ 4,770
v3.25.2
Accounts Receivable (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Accounts Receivable            
Gross Accounts receivable $ 35,681   $ 29,772      
Allowance for credit losses (1,274) $ (1,205) (1,256) $ (1,081) $ (1,000) $ (992)
Allowance for billing adjustments (283)   (503)      
Accounts receivable, net $ 34,124   $ 28,013      
v3.25.2
Accounts Receivable - Activity in allowance for credit losses (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Accounts Receivable        
Balance at beginning of period $ 1,205 $ 1,000 $ 1,256 $ 992
Additions charged to expense 79 91 79 106
Write-offs against allowance (16) (10) (71) (17)
Foreign currency translation adjustment 6   10  
Balance at end of period $ 1,274 $ 1,081 $ 1,274 $ 1,081
v3.25.2
Goodwill and Intangible Assets - Changes in carrying amount of goodwill (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Goodwill and Intangible Assets  
Balance - January 1, 2025 $ 1,998
Foreign currency translation adjustment 88
Balance - June 30, 2025 $ 2,086
v3.25.2
Goodwill and Intangible Assets - Acquisition-related intangible assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Goodwill and Intangible Assets    
Gross Carrying Value $ 34,093 $ 33,019
Accumulated Amortization (20,455) (19,160)
Foreign Currency Translation Adjustment 292 (506)
Net Carrying Value 13,930 13,353
Acquired Intangible Assets    
Goodwill and Intangible Assets    
Gross Carrying Value 9,254 9,656
Accumulated Amortization (8,610) (8,653)
Foreign Currency Translation Adjustment 32 (33)
Net Carrying Value 676 970
Developed technology    
Goodwill and Intangible Assets    
Gross Carrying Value 2,881 3,060
Accumulated Amortization (2,784) (2,911)
Foreign Currency Translation Adjustment 4 (3)
Net Carrying Value 101 146
Customer relationships    
Goodwill and Intangible Assets    
Gross Carrying Value 1,965 2,144
Accumulated Amortization (1,789) (1,856)
Foreign Currency Translation Adjustment 10 (29)
Net Carrying Value 186 259
Trademarks and tradenames    
Goodwill and Intangible Assets    
Gross Carrying Value 840 862
Accumulated Amortization (820) (826)
Foreign Currency Translation Adjustment 1  
Net Carrying Value 21 36
Patents    
Goodwill and Intangible Assets    
Gross Carrying Value 40 44
Accumulated Amortization (40) (44)
Media Contact Database    
Goodwill and Intangible Assets    
Gross Carrying Value 3,528 3,546
Accumulated Amortization (3,177) (3,016)
Foreign Currency Translation Adjustment 17 (1)
Net Carrying Value 368 529
Capitalized Developed Software    
Goodwill and Intangible Assets    
Gross Carrying Value 24,839 23,363
Accumulated Amortization (11,845) (10,507)
Foreign Currency Translation Adjustment 260 (473)
Net Carrying Value 13,254 12,383
Capitalized Developed Software    
Goodwill and Intangible Assets    
Gross Carrying Value 19,940 19,811
Accumulated Amortization (11,845) (10,507)
Foreign Currency Translation Adjustment 253 (463)
Net Carrying Value 8,348 8,841
Capitalized Developed Software - in Progress    
Goodwill and Intangible Assets    
Gross Carrying Value 4,899 3,552
Foreign Currency Translation Adjustment 7 (10)
Net Carrying Value $ 4,906 $ 3,542
v3.25.2
Goodwill and Intangible Assets - Estimated amortization expense (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Goodwill and Intangible Assets    
2025 $ 3,828  
2026 4,950  
2027 3,498  
2028 843  
2029 516  
Thereafter 295  
Net Carrying Value $ 13,930 $ 13,353
v3.25.2
Goodwill and Intangible Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Goodwill and Intangible Assets          
Goodwill impairment     $ 2,100   $ 2,000
Goodwill $ 2,086   2,086   $ 1,998
Acquired Intangible Assets          
Goodwill and Intangible Assets          
Amortization expense 200 $ 200 400 $ 400  
Capitalized Developed Software          
Goodwill and Intangible Assets          
Amortization expense $ 900 $ 800 $ 1,900 $ 1,600  
v3.25.2
Income Taxes - Tax rate reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Taxes        
Provision for income taxes $ 2,269 $ 285 $ 2,881 $ 709
