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

Core Insights - Inuvo, Inc. reported financial results for Q3 and the first nine months of 2025, highlighting a 25% year-over-year revenue increase for the nine-month period, but a less than expected growth in Q3 due to scaled-back advertising efforts to comply with client requirements [4][8]. Q3 2025 Highlights Compared to Q3 2024 - Net revenue for Q3 2025 was $22.6 million, a 1% increase from $22.4 million in Q3 2024, driven by a 7% growth in Agencies & Brands clients [5][8]. - Gross profit decreased by 15% to $16.6 million, with a gross margin of 73.4%, down from 88.4% in the same quarter last year [6][8]. - Operating expenses declined by 16% to $18.2 million from $21.7 million in the prior-year period, reflecting lower marketing spend [6][8]. - The net loss for Q3 narrowed to $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 [10][8]. Nine-Month 2025 Highlights Compared to Nine-Month 2024 - Net revenue for the first nine months of 2025 increased by 25% to $71.9 million from $57.6 million in the same period last year [8]. - Gross profit for the nine-month period rose by 10% to $54.8 million from $50 million [8]. - Adjusted EBITDA improved by 15% to a loss of $1.7 million from a loss of $2 million [8]. - The net loss for the nine-month period narrowed to $4.5 million, or $0.31 per share, from $5.9 million, or $0.42 per share, in the prior year [8]. Client Acquisition and Marketing - In Q3 2025, Inuvo onboarded 23 new clients, contributing to a total of 65 new clients in the first nine months of the year [8]. - Marketing costs were reduced to $13.4 million in Q3 2025 from $17.0 million in Q3 2024, attributed to lower revenue from the largest Platform client [9][8]. Financial Position - As of September 30, 2025, Inuvo had $3.4 million in cash and cash equivalents and access to a $10 million working capital facility, of which $3.4 million was drawn [10][8]. - Total assets decreased to $29.9 million from $32.2 million at the end of 2024, with total liabilities also reflecting a decrease [19][18].