Key Points
Innodata currently looks stronger on revenue, having recorded a higher total than SoundHound AI in all eight comparable quarters analyzed in this reporting period.
While both companies demonstrated an overall upward revenue trajectory over the past two years of reporting, SoundHound AI experienced notable quarter-over-quarter fluctuations compared to the progressively steadier quarterly gains recorded by Innodata.
Investors observing these performance patterns should watch whether the absolute revenue gap between the two companies continues to widen steadily or eventually begins to narrow in upcoming quarterly reporting periods.
Innodata: A Gradual Upward Quarterly Revenue Trend
Innodata Inc. (NASDAQ:INOD) primarily generates its revenue by providing specialized data engineering services, digital transformation strategies, and software tools designed to train machine learning algorithms for corporate enterprise clients. It recently appointed Rahul Singhal to succeed Jack Abuhoff as chief executive officer and launched an initial cyber training suite featuring twelve distinct data sets to help automated systems detect vulnerabilities.
SoundHound AI: Upward but Fluctuating Revenue Growth
SoundHound AI (NASDAQ:SOUN) generates its revenue by providing customized conversational voice technology systems and comprehensive software toolkits that help brands build specialized virtual assistants tailored to consumer interaction needs. It finalized the corporate acquisition of LivePerson following stockholder approval and expanded a healthcare virtual agent program after processing more than 2.2 million patient calls within a regional pharmacy network.
Why Revenue Matters for Investors
Revenue here refers to the data provider's standardized income statement revenue line item, which serves as a direct measure showing investors the total amount of money flowing into a business from its operational activities before deducting expenses.
Innodata vs. SoundHound AI Revenue over the last 8 quarters.
Quarterly Revenue Summaries for Innodata and SoundHound AI
| Calendar quarter | Innodata Revenue | SoundHound AI Revenue |
|---|---|---|
| Q3 2024 | $52.2 million (quarter ended Sept. 30, 2024) | $25.1 million (quarter ended Sept. 30, 2024) |
| Q4 2024 | $59.2 million (quarter ended Dec. 31, 2024) | $34.5 million (quarter ended Dec. 31, 2024) |
| Q1 2025 | $58.3 million (quarter ended March 31, 2025) | $29.1 million (quarter ended March 31, 2025) |
| Q2 2025 | $58.4 million (quarter ended June 30, 2025) | $42.7 million (quarter ended June 30, 2025) |
| Q3 2025 | $62.5 million (quarter ended Sept. 30, 2025) | $42.0 million (quarter ended Sept. 30, 2025) |
| Q4 2025 | $72.4 million (quarter ended Dec. 31, 2025) | $55.1 million (quarter ended Dec. 31, 2025) |
| Q1 2026 | $90.1 million (quarter ended March 31, 2026) | $44.2 million (quarter ended March 31, 2026) |
| Q2 2026 | $92.1 million (quarter ended June 30, 2026) | $61.9 million (quarter ended June 30, 2026) |
Foolish Take
The first thing to note when examining a company's revenue trend is seasonality: some times of the year have stronger buying patterns than others. That is seen most distinctly in SoundHound AI's revenue bars in the chart: the fourth quarter is the best each year. For most stocks, compare revenue year over year by quarter.
Yet Innodata's chart is showing sequential sales growth, meaning any seasonality to its business is secondary to the growing demand for its offerings. Innodata's fiscal 2026 revenue is seen advancing 43% year over year to $360 million, with net income around $43 million. The company believes that combining its trusted observability platform and its innovatively architected reinforcement learning gyms enables Innodata to position itself as the AI deployment assurance layer. It's a position that management says is opening up a huge long-term opportunity.
For SoundHound in its current fiscal 2026, sales are seen rising 49% to $252 million, though with a wider net loss and negative free cash flow. SoundHound AI has been involved in speech recognition since being founded in 2005. The company has chalked up an impressive roster of clients, including 12 of the world's 15 largest banks, 4 of the 5 largest automakers, and 4 of the 5 largest airlines among its customers. The question is, can it get its client base to spend more reliably on a quarter-to-quarter basis?
Data source: Financial Modeling Prep. Data as of Oct. 22, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Innodata and SoundHound AI. The Motley Fool has a disclosure policy.