Innodata shifts to Singhal's leadership as it forecasts revenue growth of 40% or more
Key Facts
Rahul Singhal became president and chief executive officer of Innodata effective September 30, 2026, according to the company's filing with the U.S. Securities and Exchange Commission, following the announcement of the leadership transition in August. He took charge after second-quarter results showed increases in revenue and profit, while the largest customer's contribution to sales declined from the previous quarter. Innodata had announced the leadership transition arrangements in its earnings release published on August 6, 2026, before the change took effect at the end of September. Jack Abuhoff moved from chief executive officer to executive chairman, according to the regulatory filing on the transition. Singhal's appointment also included joining the company's board of directors, alongside assuming executive responsibility.
Innodata's revenue in the second quarter of 2026 totaled about $92.1 million, up 58% year on year, according to the earnings release the company published in August. The company reported net income of $14.4 million for the same period, alongside adjusted earnings before interest, taxes, depreciation and amortization of $25.4 million. Adjusted earnings before interest, taxes, depreciation and amortization is a non-GAAP measure the company uses in presenting its quarterly results. Adjusted gross margin, also a non-GAAP measure, was 49% in the second quarter, according to figures in the company's release. In terms of revenue distribution among customers, the largest customer's contribution fell to 37% of second-quarter revenue, compared with 56% in the previous quarter.
In its August earnings release, Innodata reaffirmed its revenue growth outlook for 2026, saying its guidance targeted "40% or more" year on year. The company had raised that guidance when it reported first-quarter results, after previously forecasting growth of about 35% or more for the year. The increased guidance at the time called for about 40% or more, before the company reaffirmed it when publishing second-quarter results. In its first-quarter release, Innodata linked its business expansion to new agreements with a major technology company. The company expected those agreements to generate about $51 million in revenue during 2026, as part of the business it announced alongside the increase in its annual outlook.
In software security, Innodata announced the launch of the first phase of a training suite for AI coding agents, aimed at training them to avoid and fix security vulnerabilities. The first phase comprises 12 datasets and evaluation systems, according to the company's release announcing the suite. Innodata said it used a portion of the suite's data to fine-tune a model, then tested its ability to fix vulnerabilities in software code. The test involved fixing vulnerabilities without directing the model to their locations in the code, according to the company's description of its performance measurement method. Innodata said the model's ability to fix vulnerabilities in its test rose from 18.4% before fine-tuning to 41.2% afterward.
The company's AI training data business extends to robotics, with the development of a motion-capture laboratory in New Jersey, according to its release on the project. Innodata said it established the laboratory in collaboration with Vicon to produce data used to train robots to move. The laboratory's work also includes independent validation of robot performance, alongside producing training data, according to the description announced by the company. On the commercial side, the business allows customers to purchase motion-capture data in ready-made packages, rather than obtaining it solely through projects carried out for individual customers. Customers can also commission the company to undertake custom projects, the other route Innodata announced for providing motion-capture data through the laboratory.
Singhal previously held product and revenue responsibilities at Innodata before becoming chief executive officer, according to the regulatory filing outlining his career at the company. He served as chief product officer from January 2019 to November 2025 and assumed responsibility for revenue in January 2022. He became president in November 2025, before the leadership transition announced in August also assigned him the chief executive officer role. Innodata will report its third-quarter 2026 results after the market closes on Thursday, November 5, according to the company's release setting the date for its next earnings announcement. The company will hold its investor call the same day at 5 p.m. U.S. Eastern time, following the earnings announcement.