Inuvo (INUV) AI Stock Analysis

• Market Cap: $43.50M
• Dividend Yield: N/A
• Average Volume (3M): 141.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: 21.45%
• EPS Growth: 41.21%
• Country: US
• Employees: 82
• Sector: Technology
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): -0.10
• 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: 1.50
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 0.82
• Enterprise Value/Ebitda: -15.91
• 1Y Price Target: $13.50
• Price Target Upside: 362.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $3.00 ▲(2.74% Upside)

Inuvo's overall stock score reflects significant challenges in financial performance and valuation. While there is some positive revenue growth and client expansion, ongoing profitability issues, weak cash flow management, and bearish technical indicators weigh heavily on the score. The earnings call provides a slightly positive outlook, but it is not enough to offset the broader concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Client Expansion

Expanding client base enhances revenue potential and market presence, reflecting successful product adoption and customer trust.

No Outstanding Debt

A debt-free balance sheet provides financial flexibility and reduces risk, allowing for strategic investments and growth opportunities.

Negative Factors

Gross Margin Decline

Declining gross margins may indicate cost pressures or inefficiencies, potentially impacting profitability if not addressed.

Net Loss

Ongoing net losses highlight profitability challenges, which could limit reinvestment capabilities and affect long-term sustainability.

Cash Flow Challenges

Significant cash flow issues may constrain operational flexibility and investment in growth initiatives, posing a risk to future performance.

Inuvo Business Overview & Revenue Model

Company Description

Inuvo, Inc. is a technology company specializing in digital advertising and marketing solutions. The company operates in the advertising technology sector, providing innovative platforms that connect advertisers with consumers through data-driven insights. Inuvo's core products include its proprietary advertising platforms that utilize artificial intelligence to optimize ad placements and enhance targeting for various digital channels, including websites and mobile applications.

How the Company Makes Money

Inuvo generates revenue primarily through its performance-based advertising model, which involves charging advertisers based on the results achieved from their advertising campaigns, such as clicks, impressions, or conversions. Key revenue streams include fees from advertisers for using its platforms to reach targeted audiences and data monetization through the analysis of user behavior and preferences. The company also engages in partnerships with various publishers and advertising networks, enhancing its ability to deliver effective ad placements and drive higher revenues. Additionally, Inuvo may benefit from trends in digital marketing, such as increased demand for programmatic advertising, which contributes to its earnings growth.

Inuvo Financial Statement Overview

Summary

Inuvo's financial performance shows mixed results. While there is positive revenue growth, profitability and cash flow remain challenging. The balance sheet is stable with low leverage, but operational efficiency and cash flow management need improvement.

Income Statement

Inuvo's income statement shows a mixed performance. The company has achieved a positive revenue growth rate of 4.77% in the TTM, indicating some growth momentum. However, profitability remains a challenge with negative net profit and EBIT margins, reflecting ongoing operational inefficiencies. The gross profit margin is strong at 81.39%, suggesting effective cost management at the production level, but this is not translating into net profitability.

Balance Sheet

The balance sheet of Inuvo reveals a relatively low debt-to-equity ratio of 0.073, indicating conservative leverage and potential financial stability. However, the return on equity is negative, highlighting the company's struggle to generate returns for shareholders. The equity ratio stands at 42.12%, suggesting a decent level of asset financing through equity.

Cash Flow

Cash flow analysis shows significant challenges, with a negative free cash flow growth rate of -245.61% in the TTM, indicating cash flow issues. The operating cash flow to net income ratio is low at 0.073, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is positive, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.94M	83.79M	73.91M	75.60M	59.83M	44.64M
Gross Profit	79.71M	71.76M	63.43M	45.36M	43.90M	36.34M
EBITDA	-4.10M	-2.69M	-7.63M	-10.45M	-4.05M	-3.45M
Net Income	-4.66M	-5.76M	-10.39M	-13.11M	-7.60M	-7.30M
Balance Sheet
Total Assets	28.69M	32.20M	32.37M	35.56M	44.00M	35.18M
Cash, Cash Equivalents and Short-Term Investments	2.14M	2.46M	4.44M	4.46M	12.40M	7.89M
Total Debt	877.66K	1.02M	943.90K	483.00K	849.67K	1.10M
Total Liabilities	16.61M	18.72M	15.39M	13.81M	11.19M	9.89M
Stockholders Equity	12.08M	13.47M	16.98M	21.75M	32.81M	25.29M
Cash Flow
Free Cash Flow	243.05K	-1.63M	-4.24M	-7.26M	-6.87M	-6.78M
Operating Cash Flow	1.17M	229.55K	-2.55M	-5.57M	-5.28M	-5.60M
Investing Cash Flow	-1.78M	-1.86M	606.19K	-1.67M	-4.60M	-1.19M
Financing Cash Flow	738.68K	-353.39K	3.46M	-304.43K	12.46M	14.30M

Inuvo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.92 is below the 20-day moving average (MA) of 3.31, below the 50-day MA of 3.47, and below the 200-day MA of 4.12, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 33.55 is Neutral, neither overbought nor oversold. The STOCH value of 9.55 is Positive, 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 *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ABLV	―	$51.86M	19.27	-17.78%	―	―	―
MCHX	―	$80.41M	-17.01	-13.93%	―	-2.64%	6.48%
FLNT	―	$60.41M	-1.56	-115.36%	―	-12.84%	63.95%
INUV	―	$43.50M	-8.91	-36.41%	―	21.45%	41.21%
ACCS	―	$37.60M	-6.76	-37.55%	―	-19.76%	-838.29%
HHS	―	$25.66M	―	-14.09%	―	-6.49%	89.87%

Inuvo Corporate Events

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.