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1. Company Snapshot

1.a. Company Description

Paltalk, Inc., together with its subsidiaries, develops communications software and multimedia social applications worldwide.The company offers consumer applications, which include Paltalk, Camfrog, and Tinychat for live video chat; and Vumber, a telecommunications application that enables users to have multiple phone numbers in any area code through which calls can be forwarded to a user's existing cell phone or landline telephone number.In addition, the company provides product payment options, where users can pay by credit card, PayPal, western union, check, local e-wallet providers, or complete an in-app purchase through the Apple App Store or Google Play Store for Android users.


It also provides technology services and professional services, such as development, integration, engineering, licensing, other services.The company was formerly known as PeerStream, Inc.and changed its name to Paltalk, Inc.


in May 2020.Paltalk, Inc.is based in Jericho, New York.

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1.b. Last Insights on PALT

Recent negative drivers behind Paltalk, Inc.'s performance include: * Weak Q3 2024 earnings, with a decline in revenue and a significant increase in operating expenses. * The company's CEO, Jason Katz, mentioned during the Q3 2024 earnings call that Paltalk is facing challenges in its core business, including a decline in user engagement and revenue. * The announcement of a conference call on January 2, 2025, to discuss the divestiture of Newtek Technology Solutions, Inc. to Paltalk, Inc., may indicate that the company is struggling to integrate its recent acquisitions and is looking to divest non-core assets. * The investigation into the merger of Outbrain Inc. and Teads S.A. may also be a concern for Paltalk, as it may indicate that the company is facing increased regulatory scrutiny and potential risks associated with its own merger and acquisition activities.

1.c. Company Highlights

2. IPM's Q3 2025 Earnings: A Significant Revenue Jump Amidst Continued Losses

Intelligent Protection Management Corporation (IPM) reported a substantial increase in revenue for Q3 2025, with $6.2 million in revenue, a significant jump from $300,000 in the prior year period. For the nine months ended September 30, 2025, revenue was $17.5 million, up from $800,000 in the prior year period. Despite this growth, the company reported an operating loss from continuing operations of $1.4 million and a net loss of $1.1 million for Q3 2025. The adjusted EBITDA for Q3 2025 was negative $300,000. The actual EPS for Q3 2025 came out at -$0.59503, missing estimates of $0.01.

Publication Date: Nov -17

📋 Highlights
  • Revenue Surge:: Q3 2025 revenue reached $6.2M, up from $300K in prior year, with $17.5M for nine months vs. $800K.
  • Operating Loss:: Q3 2025 operating loss of $1.4M and net loss of $1.1M, with Adjusted EBITDA at -$300K.
  • Liquidity Position:: $8.3M in cash and cash equivalents as of September 30, 2025, with no long-term debt.
  • Acquisition & Buybacks:: Completed Newtek acquisition in January 2025 and repurchased 46,658 shares for $88.25K.
  • Strategic Expansion:: 9,000+ devices under management, $3.5M deferred revenue, and plans for bolt-on acquisitions and service expansion.

Financial Position and Cash Flow

As of September 30, 2025, IPM had $8.3 million in cash and cash equivalents and no long-term debt, indicating a stable financial position. The company also reported deferred revenue of $3.5 million and had over 9,000 devices under management. The company's cash position is expected to be sufficient to support its current operations, but the negative adjusted EBITDA raises concerns about its long-term sustainability.

Business Developments and Strategy

IPM's CEO, Jason Katz, expressed satisfaction with the company's progress, highlighting its focus on cybersecurity and cloud infrastructure, and its goal to become a leading managed technology solutions provider. The company recently launched its Heroes program, offering discounts to military, first responders, and other groups. Management discussed their strategy for growth, including potential bolt-on acquisitions and expanding service offerings. As Katz noted, the company is committed to executing on its business plan and updating the market on its progress.

