# EDGAR Filing Document

**Accession Number:** 0000829323
**File Stem:** 0001654954-25-009221
**Filing Date:** 2025-8
**Character Count:** 36864
**Document Hash:** 1320d2261886b5e45e96369de3e0bf0c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-25-009221.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001654954-25-009221

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20250807

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Inuvo, Inc.
- **CENTRAL INDEX KEY:** 0000829323
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-ADVERTISING [7310]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 870450450
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32442
- **FILM NUMBER:** 251195007

**BUSINESS ADDRESS:**
- **STREET 1:** 500 PRESIDENT CLINTON AVE., STE. 300
- **CITY:** LITTLE ROCK
- **STATE:** AR
- **ZIP:** 72201
- **BUSINESS PHONE:** 501-205-8508

**MAIL ADDRESS:**
- **STREET 1:** 500 PRESIDENT CLINTON AVE., STE. 300
- **CITY:** LITTLE ROCK
- **STATE:** AR
- **ZIP:** 72201

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INUVO, INC.
- **DATE OF NAME CHANGE:** 20090810

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KOWABUNGA! INC.
- **DATE OF NAME CHANGE:** 20081106

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** THINK PARTNERSHIP INC
- **DATE OF NAME CHANGE:** 20060315

?xml version='1.0' encoding='ASCII'? inuvo_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported) **August 7, 2025**

---

| |
|:---|
| **INUVO, INC.** |
| (Exact name of registrant as specified in its charter) |

---

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| | | |
|:---|:---|:---|
| **Nevada** | **001-32442** | **87-0450450** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

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| | |
|:---|:---|
| 500 President Clinton Ave., Ste. 300, Little Rock, AR | 72201 |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code (501) 205-8508

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.**

On August 7, 2025, Inuvo, Inc. (the "Company") issued a press release regarding financial performance for Q2 2025. A copy of the earnings release is being furnished herewith as Exhibit 99.1.

The information in this Current Report on Form 8-K under this caption and Exhibits 99.1 and 99.2 are being furnished under Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 (the "Securities Act") or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

The Company made reference to non-GAAP financial information in the press release and a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the press release.

**ITEM 7.01 REGULATION FD DISCLOSURE.**

On August 7, 2025, the Company held a management conference call to discuss the Company's financial results for Q2 2025, the outlook of the Company and certain other matters.

A copy of the script for the conference call is attached as Exhibit 99.2 and is incorporated by reference into this Current Report on Form 8-K.

The information in this Current Report on Form 8-K and accompanying exhibit is being furnished and shall not be deemed to be "filed" for the purposes of Section18 of the Exchange Act, or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS**

(d) Exhibits.

---

| | |
|:---|:---|
| Exhibit No. | Description |
| [99.1](inuvo_ex991.htm) | [Press Release for Q2 2025 financial results.](inuvo_ex991.htm) |
| [99.2](inuvo_ex992.htm) | [Conference Call Script.](inuvo_ex992.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | INUVO, INC. | INUVO, INC. |
| Date: August 7, 2025 | By: | /s/ Wallace Ruiz |
|  |  | Wallace Ruiz, Chief Financial Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](inuvo_ex991img2.jpg)

**Inuvo Posts 25% Growth in the Second Quarter 2025**

*Management to host conference call at 4:15 PM ET, Thursday, August 7, 2025*

LITTLE ROCK, AR, August 7, 2025 – Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today announced its financial results for the second quarter and six-month period ended June 30, 2025.

**Second Quarter 2025 Highlights Compared to Second Quarter 2024:**

· Net revenue increased 25% to $22.7 million from $18.2 million

· Gross profit increased 12% to $17.1 million

· Adjusted EBITDA improved 14% to a loss of $0.6 million from a loss of $0.7 million

· Net loss narrowed to $1.5 from $1.7 million and $0.10 from $0.12 per share

**Six-Month 2025 Highlights Compared to Six-Month 2024:**

· Net revenue increased 40% to $49.4 million from $35.2 million

· Gross profit increased 26% to $38.2 million from $30.2 million

· Adjusted EBITDA improved 59% to a loss of $0.7 million from a loss of $1.7 million

· Net loss narrowed to $2.8 million from $3.9 million and $0.19 from $0.28 per share

Richard Howe, CEO of Inuvo, commented, "We're pleased to report another quarter of strong double-digit revenue growth. Our growth rate for the first half of 2025 was 40%, contributing to a five-year sustained growth rate of 24% through Q2 2025. This quarter showcases the resilience and adaptability of our business. Although and as guided, sequential year-over-year growth declined from 57% to 24% due to seasonality, we continue to build on our multi-year trajectory of robust annual growth and operational improvements."

