Shares of AI ad company Inuvo sink 26% on preliminary 4Q plunge in revenue

Shares of Inuvo, a small-cap provider of AI-based marketing technology, sank more than 26% in early trading on Thursday, January 29, after the company released two pieces of news: a sharp year-over-year decline of 47% in fourth-quarter revenue, on preliminary numbers, and a change at CEO.

Inuvo shares fell more than 26% to $2.45 per share in early trading on Thursday. Investors were reacting to two company press releases issued late on Wednesday.

In the first release, Inuvo said its net revenue for the fourth quarter of 2025 fell about 47% year over year to approximately $14 million, according to preliminary unaudited data. The slump was driven primarily by a deliberate reduction in the company’s Platform product line. The decision was necessary to allow other products in the line to secure growth, the company said, citing comments from CEO Richard Howe. Howe said the company had flagged the challenges during its third-quarter earnings call, but the impact proved more significant and more prolonged than expected, extending through the fourth quarter and into January. At the same time, he said the steps taken were essential for the long-term success of the Platform business and added that the company “has reason to believe that revenue will recover in the months ahead.”

On a full-year basis, Inuvo’s net revenue increased about 3% year over year to approximately $86 million, the company reported. By comparison, in 2024 net revenue was up 13% at $83.8 million.

Later the same day, Inuvo informed investors of a change in leadership: Rob Buchner, a member of the company’s board, will become chair of the board and CEO effective February 1. Buchner will be tasked with supporting the company’s profitable growth at what Inuvo described as a critical stage of development. The statement said he will focus on accelerating adoption of the company’s proprietary AI platform, strengthening strategic partnerships, and delivering actionable consumer intent insights.

Howe, who led the company for 15 years, will remain on Inuvo’s board.

Inuvo provides AI-based solutions for the advertising industry. Its core product is IntentKey, a proprietary platform that, according to the company, allows advertisers to target audiences without relying on cookies or personal data. The platform is designed to identify the reasons why consumers are interested in specific products, services, or brands, rather than identifying who those consumers are. As a result, Inuvo’s solution does not rely on sensitive personal data, which is increasingly subject to tightening regulatory requirements.

Inuvo shares are up nearly 35% year to date. Over the last 12 months, the stock is down more than 30%, however.

Four Wall Street analysts currently cover the company, and all rate the stock “buy,” according to MarketWatch data. One month earlier, the company had just a single analyst rating. The average target price is $10.88 per share, which implies upside of more than three times the Wednesday closing price.