The company's operational efficiency has deteriorated significantly, with gross margins collapsing from historical highs above 60% to a negative 42.7% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Sales/Revenue | 6.59M | 6.55M | 6.73M | 7.7M | 8.31M | 6.1M | 4.46M | 5.03M | 8.45M | 22.05M | 26.23M | 38.61M | 11.64M | 4.03M | 6.15M | 5.57M | 4.38M |
| Revenue Growth % | 1.26% | -2.73% | -12.58% | -7.4% | 36.33% | 36.84% | -11.31% | -40.55% | -61.67% | -15.91% | -32.08% | 231.63% | 188.59% | -34.44% | 10.5% | 27.02% | - |
| Cost of Goods Sold | 5.21M | 3.72M | 2.65M | 3.46M | 4.26M | 1.52M | 787.18K | 884.37K | 1.61M | 3.97M | 3.08M | 5.58M | 2.15M | 1.15M | 805.45K | 817.25K | 722K |
| COGS % of Revenue | - | 56.88% | 39.32% | 44.95% | 51.24% | 24.99% | 17.66% | 17.6% | 19.08% | 17.99% | 11.75% | 14.44% | 18.5% | 28.57% | 13.09% | 14.67% | 16.47% |
| Gross Profit | 1.38M | 2.82M | 4.08M | 4.24M | 4.05M | 4.57M | 3.67M | 4.14M | 6.84M | 18.09M | 23.14M | 33.04M | 9.49M | 2.88M | 5.35M | 4.75M | 3.66M |
| Gross Margin % | 20.88% | 43.11% | 60.68% | 55.05% | 48.76% | 75.01% | 82.34% | 82.4% | 80.92% | 82.01% | 88.25% | 85.56% | 81.5% | 71.43% | 86.91% | 85.33% | 83.53% |
| Gross Profit Growth % | - | -30.89% | -3.63% | 4.54% | -11.38% | 24.67% | -11.38% | -39.46% | -62.18% | -21.86% | -29.95% | 248.14% | 229.27% | -46.12% | 12.55% | 29.74% | - |
| Operating Expenses | 8.97M | 9.28M | 6.68M | 8.78M | 7.16M | 7.47M | 8.51M | 7.14M | 14.6M | 27.36M | 27.97M | 41.82M | 15.52M | 4.9M | 2.82M | 1.85M | 1.64M |
| OpEx % of Revenue | - | 141.68% | 99.25% | 114% | 86.07% | 122.41% | 191.05% | 142.02% | 172.77% | 124.05% | 106.65% | 108.31% | 133.27% | 121.36% | 45.78% | 33.28% | 37.47% |
| Selling, General & Admin | 3.44B | 9.12M | 6.29M | 8.15M | 7.29M | 6.91M | 6.87M | 6.43M | 11.99M | 24.16M | 24.65M | 38.17M | 14.43M | 4.61M | 2.7M | 1.74M | 1.56M |
| SG&A % of Revenue | - | 139.26% | 93.39% | 105.89% | 87.66% | 113.22% | 154.15% | 128.02% | 141.8% | 109.55% | 93.98% | 98.85% | 123.95% | 114.38% | 43.95% | 31.33% | 35.47% |
| Research & Development | 0 | 0 | 0 | 59.51K | 23.73K | 32.8K | 73.72K | 101.45K | 78.47K | 190.79K | 283.15K | 488.91K | 346.75K | 0 | 101.5K | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.77% | 0.29% | 0.54% | 1.65% | 2.02% | 0.93% | 0.87% | 1.08% | 1.27% | 2.98% | - | 1.65% | - | - |
| Other Operating Expenses | -1.93M | 157.93K | 394.34K | 564.5K | -156.2K | 527.36K | 1.57M | 602.27K | 22.56K | 3.2M | 3.32M | 3.65M | 1.08M | 281.65K | 0 | 108.59K | 88.03K |
| Operating Income | -7.6M | -6.45M | -2.6M | -4.54M | -3.1M | -2.89M | -4.85M | -3M | -16.15M | -24.04M | -3.59M | -33.93M | -5.6M | -2.01M | 2.53M | 2.9M | 2.02M |
| Operating Margin % | -115.27% | -98.56% | -38.57% | -58.95% | -37.31% | -47.4% | -108.72% | -59.62% | -191.11% | -108.99% | -13.67% | -87.87% | -48.07% | -49.83% | 41.13% | 52.04% | 46.06% |
| Operating Income Growth % | - | -148.59% | 42.81% | -46.32% | -7.31% | 40.34% | -61.72% | 81.45% | 32.8% | -570.22% | 89.43% | -506.19% | -178.44% | -179.43% | -12.68% | 43.52% | - |
| EBITDA | -6.28M | -6.29M | -2.39M | -3.97M | -2.35M | -2.54M | -4.75M | -2.39M | -13.55M | -21.03M | -262.75K | -30.28M | -4.51M | -1.73M | 2.64M | 3.01M | 2.11M |
| EBITDA Margin % | -95.35% | -96.15% | -35.54% | -51.62% | -28.26% | -41.62% | -106.56% | -47.64% | -160.35% | -95.35% | -1% | -78.42% | -38.76% | -42.85% | 42.96% | 53.99% | 48.07% |
| EBITDA Growth % | -167.91% | -163.17% | 39.81% | -69.14% | 7.43% | 46.56% | -98.38% | 82.34% | 35.55% | -7903.59% | 99.13% | -570.96% | -161.07% | -165.38% | -12.08% | 42.68% | - |
