Professional Diversity (IPDN) AI Stock Analysis

• Market Cap: $3.83M
• Dividend Yield: N/A
• Average Volume (3M): 288.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -12.58%
• EPS Growth: 50.29%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 77
• Industry: Staffing & Employment Services
• EPS (TTM): -2.02
• Shares Outstanding: 2,083,285
• 10 Day Avg. Volume: 52,523
• 30 Day Avg. Volume: 288,100
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The stock of Professional Diversity Network is significantly impacted by weak financial performance, characterized by negative income and cash flow, and high leverage. Technical indicators reflect a bearish trend with limited upward momentum. Valuation metrics further indicate challenges, with a negative P/E ratio suggesting ongoing losses. Strategic improvements are essential for financial stabilization.

Professional Diversity Business Overview & Revenue Model

Company Description

Professional Diversity Network, Inc. (IPDN) is a leading operator of online networks dedicated to serving diverse professionals in various industries. The company specializes in connecting job seekers from a wide array of backgrounds, including women, minorities, veterans, LGBT, and disabled professionals, with potential employers who value diversity and inclusion. IPDN offers networking, training, and career development services through its various online platforms.

How the Company Makes Money

Professional Diversity Network, Inc. generates revenue primarily through its recruitment services, which include job postings and access to its resume database for employers looking to diversify their workforce. The company also earns money from membership fees, advertising on its platforms, and various training and career development programs. Strategic partnerships with organizations and companies committed to diversity and inclusion also contribute to IPDN's earnings.

Professional Diversity Financial Statement Overview

Summary

Professional Diversity shows signs of financial distress, with weak profitability and reliance on external financing. The balance sheet is leveraged, and cash flow management needs improvement. Strategic adjustments are necessary to stabilize the financial health of the company.

Income Statement

The company has consistently reported negative net income and EBIT, indicating ongoing operational challenges. Revenue growth has been volatile, with significant discrepancies in recent years. The gross profit margin has been inconsistent, reflecting potential cost management issues.

Balance Sheet

The company maintains a positive equity position, but the high debt-to-equity ratio suggests significant leverage. Cash reserves are healthy compared to the total debt, yet the overall asset management shows room for improvement.

Cash Flow

Consistently negative free cash flow and operating cash flow highlight significant cash management issues. The company is heavily reliant on financing activities, which may not be sustainable in the long term.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
7.70M	8.31M	6.10M	4.46M	5.03M
	Gross Profit
4.24M	4.05M	4.57M	3.67M	4.14M
	EBIT
-4.54M	-3.10M	-2.89M	-4.85M	-3.00M
	EBITDA
-3.91M	-2.24M	-2.43M	-3.91M	-2.11M
	Net Income Common Stockholders
-4.31M	-3.08M	-2.86M	-4.16M	-2.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
627.64K	1.24M	3.40M	2.12M	633.62K
	Total Assets
6.33M	6.84M	8.98M	8.67M	6.59M
	Total Debt
365.71K	444.72K	516.76K	510.52K	105.08K
	Net Debt
-261.93K	-792.28K	-2.89M	-1.61M	-528.53K
	Total Liabilities
3.76M	4.53M	5.88M	5.33M	4.04M
	Stockholders Equity
3.05M	2.55M	2.79M	3.35M	2.55M
Cash Flow		Free Cash Flow
-3.24M	-2.31M	-1.95M	-3.55M	-6.48M
	Operating Cash Flow
-3.03M	-2.25M	-1.87M	-3.54M	-6.47M
	Investing Cash Flow
-946.50K	-61.00K	-1.29M	-65.41K	54.80K
	Financing Cash Flow
3.36M	145.00K	4.44M	4.93M	6.90M

Professional Diversity Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPDN, the sentiment is Neutral. The current price of 1.69 is above the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.98, and below the 200-day MA of 4.74, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 87.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IPDN.

Professional Diversity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%
MHH	63 Neutral	$91.68M	27.53	4.03%	―	-1.07%	―
DHX	53 Neutral	$55.60M	268.89	-7.21%	―	-6.55%	-93.52%
BGSF	50 Neutral	$37.22M	―	-3.95%	4.46%	-12.99%	-152.96%
JOB	45 Neutral	$19.48M	―	-24.47%	―	-21.17%	-441.21%
HSON	45 Neutral	$27.37M	―	-10.72%	―	-13.19%	-320.59%
IPDN	29 Underperform	$3.83M	―	-60.02%	―	-12.58%	50.29%

Professional Diversity Corporate Events

Professional Diversity Appoints New Directors Amid Resignations

Professional Diversity Network, Inc. announced the resignation of directors Michael D. Belsky and Chris Renn on April 18 and 19, 2025, respectively, with no disagreements cited. On April 22, 2025, Eloisa Sultan and Long Yi were appointed as new directors, joining the Audit Committee and Compensation Committee, enhancing the company’s governance with their extensive experience in healthcare and finance.

Spark’s Take on IPDN Stock

According to Spark, TipRanks’ AI Analyst, IPDN is a Underperform.

Professional Diversity faces significant financial challenges, including negative income and cash flow, combined with a high debt-to-equity ratio. Technical indicators point to bearish momentum, and the valuation is unattractive due to ongoing losses and lack of dividends. These factors contribute to a low overall stock score.

To see Spark’s full report on IPDN stock, click here.

Professional Diversity Ends Stock Purchase Agreement

Professional Diversity Network, Inc. announced the termination of its Common Stock Purchase Agreement with Tumim Stone Capital LLC, which was initially entered on June 30, 2023. The agreement allowed the company to sell up to $12,775,000 worth of newly issued shares, but as of the latest report, only $2,846,017 worth of shares had been sold. The termination notice was given on February 25, 2024, and will be effective five business days thereafter, indicating no further shares will be sold under this agreement.