**Financial Results for the Second Quarter Ended June 30, 2025**

Net revenue for the second quarter of 2025 totaled $22.7 million, a 25% increase compared to $18.2 million in the same period last year. Revenue from our two largest Platform clients and s from our two largest Agencies & Brands clients grew year-over-year. Cost of revenue was $5.6 million, up from $2.9 million in the second quarter of 2024, related to higher Platform revenue.

Gross profit increased 12% to $17.1 million, representing a gross margin of 75.4%, compared to $15.3 million and a gross margin of 84.0% in the second quarter of 2024. The lower gross margin year-over-year was primarily due to a change in product mix.

Operating expenses were $19.1 million compared to $17.0 million in the prior-year period. Operating expenses are composed of marketing costs, compensation and general & administrative expenses. For the three-month period ended June 30, 2025, all three categories of operating expense increased year-over-year.

Marketing costs were $14.1 million, up from $12.4 million in the second quarter of 2024, reflecting the higher expenses associated with Platform revenue growth. Compensation expenses were up due primarily to higher incentive accrual. General and administrative expenses were $260 thousand higher year-over-year primarily due to a reduction of the allowance for expected credit losses last year.

Finance expenses, net of interest income, were $18 thousand compared to $42 thousand in the same quarter last year.

Other income was approximately $560 thousand for the three months ended June 30, 2025. In June 2025, the Company received a second payment from the IRS totaling $606 thousand in connection with an employee retention credit filed in 2023. Of the total payment, $525 thousand was recognized in other Income.

Net loss for the quarter was $1.5 million, or $0.10 per basic and diluted share, compared to a net loss of $1.7 million, or $0.12 per share, in the second quarter of 2024.

Non-cash expenses including depreciation, amortization and stock-based compensation totaled $854 thousand in the second quarter.

Adjusted EBITDA improved to a loss of $0.6 million from a loss of $0.7 million in the year-ago period. (See reconciliation table below.)

**Liquidity and Capital Resources**

As of June 30, 2025, Inuvo had $2.1 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

The Company continues to actively manage liquidity while investing in strategic growth initiatives.

**Conference Call Details:** 

Date: Thursday, August 7, 2025

Time: 4:15 p.m. Eastern Time

Toll-free Dial-in Number: 1-800-717-1738

International Dial-in Number: 1- 646-307-1865

Conference ID: 1148531

Webcast Link: <u>HERE</u>

A telephone replay will be available through Thursday, August 21, 2025. To access the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, please enter the code 1148531 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

**About Inuvo**

Inuvo<sup>®</sup>, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey<sup>®</sup> AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. 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, 2024 as filed on February 27, 2025, and our other filings with the SEC. Additionally, forward looking statements are subject to certain risks, trends, and uncertainties including the continued impact of Covid-19 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

<u>(Tables follow)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **INUVO, INC.** | **INUVO, INC.** | **INUVO, INC.** | **INUVO, INC.** | **INUVO, INC.** |
| **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** |
|  | **Three Months Ended** | **Three Months Ended** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Six Months Ended** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Six Months Ended** |
|  | **June 30** | **June 30** | **June 30** | **June 30** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenue | $22671333 | $18209005 | $49379365 | $35232782 |
| Cost of revenue | 5576545 | 2906188 | 11197486 | 5005230 |
| Gross profit | 17094788 | 15302817 | 38181879 | 30227552 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketing costs | 14138328 | 12431580 | 31651322 | 25534224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation | 3201006 | 3031231 | 6800327 | 6256090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 1799011 | 1539393 | 3543574 | 2227903 |
| Total operating expenses | 19138345 | 17002204 | 41995223 | 34018217 |
| Operating loss | (2043557) | (1699387) | (3813344) | (3790665) |
| Finance expense, net | 17697 | 42451 | 45626 | 62831 |
| Other income | 559991 |  | 1100562 |  |
| Income tax expense | - | 5353 | 2676 | 5353 |
| Net loss | ($1501263) | ($1747191) | ($2761084) | ($3858849) |
| Net loss per share, basic and diluted |  |  |  |  |
| Net loss income | ($0.10) | ($0.12) | ($0.19) | ($0.28) |
| Weighted average shares outstanding |  |  |  |  |
| Basic | 14450640 | 14011853 | 14361782 | 13945396 |
| Diluted | 14450640 | 14011853 | 14361782 | 13945396 |

