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Inuvo
(INUV)
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Rating:48Neutral
Price Target:
$1.00
▼(-50.98% Downside)
Action:Reiterated
Date:05/16/26
Overall score reflects weak technicals and below-average financial quality (revenue decline, ongoing losses, and negative free cash flow) as the primary drags. Earnings-call guidance and IntentKey momentum provide a moderate offset, while low P/E valuation offers some support but is tempered by near-term operational and liquidity risks.
Positive Factors
IntentKey (Audience Modeling) Growth
IntentKey’s Audience Modeling produced a 13% YoY increase and management guides double‑digit growth, indicating product‑market fit. A growing enterprise and government pipeline and larger pilots position IntentKey to deliver durable recurring revenue as pilots convert over typical 6–9 month sales cycles, supporting multi‑quarter revenue expansion if execution stays consistent.
Negative Factors
Legacy Search Collapse
An 81% drop in Legacy Search is a significant structural headwind: the legacy business not only drove large revenue but also produced negative margins and cash burn. The ongoing contraction forces the firm to rely on IntentKey to replace a material revenue base, elevating execution risk and making multi‑quarter recovery dependent on new business ramping quickly.
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Positive Factors
Negative Factors
IntentKey (Audience Modeling) Growth
IntentKey’s Audience Modeling produced a 13% YoY increase and management guides double‑digit growth, indicating product‑market fit. A growing enterprise and government pipeline and larger pilots position IntentKey to deliver durable recurring revenue as pilots convert over typical 6–9 month sales cycles, supporting multi‑quarter revenue expansion if execution stays consistent.
Read all positive factors
Inuvo (INUV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.67M
Dividend YieldN/A
Average Volume (3M)141.51K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-27.87%
EPS Growth61.14%
CountryUS
Employees73
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.13
Shares Outstanding14,820,898
10 Day Avg. Volume127,309
30 Day Avg. Volume141,515
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)3.62
Price to Sales (P/S)0.42
P/FCF Ratio-10.71
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit0.43
Enterprise Value/Ebitda9.42
Forecast
1Y Price Target
$3.25Price Target Upside59.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.3
Revenue Forecast (FY)$45.70M
Inuvo Business Overview & Revenue Model
Company Description
Inuvo, Inc., an advertising technology and services company, develops and commercializes large language generative artificial intelligence that discovers and targets digital audiences in the United States. The company offers IntentKey, an artifici...
How the Company Makes Money
Inuvo makes money primarily by delivering digital advertising campaigns for customers and earning revenue tied to those advertising services and outcomes. A key revenue stream is managed advertising services powered by its IntentKey technology, wh...
Inuvo Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive strategic narrative: the Audience Modeling (IntentKey) business is showing clear product momentum, customer wins, integrations (DSP/SSP/FreeWheel), and double-digit growth, and management is actively cutting costs and refocusing toward higher-margin offerings. However, the company faces material near-term headwinds from an 81% collapse in Legacy Search revenue, significant margin compression (gross margin down to 43% from 79%), constrained liquidity (cash $2.9M) and reliance on one-time settlement and financing. The outlook is promising for long-term growth if IntentKey conversions accelerate, but significant operational and financial risks remain in the near term.Positive Updates
Audience Modeling Revenue Growth
Audience Modeling (IntentKey) revenue increased 13% year-over-year in Q1, driven by deeper spend from existing IntentKey clients and early wins from a sharpened go-to-market strategy; management forecasts continued strong double-digit year-over-year growth for Audience Modeling each quarter in 2026.
Negative Updates
Sharp Overall Revenue Decline Driven by Legacy Search
Total revenue for Q1 was $7.9 million, down $18.8 million year-over-year; the decline was driven entirely by Legacy Search (legacy Platforms/Bonfire) which was down 81% in the quarter following a Q4 Bonfire system reset.
Read all updates
Q1-2026 Updates
Positive
Negative
Audience Modeling Revenue Growth
Audience Modeling (IntentKey) revenue increased 13% year-over-year in Q1, driven by deeper spend from existing IntentKey clients and early wins from a sharpened go-to-market strategy; management forecasts continued strong double-digit year-over-year growth for Audience Modeling each quarter in 2026.
