Inuvo | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 22.57 M

Revenue: As of FY2025 Q3, the actual value is USD 22.57 M, missing the estimate of USD 25.85 M.

EPS: As of FY2025 Q3, the actual value is USD -0.12, missing the estimate of USD -0.08.

EBIT: As of FY2025 Q3, the actual value is USD -1.622 M.

Segment Revenue

• For the three-month period ended September 30, 2025, Inuvo, Inc. generated $22,570,572 in revenue, with 82.8% from Platforms and 17.2% from Agencies & Brands. For the nine-month period ended September 30, 2025, revenue was $71,949,937, with 86.2% from Platforms and 13.8% from Agencies & Brands.

Operational Metrics

• Net Income: The net loss for the three months ended September 30, 2025, was - $1,740,564, compared to - $2,044,293 for the same period in 2024. For the nine months ended September 30, 2025, the net loss was - $4,501,648, compared to - $5,903,142 in 2024.
• Gross Margin: The gross margin for the three months ended September 30, 2025, was 73.4%, down from 88.4% in the same quarter last year, primarily due to a change in the revenue mix.
• Operating Loss: The operating loss for the three months ended September 30, 2025, was - $1,669,703, compared to - $1,943,262 in 2024. For the nine months ended September 30, 2025, the operating loss was - $5,483,047, compared to - $5,733,928 in 2024.

Cash Flow

• Operating Cash Flow: Net cash used in operating activities was - $1,807,308 for the nine months ended September 30, 2025, compared to - $100,345 in 2024.
• Free Cash Flow: Not explicitly stated, but the net change in cash was $920,336 for the nine months ended September 30, 2025.

Unique Metrics

• Customer Concentration: For the three-month period ending September 30, 2025, two customers accounted for 62.8% and 19.6% of overall revenue, respectively.

Future Outlook and Strategy

• Core Business Focus: Inuvo plans to support future operations and capital expenditures primarily through cash generated from its credit facility until profitability is reached. The company expects revenue to increase as a result of making necessary changes to comply with Platform client requirements.
• Non-Core Business: No specific plans related to divestitures or emerging segments were mentioned.