Why Did Innodata Plunge 15.15% Despite Earnings Beat?

Innodata's stock price plummeted by 15.15% in pre-market trading on August 1, 2025, despite reporting second-quarter earnings that exceeded analyst expectations on the bottom line.

Innodata's second-quarter earnings report, released on July 31, 2025, showed a significant earnings beat with EPS of $0.20, surpassing consensus estimates. However, the company's revenue fell short of expectations, leading to a sharp decline in its stock price.

Despite the earnings beat, investors were disappointed with the revenue performance, which contributed to the stock's decline. The company's guidance for the year was also a point of concern, as it raised its 2025 guidance after a 79% jump in Q2 revenue, but this was not enough to offset the revenue shortfall in the second quarter.