---

---

| | | |
|:---|:---|:---|
| **INUVO, INC.** | **INUVO, INC.** | **INUVO, INC.** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** | **CONDENSED CONSOLIDATED BALANCE SHEETS** |
|  | **June 30** | **December 31** |
|  | **2025** | **2024** |
| Assets |  |  |
| Cash and cash equivalent | $2135188 | $2459245 |
| Accounts receivable, net | 9737823 | 12545771 |
| Prepaid expenses and other current assets | 670852 | 639805 |
| Total current assets | 12543863 | 15644821 |
| Property and equipment, net | 1755495 | 1792903 |
| Goodwill | 9853342 | 9853342 |
| Intangible assets, net of accumulated amortization | 3660124 | 3894875 |
| Other assets | 876224 | 1009990 |
| Total assets | $28689048 | $32195931 |
| Liabilities and Stockholders' Equity |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | $8804533 | $8422351 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 7110754 | 9463537 |
| Total current liabilities | 15915287 | 17885888 |
| Long-term liabilities | 694122 | 835271 |
| Total stockholders' equity | 12079639 | 13474772 |
| Total liabilities and stockholders' equity | $28689048 | $32195931 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **RECONCILIATION OF LOSS FROM NET LOSS TO ADJUSTED EBITDA** <br> **(unaudited)** | **RECONCILIATION OF LOSS FROM NET LOSS TO ADJUSTED EBITDA** <br> **(unaudited)** | **RECONCILIATION OF LOSS FROM NET LOSS TO ADJUSTED EBITDA** <br> **(unaudited)** | **RECONCILIATION OF LOSS FROM NET LOSS TO ADJUSTED EBITDA** <br> **(unaudited)** | **RECONCILIATION OF LOSS FROM NET LOSS TO ADJUSTED EBITDA** <br> **(unaudited)** |
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30** | **June 30** | **June 30** | **June 30** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(1501263) | $(1747191) | $(2761084) | $(3858849) |
| Interest Expense | 17697 | 42451 | 45626 | 62831 |
| Income tax Expense |  | 5353 | 2676 | 5353 |
| Depreciation and amortization | 562558 | 712916 | 1130600 | 1386119 |
| EBITDA | (921008) | (986471) | (1582182) | (2404546) |
| Stock-based compensation | 291789 | 318681 | 596073 | 714993 |
| Non recurring items: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Employee Benefit | - | - | 335000 | - |
| Adjusted EBITDA | $(629219) | $(667790) | $(651109) | $(1689553) |

---

**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 loss plus (i) interest expense, (ii) depreciation, and (iii) amortization. We further define Adjusted EBITDA as EBITDA plus (iv) stock-based compensation and (v) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. 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.

## Exhibit 99.2

**EXHIBIT 99.2**

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

**Operator Comments:**

Good afternoon, and welcome to INUVO's Second Quarter 2025 Conference Call. Today's conference is being recorded. Ms. Katie Cooper of Inuvo, please go ahead.

**Katie Cooper (Inuvo Investor Relations) Comments:**

Thank you, operator, and good morning.

I'd like to thank everyone for joining us today for the INUVO second quarter 2025 shareholder update call. Today, INUVO's Chief Executive Officer Richard Howe and Chief Financial Officer Wally Ruiz will be your presenters on the call.

We would also like to remind our shareholders that we plan to file our 10-Q with the Securities and Exchange Commission this evening.

Before we begin, I'm going to review the Company's Safe Harbor statement. The statements in this conference call that are not descriptions of historical facts, are forward-looking statements relating to future events and, as such, all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995.

