Fluent 2025 Q3 Earnings Misses Estimates Despite 4.9% Net Loss Improvement

Fluent (FLNT) reported fiscal 2025 Q3 results on Nov 14, 2025, with revenue declining 27.1% to $47.03 million, missing estimates. The CEO highlighted progress in Commerce Media Solutions (CMS), which now accounts for 40% of revenue, but the company still faces profitability challenges.

Revenue

Fluent’s core business segment contributed $44.84 million, while other segments accounted for $2.19 million, bringing total revenue to $47.03 million. The sharp decline reflects a strategic shift toward CMS, which grew 81% year-over-year to $18.8 million.

Earnings/Net Income

The company narrowed its net loss to $7.56 million ($0.27 per share), a 4.9% improvement from the previous year’s $7.94 million ($0.48 per share). Despite a 43.7% EPS improvement, the net loss remains significant, underscoring ongoing profitability hurdles.

Price Action

Following the earnings release, Fluent’s stock saw a 3.78% gain in the latest trading day, though it dipped 1.03% for the week and declined 11.52% month-to-date. The mixed performance reflects market skepticism despite the company’s strategic shifts and improved net loss.

CEO Commentary

CEO Don Patrick emphasized CMS’s momentum, noting its $85 million annual revenue run rate and 22% gross margin, up 400 basis points sequentially. Strategic partnerships with Authentic Brands and Databricks, along with Shopify’s Rebuy Monetize platform, highlight CMS’s scalability. Patrick expressed confidence in CMS surpassing legacy businesses by Q4 2025 and achieving adjusted EBITDA profitability in 2026.

Guidance

Fluent expects adjusted EBITDA profitability in Q4 2025, full-year double-digit revenue growth, and full-year adjusted EBITDA profitability in 2026. CMS is projected to deliver triple-digit growth in 2025, driven by holiday seasonality and expanding partnerships.

Additional News

Fluent secured strategic partnerships with Databricks and Authentic Brands, enhancing its data capabilities and brand reach. A key leadership hire in data and agencies was announced to scale CMS operations. Additionally, the company completed a $10.3 million private equity raise, strengthening its balance sheet to fund growth initiatives.

Recent Developments

Fluent’s collaboration with Shopify’s Rebuy Engine expanded its access to 12,000+ merchants, driving 79% MoM ad unit session growth. The company also deepened ties with Authentic Brands Group to monetize post-purchase opportunities for brands like Reebok and Champion. Internally, cost-cutting measures and resource reallocation are underway to align with projected budgets, with potential divestitures under review for non-core units.

Forward-Looking Focus

With CMS now 40% of revenue, Fluent’s success hinges on sustaining its triple-digit growth trajectory and converting momentum into durable cash flow. Investors will closely monitor Q4 profitability and CMS margin recovery to the high 20s, as well as the pace of legacy business declines.

Risk Factors

Persistent headwinds in the Owned and Operated segment, regulatory challenges, and advertiser budget constraints pose risks to CMS scaling. Margins remain pressured by short-term incentives and channel partnerships, requiring disciplined execution to meet 2026 profitability targets.