| D&A (Non-Cash Add-back) | 1.31M | 157.93K | 203.8K | 564.5K | 752.36K | 352.36K | 96.19K | 602.27K | 2.6M | 3.01M | 3.32M | 3.65M | 1.08M | 281.65K | 112.94K | 108.59K | 88.03K |
| EBIT | -7.6M | -6.45M | -2.41M | -4.54M | -4.01M | -2.72M | -3.37M | -3M | -6.15M | -23.25M | -3.83M | -36.25M | -6.72M | -1.66M | 2.54M | 2.92M | 2.04M |
| Net Interest Income | -23.02K | -58.76K | -184.22K | 12.93K | -3.65K | 8K | 0 | 8.02K | 17.77K | -4.23K | -1.56M | -58.2K | 81.15K | -129.37K | -159.32K | -152.91K | -154.28K |
| Interest Income | 4.49K | 0 | 0 | 12.93K | 0 | 8K | 0 | 8.02K | 299 | 8.16K | 8.53K | 26.53K | 84.52K | 25.77K | 13.1K | 17.54K | 17.4K |
| Interest Expense | 27.5K | 58.76K | 184.22K | 0 | 3.65K | 0 | 0 | 0 | 4.64K | 12.4K | 1.57M | 84.73K | 3.37K | 155.14K | 172.41K | 170.45K | 171.69K |
| Other Income/Expense | -30.03K | -58.76K | 6.32K | 12.93K | -3.65K | 8K | 652.04K | 26.5K | -10.89M | 4.19K | -1.81M | 55.75K | -1.12M | 193.14K | -159.32K | -152.91K | -154.28K |
| Pretax Income | -7.63M | -6.51M | -2.59M | -4.53M | -3.11M | -2.88M | -4.19M | -2.97M | -16.14M | -24.03M | -5.4M | -33.88M | -6.72M | -1.82M | 2.37M | 2.75M | 1.87M |
| Pretax Margin % | -115.72% | -99.46% | -38.47% | -58.78% | -37.35% | -47.26% | -94.09% | -59.09% | -190.89% | -108.97% | -20.58% | -87.73% | -57.72% | -45.04% | 38.54% | 49.3% | 42.54% |
| Income Tax | 0 | 0 | 6.32K | -139.38K | -13.19K | -21.54K | -35.22K | -177.5K | -1.56M | -1.75M | -1.29M | 1.92M | -3.06M | -380.83K | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | -0.24% | 3.08% | 0.42% | 0.75% | 0.84% | 5.98% | 9.69% | 7.26% | 23.89% | -5.67% | 45.57% | 20.96% | 0% | 0% | 0% |
| Net Income | -7.58M | -6.45M | -2.51M | -4.31M | -2.6M | -2.76M | -4.35M | -3.84M | -15.08M | -22.29M | -4.11M | -35.8M | -3.66M | -1.44M | 2.37M | 1.62M | 1.12M |
| Net Margin % | -115.08% | -98.54% | -37.32% | -56% | -31.3% | -45.21% | -97.64% | -76.5% | -178.42% | -101.06% | -15.67% | -92.7% | -31.42% | -35.6% | 38.54% | 29.05% | 25.54% |
| Net Income Growth % | -210.54% | -156.81% | 41.74% | -65.65% | 5.6% | 36.64% | -13.19% | 74.51% | 32.33% | -442.47% | 88.52% | -878.53% | -154.67% | -160.56% | 46.57% | 44.5% | - |
| Net Income (Continuing) | -7.63M | -6.51M | -2.6M | -4.39M | -3.09M | -2.86M | -4.16M | -2.79M | -13.17M | -21.58M | -4.11M | -38.26M | -3.66M | -1.44M | 2.37M | 2.75M | 1.87M |
| Discontinued Operations | 0 | 0 | 0 | -28.43K | -65.06K | -88.81K | -193.61K | -1.05M | 0 | -711.01K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -568.25K | -567.14K | -481.5K | -479.92K | -237.24K | 317.43K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.46 | -2.09 | -2.01 | -0.41 | -0.38 | -0.40 | -0.74 | -0.85 | -6.59 | -11.37 | -3.96 | -41.15 | -7.30 | -3.64 | 10.88 | 7.04 | 4.80 |
| EPS Growth % | -761.88% | -3.98% | -390.24% | -7.89% | 5% | 45.95% | 12.94% | 87.1% | 42.04% | -187.12% | 90.38% | -463.7% | -100.55% | -133.46% | 54.55% | 46.67% | - |
| EPS (Basic) | - | -2.09 | -2.01 | -0.41 | -0.38 | -0.40 | -0.74 | -0.85 | -6.59 | -11.37 | -3.96 | -41.15 | -7.30 | -3.64 | 10.88 | 7.04 | 4.80 |
| Diluted Shares Outstanding | 3.08M | 3.08M | 1.25M | 10.62M | 8.2M | 7.22M | 5.64M | 3.27M | 2.29M | 1.96M | 1.04M | 869.91K | 501K | 394.88K | 217.99K | 230.83K | 230.83K |
| Basic Shares Outstanding | 3.08M | 3.08M | 1.25M | 10.62M | 8.2M | 7.22M | 5.64M | 3.27M | 2.29M | 1.96M | 1.04M | 869.91K | 501K | 394.88K | 217.99K | 230.83K | 230.83K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 122.28% | 95.99% | 153.77% |
Liquidity and going concern
As indicated by the most recent quarterly filings, IPDN's revenue growth has struggled to maintain positive momentum, with the company reporting a -2.73% year-over-year decline that highlights the difficulty of scaling its niche diversity recruitment model against larger, more integrated digital platforms in the current market.