Valuation and Outlook

Analysts estimate next year's revenue growth at -1.1%, indicating a potential slowdown in IPM's growth trajectory. The current valuation metrics suggest that the market is pricing in significant growth expectations, with a P/S Ratio of 2.3 and an EV/EBITDA of -4.09. The ROE and ROIC are both negative, at -41.24% and -16.01%, respectively, indicating that the company is not generating returns on its investments. The P/B Ratio is 0.87, suggesting that the stock may be undervalued relative to its book value. However, the negative earnings and cash flow yields raise concerns about the company's ability to generate returns for shareholders.

3. NewsRoom

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NewtekOne, Inc. and Paltalk, Inc. To Hold Conference Call on January 2, 2025, To Discuss the Anticipated January 2, 2025 Closing of the Divestiture of Newtek Technology Solutions, Inc. to Paltalk, Inc.

Dec -30

Source: globenewswire.com

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Paltalk, Inc. (PALT) Q3 2024 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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SHAREHOLDER INVESTIGATION: The M&A Class Action Firm Investigates the Merger of Outbrain Inc. – OB

Nov -06

Source: globenewswire.com

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Paltalk Holdings Announces Judge Enters Final Judgment in Connection With Cisco Jury Verdict

Oct -11

Source: globenewswire.com

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NewtekOne: Undervalued On 6.5% Dividend Yield, Paltalk Equity, Rate Cut Euphoria

Sep -23

Source: seekingalpha.com

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Paltalk Holdings, Inc. Awarded $65.7 Million Jury Verdict Against Cisco Systems Inc.

Aug -30

Source: globenewswire.com

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Paltalk, Inc. (PALT) Q2 2024 Earnings Call Transcript

Aug -13

Source: seekingalpha.com

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Paltalk, Inc. Reports Results for Second Quarter 2024

Aug -13

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Subscription

Expected Growth: 5%

Paltalk, Inc.'s subscription growth is driven by increasing demand for social interaction and online communities, fueled by the COVID-19 pandemic. The platform's user-friendly interface, features like video chat and virtual gifts, and strategic partnerships have contributed to its popularity. Additionally, the company's focus on monetization through premium features and targeted advertising has enhanced revenue growth.

Advertising

Expected Growth: 10%

Paltalk's 10% growth in advertising is driven by increasing user engagement, expansion into new markets, and strategic partnerships. The rise of social media and online communities has boosted demand for interactive advertising solutions, while Paltalk's unique platform and targeting capabilities have attracted new advertisers. Additionally, the company's focus on mobile optimization and video advertising has further fueled growth.

7. Detailed Products

Video Chat Rooms

Virtual rooms where users can engage in live video conversations with others who share similar interests

One-on-One Video Chat

Private video conversations between two users

Virtual Event Hosting

Platform for hosting online events, conferences, and meetups

Screen Sharing

Real-time screen sharing for presentations, demos, or tutorials

File Transfer

Secure file sharing between users

Virtual Whiteboard

Interactive whiteboard for collaborative brainstorming and idea sharing

8. Paltalk, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Paltalk, Inc. faces moderate threat from substitutes as users can switch to alternative video conferencing platforms such as Zoom, Google Meet, or Skype.

Bargaining Power Of Customers

Paltalk, Inc. has a low bargaining power of customers as users are scattered and lack collective bargaining power, making it difficult for them to negotiate prices or services.

Bargaining Power Of Suppliers

Paltalk, Inc. has a moderate bargaining power of suppliers as it relies on a few key suppliers for infrastructure and technology, giving them some negotiating power.

Threat Of New Entrants

Paltalk, Inc. faces a high threat of new entrants as the video conferencing market is attractive and has low barriers to entry, making it easy for new competitors to enter the market.

Intensity Of Rivalry

Paltalk, Inc. operates in a highly competitive market with intense rivalry among existing players, making it challenging to maintain market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.38%
Debt Cost 3.95%
Equity Weight 99.62%
Equity Cost 7.99%
WACC 7.97%
Leverage 0.38%

11. Quality Control: Paltalk, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 2.3

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A-Score: 3.1/10

Value: 8.2

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Quality: 3.9

Yield: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.03$

Current Price

2.03$

Potential

-0.00%

Expected Cash-Flows