Inuvo (INUV) AI Stock Analysis

• Market Cap: $52.69M
• Dividend Yield: N/A
• Average Volume (3M): 130.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 21.45%
• EPS Growth: 41.21%
• Country: US
• Employees: 82
• Sector: Technology
• Sector Strength: 85
• Industry: Advertising Agencies
• EPS (TTM): -0.10
• Shares Outstanding: 14,595,867
• 10 Day Avg. Volume: 103,297
• 30 Day Avg. Volume: 130,212
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 0.82
• Enterprise Value/Ebitda: -15.91
• 1Y Price Target: $13.50
• Price Target Upside: 273.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $3.50 ▼(-3.05% Downside)

Inuvo's overall stock score reflects a company facing significant financial and technical challenges. While there is positive revenue growth and client expansion, ongoing profitability issues, bearish technical indicators, and a challenging valuation weigh heavily on the score.

Positive Factors

Client Expansion

Inuvo added 18 new self-serve clients and 4 managed service clients, which represent a small portion of revenue but have very high-margins which are expected to be beneficial long-term as these offerings expand.

Financial Position

Inuvo ended with $2.6M in cash and no debt, and it is believed the company will not require additional capital.

Valuation

Inuvo trades at a 2026 EV/revenue multiple of 0.5x versus peers trading near 2.0x, indicating a potentially undervalued opportunity.

Negative Factors

Digital Ad Spend

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

Earnings Estimate

Estimates are lowered, projecting 2025 revenue to $100.0M, up 19% y/y, from $106.0M, and adjusted EBITDA estimate to a loss of ($2.9M), from +$1.0M.

Gross Margin

Gross margin of 75.4% contracted 360bps largely due to changes in product and ad-format mix.

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 revenue growth but struggles with profitability and financial stability. Persistent net losses, declining equity, and negative free cash flow are major concerns despite some improvement in operating cash flow.

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	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: 3.61
• 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 3.61 is below the 20-day moving average (MA) of 4.34, below the 50-day MA of 4.55, and below the 200-day MA of 4.13, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 35.69 is Neutral, neither overbought nor oversold. The STOCH value of 18.00 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 *	61 Neutral	$35.49B	7.54	-10.73%	1.90%	8.85%	-10.46%
WIMI	60 Neutral	$38.30M	7.68	8.21%	―	-8.74%	―
MCHX	46 Neutral	$87.03M	―	-13.93%	―	-2.64%	6.48%
HHS	45 Neutral	$27.14M	―	-14.09%	―	-6.49%	89.87%
INUV	44 Neutral	$52.69M	―	-36.41%	―	21.45%	41.21%
FLNT	43 Neutral	$44.65M	―	-115.36%	―	-12.84%	63.95%
CDLX	38 Underperform	$59.09M	―	-136.44%	―	-12.84%	5.09%

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.

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.