Fluent 2025 Q3 Earnings 43.7% Reduction in Loss per Share

Fluent’s Q3 2025 results showed a 43.7% improvement in loss per share to -$0.27, alongside a 4.9% reduction in net loss to -$7.56M. Despite a 27.1% revenue decline to $47.03M, the company raised guidance for Q4 2025 adjusted EBITDA profitability and full-year 2026 adjusted EBITDA breakeven.

Revenue

Fluent’s Q3 2025 revenue totaled $47.03 million, reflecting a 27.1% year-over-year decline from $64.52 million. The core Fluent segment generated $44.84 million, while the “All Other” segment contributed $2.19 million. The total revenue contraction underscores challenges in legacy segments, though the Commerce Media Solutions (CMS) segment, now 40% of total revenue, demonstrated robust growth.

Earnings/Net Income

The company narrowed its net loss to $7.56 million, or $0.27 per share, from $7.94 million, or $0.48 per share, in Q3 2024. This 43.7% improvement in loss per share and 4.9% reduction in net loss highlights progress in cost management and operational efficiency, despite the revenue decline.

Post-Earnings Price Action Review

Following the earnings release, Fluent’s stock price rose 3.78% on the day, though it edged down 1.03% during the subsequent trading week and fell 11.52% month-to-date. The mixed post-earnings performance reflects investor skepticism about near-term revenue recovery but optimism around CMS’s growth trajectory and long-term profitability goals. While the stock’s intraday rebound suggests some positive sentiment, the broader MTD decline indicates lingering concerns about the company’s ability to sustain momentum in its core segments.

CEO Commentary

CEO Don Patrick emphasized CMS’s pivotal role, noting its 40% revenue contribution (up from 16% in Q3 2024) and triple-digit growth potential. Strategic partnerships with Authentic Brands and Databricks, along with Shopify’s Rebuy Monetize integration, are expected to drive 79% MoM growth in ad unit sessions. Patrick expressed confidence in CMS surpassing legacy revenue streams by Q4 2025, supported by holiday seasonality and AI-driven monetization.

Guidance

Fluent anticipates adjusted EBITDA profitability in Q4 2025, full-year double-digit revenue growth for 2025, and full-year adjusted EBITDA profitability by 2026. CMS is projected to achieve triple-digit growth in 2025, with gross margins returning to the high twenties via AI and data capabilities.

Additional News

Recent updates include the SEC 10-Q report, highlighting a 27.1% revenue decline but improved net loss, and the Q3 earnings report emphasizing CMS’s $85M annualized run rate and 22% gross margin. The earnings call transcript detailed partnerships with Databricks and Authentic Brands, alongside plans to leverage AI for margin recovery. Notably, the company raised $10.3 million via a private equity placement to strengthen its balance sheet and fund CMS expansion.

Fluent’s strategic pivot to CMS, bolstered by AI and high-profile partnerships, positions it to capitalize on the growing performance marketing sector. However, the continued decline in legacy segments and pressure on margins necessitate sustained execution to meet profitability targets.

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