Federal income tax expense at statutory rate     21.00% 21.00%
Effect of:        
Section 162 (m)     14.30%  
State income tax net of federal benefit     2.50% 0.80%
Tax effects of foreign operations     1.50% 7.10%
GILTI provisions     0.80% 17.60%
Withholding tax     0.20%  
Deemed interest     (0.30%) (5.20%)
Foreign rate differential     (0.40%) (1.40%)
Change in tax rates     (0.70%)  
Change in valuation allowance     (2.10%) 6.40%
Effect of stock-based compensation     (21.10%) (2.90%)
Increase in unrecognized tax benefits (ASC 740)       5.50%
Return to provision true up       (3.20%)
Foreign operations permanent differences - foreign exchange gains and losses       (7.90%)
Other     0.40% 4.20%
Effective tax rate     16.10% 42.00%
U.S. federal        
Income Taxes        
Federal income tax expense at statutory rate     21.00% 21.00%
v3.25.2
Income Taxes - Unrecognized tax benefits (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Income Taxes  
Balance - January 1, 2025 $ 999
Increase for current period tax positions 173
Decrease for prior year tax positions (214)
Interest accrual 28
Foreign currency remeasurement 6
Balance - June 30, 2025 $ 992
v3.25.2
Operating Leases (Details)
 6 Months Ended
Jun. 30, 2025
Minimum  
Operating Leases  
Lease agreements term 3 years
Percentage of rental escalations 1.75%
Maximum  
Operating Leases  
Lease agreements term 11 years
Percentage of rental escalations 15.00%
v3.25.2
Operating Leases - Financial statements related to operating leases (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Operating Leases        
Total rent expense $ 362 $ 358 $ 718 $ 719
Rent expense for long-term operating leases        
Operating Leases        
Total rent expense 314 314 629 628
Rent expense for short-term leases        
Operating Leases        
Total rent expense $ 48 $ 44 $ 89 $ 91
v3.25.2
Operating Leases - Net present value of the operating lease liability (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Operating Leases    
2025 $ 651  
2026 1,329  
2027 1,325  
2028 957  
2029 695  
2030 and thereafter 174  
Total lease payments 5,131  
Less: Interest (908)  
Net present value of lease liabilities 4,223  
Current portion 928 $ 877
Long-term portion 3,295 $ 3,778
Total $ 4,223  
v3.25.2
Operating Leases - Weighted average remaining lease terms (Details)
Jun. 30, 2025
Operating Leases  
Weighted-average lease term remaining (in months) 45 months
Weighted-average discount rate 9.39%
v3.25.2
Long-term obligations (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Long-term obligations    
Pension obligations - accrued pension liability $ 8,655 $ 7,945
Microsoft licenses 315 442
Total long-term obligations 8,970 8,387
Less: Current portion of long-term obligations 1,477 1,643
Totals Non-Current portion of long-term obligations 7,493 $ 6,744
Microsoft licenses, Amount payable annually over the term of the agreement $ 400  
v3.25.2
Commitments and Contingencies (Details)
 6 Months Ended
Jun. 30, 2025
USD ($)
Commitments and Contingencies  
Estimated litigation liability $ 5,800,000
Interest rate description litigation plus legal interest that accrued at 12% per annum from August 13, 2008 to June 30, 2013, and thereafter accrued and continues to accrue legal interest at 6% per annum
Litigation settlement expense $ 450,000
v3.25.2
Stock Options and Restricted Stock Units - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Derivatives, Fair Value        
Total stock-based compensation     $ 5,602 $ 2,026
Equity Plans        
Derivatives, Fair Value        
Direct operating costs $ 441 $ 73 868 157
Selling and administrative expenses 2,280 919 4,734 1,869
Total stock-based compensation $ 2,721 $ 992 $ 5,602 $ 2,026
v3.25.2
Stock Options and Restricted Stock Units - Summary of Stock Option Activity (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Stock Options        
Number of Options, Granted (in shares) 0 0    
Number of Options, Exercised (in shares) (353,416)      
Weighted Average Exercise Price Exercised (in dollars per shares) $ 4.16      
