Inuvo Inc. (INUV)

FairStock Score: 26/100 — RISKY

Key Financials

Current Price$0.43
Market Cap$7M
P/E Ratio-1.39
ROE-43.91%
Dividend Yield—%
SectorTechnology

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable earning power and honest accounting, bought at a sensible price. Inuvo is not that today. The company sells AI-driven advertising technology, including IntentKey, but it operates in a competitive, fast-changing ad market with little evidence of a moat. Filed results show persistent losses: fiscal 2023 revenue was $73.9M with a $10.4M net loss; fiscal 2024 revenue was $83.8M with a $5.8M net loss; and fiscal 2025 revenue was $86.2M with a $5.1M net loss. More troubling, fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $7.5M with a $4.0M net loss, versus $22.7M revenue and a $1.5M net loss in fiscal Q2 2025. That is not a temporary stumble; it is severe deterioration. FairStock calculations show trailing free cash flow yield of -43.1%, ROE of -43.91%, ROCE of -21.90%, a Piotroski F-score of 1/9, and an Altman Z-score of -9.30. Debt/equity is 1.24. The only valuation comfort is a P/B of 0.91 at the 2026-10-13 close, but book value can vanish with continued losses. Fiscal Q1 2026 did show $1.9M net income on $7.9M revenue, so a turnaround is not impossible. Yet Graham would demand a margin of safety from assets and earnings; here earnings are negative and cash is burning. I see a speculative situation, not a durable value investment.

In plain English: Inuvo is a small advertising technology company that uses artificial intelligence to target digital ads, mainly through a tool called IntentKey. The business looks weak right now: it has lost money in each of the last several years, and its latest quarter had much lower revenue and a large loss. At $0.51, the stock trades a bit below its accounting book value, but because profits and cash flow are negative, the price does not look like a clear bargain based on its numbers.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer