Good afternoon, ladies and gentlemen, and welcome to the Innodata Reports Third Quarter 2025 Results Conference Call. [Operator Instructions] This call is being recorded on November 6, 2025. I would now like to turn the conference over to Amy Agress. Please go ahead.

Thank you, Michael. Good afternoon, everyone. Thank you for joining us today. Our speakers today are Jack Abuhoff, CEO of Innodata; Rahul Singhal, President and Chief Revenue Officer; and Marissa Espineli, Interim CFO. Also on the call today is Aneesh Pendharkar, Senior Vice President, Finance and Corporate Development. We'll hear from Jack first, who will provide perspective about the business, followed by remarks from Rahul, and then Marissa will provide a review of our results for the third quarter. We'll then take questions from analysts. Before we get started, I'd like to remind everyone that during this call, we will be making forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations, assumptions and estimates and are subject to risks and uncertainties. Actual results could differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today's earnings press release in the Risk Factors section of our Form 10-K, Form 10-Q and other reports and filings with the Securities and Exchange Commission. We undertake no obligation to update forward-looking information. In addition, during this call, we may discuss certain non-GAAP financial measures. In our earnings release filed with the SEC today as well as in our other SEC filings, which are posted on our website, you will find additional disclosures regarding these non-GAAP financial measures, including reconciliation of these measures with comparable GAAP measures. Thank you. I will now turn the call over to Jack.

Thank you, Amy, and good afternoon, everyone. Our third quarter was another record quarter for Innodata. We delivered record revenue of $62.6 million, representing a 20% year-over-year organic growth and a 7% sequential quarterly growth. Adjusted EBITDA was $16.2 million or 26% of revenue, up 23% sequentially, showing margin expansion even after factoring in growth investments I'll be talking about later in this call. Cash rose to $73.9 million, up by $27 million since year-end and $14.1 million since last quarter. Our results exceeded analyst expectation across key metrics. As a result of strong business momentum, we reiterate prior guidance of 45% or more year-over-year growth in 2025, and we anticipate potentially transformative growth in 2026. This afternoon, I'll share the basis of our confidence, including the significant growth we are anticipating from existing strategic vectors and the strong early returns from new investment areas. I'll then share how we are preparing the organization to reach the next level. I'll start with our existing strategic vectors. Since we last reported, we have continued to make substantial progress deepening relationships of trust with high dollar value big tech customers. Our deal momentum continues to accelerate with meaningful expansion across a diverse set of foundation model builders, both existing and new customers. Of the 8 big tech customers we talked about recently on these calls, we are currently forecasting 6 of them to grow next year several quite substantially. For example, we just received verbal confirmation for additional expansions with our largest customer and verbal confirmations of the deal we expect to potentially result in $6.5 million of revenue with another big tech. Beyond that, our expectations are grounded in the assessment of these customers' 2026 training data and evaluation budgets and the accelerating trust we believe we're earning with them through…

Thank you, Jack. I'm honored to step into this expanded role. Many of you may have seen Time Magazine recently ranked Innodata #24 on the inaugural list of America's Top 500 Growth Leaders for 2026, recognizing companies that "Capture trends and stay ahead of time." That mindset, seeing what's next and acting fast is core to who we are now. You are seeing the results of that today. We are deepening relationships with both existing and new Silicon Valley customers while delivering quick successes across the 6 investment areas Jack just outlined and increasing number of world's largest technology companies and enterprises are seeing the value we bring today. Looking past 2026, over the medium and long term, we believe the work we do with frontier model builders will expand and will become more complex. The next generation of models won't just need more data. They'll need more smarter data, data from simulation labs, large-scale synthetic generation and [ RL ] gems that capture human judgment, context and values. On top of this, the AI enterprise services market, which we are now successfully aligning to, will likely grow to be 10 or more times larger than the model builder market. We believe Innodata is purpose-built for this broad enterprise transition. Our work alongside frontier model builders give unique insights into how large models are trained, tuned, scaled and evaluated. And we are succeeding at packaging these insights into solutions that bring value to enterprises. For example, we have just begun -- recently begun providing model safety and remediation solutions that leverage the working we have done hand in glove over the past year or so with engineering teams from leading AI hyperscalers. Today, we are bringing those capabilities to one of the world's leading SaaS software companies and one of the world's leading generative AI chip designers. In short, I believe we are at the very beginning of the generational technology shift that Innodata is at the center of and poised to capitalize on. When I look at the competitive landscape, there are not even a handful of companies that have the capability to service $50 million, $100 million or larger order sizes in our space. And that's the need for hyperscalers today and sovereign entities. Plus they don't have the proven ability to scale the organization, provide flawless data accuracy and be highly nimble to addressing the changing client needs in a very dynamic environment. What an amazing time to be alive when the world is going through a seismic change driven by AI and to be in such a privileged position to help lead a company that is a critical part of catalyzing the change. I'll now turn the call over to Marissa. And after her remarks, we'll be available to take your questions.

