Inuvo Reports Revenue of $22.6 Million in the Third Quarter 2025

Rhea-AI Summary

Inuvo (NYSE: INUV) reported third-quarter 2025 results for the period ended September 30, 2025. Q3 net revenue was $22.6 million, up 1% year‑over‑year. Gross margin fell to 73.4% from 88.4% a year earlier, driven by a change in Platform product mix and a new campaign.

Operating expenses declined 16% to $18.2 million. Net loss narrowed to $1.7 million (−$0.12 per share). For the nine months, net revenue rose 25% to $71.9 million, gross profit increased 10% to $54.8 million, adjusted EBITDA improved to a $1.7 million loss, and net loss narrowed to $4.5 million.

Liquidity: $3.4 million cash and a $10.0 million working capital facility (with $3.4 million drawn). Management scheduled a conference call on Nov 6, 2025 at 4:15 PM ET.

Positive

• Nine‑month net revenue +25% to $71.9M
• Nine‑month gross profit +10% to $54.8M
• Operating expenses −16% to $18.2M in Q3
• Net loss narrowed to $1.7M in Q3
• 65 new clients in first nine months of 2025

Negative

• Q3 gross margin declined 15.0 percentage points to 73.4%
• Q3 cost of revenue rose to $6.0M from $2.6M
• Adjusted EBITDA worsened to a $0.7M loss in Q3

Insights

Equity Analyst

Mixed quarter: modest revenue growth, narrower loss, but lower gross margin and continued Adjusted EBITDA loss create a neutral near-term outlook.

Inuvo reported $22.6 million in net revenue for the third quarter of 2025, a 1% increase year‑over‑year, and $71.9 million for the nine months, a 25% increase. Gross margin fell to 73.4% from 88.4%, driven by a change in Platform product mix and higher cost of revenue. Operating expenses declined to $18.2 million, helping net loss narrow to $1.7 million (or $0.12 per share) in Q3 and to $4.5 million for the nine months.

The company cites a deliberate pullback in advertising in mid‑August to meet new requirements from its largest Platform client; management links that action to the weaker Q3 outcome but describes it as a compliance upgrade intended to support scalable growth. Liquidity stands at $3.4 million in cash with a $10.0 million working capital facility (with $3.4 million drawn). Adjusted EBITDA remains a loss ($0.7 million in Q3), so near‑term cash and facility usage are key dependencies.

Watch for sequential revenue and margin trends in the next quarter and any disclosure on the upgraded Platform compliance returning full spend from the largest client; monitor Adjusted EBITDA and cash burn against the drawn facility through the remainder of 2025. The most immediate milestones to track are quarterly revenue mix shifts, gross margin recovery, and whether the claimed stronger pipeline converts into measurable client revenue in the coming quarters.

Management to host conference call at 4:15 PM ET, Thursday, November 6, 2025

LITTLE ROCK, Ark., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, announced today its financial results for the third quarter and nine-month period ended September 30, 2025.

Third Quarter 2025 Highlights Compared to Third Quarter 2024:

• 23 new clients onboarded in Q3
• Net revenue increased 1% to $22.6 million from $22.4 million
• Gross margin decreased to 73.4% from 88.4%
• Operating expenses declined 16% to $18.2 million from $21.7 million
• Net loss narrowed to $1.7 million, or $0.12 per share, from $2.0 million, or $0.15 per share
  

Nine-Month 2025 Highlights Compared to Nine-Month 2024:

• 65 new clients in the first nine months of 2025
• Net revenue increased 25% to $71.9 million from $57.6 million
• Gross profit increased 10% to $54.8 million from $50 million
• Adjusted EBITDA improved 15% to a loss of $1.7 million from a loss of $2 million
• Net loss narrowed to $4.5 million, or $0.31 per share, from $5.9 million or $0.42 per share
  

Richard Howe, CEO of Inuvo, commented, “While we are up 25% year-over-year through the first nine months, Q3 came in less than we expected. In mid-August, we deliberately scaled back our advertising in order to comply with new requirements by our largest Platform client. Though this restrained Q3 growth more than expected, the upgrades bolster our ability to ensure campaign compliance and drive sustainable long-term scalable growth. Our pipeline of prospects across the business has never been stronger.’’

