Professional Diversity (IPDN) AI Stock Analysis

• Market Cap: $7.81M
• Dividend Yield: N/A
• Average Volume (3M): 446.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -7.26%
• EPS Growth: -1.37%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.23
• Shares Outstanding: 4,881,963
• 10 Day Avg. Volume: 111,448
• 30 Day Avg. Volume: 446,667
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.93
• P/FCF Ratio: -2.27
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $2.00 ▲(33.33% Upside)

The overall stock score reflects significant financial challenges, with ongoing losses and negative cash flows being major concerns. However, strategic corporate events, including international expansion and governance enhancements, provide a positive outlook. Technical indicators suggest a bearish trend, but potential for a rebound exists.

Positive Factors

International Expansion

The launch of a subsidiary in Tokyo enhances IPDN's global presence and positions it to capitalize on Asia's growing Web 3.0 market, potentially driving long-term revenue growth.

Governance Enhancements

Strengthening governance with influential leaders can improve strategic decision-making and foster international partnerships, supporting sustainable growth.

Low Debt Levels

Minimal leverage provides financial flexibility and reduces risk, allowing IPDN to invest in growth opportunities without significant debt burden.

Negative Factors

Negative Profitability Metrics

Persistent losses and negative margins indicate challenges in achieving profitability, which could hinder long-term financial sustainability and investor confidence.

Negative Cash Flows

Negative cash flows from operations suggest that IPDN may struggle to fund its operations and growth initiatives without external financing, impacting its financial health.

Revenue Decline

A decline in revenue growth can signal weakening market demand or competitive pressures, potentially affecting IPDN's ability to maintain its market position.

Professional Diversity Business Overview & Revenue Model

Company Description

Professional Diversity Network (IPDN) is a leading organization dedicated to promoting diversity and inclusion within the workforce. Operating primarily in the human resources and recruitment sectors, IPDN offers a suite of services including job boards, career fairs, and networking events aimed at connecting diverse talent with employers committed to creating inclusive workplaces. The organization also provides consulting services to businesses looking to enhance their diversity initiatives and improve employee engagement.

How the Company Makes Money

IPDN generates revenue through multiple streams, including subscription fees from employers for access to their job boards and recruitment services, sponsorships from companies participating in diversity-focused events, and fees for consulting services aimed at improving diversity and inclusion practices within client organizations. Significant partnerships with corporations and educational institutions enhance their reach and credibility, contributing positively to their earnings. Additionally, IPDN may earn revenue from hosting workshops and training sessions tailored to enhance workplace diversity and inclusion strategies.

Professional Diversity Financial Statement Overview

Summary

Professional Diversity is experiencing rapid revenue growth, but this is accompanied by substantial losses and negative cash flows. The company's low leverage is a positive factor, but the inability to generate profits or positive cash flows poses significant financial challenges. The overall financial health is weak, with potential risks due to ongoing losses and negative returns on equity.

Income Statement

The company shows a significant revenue growth rate of 26783.81% in the TTM period, indicating a sharp increase in sales. However, the profitability metrics are concerning, with a negative net profit margin of -135.89% and negative EBIT and EBITDA margins, reflecting substantial losses. The gross profit margin of 44.07% is decent but overshadowed by the high net losses.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio of 0.02, suggesting minimal leverage, which is a positive aspect. However, the return on equity is negative at -105.29%, indicating that the company is not generating returns on shareholders' equity. The equity ratio is not provided, but the overall financial health appears weak due to ongoing losses.

Cash Flow

The cash flow statement shows a significant free cash flow growth rate of 133138.99% in the TTM period, but this is due to a low base effect. The operating cash flow to net income ratio is negative, indicating cash outflows from operations. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is marginally better than net income, but overall cash flow remains negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.74B	6.73M	7.70M	8.31M	6.10M	4.46M
Gross Profit	765.26M	4.08M	4.24M	4.05M	4.57M	3.67M
EBITDA	-2.34B	-2.20M	-3.97M	-3.26M	-2.36M	-3.27M
Net Income	-2.36B	-2.51M	-4.31M	-2.60M	-2.76M	-4.35M
Balance Sheet
Total Assets	12.15M	7.98M	6.33M	6.84M	8.98M	8.67M
Cash, Cash Equivalents and Short-Term Investments	265.26K	1.73M	627.64K	1.24M	3.40M	2.12M
Total Debt	209.62K	279.31K	365.71K	444.72K	516.76K	510.52K
Total Liabilities	3.85M	3.14M	3.76M	4.53M	5.88M	5.33M
Stockholders Equity	8.95M	5.32M	3.05M	2.55M	2.79M	3.35M
Cash Flow
Free Cash Flow	-4.74M	-2.76M	-3.24M	-2.31M	-1.95M	-3.55M
Operating Cash Flow	-4.67M	-2.50M	-3.03M	-2.25M	-1.87M	-3.54M
Investing Cash Flow	-4.97M	-962.89K	-946.50K	-61.00K	-1.29M	-65.41K
Financing Cash Flow	9.77M	4.57M	3.36M	145.00K	4.44M	4.93M