Employee Stock Option | 2013 Stock Plan        
Stock Options        
Number of Options, Outstanding - Beginning balance (in shares) 3,165,193 5,339,162 5,339,162  
Number of Options, Exercised (in shares) (236,542) (155,899)    
Number of Options, Forfeited/Expired (in shares)   (4,001)    
Number of Options, Outstanding - Ending balance (in shares) 2,928,651 5,179,262 3,165,193 5,339,162
Number of Options Exercisable (in shares) 2,830,316 3,402,382    
Number of Options, Vested and Expected to Vest (in shares) 2,928,651 5,179,262    
Weighted Average Exercise Price Outstanding beginning balance (in dollars per shares) $ 3.67 $ 3.22 $ 3.22  
Weighted Average Exercise Price Exercised (in dollars per shares) 4.48 4    
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares)   6.96    
Weighted Average Exercise Price Outstanding Ending balance (in dollars per shares) 3.61 3.19 $ 3.67 $ 3.22
Weighted Average Exercise Price Exercisable (in dollars per shares) 3.62 2.2    
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares) $ 3.61 $ 3.19    
Weighted Average Remaining Contractual Term Outstanding (in years) 5 years 10 months 6 days 5 years 10 months 13 days 6 years 3 months 25 days 6 years 4 months 17 days
Weighted Average Remaining Contractual Term Exercisable (in years) 5 years 9 months 18 days 4 years 11 months 1 day    
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years) 5 years 10 months 6 days 5 years 10 months 13 days    
Aggregate Intrinsic Value, Outstanding $ 139,434,371 $ 60,291,271 $ 113,458,326 $ 28,640,009
Aggregate Intrinsic Value, Exercisable 134,732,975 42,967,259    
Aggregate Intrinsic Value, Vested and Expected to Vest $ 139,434,371 $ 60,291,271    
Employee Stock Option | 2021 Stock Plan        
Stock Options        
Number of Options, Outstanding - Beginning balance (in shares) 842,271 923,571 923,571  
Number of Options, Exercised (in shares) (116,874) (46,430)    
Number of Options, Forfeited/Expired (in shares) (16,335) (7,668)    
Number of Options, Outstanding - Ending balance (in shares) 709,062 869,473 842,271 923,571
Number of Options Exercisable (in shares) 198,204 339,779    
Number of Options, Vested and Expected to Vest (in shares) 709,062 869,473    
Weighted Average Exercise Price Outstanding beginning balance (in dollars per shares) $ 15.86 $ 3.41 $ 3.41  
Weighted Average Exercise Price Exercised (in dollars per shares) 3.51 3.41    
Weighted Average Exercise Price Forfeited/Expired (in dollars per shares) 3.41 3.41    
Weighted Average Exercise Price Outstanding Ending balance (in dollars per shares) 18.19 3.41 $ 15.86 $ 3.41
Weighted Average Exercise Price Exercisable (in dollars per shares) 3.32 3.33    
Weighted Average Exercise Price Vested and Expected to Vest (in dollars per shares) $ 18.19 $ 3.41    
Weighted Average Remaining Contractual Term Outstanding (in years) 8 years 1 month 2 days 8 years 3 months 7 days 8 years 5 months 15 days 8 years 9 months 3 days
Weighted Average Remaining Contractual Term Exercisable (in years) 7 years 2 months 23 days 8 years 2 months 26 days    
Weighted Average Remaining Contractual Term Vested and Expected to Vest (in years) 8 years 1 month 2 days 8 years 3 months 7 days    
Aggregate Intrinsic Value, Outstanding $ 23,423,424 $ 9,927,362 $ 20,847,471 $ 4,786,252
Aggregate Intrinsic Value, Exercisable 9,494,233 3,907,176    
Aggregate Intrinsic Value, Vested and Expected to Vest $ 23,423,424 $ 9,927,362    
v3.25.2
Stock Options and Restricted Stock Units - Summary of Restricted Stock Unit activity (Details) - Restricted Stock Units - Equity Plans - $ / shares
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Stock Options    
Number of Restricted Stock Units, Unvested at Beginning of the year 1,249,079 749,756
Number of Restricted Stock Units, Granted 14,580 28,973
Number of Restricted Stock Units, Vested (213,173) (48,761)
Number of Restricted Stock Units, Forfeited/Expired (541,250) (995)
Number of Restricted Stock Units, Unvested at End of the year 509,236 728,973