The inability to sustain top-line growth suggests that the company's value proposition for corporate HR departments may be losing relevance. Investors should monitor whether the shift toward project-based revenue streams like RemoteMore can offset the ongoing attrition in core membership dues.
Based on the provided financial data, IPDN's gross margin has experienced significant volatility, dropping from historical highs above 60% to a recent low of -42.7% in 2026Q1, which signals a potential breakdown in the company's ability to efficiently deliver its core recruitment and networking services.
This compression suggests that the cost of service delivery is no longer being adequately covered by the revenue generated per user. The sharp decline in gross profitability warrants further investigation into whether this is a temporary operational hiccup or a permanent shift in the cost of maintaining its proprietary databases.
According to reported income statements, IPDN's operating leverage is non-existent, as the company consistently records operating losses that frequently exceed its total revenue, with the most recent quarter showing an operating margin of -119.7% despite the company's attempts to manage its overhead and personnel expenses.
The persistent gap between gross profit and operating income indicates that the company's fixed cost base is far too large for its current revenue scale. Without a substantial, non-linear increase in recruitment volume, the current operating structure appears fundamentally unsustainable for long-term profitability.
As reported in financial statements, IPDN's net income is heavily impacted by erratic stock-based compensation and non-operating items, with the 2025Q4 period showing a massive $3.5 billion stock-based compensation figure that distorts the underlying economic reality of the company's operational performance and earnings quality.
These accounting anomalies make it difficult to assess the true cash-generating capability of the business. Analysts should focus on normalized operating cash flow rather than reported net income to understand the actual burn rate and the urgency of the company's capital requirements.
Based on the company's reported cash balance of approximately $216,954, the firm faces an acute liquidity crisis, as the current rate of operating losses suggests that the company may lack the necessary capital to sustain its operations without immediate and potentially dilutive external financing.
Short-sellers would likely focus on the discrepancy between the company's stated mission and its inability to generate positive cash flow. The risk of a going concern event appears elevated, and investors should be wary of the potential for significant equity dilution in the near term.
Quick answers to the most common questions about buying IPDN stock.
For fiscal year 2025, Professional Diversity Network, Inc. (IPDN) reported total revenue of $6.5M. This represents a 49.3% increase compared to $4.4M in 2010.
Professional Diversity Network, Inc. (IPDN) reported a net loss of $6.5M for the fiscal year ending 2025.
Professional Diversity Network, Inc. (IPDN) reported an operating income of $-6.5M, resulting in an operating profit margin of -98.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Professional Diversity Network, Inc. (IPDN) generated $2.8M in gross profit for the year, representing a gross profit margin of 43.1%. This demonstrates the company's core pricing power and production efficiency.