Fluent Announces Second Quarter 2025 Financial Results; Commerce Media Solutions Annual Revenue Run Rate Exceeds $80 Million
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Q2 2025 revenue of $44.7 million; H1 2025 revenue of $99.9 million
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Q2 2025 Commerce Media Solutions revenue grew 121% to $16.1 million, representing 36% of consolidated revenue from $7.3 million or 12% of consolidated revenue in Q2 2024
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Commerce Media Solutions annual revenue run rate now exceeds $80 million, reflecting a 23% quarter-over-quarter increase and strong momentum in executing the Company's strategic pivot to this higher growth market
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Expect adjusted EBITDA profitability in Q4 2025 as well as full-year double-digit revenue growth and full-year adjusted EBITDA profitability in 2026
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Subsequent to the quarter, raised $10.3 million from new investors and insiders
NEW YORK, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ:FLNT), a commerce media solutions provider, today reported unaudited financial results for the second quarter ended June 30, 2025.
Don Patrick, Chief Executive Officer of Fluent, commented, "We saw continued strong performance from our Commerce Media Solutions business with revenue growth of 121% year-over-year and run rate growth of 23% compared to the first quarter of 2025. We expect to continue to drive substantial growth through the back half of the year as we go live with top-tier media partners like Authentic Brands Group. Commerce Media Solutions margins were lower than historical levels in the second quarter as we strategically expanded into new placements beyond post-transaction and offered early-term contract incentives to secure some longer-term media partner contracts. We expect margins to normalize over time as we continue to expand our list of top-tier media partners.
"As expected, owned and operated revenue declined in the quarter as we reallocate resources towards Commerce Media Solutions. As a percentage of revenue, Commerce Media Solutions contributed 36% to total revenue in the second quarter as compared to 23% of total revenue in the first quarter of 2025, demonstrating encouraging sequential growth. We expect Commerce Media Solutions to become the majority revenue contributor in the second half of 2025, representing a key milestone and inflection point for our business."
Mr. Patrick concluded, "We are achieving meaningful progress and demonstrated success with our long-term growth strategy and remain committed to driving enhanced growth and value for our shareholders as we move into the second half of 2025. With our visibility today, we expect adjusted EBITDA profitability in the fourth quarter of 2025, as well as full-year double-digit consolidated revenue growth and full-year adjusted EBITDA profitability in 2026."
Second Quarter Financial Highlights
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Revenue of $44.7 million, a decrease of 24%, compared to $58.7 million in Q2 2024 • Owned and Operated revenue decreased 49% to $21.4 million compared to $42.0 million in Q2 2024, as the Company continued its shift in focus and revenue mix to Commerce Media Solutions • Commerce Media Solutions revenue increased 121% to $16.1 million, compared to $7.3 million in Q2 2024
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Net loss of $7.2 million, or $0.30 per share, compared to a net loss of $11.6 million, or $0.75 per share, for Q2 2024.
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Gross profit (exclusive of depreciation and amortization) of $10.3 million, a decrease of 18% compared to Q2 2024 and representing 23% of revenue. Commerce Media Solutions reported gross profit (exclusive of depreciation and amortization) of $2.9 million, an increase of 43% over Q2 2024 and representing 18% of revenue for Q2 2025.
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Media margin of $11.9 million, a decrease of 24% compared to Q2 2024 and representing 26.7% of revenue. Commerce Media Solutions reported media margin of $3.2 million, an increase of 45% over Q2 2024 and representing 20.0% of revenue for Q2 2025.
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Adjusted EBITDA loss of $2.8 million, an improvement of $1.7 million, compared to Q2 2024 and representing 6% of revenue
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Adjusted net loss of $5.8 million, or $0.24 per share, compared to $7.3 million, or $0.47 per share, for Q2 2024
Six Months Ended June 30, 2025 Financial Highlights
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Revenue of $99.9 million, a decrease of 20%, compared to $124.7 million in Q2 2024 • Owned and Operated revenue decreased 39% to $52.5 million compared to $86.7 million in H1 2024, as the Company continued its shift in focus and revenue mix to the more predictable commerce media business • Commerce Media Solutions revenue increased 110% to $28.7 million compared to $13.7 million in H1 2024
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Net loss of $15.5 million, or $0.68 per share, compared to a net loss of $17.9 million, or $1.11 per share, for H1 2024.
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Gross profit (exclusive of depreciation and amortization) of $21.7 million, a decrease of 30% compared to H1 2024 and representing 22% of revenue. Commerce Media Solutions reported gross profit (exclusive of depreciation and amortization) of $5.7 million, an increase of 48% over H1 2024 and representing 20% of revenue.