Weighted-Average Grant Date Fair Value, Outstanding at Beginning of the year $ 20.98 $ 5.77
Weighted-Average Grant Date Fair Value, Granted 44.81 15.1
Weighted-Average Grant Date Fair Value, Vested 6.36 8.42
Weighted-Average Grant Date Fair Value, Forfeited/Expired 7.07 8.29
Weighted-Average Grant Date Fair Value, Outstanding at End of the year $ 42.57 $ 5.96
Non-employees and non-employee directors    
Stock Options    
Number of Restricted Stock Units, Granted 11,829  
v3.25.2
Stock Options and Restricted Stock Units - Additional Information (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2025
USD ($)
Restricted Stock Units  
Stock Options  
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized $ 17.9
Weighted-average period over which compensation cost recognized 29 months
Employee Stock Option  
Stock Options  
Compensation cost related to non-vested stock options and restricted stock awards not yet recognized $ 7.3
Weighted-average period over which compensation cost recognized 29 months
v3.25.2
Comprehensive loss - Reclassifications from accumulated other comprehensive loss (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Comprehensive income (loss)        
Balance at the beginning     $ 63,472  
Balance at the end $ 86,725   86,725  
Pension Liability Adjustment        
Comprehensive income (loss)        
Balance at the beginning (234) $ (413) (233) $ (412)
Other comprehensive income (loss) before reclassifications, net of taxes (36)   (36)  
Total other comprehensive income (loss) before reclassifications, net of taxes (270) (413) (269) (412)
Net amount reclassified to earnings 1     (1)
Balance at the end (269) (413) (269) (413)
Fair Value of Derivatives        
Comprehensive income (loss)        
Balance at the beginning (121) 7 (395) 41
Other comprehensive income (loss) before reclassifications, net of taxes 265 (193) 386 (206)
Total other comprehensive income (loss) before reclassifications, net of taxes 144 (186) (9) (165)
Net amount reclassified to earnings (17) 19 136 (2)
Balance at the end 127 (167) 127 (167)
Foreign Currency Translation Adjustment        
Comprehensive income (loss)        
Balance at the beginning (1,733) (1,380) (1,842) (1,250)
Other comprehensive income (loss) before reclassifications, net of taxes 582 (78) 691 (208)
Total other comprehensive income (loss) before reclassifications, net of taxes (1,151) (1,458) (1,151) (1,458)
Balance at the end (1,151) (1,458) (1,151) (1,458)
Accumulated Other Comprehensive Loss        
Comprehensive income (loss)        
Balance at the beginning (2,088) (1,786) (2,470) (1,621)
Other comprehensive income (loss) before reclassifications, net of taxes 811 (271) 1,041 (414)
Total other comprehensive income (loss) before reclassifications, net of taxes (1,277) (2,057) (1,429) (2,035)
Net amount reclassified to earnings (16) 19 136 (3)
Balance at the end $ (1,293) $ (2,038) $ (1,293) $ (2,038)
v3.25.2
Segment reporting and concentrations - Segment assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Segment reporting and concentrations    
Total assets $ 132,623 $ 113,449
Goodwill 2,086 1,998
DDS    
Segment reporting and concentrations    
Total assets 112,159 91,588
Synodex    
Segment reporting and concentrations    
Total assets 4,828 4,790
Agility    
Segment reporting and concentrations    
Total assets 15,636 17,071
Goodwill $ 2,100 $ 2,000
v3.25.2
Segment reporting and concentrations- Significant income statement (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Segment reporting and concentrations        
Revenues $ 58,393 $ 32,553 $ 116,737 $ 59,057
Direct operating costs 35,370 23,202 70,462 40,071
Gross profit 23,023 9,351 46,275 18,986
Selling and administrative expenses 14,112 9,020 29,092 17,325
Segment operating income (loss) 8,911 331 17,183 1,661
Interest income, net (577) 55 (704) (29)
Income before provision for income taxes 9,488 276 17,887 1,690
DDS        
Segment reporting and concentrations        
Revenues 50,576 25,410 101,406 45,116
Direct operating costs 31,177 19,331 62,279 32,479
