Fluent 2025 Q3 Earnings Misses Estimates but Narrows Losses by 43.7%

Fluent (NASDAQ: FLNT) reported its fiscal 2025 Q3 earnings on Nov 14, 2025, with revenue declining 27.1% to $47.03 million and a non-GAAP EPS of -$0.23, missing estimates by $0.11. The company confirmed guidance for adjusted EBITDA profitability in Q4 2025 and full-year 2026, aligning with its strategic focus on Commerce Media Solutions. Post-earnings, shares rose 2.28% as investors evaluated the mixed results.

Revenue

Commerce Media Solutions (CMS) drove growth, contributing $18.8 million in revenue (40% of total revenue), up 81% YoY, while Owned and Operated revenue fell 52% to $20.7 million. Call Solutions and AdParlor reported $5.28 million and $2.18 million, respectively. The CMS segment’s triple-digit growth trajectory and improved gross margin of 22% (400 bps sequential) underscored its strategic importance.

Earnings/Net Income

Fluent narrowed its net loss to $7.56 million (4.9% reduction YoY) and per-share losses to $0.27 from $0.48, a 43.7% improvement. The 43.7% reduction in EPS loss is encouraging, though the company still reported a net loss of $7.56 million.

Post-Earnings Price Action Review

The stock price climbed 4.12% on the latest trading day and 3.06% for the week but dropped 6.05% month-to-date. Investors reacted cautiously to the revenue decline and CMS-driven optimism, with the 2.28% post-earnings rally reflecting partial confidence in management’s guidance.

CEO Commentary

CEO Don Patrick highlighted CMS’s 81% YoY growth, 22% gross margin, and strategic partnerships with Authentic Brands and Databricks. He emphasized CMS’s projected leadership over legacy businesses in Q4 2025 and confidence in achieving adjusted EBITDA profitability by year-end.

Guidance

Fluent expects Q4 2025 adjusted EBITDA profitability, full-year 2025 double-digit consolidated revenue growth, and full-year 2026 adjusted EBITDA profitability. CMS is forecasted to surpass legacy revenue streams by Q4 2025, with gross margins targeting the high twenties.

Additional News

Fluent announced a strategic partnership with Databricks to enhance data capabilities, leveraging AI for improved CMS monetization. The company also formed a collaboration with Authentic Brands, a $32 billion retail sales leader, to expand commerce media offerings. Management disclosed cost reduction measures and resource reallocation to address declining revenue in legacy segments, while monitoring potential divestments to strengthen CMS’s growth trajectory.

Business Outlook & Goals

Fluent aims to capitalize on CMS’s triple-digit growth, seasonal holiday demand, and AI-driven margin improvements. The company remains focused on differentiating itself through first-party data and 14-year leadership in customer acquisition.

Definitions, Reconciliations and Uses of Non-GAAP Financial Measures

Media margin, adjusted EBITDA, and adjusted net income are non-GAAP metrics defined and reconciled in the full report. These measures exclude certain expenses to provide clarity on operational performance.

Contact Information

Investor Relations: InvestorRelations@fluentco.com