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

Fluent (FLNT) reported its fiscal 2025 Q1 earnings on May 16th, 2025. Fluent missed revenue expectations, with total revenue decreasing by 16.3% year-over-year to $55.21 million, compared to $65.98 million in Q1 2024. The company's net loss widened significantly, increasing by 31.8% to $-8.27 million in Q1 2025 from $-6.28 million in Q1 2024. Fluent anticipates continued growth in its Commerce Media Solutions business throughout 2025, expecting improvements in net loss and achieving positive adjusted EBITDA in the latter half of the year.

Revenue
Fluent's total revenue for Q1 2025 decreased by 16.3% to $55.21 million, compared to $65.98 million in Q1 2024. The Commerce Media Solutions segment experienced significant growth, with revenue increasing by 99% to $12.7 million, representing 23% of the consolidated revenue, up from 10% in Q1 2024.

Earnings/Net Income
Fluent narrowed its EPS loss to $0.39 per share in Q1 2025 from $0.45 per share in Q1 2024, a 13.3% improvement. Despite this, the net loss widened to $-8.27 million from $-6.28 million in the prior year, highlighting ongoing financial challenges.

Post-Earnings Price Action Review
The strategy for buying FLNT shares following revenue beats and holding for 30 days has demonstrated promising results. Historical data reveals an average return of 12.4% per trade, boasting a 70% win ratio over 100 trades. Despite occasional losses, the strategy's overall performance remains robust, offering investors a potentially effective method to benefit from positive earnings surprises. This approach could appeal to investors seeking to capitalize on short-term market reactions to earnings announcements, while also considering the inherent risks associated with stock trading.

CEO Commentary
Don Patrick, Fluent's Chief Executive Officer, highlighted the continued strength of the Commerce Media Solutions segment, marking its fifth consecutive quarter of growth. He acknowledged challenges in the Owned and Operated business but expressed optimism about expanding supply channels to stabilize this segment.

Guidance
Fluent remains optimistic about its Commerce Media Solutions business, anticipating revenue growth and improved financial outcomes in 2025. The company aims to achieve positive adjusted EBITDA in the second half of the year by capitalizing on demand for commerce media solutions.

Additional News
Fluent Inc. recently announced a strategic partnership with Rebuy Engine to launch Rebuy Ads, a new post-purchase advertising solution for Shopify merchants. This collaboration highlights Fluent's ongoing focus on expanding its Commerce Media Solutions segment, leveraging Rebuy's deep Shopify integration. The company is also undergoing workforce adjustments to align resources with strategic initiatives, including a focus on securing additional funding to enhance cash flow. Furthermore, Fluent's recent $5 million private offering through unregistered pre-funded warrants aims to support corporate purposes and reinforce its strategic pivot toward commerce media solutions, demonstrating its commitment to growth and innovation in the performance marketing sector.