Fluent 2025 Q3 Earnings 43.7% EPS Improvement Amid Revenue Decline

Fluent (FLNT) reported Q3 2025 earnings on Nov 14, 2025, with revenue falling short of estimates by $5.92 million and non-GAAP EPS of -$0.23, missing by $0.11. The company maintained guidance for adjusted EBITDA profitability in Q4 2025 and full-year 2026, while forecasting double-digit consolidated revenue growth for 2026.

Revenue

Total revenue declined 27.1% to $47.03 million in Q3 2025, driven by a 52% drop in the Owned and Operated segment to $20.7 million. In contrast, Commerce Media Solutions revenue surged 81% year-over-year to $18.8 million, now accounting for 40% of total revenue. Call Solutions and AdParlor contributed $5.28 million and $2.18 million, respectively, though these segments showed modest growth. The shift toward high-margin Commerce Media Solutions underscored the company’s strategic pivot, despite ongoing challenges in legacy revenue streams.

Earnings/Net Income

Fluent narrowed its net loss to $-7.56 million (4.9% improvement) and reduced per-share losses to $-0.27 (43.7% improvement) compared to 2024 Q3. The EPS improvement reflects operational efficiencies and cost controls, though the company remains unprofitable. The sequential gross margin expansion in Commerce Media Solutions—up 400 basis points to 22%—highlighted progress in scaling this segment.

Post-Earnings Price Action Review

Following the earnings report, Fluent’s stock experienced mixed short-term performance. Shares rose 2.28% in after-hours trading but fell 11.52% month-to-date, reflecting investor skepticism about near-term profitability. The stock edged down 1.03% in the prior week, indicating volatility as the market digested the company’s guidance and revenue challenges. While the Q4 2025 adjusted EBITDA outlook provided some optimism, the broader decline in revenue and persistent losses tempered enthusiasm.

CEO Commentary

CEO Don Patrick emphasized Commerce Media Solutions’ 81% YoY growth and $85 million annualized run rate, citing strategic partnerships with Authentic Brands and Databricks as key drivers. He reiterated confidence in achieving adjusted EBITDA profitability by Q4 2025 and full-year 2026, positioning the segment as the core growth engine.

Guidance

Fluent expects adjusted EBITDA profitability in Q4 2025 and full-year 2026, alongside double-digit consolidated revenue growth for 2026. The company remains focused on scaling Commerce Media Solutions and leveraging AI and data analytics to enhance margins.

Additional News

Recent developments include a $10.3 million private equity raise, strengthening Fluent’s balance sheet with $9.2 million in cash post-transaction. The company also expanded partnerships with Databricks and Authentic Brands, enhancing data collaboration and post-purchase monetization capabilities. Additionally, a strategic alliance with Rebuy Engine on the Shopify platform generated 1 million ad unit sessions in September, marking a 79% MoM growth. These moves signal Fluent’s aggressive pursuit of commerce media expansion, despite ongoing pressure on legacy revenue streams.