Inuvo (INUV) AI Stock Analysis

• Market Cap: $70.23M
• Dividend Yield: N/A
• Average Volume (3M): 146.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 18.20%
• EPS Growth: 50.08%
• Country: US
• Employees: 82
• Sector: Technology
• Sector Strength: 91
• Industry: Advertising Agencies
• EPS (TTM): -0.10
• Shares Outstanding: 14,450,000
• 10 Day Avg. Volume: 115,972
• 30 Day Avg. Volume: 146,954
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 0.68
• Enterprise Value/Ebitda: -16.03
• 1Y Price Target: $13.33
• Price Target Upside: 174.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: $5.50 ▲(13.17%Upside)

Inuvo's overall score is driven by strong revenue growth and positive sentiment from the latest earnings call, which are somewhat offset by ongoing profitability challenges and financial instability. Technical analysis suggests a positive trend, but valuation concerns due to negative earnings weigh on the score.

Positive Factors

Financial Performance

Inuvo ended 1Q25 with $2.6M in cash and no debt, suggesting a strong financial position without the need for additional capital.

Revenue Growth

The company has affirmed its revenue growth of at least 25% for a future quarter, which indicates strong business momentum.

Technology and Innovation

The introduction of a self-serve IntentKey platform with advanced AI is designed to enhance user control and customization.

Negative Factors

Capital Strategy

There is a risk of dilution if the company raises additional capital.

Market Conditions

A broader slowdown in digital ad spend could be a catalyst for further market share gains given Inuvo's favorable comparative performance to peers.

Stock Performance

Despite record quarterly revenue in 4Q24 and outlook for accelerating revenue growth in 1Q25, INUV shares have underperformed the Russell 2000 year to date, down 45.3% versus a 9.5% decline, respectively.

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 makes money through its proprietary platforms that deliver targeted digital advertising solutions. The primary revenue stream is generated from advertisers who use Inuvo's platforms to reach specific audiences. IntentKey leverages AI to discern consumer intent and optimize ad delivery, thereby enhancing advertisers' return on investment. Revenue is typically earned on a performance basis, where advertisers pay for successful engagements or conversions generated by the campaigns. Additionally, Inuvo partners with various digital media outlets, leveraging their reach to increase ad impressions and clicks, further contributing to the company's earnings.

Inuvo Financial Statement Overview

Summary

Inuvo's financial performance reflects significant revenue growth but persistent profitability challenges. Despite the doubling of revenue since 2020, the company continues to operate at a net loss, with declining gross profit margins and a weakened balance sheet. Improvements in operating cash flow are a positive, but negative free cash flow remains a concern.

Income Statement

Inuvo shows a consistent growth in total revenue over the years, with a significant increase from $44.64M in 2020 to $93.48M in TTM 2025. However, the company has been operating at a net loss throughout the periods, reflected by negative net profit margins and EBIT margins. Despite growth in revenue, the profitability remains a concern with gross profit margins decreasing from 81.4% in 2020 to 77.2% in TTM 2025.

Balance Sheet

The balance sheet reflects a decrease in stockholders' equity from $32.81M in 2021 to $13.45M in TTM 2025, signaling a reduction in financial stability. The debt-to-equity ratio remains low, indicating limited leverage, but the overall decline in equity and assets raises concerns about the company's financial health. Equity ratio has dropped substantially, with total liabilities now almost equalling total assets.

Cash Flow

Cash flows indicate persistent negative free cash flow, with slight improvements in operating cash flow in TTM 2025 ($1.22M) compared to previous years. The operating cash flow to net income ratio is positive in 2025, suggesting some improvement in cash generation relative to net losses. However, free cash flow remains negative, necessitating attention to cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.79M	73.91M	75.60M	59.83M	44.64M
Gross Profit	59.69M	63.43M	45.36M	43.90M	36.34M
EBITDA	-2.69M	-7.63M	-10.45M	-4.05M	-3.45M
Net Income	-5.76M	-10.39M	-13.56M	-4.48M	-8.56M
Balance Sheet
Total Assets	33.18M	32.37M	35.56M	44.00M	35.18M
Cash, Cash Equivalents and Short-Term Investments	2.46M	4.44M	4.46M	12.40M	7.89M
Total Debt	1.02M	943.90K	483.00K	862.97K	1.10M
Total Liabilities	835.27B	15.39M	13.81M	11.19M	9.89M
Stockholders Equity	13.47T	16.98M	21.75M	32.81M	25.29M
Cash Flow
Free Cash Flow	-1.63M	-4.24M	-7.26M	-6.87M	-6.78M
Operating Cash Flow	229.55K	-2.55M	-5.57M	-5.28M	-5.60M
Investing Cash Flow	-1.86M	606.19K	-1.67M	-4.60M	-1.19M
Financing Cash Flow	-353.39K	3.46M	-304.43K	12.46M	14.30M

Inuvo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.86 is below the 20-day moving average (MA) of 5.30, above the 50-day MA of 4.52, and above the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 9.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INUV.

Inuvo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$34.80B	6.83	-11.92%	2.06%	6.36%	-8.52%
WIMI	61 Neutral	$32.41M	6.50	8.21%	―	-8.74%	―
MCHX	61 Neutral	$84.51M	―	-16.55%	―	-2.67%	21.65%
INUV	60 Neutral	$70.23M	―	-34.39%	―	18.20%	50.08%
HHS	47 Neutral	$25.11M	―	-147.49%	―	-4.46%	-3053.30%
FLNT	45 Neutral	$43.41M	―	-123.16%	―	-15.07%	33.40%
CDLX	45 Neutral	$98.70M	―	-135.48%	―	-12.77%	19.71%

Inuvo Corporate Events

Inuvo Announces Reverse Stock Split Effective June 2025

Inuvo, Inc. announced a 1-for-10 reverse stock split of its common stock, effective June 10, 2025. This adjustment, which changed the CUSIP number and maintained the existing ticker symbol ‘INUV’, was implemented to consolidate shares without altering shareholders’ equity percentages, except for rounding fractional shares.

The most recent analyst rating on (INUV) stock is a Buy with a $1.00 price target. To see the full list of analyst forecasts on Inuvo stock, see the INUV Stock Forecast page.

Inuvo Announces 2025 Equity Compensation Plan

Inuvo, Inc. has announced its 2024 Omnibus Incentive Compensation Plan and 2025 Equity Compensation Plan, which includes forms for Restricted Stock Unit and Non-Qualified Stock Option Agreements. This announcement, dated May 28, 2025, signifies Inuvo’s ongoing efforts to enhance its compensation structures, potentially impacting its operational strategies and stakeholder engagement.

The most recent analyst rating on (INUV) stock is a Buy with a $1.00 price target. To see the full list of analyst forecasts on Inuvo stock, see the INUV Stock Forecast page.