Professional Diversity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.5 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 2.40, and below the 200-day MA of 2.39, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 31.67 is Neutral, neither overbought nor oversold. The STOCH value of 23.56 is Neutral, 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLIK	60 Neutral	$6.84M	11.53	―	―	―	―
IPDN	51 Neutral	$7.81M	-0.76	-78.12%	―	-7.26%	-1.37%
JOB	51 Neutral	$21.47M	-0.60	-51.65%	―	-15.43%	-43.45%
BGSF	49 Neutral	$53.20M	-6.33	-14.43%	41.67%	-36.79%	-507.05%
NIXX	34 Underperform	$27.86M	-0.97	-213.28%	―	6913.31%	72.35%

Professional Diversity Corporate Events

Professional Diversity Announces Private Equity Investment Agreement

On December 17, 2025, Professional Diversity Network, Inc. entered into a Purchase Agreement with DeeptradeX.ai for the issuance and sale of its common stock in a private transaction relying on exemptions from SEC registration under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. In a Form 8-K dated December 18, 2025, the company emphasized that the filing does not itself constitute an offer or solicitation to sell securities, and it cautioned that any expectations regarding the volume of shares to be issued and proceeds to be received are subject to significant risks and uncertainties outlined in its SEC filings, potentially affecting outcomes for investors and other stakeholders.

Professional Diversity Announces Consultancy Agreement with Deeptrade

Professional Diversity Network, Inc. announced a Consultancy Agreement with Deeptrade PTY LTD on November 27, 2025, involving the issuance of Common Stock. The agreement relies on exemptions from registration under the Securities Act, and the company cautions that forward-looking statements are subject to risks and uncertainties that could impact actual results.

Professional Diversity Enters Copyright Transfer Agreement

On November 24, 2025, Professional Diversity Network, Inc. entered into a Copyright Transfer Agreement with Shohan Event Organizers Co., L.L.C. The company announced the issuance of Common Stock under this agreement, relying on exemptions from registration under the Securities Act. The forward-looking statements in the announcement highlight potential risks and uncertainties that could impact the company’s financial outcomes, cautioning stakeholders about the inherent unpredictability of such forecasts.

Professional Diversity Receives Waiver from Investor Obligation

Professional Diversity Network, Inc. entered into a securities purchase agreement with Streeterville Capital, LLC on September 5, 2025, to sell shares of its common stock for up to $20 million over two years. On November 19, 2025, the company received a waiver from the investor, releasing it from the obligation to file a registration statement, while all other terms of the agreement remain in effect.

Professional Diversity Appoints Royal Family Member as Director

On November 5, 2025, Professional Diversity Network, Inc. appointed His Highness Shaikh Ali Sultan Al Nuaimi, a member of the Ajman Royal Family, as an independent director. This appointment is part of IPDN’s strategy to expand into the Middle East and enhance its global digital innovation efforts. His Highness brings significant expertise and influence, which IPDN believes will aid in its international growth, particularly in the digital asset ecosystem. The company also appointed new members to its Audit and Compensation Committees, further strengthening its governance structure.

Professional Diversity Releases $1M with Side Agreement

On September 5, 2025, Professional Diversity Network, Inc. entered into a securities purchase agreement with Streeterville Capital, LLC, allowing the company to issue and sell shares of its common stock for up to $20 million over two years. On October 30, 2025, a side letter agreement was made, enabling the release of $1 million from the company’s subsidiary’s deposit account, contingent on specific conditions such as the withdrawal of a previous registration statement and the filing of new registration documents. This arrangement is part of the company’s strategy to manage its financial operations and enhance its market position.

Professional Diversity Expands with Tokyo Subsidiary Launch

On October 13, 2025, Professional Diversity Network, Inc. announced the establishment of a wholly-owned subsidiary in Tokyo, Japan, marking a significant step in its globalization strategy. This subsidiary will serve as the regional headquarters for Web 3.0 and entertainment-related initiatives in Asia, focusing on real-world asset tokenization, decentralized finance, non-fungible tokens, and distributed storage technology. The move underscores IPDN’s commitment to strengthening its presence in the global Web 3.0 and entertainment sectors, leveraging Japan’s favorable regulatory environment and international connectivity.