These forward-looking statements are subject to risks and uncertainties and actual results may differ materially. When used in this call, the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions as they relate to INUVO, Inc., are, as such, a forward-looking statement.

Investors are cautioned that all forward-looking statements involve risks and uncertainties which may cause actual results to differ from those anticipated by INUVO at this time. In addition, other risks are more fully described in INUVO's public filings with the US Securities and Exchange Commission, which can be reviewed at www.sec.gov.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events, or circumstances after the date hereof that bear upon forward-looking statements.

In addition, today's discussion will include references to non-GAAP measures. The Company believes that such information provides an additional measurement and consistent historical comparison of its performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is available in today's news release on our website.

With that, I'll now turn the call over to CEO Richard Howe.

**Richard Howe (CEO) Comments:** 

Thank you, Katie, and good afternoon, everyone.

For the second quarter of 2025, INUVO delivered robust year-over-year growth, with revenue up 25%. While seasonality and fluctuations in client spend led to an expected sequential decline of 15%, our 5-year compound annual growth rate through Q2 2025 now stands at approximately 24%, reflecting sustained momentum in our business as we approach our goal to break through $100 million in sales this year.

Gross profit, Adjusted EBITDA, Net Income and Free Cash Flow all improved year-over-year, and while Operating Expenses were up because of increased Revenue, they were not up at the same rate as Revenue, highlighting our ongoing focus on cost controls.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

Notably, financing and other income improved year-over-year, reflecting favorable external factors and operating cash flow was $144 thousand in the quarter. Wally will discuss our financials in greater detail in a few minutes.

**Let me now turn to a discussion about Go-To-Market and Client Activities:**

Intentkey self-serve adoption is accelerating, with 18 new deals set up in the quarter and 300% quarter-over-quarter growth. Our managed services pipeline remains healthy, and we are seeing more direct clients interested in leveraging our IntentKey Measurement AI for channel-level performance insights. We signed 4 new managed services deals in the quarter. I'd like to remind shareholders that our self-serve Intentkey product was designed to be a scalable, easy to use and deploy media technology any company of any size can use. It's also the highest margin product we possess. It does not take many millions of dollars in self-serve revenues to materially improve the Inuvo bottom line.

Within media, there is a market that's referred to as "curation". This refers to a process of selecting, organizing and packaging advertising inventory curated to meet the specific needs of these audiences. Inuvo's AI can curate instantly any audience an advertiser wants to place their Ads against. There is literally no other technology on the planet that is as easy to use, as flexible and performs as well.

Last Friday for example, we had 12 of our newer self-serve clients continue their campaigns in a single day and while the media spend against these Intentkey AI curated audiences remains modest, the scaling and retention is an indication of a significant opportunity for future growth and margin.

Connected TV (CTV) is an area of rising interest, with more clients including our solutions in their RFPs. CTV remains our highest services margin channel. Feedback from clients continues to validate our privacy-compliant, concept-based targeting as a clear differentiator, with several reporting substantial lifts in conversions and campaign performance.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

The Platform product line was defined by substantial volume expansion and disciplined investments in quality throughout the quarter. Although revenue per click declined sequentially due to seasonal and geographic mix, the strategic direction of the market favors higher quality lead generation—a trend that plays directly to INUVO's strengths and longstanding investments in compliance and quality advertising. As the market increasingly rewards trusted, transparent suppliers, we are exceptionally well-positioned.

Operationally, we made significant enhancements to our Intentkey reporting dashboards which we have now rolled out to most clients, receiving overwhelmingly positive feedback. We have also increased our sales support activity which in turn has driven more local market engagement and in-person meetings, as well as the hiring of our first sales development representative focused on direct client outreach.

Our two largest Intentkey services clients grew both sequentially and year-over-year.

**Let me now discuss Product and Technology activities:**

Q2 2025 was defined by strong operational growth and deliberate investments in both the quality and scalability of our Platform product line. We experienced over 60% quarter-over-quarter growth in leads delivered to advertisers—an important indicator of both demand and the efficiency of the marketplace we've created with this Product.

