Inuvo (INUV) AI Stock Analysis

• Market Cap: $41.74M
• Dividend Yield: N/A
• Average Volume (3M): 141.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: 25.10%
• EPS Growth: 50.62%
• Country: US
• Employees: 82
• Sector: Technology
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): -0.12
• Shares Outstanding: 14,595,867
• 10 Day Avg. Volume: 127,309
• 30 Day Avg. Volume: 141,515
• PEG Ratio: 0.33
• Price to Book (P/B): 6.71
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -55.55
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 0.85
• Enterprise Value/Ebitda: -36.82
• 1Y Price Target: $10.88
• Price Target Upside: 325.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $2.50 ▼(-2.34% Downside)

Inuvo's overall stock score reflects strong revenue growth and potential future opportunities, but is weighed down by profitability challenges, bearish technical indicators, and a negative valuation. The earnings call provided some optimism, but flat revenue and margin declines remain concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning Inuvo for sustained expansion.

Technological Advancements

The introduction of 'Ranger' strengthens Inuvo's competitive edge by improving ad quality and compliance, crucial for long-term industry leadership.

New Leadership Addition

The addition of an experienced COO can enhance strategic execution and operational efficiency, supporting Inuvo's growth and innovation goals.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder reinvestment capabilities and financial resilience, impacting long-term business sustainability.

Cash Flow Inefficiencies

Negative cash flow indicates operational inefficiencies, limiting the company's ability to fund growth initiatives and manage financial obligations.

Gross Margin Decline

A declining gross margin suggests potential pricing pressures or cost management issues, which could affect profitability and competitive positioning.

Inuvo Business Overview & Revenue Model

Company Description

Inuvo, Inc., a technology company, develops and sells information technology solutions in the United States. The company's platforms identify and message online audiences for various products or services across devices, formats, and channels, including video, mobile, connected TV, linear TV, display, social, search, and native. Its platforms optimizes the purchase and placement of advertising in real time. The company's products and services include ValidClick that provides marketing and advertising services, as well as collection of data, analytics, software, and publishing gets used to align merchant advertising messages with anonymous consumers across various websites online; and IntentKey, an artificial intelligence-based consumer intent recognition system designed to reach targeted mobile and desktop in-market audiences. It also operates a collection of websites under the Bonfire Publishing brand, which creates content across a range of topics, including health, finance, travel, careers, auto, education, and lifestyle categories. The company's marketing channels consist of websites, social media, blogs, public relations, trade shows, and conferences. Inuvo, Inc. was incorporated in 1987 and is headquartered in Little Rock, Arkansas.

How the Company Makes Money

Inuvo generates revenue primarily through its advertising technology services, which include programmatic advertising and data-driven marketing solutions. The company earns money by charging clients for access to its platforms and services, which help advertisers optimize their marketing efforts and achieve better return on investment. Key revenue streams include fees for the use of the IntentKey platform, commissions on ad placements, and revenue from partnerships with other digital marketing entities. Additionally, Inuvo may benefit from strategic partnerships that expand its market reach or enhance its technology offerings, further contributing to its earnings.

Inuvo Financial Statement Overview

Summary

Inuvo's financial performance shows strong revenue growth of 20.4% TTM, but profitability is a concern with negative net profit margins and EBIT margins. The balance sheet is stable with low debt, but negative ROE and cash flow inefficiencies are significant risks.

Income Statement

Inuvo's income statement shows a mixed performance. The company has achieved a revenue growth rate of 20.4% in the TTM, indicating positive momentum. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is strong at 77.96%, but the negative net profit margin of -4.44% highlights the need for improved cost management and efficiency.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio of 0.077, suggesting conservative leverage. However, the return on equity is negative at -35.29%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 34.81%, which is moderate, but the negative ROE is a significant concern for investors.

Cash Flow

Cash flow analysis shows significant challenges, with negative operating cash flow and free cash flow in the TTM. The free cash flow to net income ratio is nearly 1, suggesting that cash flow is closely aligned with net income, albeit negative. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash flow. The free cash flow growth rate is also negative, highlighting ongoing cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.14M	83.79M	73.91M	75.60M	59.83M	44.64M
Gross Profit	76.51M	71.76M	63.43M	45.36M	43.90M	36.34M
EBITDA	-1.77M	-2.69M	-7.63M	-10.38M	-4.05M	-3.45M
Net Income	-4.36M	-5.76M	-10.39M	-13.11M	-7.60M	-7.30M
Balance Sheet
Total Assets	29.92M	32.20M	32.37M	35.56M	44.00M	35.18M
Cash, Cash Equivalents and Short-Term Investments	3.38M	2.46M	4.44M	4.46M	12.40M	7.89M
Total Debt	3.38M	1.02M	943.90K	483.00K	849.67K	1.10M
Total Liabilities	19.50M	18.72M	15.39M	13.81M	11.19M	9.89M
Stockholders Equity	10.42M	13.47M	16.98M	21.75M	32.81M	25.29M
Cash Flow
Free Cash Flow	-3.17M	-1.63M	-4.24M	-7.26M	-6.87M	-6.78M
Operating Cash Flow	-1.48M	229.55K	-2.55M	-5.57M	-5.28M	-5.60M
Investing Cash Flow	-1.69M	-1.86M	606.19K	-1.67M	-4.60M	-1.19M
Financing Cash Flow	3.96M	-353.39K	3.46M	-304.43K	12.46M	14.30M

Inuvo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INUV, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.74, below the 50-day MA of 3.21, and below the 200-day MA of 3.93, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INUV.

Inuvo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ABLV	59 Neutral	$47.55M	-19.36	-17.78%	―	―	―
INUV	48 Neutral	$41.74M	-8.73	-38.21%	―	25.10%	50.62%
MCHX	47 Neutral	$76.43M	-16.17	-14.61%	―	-4.32%	-13.99%
ACCS	45 Neutral	$34.87M	-6.26	-36.31%	―	-22.29%	-283.29%
HHS	41 Neutral	$20.54M	―	-26.62%	―	-11.07%	82.06%
FLNT	41 Neutral	$56.99M	-1.47	-127.41%	―	-18.94%	37.05%

Inuvo Corporate Events

Inuvo Inc. Earnings Call: Growth Amid Challenges

Inuvo Inc. recently held its third-quarter earnings call, revealing a blend of optimism and challenges. The company reported strong year-to-date growth and technological advancements, alongside strategic leadership hires. However, these positives were tempered by flat third-quarter revenue and decreased gross margins. Inuvo remains hopeful about future prospects, with pending contracts and settlements on the horizon.

Inuvo Inc. Reports Modest Revenue Growth in Q3 2025

Inuvo, Inc., a leader in artificial intelligence advertising technology, specializes in providing AI-driven ad tech solutions designed to understand consumer intent rather than identity.

Inuvo Inc’s Earnings Call Highlights Growth Amid Challenges

Inuvo Inc’s latest earnings call painted a picture of robust growth tempered by certain challenges. The company showcased impressive year-over-year revenue growth, driven by strong product performance, particularly IntentKey. However, sequential revenue decline, decreased gross margins, and increased operating expenses were noted as areas of concern. Despite these issues, positive client feedback and industry validation underscore Inuvo’s strong market positioning.

Inuvo Inc. Reports Strong Revenue Growth in Q2 2025

Inuvo, Inc. is a prominent player in the artificial intelligence advertising technology sector, known for its innovative IntentKey AI solution that identifies consumer interests. The company recently reported its financial results for the second quarter of 2025, highlighting a significant 25% increase in net revenue compared to the same period last year. This growth underscores Inuvo’s continued expansion and resilience in the competitive ad tech market.