Inuvo | 8-K: 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.

Net Revenue: Inuvo, Inc. reported net revenue of $22.6 million for the third quarter of 2025, a 1% increase from $22.4 million in the same period of 2024. For the nine-month period ended September 30, 2025, net revenue increased by 25% to $71.9 million from $57.6 million in 2024.
Platform Revenue: $18.7 million for Q3 2025, down from $18.8 million last year.
Agencies & Brands Revenue: $3.9 million for Q3 2025, a 7% increase over last year.

Gross Margin: The gross margin for Q3 2025 was 73.4%, down from 88.4% in Q3 2024. Gross profit decreased by 15% to $16.6 million from $19.8 million in the previous year.
Operating Expenses: Operating expenses decreased by 16% to $18.2 million in Q3 2025 from $21.7 million in Q3 2024. Marketing costs were reduced to $13.4 million from $17.0 million, while compensation expenses increased slightly due to a $150,000 separation accrual.
Net Loss: The net loss for Q3 2025 was $1.7 million, or $0.12 per share, compared to a net loss of $2.0 million, or $0.15 per share, in Q3 2024. For the nine-month period, the net loss narrowed to $4.5 million from $5.9 million in 2024.
Adjusted EBITDA: Adjusted EBITDA for Q3 2025 was a loss of $0.7 million, compared to a loss of $0.4 million in Q3 2024. For the nine-month period, adjusted EBITDA improved to a loss of $1.7 million from a loss of $2.0 million in 2024.

Cash and Cash Equivalents: 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, with $3.4 million drawn.

Self-Service Brands: 44 self-service brands including companies like Kia, Apple, and Crate & Barrel’s CB2 brand.
Predictive Mixed Media Modeling (MMM): High-margin solution for brand stewards, critical for broader IntentKey deployment.

Forward-Looking Statements: The company noted that while Q3 2025 results were below expectations due to scaled-back advertising to comply with new client requirements, these changes are expected to support sustainable long-term growth. The pipeline of prospects is reported to be strong, indicating potential future growth.
Revenue Goals: Optimistic about achieving 2025 revenue goals despite Q3 performance being impacted by preparation for onboarding demand.
Top Clients Growth: Top 5 clients expected to grow over 65% year-over-year by the end of 2025.
Pending Contracts: A multi-million-dollar government contract delayed due to a government shutdown, and a substantial payout expected in Q1 2026 from a settled class action lawsuit.