Gross profit 19,399 6,079 39,127 12,637
Selling and administrative expenses 10,430 6,197 22,025 11,992
Segment operating income (loss) 8,969 (118) 17,102 645
Interest income, net (577) 54 (705) (31)
Income before provision for income taxes 9,546 (172) 17,807 676
Synodex        
Segment reporting and concentrations        
Revenues 2,065 1,986 4,079 3,857
Direct operating costs 1,618 1,530 3,079 3,002
Gross profit 447 456 1,000 855
Selling and administrative expenses 140 140 427 263
Segment operating income (loss) 307 316 573 592
Income before provision for income taxes 307 316 573 592
Agility        
Segment reporting and concentrations        
Revenues 5,752 5,157 11,252 10,084
Direct operating costs 2,575 2,341 5,104 4,590
Gross profit 3,177 2,816 6,148 5,494
Selling and administrative expenses 3,542 2,683 6,640 5,070
Segment operating income (loss) (365) 133 (492) 424
Interest income, net   1 1 2
Income before provision for income taxes $ (365) $ 132 $ (493) $ 422
v3.25.2
Segment reporting and concentrations - Revenues by geographic region (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Segment reporting and concentrations        
Revenues $ 58,393 $ 32,553 $ 116,737 $ 59,057
United States        
Segment reporting and concentrations        
Revenues 48,563 23,804 97,460 41,673
Canada        
Segment reporting and concentrations        
Revenues 2,955 2,284 5,678 4,510
United Kingdom        
Segment reporting and concentrations        
Revenues 2,470 2,364 4,897 4,614
The Netherlands        
Segment reporting and concentrations        
Revenues 2,277 2,005 4,442 4,044
Others - principally other European countries        
Segment reporting and concentrations        
Revenues $ 2,128 $ 2,096 $ 4,260 $ 4,216
v3.25.2
Segment reporting and concentrations - Long-lived assets by geographic region (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Segment reporting and concentrations    
Long - lived assets $ 24,556 $ 23,690
United States    
Segment reporting and concentrations    
Long - lived assets 10,859 10,182
Canada    
Segment reporting and concentrations    
Long - lived assets 6,442 6,265
United Kingdom    
Segment reporting and concentrations    
Long - lived assets 772 806
Philippines    
Segment reporting and concentrations    
Long - lived assets 3,435 3,532
India    
Segment reporting and concentrations    
Long - lived assets 2,257 2,251
Sri Lanka    
Segment reporting and concentrations    
Long - lived assets 721 587
Israel    
Segment reporting and concentrations    
Long - lived assets 66 63
Germany    
Segment reporting and concentrations    
Long - lived assets 4 4
Total foreign    
Segment reporting and concentrations    
Long - lived assets $ 13,697 $ 13,508
v3.25.2
Segment reporting and concentrations (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
USD ($)
customer
Jun. 30, 2024
customer
Jun. 30, 2025
USD ($)
customer
segment
Jun. 30, 2024
customer
Dec. 31, 2024
USD ($)
customer
Segment reporting and concentrations          
Number of reporting segments | segment     3    
Right-of-use-asset, net | $ $ 3,830   $ 3,830   $ 4,238
Sales revenue, net | Customer concentration risk | Non-US          
Segment reporting and concentrations          
Concentration risk, percentage 17.00% 27.00% 17.00% 29.00%  
Foreign customer | Accounts receivable | Customer concentration risk          
Segment reporting and concentrations          
Concentration risk, percentage     20.00%   16.00%
One customer | Sales revenue, net | Customer concentration risk          
Segment reporting and concentrations          
Number of clients 1 1 1 1  
Concentration risk, percentage 58.00% 38.00% 59.00% 31.00%  
One customer | Accounts receivable | Customer concentration risk          
Segment reporting and concentrations          
Number of clients     1    
Concentration risk, percentage     60.00%    
Two customer | Accounts receivable | Customer concentration risk          
Segment reporting and concentrations          
Number of clients         2
Concentration risk, percentage         61.00%
