Core Viewpoint - Inuvo, Inc. has appointed Rob Buchner as Chief Operating Officer to support the company's growth and enhance its operational capabilities in the AdTech sector [1][2]. Company Overview - Inuvo, Inc. is a leader in Artificial Intelligence solutions for advertising, with its proprietary IntentKey technology designed to identify consumer interests rather than demographics [4]. Leadership Appointment - Rob Buchner, previously a member of Inuvo's Board of Directors, will oversee daily operations and strategic execution of go-to-market plans [2][3]. - His appointment is aimed at scaling operations, capturing new opportunities, and maximizing the value of IntentKey technology [2][3]. Strategic Focus - As COO, Buchner will prioritize empowering agencies and marketers to leverage IntentKey's privacy-by-design AI, aligning resources with the demand for self-serve, AI-powered audience discovery and targeting [3]. - The company plans to expand ad supply through new integrations and partnerships in 2026 [3]. Buchner's Background - Buchner has a strong background in driving transformation and revenue growth, with experience in various leadership roles at Covet™, Campbell Mithun, and Fallon Worldwide [3].

Core Insights - Inuvo, Inc. is highlighted as a promising AI stock under $5, showcasing its growth strategy and recent performance at the H.C. Wainwright Global Investment Conference [1] - The company aims for $100 million in revenue to achieve positive cash flow, despite challenges like cookie deprecation [2] Financial Position - Inuvo holds $2.5 million in cash, has no debt, and has access to a $10 million credit line [2] - The company has 14.6 million shares outstanding with 8-9% insider ownership [2] Business Strategy - Inuvo is focused on enhancing its AI-driven IntentKey platform, which enables real-time ad placement and consumer intent recognition across various ad formats [2] - The company is targeting deeper penetration into the $300 billion programmatic ad market, particularly among mid-size agencies and major industry players [2] Operational Developments - A Q4 refresh of the IntentKey platform is expected to improve audience targeting and insights [2] - Inuvo is scaling its profitable self-service business and expanding its sales team to drive growth [2] Market Position - The company leverages seasonal momentum to enhance its growth prospects in the advertising technology sector [2]

Inuvo Inc. FY Conference Summary Company Overview - **Company**: Inuvo Inc. (NYSEAM: INUV) - **Industry**: Advertising Technology Services - **Core Product**: IntentKey, a proprietary AI-driven audience modeling tool Key Points and Arguments 1. **Growth Momentum**: Inuvo has experienced significant growth, achieving two record-breaking quarters. The stock is currently valued just under $4, with analysts suggesting a target price of $15, indicating strong market confidence [2][10]. 2. **Client Adoption**: The company has seen increased client adoption, with many clients renewing contracts and spending more on services [2][4]. 3. **Signal Loss Problem**: Inuvo addresses the issue of signal loss faced by clients due to cookie deprecation, increasing privacy regulations, and data sharing limitations from major platforms [3][4]. 4. **IntentKey Functionality**: The IntentKey product organizes data from the open web into a concept graph, allowing clients to understand customer behavior without relying on cookies [4][5]. 5. **Revenue Streams**: Inuvo has two primary revenue streams: platform revenue and agency/brand revenue, both utilizing the IntentKey for customer insights [4][10]. 6. **Market Opportunity**: The programmatic advertising space is valued at over $300 billion, with Inuvo capturing only a small percentage, indicating substantial growth potential [10][11]. 7. **Self-Service Product Launch**: The self-service product launched in February is expected to drive profitability and growth, targeting mid-size agencies and competing against major players in the market [11][12]. 8. **Pathway to Profitability**: Inuvo aims to reach the $100 million revenue mark to achieve cash flow positivity, focusing on scaling the self-service business and acquiring new clients [12]. 9. **Financial Position**: The company has no debt, $2.5 million in cash, and a $10 million line of credit, positioning it well for future growth [18][19]. 10. **Insider Ownership**: Insider ownership is reported to be around 8% to 9%, indicating alignment between management and shareholder interests [20]. Additional Important Insights - **Product Use Cases**: The IntentKey product has diverse applications beyond media buying, including audience targeting and insights generation [9][22]. - **Sales Team Optimization**: Inuvo is actively expanding and optimizing its sales team to enhance performance and drive growth [12]. - **Seasonality Impact**: The company experiences seasonal fluctuations, with expectations of improved performance in the second half of the year [19]. This summary encapsulates the key insights from the Inuvo Inc. FY Conference, highlighting the company's growth trajectory, market opportunities, and strategic initiatives.