Financial Results for the Third Quarter Ended September 30, 2025
Net revenue for the third quarter of 2025 totaled $22.6 million, a 1% increase compared to $22.4 million in the same period last year. The increase in revenue was due to Agencies & Brands clients, which grew 7% year-over-year. Cost of revenue was $6 million, up from $2.6 million in the third quarter of 2024, related to a change in mix within Platform revenue associated with a new campaign begun in earnest this year.

Gross profit decreased 15% to $16.6 million, representing a gross margin of 73.4%, compared to $19.8 million and a gross margin of 88.4% in the third quarter of 2024. The lower gross margin year-over-year was also primarily due to the change in product mix within Platform revenue.

Operating expenses were $18.2 million compared to $21.7 million in the prior-year period, reflecting lower marketing spend related to the change in Platform revenue mix.

• Marketing costs were $13.4 million, down from $17.0 million in the third quarter of 2024 associated with the lower revenue from our largest Platform client.
• Compensation expense was $3.1 million, up $39 thousand primarily due to a $150,000 separation accrual.
• General and administrative expenses were $1.7 million, up $110 thousand year-over-year primarily due to the absence this year of a reduction in the allowance for expected credit losses reported last year.
  

Finance expenses, net of interest income, were $114 thousand compared to $101 thousand in the same quarter last year.

Other income was approximately $48 thousand for the three months ended September 30, 2025.

Net loss for the quarter was $1.7 million, or $0.12 per basic and diluted share, compared to a net loss of $2 million, or $0.15 per share, in the third quarter of 2024.

Non-cash expenses, including depreciation, amortization, and stock-based compensation, totaled $802 thousand in the third quarter.

Adjusted EBITDA was a loss of $0.7 million from a loss of $0.4 million in the year-ago period. (See reconciliation of GAAP to non-GAAP results below.)

Liquidity and Capital Resources
As of September 30, 2025, Inuvo had $3.4 million in cash and cash equivalents and access to a $10.0 million working capital facility, of which $3.4 million was drawn. The Company believes its current liquidity and borrowing capacity are sufficient to support operations and planned growth initiatives.

Conference Call Details:
Date: Thursday, November 6, 2025
Time: 4:15 p.m. Eastern Time 
Toll-free Dial-in Number: 1-800-717-1738
International Dial-in Number: 1-646-307-1865
Conference ID: 1119361
Webcast Link: HERE

A telephone replay will be available through Thursday, November 20, 2025. To access the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, please enter the code 1119361 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

About Inuvo
Inuvo^®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey^® AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

Safe Harbor / Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Inuvo’s quarter-end financial close process and preparation of financial statements for the quarter that are subject to risks and uncertainties that could cause results to be materially different than expectations. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in Inuvo, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on February 27, 2025, and our other filings with the SEC.  Additionally, forward looking statements are subject to certain risks, trends, and uncertainties on Inuvo’s business and operations. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

Investor Contact:
Wallace Ruiz
Chief Financial Officer
Tel (501) 205-8397
wallace.ruiz@inuvo.com

INUVO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
			Three Months Ended								Nine Months Ended
			September 30				September 30				September 30					September 30
			2025				2024				2025					2024
Net revenue			$	22,570,572			$	22,371,153			$	71,949,937				$	57,603,935
Cost of revenue				6,002,423				2,594,642				17,199,909					7,599,872
Gross profit				16,568,149				19,776,511				54,750,028					50,004,063
Operating expenses:
Marketing costs				13,375,136				17,006,131				45,026,458					42,540,355
Compensation				3,145,125				3,106,384				9,945,452					9,362,474
General and administrative				1,717,591				1,607,258				5,261,165					3,835,162
Total operating expenses				18,237,852				21,719,773				60,233,075					55,737,991
Operating loss				(1,669,703	)			(1,943,262	)			(5,483,047		)			(5,733,928
Finance expense, net				113,633				101,031				159,259					163,862
Other income				48,124				-				1,148,686					-
Income tax expense				5,352				-				8,028					5,352
Net loss			($	1,740,564	)		($	2,044,293	)		($	4,501,648		)		($	5,903,142
Net loss per share, basic and diluted
Net loss income			($	0.12	)		($	0.15	)		($	0.31		)		($	0.42
Weighted average shares outstanding
Basic				14,558,109				14,045,484				14,402,409					13,979,118
Diluted				14,558,109				14,045,484				14,402,409					13,979,118