Thank you, Rahul and Jack, and good afternoon, everyone. Revenue for Q3 2025 reached $62.6 million, up 20% year-over-year. Sequentially, revenue increased 7% from Q2's $58.4 million. Adjusted gross profit for Q3 2025 was $27.7 million, an increase of $4.8 million or 21% year-over-year with an adjusted gross margin of 44%. Adjusted EBITDA was $16.2 million or 26% of revenue, up 23% quarter-over-quarter, reflecting the strong operating leverage in our business. Net income for Q3 2025 was $8.3 million compared to $17.4 million a year ago. The decrease was mainly due to the tax benefit arising from the utilization of net operating loss carryforward in Q3 2024. We ended the quarter with $73.9 million in cash, up from $60 million at the end of the prior quarter and $46.9 million at year-end 2024 and did not draw down on our $30 million Wells Fargo credit facility. As Jack mentioned, based on our current momentum, we reiterate our prior guidance of 45% or more year-over-year growth in 2025, and we anticipate potentially transformative growth in 2026. Thank you, everyone, for joining us today. Operator or Michael, please open the line for questions.

Now for Q&A. Our first question comes from Allen Klee with Maxim Group.

Great job on the quarter. Just I was adding up the -- you mentioned a bunch of potential contract wins and what they could represent. And if I -- the ones that you put dollars amount on added up to close to $100 million. But what I wasn't sure about is these -- some of these could be contracts over multiple years. Is there a sense of what amount of that could potentially be in 2026?

Allen, it's a great question. I think the contracts that we -- when we talk about annualized recurring revenue, those are generally the contracts that we think will kind of roll at the number that we state is a year's value from that. Other contracts that we talk about, we're going to try to do some ramping up of some of them in this quarter, but then that revenue would primarily be falling into next quarter -- excuse me, next year.

Okay. And then in terms of -- you mentioned that you're going to spend an extra -- I think you said $8.2 million in incremental SG&A. Could you just explain what -- that's over what time period? And the way to think of that is over what type of base?

So that would be year-over-year, and that would be incremental in 2025 versus 2024.

Got it. And then with your largest customer, I think you've mentioned now more than once of potential to expand the relationship, which could be very large. But any commentary on just the existing business of them? Is that -- should that be considered kind of stable?

So the relationship is strong and the business is stable. I think as you'll see, the business went up sequentially in the quarters. And as we discussed just a few minutes ago, we got a verbal on what's potentially a very large new program that would come into -- with that customer. We haven't really baked that into anything yet because we're not sure of what the ramp-up would be, but it's certainly very significant relative to next year.

Our next question comes from George Sutton with Craig-Hallum.

Quite an update, and congrats both Jack and Rahul for your expanded roles. Relative to the verbal comment, Jack, with your largest customer, I assume that would just run through an existing statement of work, so you could take that business on relatively quickly?

That's correct. I mean, mechanically, it would run through the existing master services agreement and probably be a new statement of work. But your point is correct that it will be very easy and seamless in order to onboard that new requirement.

So I was thrilled to hear about your federal market win. And it begs the question, and I think you addressed it with your GSA comment. But typically, you need to be part of a FedRAMP program to take on material business like this. Can you just walk through how you're doing this under this GSA process? Or what's different than a normal FedRAMP process?

Yes. So I think the point that we were making is that the timing for us starting this practice is ideal. The federal government has clearly communicated the strategic emphasis that they're putting on AI and AI enablement, both in the DoD, the IC and even civilian agencies. So you have that -- on top of that, they're recognizing that the procurement and acquisition programs and processes are cumbersome, and they will impede the AI progress that they're intending to make. And therefore, they've issued executive orders. I think there may even be some new pronouncements expected to come out tomorrow on that subject. So when you take these 2 things in combination, the prioritization that the government is placing on AI, again, spanning the entirety of federal on the one hand and then on the liberalizations that they're making in terms of acquisition and procurement, it really couldn't be a better time for us to be in that market.

Got you. And then finally, Rahul, you made a very interesting comment that the services market could be 10x the model builder market. I wondered if you could just put a little bit more meat on that. And how much of that do you think you've started to see thus far?

Yes, George. So if you think about the enterprise market today and the frontier models, these models are now getting integrated into workflows that are transforming either for cost reduction, predominantly today for cost reduction. And soon, we're going to see transformative workflows that will drive new business models and revenue generating. As we talked about, we are seeing for one large social media company, we were able to dramatically save them over $24 million worth of cost. So it's early stages. We are starting to get into the stage where we are starting to deploy Gen AI solutions into our customer base, and we hope to expand this service in the future.

Thank you very much. That appears to be our last question. I will now turn the conference over to Jack Abuhoff for any additional remarks.

Thank you. Yes, I guess Innodata is executing really from a position of strength. We had another record-breaking quarter. Revenue is at an all-time high. We see profitability growing and the results exceeded our analyst expectations. Looking out ahead to 2026, we see the potential for continued transformative growth powered by deepening relationships among the Mag 7 and other Silicon Valley leaders. And we see that growth coming from 2 sources. First, the continued expansion we're driving with existing and new customers. And then secondly, the strong returns we're beginning to see from our recent investments. Today, I talked about 6 specific investment areas. And across each of them, across the board, we're showing what happens when we do exactly what Time Magazine recognizes for, seeing what's next and acting fast. So to recap quickly some of these early wins. First, $68 million in new pretraining data wins, $42 million that signed, $26 million that we believe gets signed very soon. The $25 million win with a new strategic federal customer that we expect to name soon, and we believe this is potentially the first of many projects with them, an additional expansion with our largest customer based on verbal confirmation, a $6.5 million verbal confirmation of the deal win with another big tech customer and new partnerships emerging with key AI and sovereign AI players, which we expect to be announcing in 2026. So thank you all for joining us today. We couldn't be more excited about what lies ahead. Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.