Inuvo(INUV) - 2025 Q2 - Quarterly Results

Financial Highlights 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 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] - The company has maintained a five-year sustained growth rate of 24% through Q2 2025[2] - As guided, sequential year-over-year growth declined from 57% to 24% due to seasonality[2] Financial Results 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 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] - The company recognized $525,000 in Other Income from an IRS employee retention credit[7] Liquidity and Capital Resources 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] - The company has access to an unused $10.0 million working capital facility and has no debt[11] Financial Statements 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 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 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 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 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] - A replay of the call will be accessible until Thursday, August 21, 2025[14] Company Overview and Forward-Looking Statements 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] - 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]