Core Viewpoint - Inuvo, Inc. will participate in the H.C. Wainwright 27th Annual Global Investment Conference from September 8-10, 2025, showcasing its AI AdTech solutions [1]. Company Participation - Management is scheduled to present on September 8, 2025, at 11:30 AM Eastern Time, with a live webcast available [2]. - Management will engage in one-on-one meetings with qualified investors throughout the conference [3]. Company Overview - Inuvo, Inc. is a leader in Artificial Intelligence for advertising, with its proprietary IntentKey AI solution that identifies consumer interests rather than demographics [4].

Core Insights - Inuvo reported a narrower GAAP loss per share of $0.10, better than the expected loss of $0.13, while revenue reached $22.7 million, below the estimate of $23.73 million but up 25.0% year-over-year [1][3] Financial Performance - GAAP revenue for Q2 2025 was $22.7 million, a 25.0% increase from $18.2 million in Q2 2024, but below the estimate of $23.73 million [3][7] - GAAP loss per share improved to ($0.10) from ($0.12) in Q2 2024 [3] - Gross profit was $17.1 million, an 11.8% increase from $15.3 million in Q2 2024, but gross margin declined to 75.4% from 84.0% year-over-year due to a shift in product mix [3][7] Business Model and Strategy - Inuvo operates in the digital advertising sector, focusing on AI-driven solutions for audience targeting, with its flagship product being the IntentKey platform [4] - Recent priorities include expanding IntentKey adoption and scaling the Platform and Agencies & Brands segments, with a focus on innovation and new client acquisitions [5][6] Customer Dynamics - Revenue concentration remains a risk, with a small number of major partners contributing significantly to revenue, although 20 new agency and brand clients were added year-to-date [9][10] - The largest automotive and retail clients increased spending, reinforcing revenue stability but also increasing risk if any major relationship changes [9] Future Outlook - Management did not provide explicit financial guidance but aims for top-line expansion and margin improvement, targeting a five-year compound annual revenue growth rate of 24% [12] - Key watchpoints include the ability to cross the $26–27 million quarterly GAAP net revenue threshold, ongoing gross margin impacts, customer concentration, and the pace of self-serve IntentKey client acquisitions [13]

Company Performance - Inuvo, Inc (INUV) reported a quarterly loss of $0.1 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.11, representing an earnings surprise of +9.09% [1] - The company posted revenues of $22.67 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 6.4%, compared to year-ago revenues of $18.21 million [2] - Over the last four quarters, Inuvo has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Inuvo shares have declined approximately 18.2% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The current Zacks Rank for Inuvo is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $27.96 million, and for the current fiscal year, it is -$0.05 on revenues of $107.7 million [7] - The trend of estimate revisions for Inuvo was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Internet - Services industry, to which Inuvo belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Revenue for the quarter was $22.7 million, representing a 25% year-over-year increase, driven by sustained demand from platform clients [21] - Gross profit increased to $17.1 million, a 12% year-over-year rise, but gross margin declined to 75.4% from 84% due to scaling of new platform campaigns [23] - Operating expenses totaled $19.1 million, up 12% year-over-year, primarily due to increased marketing costs [24] - Net loss narrowed to $1.5 million or $0.10 per share compared to a loss of $1.7 million or $0.12 per share in the previous year [27] Business Line Data and Key Metrics Changes - The self-serve adoption accelerated with 18 new deals set up in the quarter, achieving 300% quarter-over-quarter growth [7] - Managed services pipeline remains healthy with four new managed service deals signed in the quarter [8] - Revenue from agencies and brands totaled approximately $3 million for the second quarter, with 22 new clients onboarded, 18 of whom adopted the self-serve solution [22] Market Data and Key Metrics Changes - Connected television (CTV) is gaining interest, with more clients including Inuvo's solutions in their RFPs, making it the highest services margin channel [10] - The marketplace is shifting towards higher quality advertising standards, benefiting Inuvo due to its compliance-oriented infrastructure [14] Company Strategy and Development Direction - Inuvo is focused on breaking through $100 million in sales this year, with a compounded annual growth rate of approximately 24% [6] - The company is investing in compliance, scalable technology, and predictive analytics to meet evolving client needs [30] - New integrations with demand-side campaign platform providers are being pursued to facilitate international expansion and product innovation [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $100 million annual target, citing improved technology and client understanding of marketing challenges [33] - The company anticipates that margins will improve as seasonality effects