Overview

• US AI advertising tech firm's Q1 revenue fell 70%, missing analyst expectations

• Adjusted EPS for Q1 beat analyst expectations, aided by one-time settlement income

• Q1 net income beat analyst expectations, despite operating loss and lower gross profit

Outlook

• Inuvo aims to drive growth through increased adoption and scaling of IntentKey in 2026

• Company plans to focus on brand-direct partnerships, product innovation, and higher-margin revenues in 2026

• Inuvo sees ongoing challenges in the legacy search business and is aligning costs accordingly

Result Drivers

• LEGACY SEARCH PRESSURE - Revenue decline driven by ongoing pressure and reset of Bonfire platform in Legacy Search business

• AUDIENCE MODELING GROWTH - 13% increase in Audience Modeling revenue due to stronger client investment in IntentKey and revised go-to-market strategy

• COST REDUCTIONS - Operating expenses decreased year-over-year due to lower marketing costs associated with Legacy Search

Company press release: ID:nGNX1cqwnG

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$7.93 mln	$10.57 mln (5 Analysts)
Q1 EPS	Beat	$0.13	-$0.18 (5 Analysts)
Q1 Net Income	Beat	$1.90 mln	-$2.63 mln (5 Analysts)
Q1 Gross Profit		$3.67 mln
Q1 Operating Expenses		$7.54 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Inuvo Inc is $6.00, about 235.2% above its May 13 closing price of $1.79

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