Fluent 2025 Q1 Earnings Misses Targets as Net Loss Widens 31.8%

Fluent (FLNT) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Despite narrowing losses per share, Fluent's overall performance fell short of expectations. The company's net loss widened significantly, indicating underlying challenges. The guidance for the remainder of 2025 remains optimistic, with Fluent aiming for improved metrics and positive adjusted EBITDA in the second half of the year as Commerce Media Solutions scales. Investors should note the strategic pivot towards Commerce Media Solutions, which shows promising growth but also poses risks due to transitional uncertainties.

Revenue

The total revenue of Fluent decreased by 16.3% to $55.21 million in 2025 Q1, down from $65.98 million in 2024 Q1.

Earnings/Net Income

Fluent narrowed losses to $0.39 per share in 2025 Q1 from a loss of $0.45 per share in 2024 Q1, reflecting a 13.3% improvement. Meanwhile, the company's net loss widened to $-8.27 million in 2025 Q1, representing a 31.8% increase from the $-6.28 million loss recorded in 2024 Q1. This indicates a challenging earnings season.

Post-Earnings Price Action Review

The strategy of buying FLNT stock following a revenue beat and holding for 30 days shows potential benefits, such as capitalizing on positive market sentiment and historical tendencies for short-term momentum. However, it is not without risks, including short-term volatility and market overreaction, which can lead to price fluctuations unfavorable to investors. Additionally, FLNT's transition towards Commerce Media Solutions introduces uncertainties that could impact stock performance. While historical data might suggest profitability, such strategies can be risky due to potential declines or volatility within the 30-day period. Investors should weigh FLNT's financial health, market conditions, and growth strategies before pursuing this approach.

CEO Commentary

Don Patrick, Fluent's Chief Executive Officer, remarked on the fifth consecutive quarter of strong year-over-year growth in the Commerce Media Solutions business, which has become a foundational driver of the company's evolving model with nearly triple-digit growth since its launch in early 2023. He highlighted impressive partnerships with top-tier media partners and a recent strategic partnership with Rebuy Engine, aimed at enhancing advertising for Shopify merchants. However, he noted challenges in the Owned and Operated business due to reduced media supply and emphasized efforts to stabilize cash flow while maintaining focus on the growth strategy of Commerce Media Solutions.

Guidance

Fluent expects to continue driving meaningful growth in the Commerce Media Solutions business throughout 2025, aiming for improved revenue and net loss metrics compared to 2024. The company anticipates positive adjusted EBITDA in the second half of 2025 as this segment scales and becomes a larger percentage of consolidated revenue. Overall, Fluent's strategic focus is on establishing its position as a leader in performance marketing across high-volume market verticals, leveraging its extensive first-party user data to differentiate from competitors.

Additional News

Fluent Inc (NASDAQ: FLNT) has appointed Adrian Stack as Chief Product Officer to lead the company's product vision and strategy. Stack, with over 15 years of experience in product development leadership, previously served at Zillow's Data Engineering division and as SVP of Product at Rokt. This appointment is aimed at accelerating Fluent's investment in AI-powered Commerce Media Solutions, focusing on enhancing consumer engagement and advertiser success. Fluent also announced a strategic partnership with Rebuy Engine to launch Rebuy Ads for Shopify merchants. This new post-purchase advertising solution leverages Fluent's AI-powered marketplace and Rebuy's Shopify integration, serving over 12,000 active merchants. Additionally, Fluent has unveiled an enhanced version of its Fluent Identity Graph through a partnership with Experian, aimed at improving targeting accuracy and ad relevance in advertising solutions.