diminish [44] - There is a notable shift in the market towards privacy-first, high-integrity digital advertising, positioning Inuvo favorably [30] Other Important Information - The company completed a one-for-ten reverse stock split to improve share marketability and attract institutional investors [27] - Operational enhancements were made to intent key reporting dashboards, receiving positive feedback from clients [11] Q&A Session Summary Question: Confidence in hitting the $100 million annual target - Management feels confident about reaching the $100 million target, noting improved technology and client understanding [33] Question: Evolution of new customer campaigns - New customers typically start with smaller spends and increase as they see performance gains; self-serve clients are also showing a 300% increase in revenue [35][38] Question: Transition from self-serve to managed services - While it hasn't happened yet, management expects some larger self-serve customers may eventually transition to managed services [39] Question: Operating loss despite revenue growth - The decline in gross margins and increased marketing costs contributed to the lower operating profit despite revenue growth [40][42] Question: Opportunities to improve selling process and pricing - Management is continuously exploring ways to optimize the selling process and pricing strategies [47] Question: Clarification on new client numbers - All 18 self-serve deals and four managed service deals mentioned were new clients [54] Question: Partnerships for expansion - Management is working on new demand-side platform integrations to expand opportunities [56] Question: Impact of antitrust suits on the ecosystem - It is difficult to predict the impact of evolving AI technologies and antitrust suits on the ecosystem at this time [62]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Inuvo reported strong double-digit revenue growth for the second quarter and first half of 2025, alongside improved profitability with narrowed Adjusted EBITDA and net losses per share Q2 2025 vs Q2 2024 Performance Summary | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $22.7 | $18.2 | +25% | | Gross Profit | $17.1 | $15.3 | +12% | | Adjusted EBITDA | ($0.6) | ($0.7) | +14% Improvement | | Net Loss | ($1.5) | ($1.7) | Narrowed | | Net Loss per Share | ($0.10) | ($0.12) | Narrowed | Six-Month 2025 vs Six-Month 2024 Performance Summary | Metric | Six-Month 2025 ($ millions) | Six-Month 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $49.4 | $35.2 | +40% | | Gross Profit | $38.2 | $30.2 | +26% | | Adjusted EBITDA | ($0.7) | ($1.7) | +59% Improvement | | Net Loss | ($2.8) | ($3.9) | Narrowed | | Net Loss per Share | ($0.19) | ($0.28) | Narrowed | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Richard Howe highlighted robust first-half revenue growth and a sustained five-year growth rate, acknowledging expected seasonal declines while emphasizing consistent multi-year performance - Revenue growth for the first half of 2025 was **40%**[2](index=2&type=chunk) - The company has maintained a five-year sustained growth rate of **24%** through Q2 2025[2](index=2&type=chunk) - As guided, sequential year-over-year growth declined from **57%** to **24%** due to seasonality[2](index=2&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) In Q2 2025, Inuvo's revenue increased 25% to $22.7 million, with a narrower net loss, while gross margin decreased due to product mix shift and operating expenses rose [Q2 2025 Performance](index=1&type=section&id=Q2%202025%20Performance) Net revenue for Q2 2025 grew 25% to $22.7 million, with gross margin declining to 75.4% due to product mix, resulting in a narrower net loss of $1.5 million Q2 2025 vs Q2 2024 Financial Metrics | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | Net Revenue | $22.7 | $18.2 | | Gross Profit | $17.1 | $15.3 | | Gross Margin | 75.4% | 84.0% | | Operating Expenses | $19.1 | $17.0 | | Net Loss | ($1.5) | ($1.7) | | Net Loss per Share | ($0.10) | ($0.12) | - The lower gross margin was primarily attributed to a change in product mix[4](index=4&type=chunk) - The company recognized **$525,000** in Other Income from an IRS employee retention credit[7](index=7&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Inuvo maintained strong liquidity with **$2.1 million** in cash, no debt, and an unused **$10.0 million** credit facility - Cash and cash equivalents stood at **$2.1 million** as of June 30, 2025[11](index=11&type=chunk) - The company has access to an unused **$10.0 million** working capital facility and has no debt[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents detailed unaudited financial tables for the three and six months ended June 30, 2025, including statements of operations, balance sheets, and Adjusted EBITDA reconciliation [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, net revenue increased to **$49.4 million**, gross profit rose, and the net loss significantly narrowed to **$2.8 million** despite higher operating expenses Six Months Ended June 30 Performance | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net Revenue | $49,379,365 | $35,232,782 | | Gross Profit | $38,181,879 | $30,227,552 | | Total Operating Expenses | $41,995,223 | $34,018,217 | | Operating Loss | ($3,813,344) | ($3,790,665) | | Net