Audience Modeling Revenue Grows 19% as Company Streamlines Legacy Search and Strengthens Capital Position
Management to host conference call at
Recent Business Highlights
- Audience Modeling Revenue Growth: Second quarter Audience Modeling revenue grew 19% year over year, driven by recent client wins and increased investment from existing IntentKey customers.
- Enterprise Sales Momentum: Added five new brand-direct relationships, including two with Fortune Global 500 companies.
- Legacy Search Rationalization: Made decisive moves to eliminate cash and margin drag from Legacy Search by lowering costs.
- Stronger Capital Position: Completed financing transactions with combined gross proceeds of approximately
$13 million , of which approximately$10 million was received in the second quarter and approximately$3 million was received in July. Proceeds were used to retire prior debt facilities and add working capital. - Expanded IntentKey Applications: Expanded IntentKey intelligence application beyond traditional consumer advertising, while continuing product innovation designed to broaden access to the technology.
“During the second quarter, we made meaningful progress in our strategic pivot towards an IntentKey-focused future,” said
Financial Results for the Second Quarter 2026
Net revenue decreased 67% to
Gross profit declined
Second quarter 2026 operating expenses were
Other expenses for the second quarter included a charge of
Net loss for the second quarter of 2026 was
Liquidity and Capital Resources
During the quarter, the Company entered into a purchase agreement issuing two secured promissory notes for gross proceeds of
As of
2026 Outlook
For the balance of 2026,
- Audience Modeling Growth – Continued year-over-year revenue growth for 2026, supported by a healthy sales pipeline.
- Legacy Search - Stabilized quarterly revenue, with margins expected to improve as the Company operates the business at a positive cashflow.
- Operating Discipline - Operating expenses to remain lower year over year, primarily due to lower Legacy Search traffic acquisition costs and lower compensation expense.
- Strategic Execution - Continued focus on brand-direct growth, raising IntentKey’s industry profile, product innovation, and higher-margin revenue.
“With a stronger capital position and a more streamlined revenue base, we are entering the second half with greater focus and flexibility,” said Buchner. “Our priorities remain clear: deepen adoption of IntentKey, expand its applications and continue building a higher-margin, more resilient business.”
Conference Call Details:
The Company will host the second quarter results call scheduled for today at
International Dial-in Number: 1-646-307-1865
Conference ID: 1157191
Webcast Link: HERE
A telephone replay will be available through
About Inuvo
Inuvo, Inc. (NYSE American: INUV) is a disruptive AI specifically designed for modeling media audiences. IntentKey® AI is a patented technology capable of identifying customer engagement based on real-time media consumption. Our models refresh every 5 minutes and know, with precision, why prospects are interested in a product or brand, in turn, predicting purchase intent 24 hours before legacy programmatic systems can respond to buying signals. Inuvo's language-based AI does not rely on consumer IDs, keeping Inuvo on the vanguard of consumer data privacy. To learn more, visit www.inuvo.com.
Safe Harbor / Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Inuvo’s quarter-end financial close process and preparation of financial statements for the quarter that are subject to risks and uncertainties that could cause results to be materially different than expectations. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in Inuvo, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 as filed on March 5, 2026, and our other filings with the SEC. Additionally, forward looking statements are subject to certain risks, trends, and uncertainties on Inuvo’s business and operations. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.