INUVO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
		(unaudited) September 30 2025			December 31 2024
Assets
Cash and cash equivalent		$	3,379,581		$	2,459,245
Accounts receivable, net			9,930,168			12,545,771
Prepaid expenses and other current assets			706,199			639,805
Total current assets			14,015,948			15,644,821
Property and equipment, net			1,700,264			1,792,903
Goodwill			9,853,342			9,853,342
Intangible assets, net of accumulated amortization			3,542,750			3,894,875
Other assets			807,902			1,009,990
Total assets		$	29,920,206		$	32,195,931
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	7,656,991		$	8,422,351
Accrued expenses and other current liabilities			7,835,957			9,463,537
Outstanding borrowings under Financing Agreement			3,383,293			-
Total current liabilities			18,876,241			17,885,888
Long-term liabilities			625,322			835,271
Total stockholders' equity			10,418,643			13,474,772
Total liabilities and stockholders' equity		$	29,920,206		$	32,195,931

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited)
		Three Months Ended								Nine Months Ended
		September 30				September 30				September 30				September 30
			2025				2024				2025				2024
Net loss		($	1,740,564	)		($	2,044,293	)		($	4,501,648	)		($	5,903,142	)
Interest Expense			113,633				101,031				159,259				163,862
Income tax Expense			5,352				-				8,028				5,352
Depreciation and amortization			555,156				613,394				1,685,756				1,999,513
EBITDA			(1,066,423	)			(1,329,868	)			(2,648,605	)			(3,734,415	)
Stock-based compensation			246,814				372,540				842,887				1,087,533
Nonrecurring items:
Impairment and amortization of referral and support services agreement advance			-				600,000				-				600,000
Employee Separation			150,000				-				150,000				-
Adjusted EBITDA		($	669,609	)		($	357,328	)		($	1,655,718	)		($	2,046,882	)

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA 

We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) income tax expense, (iii) depreciation, and (iv) amortization. We further define Adjusted EBITDA as EBITDA plus (v) stock-based compensation and (vi) certain identified expenses that are not expected to recur or be representative of future ongoing operations of the business. These adjustments are itemized above. We use EBITDA and Adjusted EBITDA internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our operational performance. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

FAQ

What were Inuvo (INUV) third quarter 2025 revenues and EPS?

Inuvo reported Q3 2025 net revenue of $22.6 million and a net loss of $1.7 million or $0.12 per share.

Why did Inuvo's gross margin fall in Q3 2025 for INUV?

Management cites a change in Platform product mix and a new campaign that increased cost of revenue, lowering gross margin to 73.4%.

How did Inuvo's year‑to‑date 2025 performance compare to 2024 for INUV?

Through nine months 2025, Inuvo's net revenue was $71.9M (+25%) and net loss narrowed to $4.5M from $5.9M.

What is Inuvo's cash and credit position as of Sept 30, 2025 for INUV?

Inuvo had $3.4M in cash and a $10.0M working capital facility, with $3.4M drawn as of Sept 30, 2025.

Did Inuvo (INUV) reduce expenses in Q3 2025 and why?

Yes; operating expenses fell 16% to $18.2M, driven primarily by lower marketing spend tied to Platform revenue mix changes.

When is Inuvo's investor conference call for the Q3 2025 results?

The company will host a conference call on Nov 6, 2025 at 4:15 PM ET with a webcast and telephonic dial‑in provided.