However, it's important to note that this impressive growth was managed with a disciplined approach; we deliberately constrained the onboarding of new ad campaigns within the quarter to ensure compliance, safety, and the long-term scalability of our Platform. Our marketplace for this Platform product is most easily characterized by proprietary advertising technology coupled with publishing capabilities.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

To support the expansion of the Platform product, we launched more than a dozen new, high-quality websites into the Platform network in the quarter, with a particular focus on vertically oriented content. This represents a 50% increase over Q1 and directly strengthens our ability to attract higher-value advertisers.

Leveraging advanced AI tools, we have also significantly increased the pace, scale and quality of our content creation and deployment within Platforms allowing us to now create original, unique images and explore niche verticals like never before. These investments are deepening both the breadth and depth of our content, further elevating the overall value of our offering to our clients.

Despite these strong operational indicators, we did see a decline in revenue per Ad-click, which we attribute primarily to seasonality and a change in geographic mix, as impressions from developing markets grew strongly within our portfolio. This is a common trend in this industry, and our focus remains on building a high-quality, resilient marketplace that can deliver for advertisers across varying market cycles and geographies.

We are also seeing a notable shift across the broader marketing ecosystem toward higher quality advertising standards. One of our major clients has implemented stricter and more targeted quality enforcement mechanisms, specifically designed to reward high-integrity suppliers in an effort to improve advertiser outcomes by filtering out lower-quality leads.

We have seen this kind of focus in the past, and it has historically favored suppliers like INUVO who are committed to compliance, transparency, and results. As the market raises the bar, we are well ahead of the curve due to two years of investment in a compliance-oriented infrastructure, lead quality monitoring, and a scalable set of technologies.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

On the Agencies & Brands Product development front, our team continues to expand and refine the commercial application of our Predictive Media Mix Modeling AI. What previously took significant manual analysis can now be accomplished in a fraction of the time, allowing us to deliver actionable, channel-level performance insights to both agency and direct clients. This is especially valuable to direct clients, who are increasingly leveraging this technology to optimize spend and evaluate true channel effectiveness against actual business goals as opposed to a collection of convoluted marketing metrics.

As discussed earlier, self-serve adoption continues to accelerate because we are providing customers with easy to deploy, low-risk access to our audience modeling capabilities which in turn is driving strong engagement with our audience discovery and targeting platform. We are actively developing the next generation of our self-serve portal, which will provide clients with an improved set of insights and a more intuitive interface to understand those insights. For those listeners unfamiliar with the Intentkey Product, like other large language based artificial intelligence technologies the Intentkey audience discovery process begins with a simple prompt.

For our self-serve customers, we've now also introduced automated optimizations that have already produced tangible performance improvements. These enhancements are designed to further streamline the client experience and drive higher margins for INUVO.

Finally, we are pursuing new integrations with additional demand side campaign platform providers, a move that will increase our flexibility for managed clients and facilitate future international expansion and product innovation.

Across our product portfolio, the clear differentiator remains IntentKey's privacy-compliant, large language concept-based targeting. Clients consistently cite this capability as a primary reason for choosing INUVO, with some reporting significant lifts in conversion rates and performance following adoption. The introduction of enhanced client reporting capabilities has further strengthened our value proposition by delivering greater transparency and actionable insights.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

In terms of industry validation, it's worth highlighting a unique perspective that emerged this quarter: we recently tasked several leading AI systems—including Gemini, Grok, and ChatGPT—to independently research and evaluate INUVO's IntentKey technology against what they considered to be 9 of the world's top programmatic advertising solutions on the market.

Each AI was asked to assess effectiveness in a forward looking world, taking into account critical privacy trends like cookie deprecation, VPN adoption, and consumer tracking limitations. Across all three AI systems, the result was the same: INUVO's IntentKey was recognized as the best solution. This was an amazing outcome.

This external, unbiased endorsement by the latest generation of AI underscores the differentiated value our technology provides to clients facing the evolving challenges within digital advertising.

In short, INUVO's product suite continues to evolve rapidly, supporting both operational scale and the strategic shift toward higher-quality, privacy-first solutions that we believe will define the future of digital advertising.

At this time, I would now like to turn the call over to Wally for a more detailed assessment of our financial performance within the quarter.

**Ruiz (CFO) Comments:**

Thank you, Rich. Good afternoon, everyone, and thank you for joining us today.