Investor Contact:
Wallace Ruiz
Chief Financial Officer
Tel (501) 205-8397
wallace.ruiz@inuvo.com
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| 2026 | 2025 | ||||||
| Assets | |||||||
| Cash and cash equivalent and restricted cash | $ | 2,086,471 | $ | 2,839,921 | |||
| Accounts receivable, net | 4,515,833 | 5,887,884 | |||||
| Prepaid expenses and other current assets | 663,922 | 489,790 | |||||
| Total current assets | 7,266,226 | 9,217,595 | |||||
| Property and equipment, net | 1,389,580 | 1,629,561 | |||||
| Restricted cash, net of current portion | 5,000,823 | - | |||||
| 9,853,342 | 9,853,342 | ||||||
| Intangible assets, net of accumulated amortization | 3,190,625 | 3,425,375 | |||||
| Other assets | 582,537 | 741,977 | |||||
| Total assets | $ | 27,283,133 | $ | 24,867,850 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 4,186,662 | $ | 7,090,784 | |||
| Accrued expenses and other current liabilities | 4,582,523 | 3,914,067 | |||||
| Outstanding borrowings under financing agreement | - | 3,288,100 | |||||
| Notes payable, current portion, net | 3,337,000 | - | |||||
| Total current liabilities | 12,106,185 | 14,292,951 | |||||
| Long-term liabilities | |||||||
| Notes payable, net of current portion | 6,405,000 | - | |||||
| Other long-term liabilities | 452,779 | 551,883 | |||||
| Total long-term liabilities | 6,857,779 | 551,883.00 | |||||
| Total stockholders' equity | 8,319,169 | 10,023,016 | |||||
| Total liabilities and stockholders' equity | $ | 27,283,133 | $ | 24,867,850 | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2025 | 2025 | 2026 | 2025 | |||||||||||||
| Net revenue | $ | 7,535,055 | $ | 22,671,333 | $ | 15,462,609 | $ | 49,379,365 | ||||||||
| Cost of revenue | 4,206,966 | 5,576,545 | 8,470,632 | 11,197,486 | ||||||||||||
| Gross profit | 3,328,089 | 17,094,788 | 6,991,977 | 38,181,879 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing costs | 1,392,953 | 14,138,328 | 3,485,765 | 31,651,322 | ||||||||||||
| Compensation | 2,864,401 | 3,201,006 | 6,554,604 | 6,800,327 | ||||||||||||
| Selling, general and administrative | 2,112,961 | 1,799,011 | 3,874,788 | 3,543,574 | ||||||||||||
| Total operating expenses | 6,370,315 | 19,138,345 | 13,915,157 | 41,995,223 | ||||||||||||
| Operating loss | (3,042,226 | ) | (2,043,557 | ) | (6,923,180 | ) | (3,813,344 | ) | ||||||||
| Financing expense, net | 107,059 | 17,697 | 505,498 | 45,626 | ||||||||||||
| Other income (expense) | (887,952 | ) | 559,991 | 5,289,772 | 1,100,562 | |||||||||||
| Income tax expense | 2,677 | - | 5,353 | 2,676 | ||||||||||||
| Net loss | $ | (4,039,914 | ) | $ | (1,501,263 | ) | $ | (2,144,259 | ) | $ | (2,761,084 | ) | ||||
| Net loss per share, basic and diluted | ||||||||||||||||
| Net (loss) income | $ | (0.27 | ) | $ | (0.10 | ) | $ | (0.15 | ) | $ | (0.19 | ) | ||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 14,835,062 | 14,450,640 | 14,786,210 | 14,361,782 | ||||||||||||
| Diluted | 14,835,062 | 14,450,640 | 14,786,210 | 14,361,782 | ||||||||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net loss | $ | (4,039,914 | ) | $ | (1,501,263 | ) | $ | (2,144,259 | ) | $ | (2,761,084 | ) | ||||
| Financing expense, net | 107,059 | 17,697 | 505,498 | 45,626 | ||||||||||||
| Income tax Expense | 2,677 | - | 5,353 | 2,676 | ||||||||||||
| Depreciation and amortization | 518,584 | 562,558 | 1,057,370 | 1,130,600 | ||||||||||||
| EBITDA | (3,411,594 | ) | (921,008 | ) | (576,038 | ) | (1,582,182 | ) | ||||||||
| Stock-based compensation | 240,428 | 291,789 | 543,147 | 596,073 | ||||||||||||
| Non recurring items: | ||||||||||||||||
| Extinguishment of debt & fair value adjustment | 870,702 | - | 870,702 | - | ||||||||||||
| Settlement Agreement | - | - | (6,163,029 | ) | - | |||||||||||
| Severance | 470,988 | - | 1,385,038 | 335,000 | ||||||||||||
| Adjusted EBITDA | $ | (1,829,476 | ) | $ | (629,219 | ) | $ | (3,940,180 | ) | (651,109 | ) | |||||
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as net income/(loss) plus (i) financing expense, (ii) income tax expense, and (iii) depreciation and amortization. We further define Adjusted EBITDA as EBITDA plus (iv) stock-based compensation and (v) certain identified and less certain one-time expenses and proceeds, which are not expected to recur or be representative of future ongoing operations of the business. These adjustments are itemized above. We use EBITDA and Adjusted EBITDA internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our operational performance. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