Read all positive updates
Company Guidance
The company guided that Audience Modeling (IntentKey) is the primary growth driver, forecasting strong double‑digit year‑over‑year growth for each quarter in 2026 and noting a 13% YoY revenue increase in Q1, while Legacy Search remains constrained (Q1 revenue down 81% YoY) and is expected to “gradually recover” through the year with continued margin/expense discipline; revenue was $7.9M in Q1 (down $18.8M YoY), gross margin fell to 43% from 79% a year ago, operating expenses were $7.5M (down $15.3M YoY), net income was $1.9M (vs. a $1.3M loss) aided by $6.2M in settlement proceeds and a $3.3M subordinated convertible note, and cash was $2.9M with no draw on a $10M facility; management expects a 6–9 month pilot‑to‑scale sales cycle, added five new logos in Q1 (including three Fortune 500 and two to IntentKey), completed DSP/SSP and FreeWheel integrations, cited CTV growth of ~15% annually, and has materially reduced Legacy Search headcount (management noted nearly two‑thirds reduction while the CFO reported overall headcount down roughly one‑third) with about $900k of severance in Q1.Inuvo Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 67.43M | 86.21M | 83.79M | 73.91M | 75.60M | 59.83M |
| Gross Profit | 46.79M | 64.21M | 71.76M | 63.43M | 45.36M | 43.90M |
| EBITDA | 2.13M | -2.32M | -2.69M | -7.63M | -10.38M | -4.05M |
| Net Income | -1.94M | -5.10M | -5.76M | -10.39M | -13.11M | -7.60M |
Balance Sheet | ||||||
| Total Assets | 23.24M | 24.87M | 32.20M | 32.37M | 35.56M | 44.00M |
| Cash, Cash Equivalents and Short-Term Investments | 2.89M | 2.84M | 2.46M | 4.44M | 4.46M | 12.40M |
| Total Debt | 2.81M | 4.03M | 1.02M | 943.90K | 483.00K | 849.67K |
| Total Liabilities | 11.08M | 14.84M | 18.72M | 15.39M | 13.81M | 11.19M |
| Stockholders Equity | 12.16M | 10.02M | 13.47M | 16.98M | 21.75M | 32.81M |
Cash Flow | ||||||
| Free Cash Flow | -1.34M | -3.39M | -1.63M | -4.24M | -7.26M | -6.87M |
| Operating Cash Flow | 170.54K | -1.79M | 229.55K | -2.55M | -5.57M | -5.28M |
| Investing Cash Flow | -1.51M | -1.60M | -1.86M | 606.19K | -1.67M | -4.60M |
| Financing Cash Flow | 1.66M | 3.77M | -353.39K | 3.46M | -304.43K | 12.46M |
Inuvo Technical Analysis
Negative
2.04
Price Trends
1.65
Negative
1.91
Negative
2.46
Negative
Market Momentum
-0.11
Positive
32.01
Neutral
15.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INUV, the sentiment is Negative. The current price of 2.04 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.65, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 15.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INUV.
Inuvo Risk Analysis
Inuvo disclosed 3 risk factors in its most recent earnings report. Inuvo reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Update Q2, 2025
Inuvo Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $70.03M | -14.37 | -16.19% | ― | -6.92% | 10.29% | |
56 Neutral | $26.55M | -15.13 | 13.99% | ― | -13.38% | 72.28% | |
50 Neutral | $98.99M | -4.11 | -134.35% | ― | -18.64% | 51.79% | |
48 Neutral | $18.67M | -10.41 | -44.34% | ― | -27.87% | 61.14% | |
40 Underperform | $15.36M | -15.85 | -26.62% | ― | -14.38% | 96.63% | |
| ― | $54.33M | -69.81 | 33.69% | ― | -18.40% | 54.22% |
* Technology Sector Average
INUV
Inuvo
1.36
-3.24
-70.43%
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ABLV
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11.00%
Inuvo Corporate Events
Business Operations and Strategy
Inuvo Extends Key Google Services Agreement Through June
Positive
Apr 3, 2026
On March 31, 2026, Vertro, Inc., a wholly owned subsidiary of Inuvo, Inc., entered into an amendment to its Google Services Agreement, originally effective January 1, 2024. The amendment, effective April 1, 2026, extends the agreement’s term...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.