Loss | ($2,761,084) | ($3,858,849) | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$28.7 million**, with total liabilities at **$16.6 million** and stockholders' equity at **$12.1 million** Balance Sheet Summary | Metric | June 30, 2025 ($) | Dec 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalent | $2,135,188 | $2,459,245 | | Total current assets | $12,543,863 | $15,644,821 | | Total assets | $28,689,048 | $32,195,931 | | Total current liabilities | $15,915,287 | $17,885,888 | | Total stockholders' equity | $12,079,639 | $13,474,772 | [Reconciliation of Net Loss to Adjusted EBITDA](index=4&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) The Adjusted EBITDA loss improved for both Q2 2025 and the six-month period, narrowing to **$629,219** and **$651,109** respectively, compared to the prior year Adjusted EBITDA Reconciliation Summary | Period | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | **Three Months Ended June 30** | | | | Net Loss | ($1,501,263) | ($1,747,191) | | Adjusted EBITDA | ($629,219) | ($667,790) | | **Six Months Ended June 30** | | | | Net Loss | ($2,761,084) | ($3,858,849) | | Adjusted EBITDA | ($651,109) | ($1,689,553) | [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Inuvo will host a conference call on August 7, 2025, at 4:15 p.m. ET to discuss Q2 2025 financial results, with a replay available until August 21, 2025 - A conference call is scheduled for Thursday, August 7, 2025, at **4:15 p.m. ET**[13](index=13&type=chunk) - A replay of the call will be accessible until Thursday, August 21, 2025[14](index=14&type=chunk) [Company Overview and Forward-Looking Statements](index=2&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) Inuvo, a market leader in AI for advertising with its IntentKey® solution, includes a standard safe harbor statement regarding forward-looking statements and associated risks - Inuvo is a market leader in AI for advertising, with its proprietary IntentKey® technology that identifies consumer interest[15](index=15&type=chunk) - The press release contains forward-looking statements that are subject to risks and uncertainties detailed in the company's SEC filings, such as the Form 10-K[16](index=16&type=chunk)

Cautionary Statement Regarding Forward-Looking Information [Forward-Looking Statements and Risks](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risks) This section outlines forward-looking statements, subject to risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements identifiable by terms such as 'will,' 'should,' 'intend,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' or 'continue'[10](index=10&type=chunk) - Key risks include a decline in economic conditions, decreased market demand, customer revenue concentration, seasonality, dependence on advertising suppliers, ability to acquire profitable traffic, technological changes, IT infrastructure interruptions, dependence on key personnel, regulatory/legal uncertainties, privacy/data security compliance, third-party infringement claims, fraudulent clicks, NYSE American listing standards, stock price impact from quarterly results, dilution, and ability to integrate future acquisitions[10](index=10&type=chunk)[17](index=17&type=chunk) - Readers are advised to review risk factors in Part II, Item 1A of this report and the Annual Report on Form 10-K for the year ended December 31, 2024[11](index=11&type=chunk) Other Pertinent Information [Company References and Reporting Periods](index=3&type=section&id=Company%20References%20and%20Reporting%20Periods) This section clarifies company references and defines reporting periods, excluding corporate website and social media information - Terms like 'Inuvo,' 'the Company,' 'we,' 'us,' 'our' refer to Inuvo, Inc., a Nevada corporation, and its subsidiaries[14](index=14&type=chunk) - 'Second quarter 2025' refers to the three months ended June 30, 2025, and 'second quarter 2024' to the three months ended June 30, 2024[14](index=14&type=chunk) - Information on the corporate website (www.inuvo.com) and social media platforms is not part of this report[14](index=14&type=chunk) Part I - Financial Information [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Inuvo's unaudited consolidated financial statements and notes for periods ended June 30, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show decreased total assets and equity from December 2024 to June 2025, driven by current asset reduction and accumulated deficit Consolidated Balance Sheet Metrics | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Total assets | $28,689,048 | $32,195,931 | | Total current assets | $12,543,863 | $15,644,821 | | Cash and cash equivalents | $2,135,188 | $2,459,245 | | Accounts receivable, net | $9,737,823 | $12,545,771 | | Total liabilities and stockholders' equity | $28,689,048 | $32,195,931 | | Total current liabilities | $15,915,287 | $17,885,888 | | Total stockholders' equity | $12,079,639 | $13,474,772 | | Accumulated deficit | $(175,970,092) | $(173,209,012) | [Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) In Q2 and H1 2025, Inuvo reported increased net revenue and gross profit, but continued net losses, reduced for the six-month period Consolidated Statements of Operations and Comprehensive Loss Summary | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net revenue | $22,671,333 | $18,209,005 | $49,379,365 | $35,232,782 | | Cost of revenue | $5,576,545 | $2,906,188 | $11,197,486 | $5,005,230 | | Gross profit | $17,094,788 | $15,302,817 | $38,181,879 | $30,227,552 | | Operating loss | $(2,043,557) | $(1,699,387) | $(3,813,344) | $(3,790,665) | | Net loss | $(1,501,263) | $(1,747,191) | $(2,761,084) | $(3,858,849) | | Basic and diluted net loss per share | $(0.10) | $(0.12) | $(0.19) | $(0.28) | [Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from December 2024 to June 2025, primarily due to net losses and shares withheld for taxes, partially offset by ATM sales Stockholders' Equity Changes | Metric | December 31, 2024 | June 30, 2025 | | :-------------------------------- | :---------------- | :-------------- | | Total Stockholders' Equity | $13,474,772 | $12,079,639 | | Net loss (6 months) | $(1,259,821) (Q1) / $(1,501,263) (Q2) | $(2,761,084) | | Stock-based compensation (6 months) | $304,284 (Q1) / $291,789 (Q2) | $596,073 | | At-the-market sale of common stock, net | N/A | $1,128,838 | | Shares withheld for taxes on vested restricted stock | N/A | $(358,965) | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash used in operating activities decreased, financing activities turned positive due to ATM sales, leading to a smaller overall net cash decrease Cash Flow Activities Summary | Cash Flow Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | $(223,257) | $(1,160,170) | | Net cash used in investing activities | $(858,441) | $(933,955) | | Net cash provided by/(used in) financing activities | $757,641 | $(334,425) | | Net change – cash | $(324,057) | $(2,428,550) | | Cash and cash equivalent, end of period | $2,135,188 | $2,011,904 | [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering organization, accounting policies, assets, liabilities, debt, and other key financial areas [Note 1 – Organization and Business](index=6&type=section&id=Note%201%20%E2%80%93%20Organization%20and%20Business) Inuvo is an advertising technology and services company specializing in AI-driven digital audience targeting, particularly with its IntentKey product, which addresses consumer privacy changes by targeting interests without identity data - Inuvo is an advertising technology company using generative AI (IntentKey) to target digital audiences without consumer identity data, addressing the evolving privacy landscape[28](index=28&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - The company's intellectual property is protected by **17 issued and two pending patents**[34](index=34&type=chunk)[95](index=95&type=chunk) - Inuvo's principal sources of liquidity are common stock sales (via ATM Agreement, **$1.16 million raised in Jan 2025**) and a **$10 million credit facility** with SLR Digital Finance LLC[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - As of June 30, 2025, cash and cash equivalents were over **$2.1 million**, with a net working capital deficit of approximately **$3.4 million**[38](index=38&type=chunk) - Management believes current liquidity (cash, credit facility, ATM proceeds) is sufficient for at least the next twelve months, with a plan to grow the IntentKey product to achieve profitability[39](index=39&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=7&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of presentation for Inuvo's unaudited consolidated financial statements, emphasizing the use of estimates in accordance with GAAP and detailing the company's revenue recognition policies, including customer concentration and recently issued accounting standards - Revenue is generated by identifying audiences and presenting advertisements for Agencies & Brands (primarily IntentKey) and Platforms (primarily Bonfire), with pricing typically

Core Insights - Inuvo, Inc. reported strong financial results for Q2 2025, with a net revenue of $22.7 million, a 25% increase from $18.2 million in Q2 2024, and a 40% growth rate for the first half of 2025 compared to the same period in 2024 [5][10][4] Financial Performance - Q2 2025 net revenue was $22.7 million, up 25% from $18.2 million in Q2 2024 [5][10] - Gross profit for Q2 2025 increased by 12% to $17.1 million, with a gross margin of 75.4%, down from 84.0% in Q2 2024 [6][10] - Operating expenses rose to $19.1 million in Q2 2025 from $17.0 million in the prior year, driven by increases in marketing, compensation, and general administrative costs [7][8] - The net loss for Q2 2025 was $1.5 million, or $0.10 per share, an improvement from a net loss of $1.7 million, or $0.12 per share, in Q2 2024 [9][10] Year-to-Date Performance - For the six-month period ended June 30, 2025, net revenue reached $49.4 million, a 40% increase from $35.2 million in the same period of 2024 [10] - Gross profit for the first half of 2025 was $38.2 million, up 26% from $30.2 million in the first half of 2024 [10] - Adjusted EBITDA improved to a loss of $0.7 million from a loss of $1.7 million year-over-year [10][11] Liquidity and Capital Resources - As of June 30, 2025, Inuvo had $2.1 million in cash and cash equivalents, an unused working capital facility of $10.0 million, and no debt [11][12] Strategic Outlook - The company continues to manage liquidity actively while investing in strategic growth initiatives [12]