Customer | Customer concentration risk | United States          
Segment reporting and concentrations          
Number of clients 0 0 0 0  
Customer | Accounts receivable | Customer concentration risk          
Segment reporting and concentrations          
Number of clients     0   0
Customer | Minimum | Sales revenue, net | Customer concentration risk          
Segment reporting and concentrations          
Concentration risk, percentage 10.00% 10.00% 10.00% 10.00%  
Customer | Minimum | Accounts receivable | Customer concentration risk          
Segment reporting and concentrations          
Concentration risk, percentage     10.00%   10.00%
v3.25.2
Income Per Share (Details) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Per Share            
Net Income (Loss) $ 7,219 $ 7,787 $ (14) $ 989 $ 15,006 $ 975
Weighted average common shares outstanding 31,785   28,878   31,609 28,819
Dilutive effect of outstanding options 3,516       3,511 3,872
Adjusted for dilutive computation 35,301   28,878   35,120 32,691
v3.25.2
Income Per Share - Additional information (Details) - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Antidilutive securities excluded from computation of earnings per share        
Dilutive effect of outstanding options and restricted stock units 3,516,000   3,511,000 3,872,000
Employee Stock Option        
Antidilutive securities excluded from computation of earnings per share        
Dilutive effect of outstanding options and restricted stock units 3,400,000   3,400,000  
Restricted Stock Units        
Antidilutive securities excluded from computation of earnings per share        
Dilutive effect of outstanding options and restricted stock units     469,483  
Employee Stock Option        
Antidilutive securities excluded from computation of earnings per share        
Shares not included in computation of diluted loss per share   6,000,000    
Employee Stock Option | Employee Stock Option        
Antidilutive securities excluded from computation of earnings per share        
Shares not included in computation of diluted loss per share       3,000
v3.25.2
Derivatives - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Derivatives    
Derivative notional amount $ 14.8 $ 22.5
v3.25.2
Derivatives - Fair value of derivative instruments (Details) - Foreign currency forward contracts - Designated as hedging instrument - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Accrued expenses    
Derivatives, Fair Value    
Derivatives designated as hedging instruments   $ 499
Prepaid expenses and other current assets    
Derivatives, Fair Value    
Derivatives designated as hedging instruments $ 161  
v3.25.2
Derivatives - Effect of foreign currency forward contracts designated as cash flow hedges (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Derivatives        
Net gain (loss) recognized in OCI $ 265 $ (193) $ (386) $ (206)
Net (gain) loss reclassified from accumulated OCI into income $ (17) $ 19 $ 136 $ (2)
v3.25.2
Line of Credit (Details) - Revolving Credit Facility
$ in Millions
 6 Months Ended
Aug. 05, 2024
USD ($)
Jun. 30, 2025
USD ($)
Line of Credit    
Maximum borrowing capacity $ 30.0  
Maximum borrowing capacity subject to approval of the lender $ 50.0  
Percentage of eligible accounts considered for determination of borrowing base 85.00%  
Percentage of eligible unbilled accounts considered for determination of borrowing base 80.00%  
Percentage of all eligible unbilled accounts considered for determination of borrowing base 30.00%  
Percentage of eligible foreign accounts considered for determination of borrowing base 85.00%  
Percentage of all eligible foreign accounts considered for determination of borrowing base 20.00%  
Amount of all eligible foreign accounts considered for determination of borrowing base $ 4.0  
Line of credit facility, borrowing base   $ 25.2
Threshold minimum fixed charge coverage ratio required to be maintained 1.1  
Interest rate   2.25%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]   us-gaap:SecuredOvernightFinancingRateSofrMember