Fluent 2025 Q3 Earnings Sharp Loss Reduction and 40% CMS Revenue Share

Fluent (FLNT) reported Q3 2025 results marked by a 27.1% revenue decline to $47.03 million but narrowed losses to $0.27 per share (43.7% improvement YoY). The company missed earnings estimates by $0.11 and revenue expectations by $5.92 million. CEO Don Patrick highlighted robust Commerce Media Solutions (CMS) growth, now 40% of revenue, and reiterated guidance for Q4 2025 adjusted EBITDA profitability and full-year 2026 double-digit revenue growth.

Revenue

Fluent’s total revenue declined by 27.1% to $47.03 million in Q3 2025, down from $64.52 million in the prior-year period. The Commerce Media Solutions (CMS) segment drove the majority of revenue, contributing $18.8 million, which accounted for 40% of total revenue. The Owned and Operated segment saw a sharper 52% decline to $20.7 million, while AdParlor and Call Solutions generated $2.18 million and $5.28 million, respectively. The shift toward CMS reflects the company’s strategic pivot to high-growth commerce media partnerships.

Earnings/Net Income

Fluent reduced its net loss to $7.56 million in Q3 2025, a 4.9% improvement from $7.94 million in Q3 2024. The loss per share narrowed to $0.27 from $0.48, reflecting operational efficiencies. Despite the progress, the company reported a non-GAAP adjusted EBITDA loss of $3.4 million. The EPS improvement underscores Fluent’s focus on cost optimization and CMS margin expansion, though profitability remains a work in progress.

Post-Earnings Price Action Review

Following the earnings release, Fluent’s stock price experienced mixed performance: a 3.78% gain on the latest trading day, a 1.03% decline over the subsequent full trading week, and an 11.52% drop month-to-date. The volatility reflects investor skepticism about near-term profitability despite CMS growth. The post-earnings reaction highlights market sensitivity to Fluent’s ability to sustain CMS expansion while managing legacy revenue declines and debt obligations.

CEO Commentary

CEO Don Patrick emphasized CMS’s transformational role, noting its annualized revenue run rate now exceeds $85 million with 22% gross margins. Strategic partnerships with Databricks and Authentic Brands, along with the scaling of Rebuy Monetize on Shopify, were cited as key drivers. Patrick expressed confidence in CMS surpassing the legacy Owned and Operated business as the primary revenue contributor in Q4 2025, supported by holiday seasonality and long-term growth strategies.

Guidance

Fluent expects adjusted EBITDA profitability in Q4 2025 and full-year 2026 double-digit revenue growth. CMS is projected to deliver triple-digit growth in 2025, with its revenue share exceeding 40% of consolidated revenue by year-end. The company also highlighted risks, including debt covenants and market competition, while maintaining visibility on seasonal demand and partnership scalability.

Additional News

Recent developments include a $10.3 million private equity raise to strengthen Fluent’s balance sheet, new partnerships with Databricks and Authentic Brands Group (including Reebok and other retail brands), and the expansion of Rebuy Monetize on Shopify. These partnerships aim to unlock access to 12,000+ merchants and drive post-transaction monetization. Additionally, Fluent secured DICK’S Sporting Goods as a top-five network partner in Q3, marking a strategic win over a major competitor. The company also announced leadership hires, including Virginia Marsh as head of data and agencies, to scale its data collaboration capabilities.

Fluent’s strategic pivot to Commerce Media Solutions is reshaping its revenue mix, with CMS now representing 40% of total revenue. The company’s focus on AI-driven monetization and high-margin partnerships positions it to capitalize on the growing performance marketing sector.