I'm pleased to share our financial results for the second quarter of 2025, which was marked by strong revenue growth, client expansion, and operational efficiency.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

Revenue for the quarter was $22.7 million, representing a 25% increase year-over-year. This growth was primarily driven by sustained demand from our Platform clients, which generated approximately $19.7 million in revenue.

Our two largest Platform partners expanded their engagement: one scaling a successful product launched in 2023 that focused on improved technology, high-quality content, and compliance and the other ramping a new campaign introduced in Q4 of last year.

Revenue from Agencies & Brands totaled approximately $3 million for the quarter. We onboarded 22 new clients in Q2, 18 of whom adopted our self-serve solution. This builds on the 20 new clients we added in Q1. While individually small, these clients represent future growth potential as they scale their advertising budgets.

Cost of revenue increased to $5.6 million, up from $2.9 million in Q2 2024. This was driven by the new campaign with one of our Platform partners. As a reminder, cost of revenue primarily reflects payments to website publishers and app developers who host our ads, as well as media costs for our Agencies & Brands clients.

Gross profit was $17.1 million, an increase of 12% year-over-year. Gross margin declined to 75.4% from 84%, which we anticipated due to the scaling of the new Q4 Platform campaign, which is accounted for in the cost of revenue.

Operating expenses totaled $19.1 million, up 12% year-over-year. The largest driver was an increase in marketing costs aligned with our Platform revenue growth. Compensation expenses increased by $170 thousand, primarily due to accruing incentive expense.

Headcount remained stable at 82 employees at quarter-end, versus 83 a year ago. G&A expenses increased $260 thousand, largely due to the absence of a $255 thousand allowance reversal recorded in Q2 of last year.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

Other income was $560 thousand, compared to zero in the same period last year. In June, we received an IRS refund of $606 thousand related to the Employee Retention Credit from Q2 2021. Of that, $525 thousand was recognized as other income, and $81 thousand was recorded as interest income in our financing line.

Net financing expense was $18 thousand, down from $42 thousand a year ago, and includes the $81 thousand in interest income I just mentioned.

Adjusted EBITDA improved to a loss of $629 thousand, compared to a loss of $686 thousand in Q2 2024.

Net loss narrowed to $1.5 million, or $0.10 per share, versus $1.7 million, or $0.12 per share, in the year-ago period.

We ended the quarter with $2.1 million in cash and cash equivalents and no outstanding debt.

In June, we completed a 1-for-10 reverse stock split. This strategic action was intended to improve the marketability of our shares and better position Inuvo to attract institutional investors. Following the reverse split, our outstanding shares totaled 14,473,843 as of June 30.

Now, I'd like to turn the call back to Rich for closing remarks.

**Richard Howe (CEO) Closing Comments:** 

Thanks, Wally.

In summary, Q2 2025 showcased both the resilience and adaptability of our business. Despite the expected seasonality in the quarter, we continued to build on our multi-year trajectory of robust annual growth and operational improvements. Revenue for the first half of the year is roughly $49.5 million, up 40% year-over-year. We are successfully driving adoption of our highest-margin products, expanding our footprint with both agencies and direct clients, and gaining meaningful traction into emerging channels like Connected TV, where our IntentKey solution is increasingly being recognized as a market leader.

**Inuvo, Inc.**<br> **Q2 2025**<br> **August 7, 2025**<br>

Looking ahead, INUVO remains exceptionally well positioned as industry dynamics continue to shift toward privacy-first, high-integrity digital advertising. Our investments in compliance, scalable technology, and predictive analytics are paying off—enabling us to anticipate and meet the evolving needs of our clients while setting a higher bar for the marketplace.

We continue to see strong momentum in our pipeline, and a growing number of new deals—particularly in self-serve—and overwhelmingly positive feedback from clients leveraging our enhanced reporting and AI-driven insights. Our team remains focused on executing our strategic roadmap and delivering best-in-class results for both advertisers and partners.

As always, I want to thank our shareholders, clients, and employees for their ongoing support and commitment. With our technology, team, and strategy, I believe INUVO is uniquely positioned to drive continued growth and to lead our industry through this next phase of transformation.

I will now turn the call over to the operator for questions. Operator?

**Richard Howe Final Comments:** 

I would like to thank everyone who joined us on today's call. We appreciate your continued interest in our company.