Professional Diversity (IPDN) AI Stock Analysis

• Market Cap: $16.26M
• Dividend Yield: N/A
• Average Volume (3M): 13.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -11.76%
• EPS Growth: 48.03%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.23
• Shares Outstanding: 4,105,369
• 10 Day Avg. Volume: 5,190,089
• 30 Day Avg. Volume: 13,353,836
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: -3.23
• 1Y Price Target: $5.00
• Price Target Upside: 26.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $5.00 ▲(26.26% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and persistent losses. While technical analysis shows some positive momentum, the negative valuation metrics further weigh down the score.

Professional Diversity Business Overview & Revenue Model

Company Description

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates in three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.

How the Company Makes Money

IPDN generates revenue through multiple streams. The primary revenue source comes from subscription fees paid by employers for access to the job board, allowing them to post job openings and connect with a diverse talent pool. Additionally, the company earns income from consulting services, where organizations pay for tailored diversity training and strategic advice. Another key revenue stream is through sponsorships and partnerships with businesses and organizations that align with IPDN's mission, facilitating events and workshops that promote diversity. These partnerships often result in additional funding and collaborative projects that enhance IPDN's visibility and market reach.

Professional Diversity Financial Statement Overview

Summary

Professional Diversity faces significant financial challenges, particularly in profitability and cash flow management. Despite a solid equity base, operational inefficiencies and high negative margins present risks. A focus on improving operational efficiency and profitability is crucial for future stability and growth.

Income Statement

The company's income statement reveals significant challenges, as evidenced by persistent negative EBIT and Net Income margins. The TTM (Trailing-Twelve-Months) data shows a severe negative EBIT margin of approximately -46.8% and a Net Profit Margin of -47.9%. Revenue growth is misleading due to an anomaly in TTM data, suggesting operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet indicates a strong equity position with an equity ratio of approximately 63.5% in TTM, suggesting financial stability. However, the company carries a high level of debt relative to its equity, reflected in a debt-to-equity ratio of 0.05, posing potential risks if earnings do not improve. The negative return on equity indicates unprofitable operations.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, indicating cash management challenges. The TTM operating cash flow is significantly negative, and the free cash flow to net income ratio reflects inefficiencies, highlighting the need for operational improvements to support cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.46M	6.73M	7.70M	8.31M	6.10M	4.46M
Gross Profit	3.44M	4.08M	4.24M	4.05M	4.57M	3.67M
EBITDA	-2.04M	-2.20M	-3.91M	-2.24M	-2.43M	-3.91M
Net Income	-2.37M	-2.51M	-4.31M	-3.08M	-2.86M	-4.16M
Balance Sheet
Total Assets	7.33M	7.98M	6.33M	6.84M	8.98M	8.67M
Cash, Cash Equivalents and Short-Term Investments	125.08K	1.73M	627.64K	1.24M	3.40M	2.12M
Total Debt	233.20K	279.31K	365.71K	444.72K	516.76K	510.52K
Total Liabilities	3.49M	3.14M	3.76M	4.53M	5.88M	5.33M
Stockholders Equity	4.47M	5.32M	3.05M	2.55M	2.79M	3.35M
Cash Flow
Free Cash Flow	-2.63M	-2.76M	-3.24M	-2.31M	-1.95M	-3.55M
Operating Cash Flow	-2.51M	-2.50M	-3.03M	-2.25M	-1.87M	-3.54M
Investing Cash Flow	-2.11M	-962.89K	-946.50K	-61.00K	-1.29M	-65.41K
Financing Cash Flow	4.13M	4.57M	3.36M	145.00K	4.44M	4.93M

Professional Diversity Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPDN, the sentiment is Positive. The current price of 3.96 is below the 20-day moving average (MA) of 4.42, above the 50-day MA of 3.10, and above the 200-day MA of 2.84, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPDN.

Professional Diversity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHX	57 Neutral	131.55M	-13.29	-9.14%	―	-8.31%	-445.30%
MHH	55 Neutral	91.68M	112.27	3.89%	―	5.16%	―
IPDN	51 Neutral	$16.26M	―	-68.25%	―	-11.76%	48.03%
STRR	49 Neutral	39.90M	-8.78	-5.36%	―	-3.58%	-89.07%
BGSF	49 Neutral	76.87M	-12.11	―	―	-24.36%	-393.95%
JOB	48 Neutral	22.52M	-0.61	-72.40%	―	-15.53%	-67.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Professional Diversity Corporate Events

Professional Diversity Enters Securities Purchase Agreement

On September 5, 2025, Professional Diversity Network, Inc. entered into a Securities Purchase Agreement with Streeterville Capital, LLC, involving the issuance of common stock. The offer and sale of these shares will rely on exemptions from registration under the Securities Act of 1933. The announcement includes forward-looking statements about the potential issuance of shares and proceeds, which are subject to various risks and uncertainties.

The most recent analyst rating on (IPDN) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Professional Diversity stock, see the IPDN Stock Forecast page.

Professional Diversity Secures $400,000 Through Convertible Notes

On July 7 and July 9, 2025, Professional Diversity Network, Inc. entered into Convertible Note Purchase Agreements with two non-affiliated accredited investors, raising a total of $400,000 through unsecured convertible promissory notes. The notes, bearing a 12% annual interest rate and maturing in 360 days, are convertible into restricted shares of the company’s common stock, with specific conversion price conditions. The issuance of these notes is exempt from registration under the Securities Act of 1933.