Inuvo (INUV) investor relations material

Executive summary

• Q3 2025 revenue was $22.6 million, up 1% year-over-year, with $71.9 million for the first nine months, a 25% increase; 23 new clients were onboarded in Q3, totaling 65 new clients year-to-date.

• Net loss narrowed to $1.7 million ($0.12/share) from $2 million ($0.15/share) in Q3 2024; nine-month net loss improved to $4.5 million from $5.9 million.

• Revenue is primarily from Platforms (82.8% in Q3), with two customers accounting for over 80% of revenue.

• Proprietary AI-driven ad tech and 18 issued patents support competitive positioning.

• Q3 results were impacted by a deliberate reduction in advertising spend to meet compliance requirements for the largest platform client, with October revenue rebounding.

Financial highlights

• Q3 revenue was $22.6 million, a 1% increase year-over-year; platform revenue was $18.7 million (down slightly), and agencies and brands revenue was $3.9 million (up 7%).

• Gross margin for Q3 2025 was 73.4%, down from 88.4% year-over-year due to product mix and compliance changes.

• Operating expenses were $18.2 million, down 16% year-over-year, mainly from lower marketing costs.

• Adjusted EBITDA loss was $670,000 versus a loss of $357,000 last year; net loss narrowed to $1.7 million.

• Cash and equivalents at September 30, 2025, were $3.4 million, with $3.4 million drawn from a $10 million credit facility.

Outlook and guidance

• Management expects upgrades to campaign compliance to support sustainable long-term growth, with top five clients expected to grow over 65% year-over-year.

• Q4 is expected to be the best quarter, with trailing 12-month revenue at $98 million and a $100 million annual target in sight.

• Management believes current liquidity and borrowing capacity are sufficient for at least the next twelve months.

• No unusual seasonality is expected in Q4 compared to prior years.