v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting  
Segment Reporting

Note 12 – Segment Reporting

 

We operate as a single reportable segment that places digital advertising throughout devices, websites, applications and browsers across social, search and programmatic advertising channels, facilitating the delivery of millions of advertising messages monthly. The Chief Operating Decision Maker (“CODM”), identified as the Chief Executive Officer, evaluates our financial performance and makes resource allocation decisions based on consolidated financial information

 

Measure of Segment Profit or Loss

The CODM evaluates performance and allocates resources based on contribution margin, which is calculated as revenue after deducting marketing expenses, exchange fees, and publisher payments. Exchange fees and publisher payments are classified as cost of revenue. The resulting contribution margin covers Inuvo’s fixed costs and profit.

 

Significant Segment Expenses

We report total revenue and significant expenses provided to the CODM, which include cost of revenue, marketing, and compensation expenses. These expenses are regularly reviewed to assess operating performance. The following table presents these expenses:

 

 

For the year ended December 31,

 

 

 

2025

 

 

2024

 

Revenue

 

$86,209,305

 

 

$83,793,859

 

Cost of Revenue

 

 

21,995,153

 

 

 

12,033,777

 

Marketing

 

 

51,890,162

 

 

 

59,663,061

 

Professional Fees

 

 

1,985,125

 

 

 

1,821,837

 

IT Costs

 

 

1,278,569

 

 

 

1,270,536

 

Changes of reserves for credit loss

 

 

(35,675)

 

 

(1,442,533)

Depreciation and Amortization

 

 

2,234,749

 

 

 

2,515,177

 

Other

 

 

1,470,916

 

 

 

1,380,032

 

Compensation

 

 

12,086,350

 

 

 

12,065,783

 

Segment Operating Profit (Loss)

 

$(6,696,044)

 

$(5,513,811)

 

Other segment expenses include facilities costs, travel and entertainment expenses and various other corporate expenses.

 

Geographic Information

Our operations are based in the United States, and substantially all revenue is derived from U.S. clients.