Professional Diversity (IPDN) AI Stock Analysis

• Market Cap: $5.12M
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -12.88%
• EPS Growth: 53.73%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 93
• Industry: Staffing & Employment Services
• EPS (TTM): -0.38
• Shares Outstanding: 2,083,285
• 10 Day Avg. Volume: 677,759
• 30 Day Avg. Volume: 2,148,813
• PEG Ratio: 0.30
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.94
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: -0.48
• 1Y Price Target: $1.50
• Price Target Upside: -33.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-10.71%Downside)

IPDN's overall stock score is primarily influenced by significant financial performance challenges and valuation concerns. Although technical indicators are neutral, the lack of profitability and cash flow issues weigh heavily on the stock's attractiveness.

Professional Diversity Business Overview & Revenue Model

Company Description

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates in three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Professional Diversity Network, Inc. generates revenue predominantly through its recruitment services and online networking platforms. The company charges employers and recruiters for access to its diverse talent pools and for advertising job openings on its platforms. Additional revenue is generated through memberships, sponsorships, and partnerships that provide companies with enhanced visibility and branding opportunities within the diverse professional community. The company may also engage in strategic partnerships with organizations that aim to promote diversity and inclusion in the workplace, further enhancing its revenue streams.

Professional Diversity Financial Statement Overview

Summary

The company's financial performance is weak, marked by negative EBIT and Net Income margins, indicating significant profitability challenges. Despite a strong equity position, high debt levels relative to equity and negative cash flows highlight operational inefficiencies and risks to financial stability.

Income Statement

The company's income statement reveals significant challenges, as evidenced by persistent negative EBIT and Net Income margins. The TTM (Trailing-Twelve-Months) data shows a severe negative EBIT margin of approximately -46.8% and a Net Profit Margin of -47.9%. Revenue growth is misleading due to an anomaly in TTM data, suggesting operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet indicates a strong equity position with an equity ratio of approximately 63.5% in TTM, suggesting financial stability. However, the company carries a high level of debt relative to its equity, reflected in a debt-to-equity ratio of 0.05, posing potential risks if earnings do not improve. The negative return on equity indicates unprofitable operations.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, indicating cash management challenges. The TTM operating cash flow is significantly negative, and the free cash flow to net income ratio reflects inefficiencies, highlighting the need for operational improvements to support cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.51M	6.73M	7.70M	8.31M	6.10M	4.46M
Gross Profit	3.80M	4.08M	4.24M	4.05M	4.57M	3.67M
EBITDA	-2.12M	-2.20M	-3.91M	-2.24M	-2.43M	-3.91M
Net Income	-2.44M	-2.51M	-4.31M	-3.08M	-2.86M	-4.16M
Balance Sheet
Total Assets	7.74M	7.98M	6.33M	6.84M	8.98M	8.67M
Cash, Cash Equivalents and Short-Term Investments	496.44K	1.73M	627.64K	1.24M	3.40M	2.12M
Total Debt	256.43K	279.31K	365.71K	444.72K	516.76K	510.52K
Total Liabilities	3.44M	3.14M	3.76M	4.53M	5.88M	5.33M
Stockholders Equity	4.92M	5.32M	3.05M	2.55M	2.79M	3.35M
Cash Flow
Free Cash Flow	-2.42M	-2.76M	-3.24M	-2.31M	-1.95M	-3.55M
Operating Cash Flow	-2.24M	-2.50M	-3.03M	-2.25M	-1.87M	-3.54M
Investing Cash Flow	-2.18M	-962.89K	-946.50K	-61.00K	-1.29M	-65.41K
Financing Cash Flow	4.82M	4.57M	3.36M	145.00K	4.44M	4.93M

Professional Diversity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPDN, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.50, above the 50-day MA of 1.99, and below the 200-day MA of 3.87, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPDN.

Professional Diversity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHH	66 Neutral	$94.47M	42.64	2.52%	―	3.93%	―
Sector *	65 Neutral	$11.14B	16.13	4.60%	2.08%	3.17%	-25.97%
DHX	61 Neutral	$137.48M	268.89	-7.21%	―	-7.42%	-567.61%
BGSF	60 Neutral	$70.86M	―	-3.95%	4.69%	-12.93%	-159.19%
JOB	52 Neutral	$24.74M	―	-70.70%	―	-17.38%	-1165.13%
HSON	52 Neutral	$25.60M	―	-8.66%	―	-9.28%	-244.22%
IPDN	48 Neutral	$5.12M	―	-67.31%	―	-12.88%	53.73%

Professional Diversity Corporate Events

Professional Diversity Secures $400,000 Through Convertible Notes

On July 7 and July 9, 2025, Professional Diversity Network, Inc. entered into Convertible Note Purchase Agreements with two non-affiliated accredited investors, raising a total of $400,000 through unsecured convertible promissory notes. The notes, bearing a 12% annual interest rate and maturing in 360 days, are convertible into restricted shares of the company’s common stock, with specific conversion price conditions. The issuance of these notes is exempt from registration under the Securities Act of 1933.

Professional Diversity Enters Warrant Exchange Agreement

On June 30, 2025, Professional Diversity Network, Inc. entered into a warrant exchange agreement with a holder of 250,000 Series A and 250,000 Series B warrants, initially issued on November 20, 2024. The agreement involved the cancellation of 500,000 warrants in exchange for 333,333 shares of common stock, issued under an exemption from the Securities Act of 1933.

Professional Diversity Holds Annual Stockholders Meeting

On June 12, 2025, Professional Diversity Network, Inc. held its Annual Meeting of Stockholders, where a quorum was achieved with 1,333,797 shares represented. During the meeting, stockholders elected five directors, ratified the appointment of Sassetti, LLC as the independent accounting firm for 2025, and approved executive compensation. The board decided to hold annual advisory votes on executive compensation following the stockholders’ recommendation.

Professional Diversity Appoints Lisa Fan as Interim CFO

On June 6, 2025, Megan Bozzuto resigned as interim CFO of Professional Diversity Network, Inc., but will continue as president of its subsidiary, the International Association of Women. On June 12, 2025, Lisa Fan was appointed as the new interim CFO, bringing over 15 years of experience in corporate finance and internal auditing, with a background in IPO readiness and financial compliance.

Professional Diversity Appoints New Board Members

On May 22, 2025, Ge Yi and Katerine Lauderdale resigned from the Board of Directors of Professional Diversity Network, Inc., with their decisions not stemming from any disagreements with the company. On May 26, 2025, the company appointed Cheung Wai Kee and Song Tai to fill the vacancies, effective immediately. Cheung Wai Kee, with extensive experience in financial roles at Hong Kong-listed companies, joined the Audit Committee and the Nominating and Corporate Governance Committee. Song Tai, with over 20 years of international business management experience, joined the Nominating and Corporate Governance Committee. Eloisa Sultan was appointed Chairwoman of the Compensation Committee.