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Media margin of $25.7 million, a decrease of 32% compared to H1 2024 and representing 25.7% of revenue. Commerce Media Solutions reported media margin of $6.3 million, an increase of 50% over H1 2024 and representing 22.0% of revenue.
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Adjusted EBITDA of negative $5.9 million, a decrease of $2.0 million compared to H1 2024 and representing 6% of revenue
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Adjusted net loss of $12.5 million, or $0.55 per share, compared to $11.5 million, or $0.72 per share, for H1 2024
Business Outlook & Goals
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Accelerate growth of Fluent's Commerce Media Solutions business and establish it as a leader in the performance marketing sector among both media partners and advertisers to capitalize on the growing demand for this advertising channel across numerous high-volume market verticals.
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Win top-tier media partners in new, diverse market verticals that demonstrate Fluent's depth and breadth of commerce media offerings in this competitive, high growth market.
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Leverage 14-year leadership position at the forefront of customer acquisition and robust database of first-party user data to differentiate Fluent from competitors in the commerce media space.
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Position Fluent for long-term sustainable value creation supported by the growth of Commerce Media Solutions, which continues to grow at a triple-digit rate and scale as a percentage of consolidated revenue.
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Leverage AI capabilities and proprietary first-party data to improve monetization of commerce media placements and return Commerce Media Solutions gross margin to the high twenties.
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Given current visibility, the Company expects adjusted EBITDA profitability in the fourth quarter of 2025, as well as full-year double-digit consolidated revenue growth and full-year adjusted EBITDA profitability in 2026.
Conference Call
Fluent, Inc. will host a conference call on Tuesday, August 19, 2025, at 4:30 PM ET to discuss its 2025 second quarter financial results. The conference call can be accessed by phone after registering online at https://register-conf.media-server.com/register/BIbb274d716bf54ff8a884c69d79300423. The call will also be webcast simultaneously on the Fluent website at https://investors.fluentco.com/. Following the completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please connect via https://edge.media-server.com/mmc/p/3q2n32pp. The replay will be available for one year, via the Fluent website https://investors.fluentco.com.
About Fluent, Inc.
Fluent, Inc. (NASDAQ:FLNT) is a commerce media solutions provider connecting top-tier brands with highly engaged consumers. Leveraging exclusive ad inventory, robust first-party data, and proprietary machine learning, Fluent unlocks additional revenue streams for partners and empowers advertisers to acquire their most valuable customers at scale. Founded in 2010, Fluent uses its deep expertise in performance marketing to drive monetization and increase engagement at key touchpoints across the customer journey. For more insights visit http://www.fluentco.com/.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The matters contained in this press release may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the intent, belief or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following:
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Compliance with the covenants of our credit agreement in light of current business conditions, the current uncertainty of which raises substantial doubt about our ability to continue as a going concern;
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Ability to operate in a competitive, rapidly changing and highly regulated industry, which makes it difficult to evaluate our business and prospects;
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Dependence on the gaming industry;
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Unfavorable publicity and negative public perception about the digital marketing industry or us;
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A sudden reduction in online marketing spend by our clients, a loss of clients or lower advertising yields;
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Credit risk from certain clients;
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Our relative inexperience in the post-transaction commerce media business, which is currently dominated by a major player;
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Investment in growing our Commerce Media Solutions business may continue to compress margins, and our ability to improve profitability over time is uncertain;
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Our need to continue investing in technology for our Commerce Media Solutions business;
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Our competitive disadvantage due to our more selective approach to traffic sources;
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A decline in the supply of media available to us through third parties or an increase in the price of such media;
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Potential loss of competitiveness from slow mobile adoption and CRM dependence;
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Our growing reliance on inbound calls for our Call Solutions business, particularly in the health plan vertical, which may become cost-prohibitive to sustain;
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Challenges scaling infrastructure and products to support growth while maintaining profitability;
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Global economic or political instability, including the potential impact of tariffs on our business;
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Challenges managing the complexity of our international operations and workforce;
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Strategic alternatives that could complicate operations or divert management's attention;
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Dependence on our key personnel and ability to attract or retain employees;
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Dependence upon third-party service providers and potential liability related to their actions or platform malfunctions;
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Compliance with a significant number of governmental laws and regulations, including those regarding telemarketing, email marketing, text messaging, privacy, and data protection;
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The outcome of litigation, inquiries, investigations, examinations, or other legal proceedings in which we are or may become involved, or in which our clients or competitors are involved;
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Potential sales and use taxes and other taxes on our business;
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Our actual or perceived failure to safeguard any personal information or user privacy;
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Failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights;
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Potential liability or expenses for legal claims based on the nature and content of the materials we create or distribute, including those provided by third parties, as a creator and a distributor of digital media content;
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Our need to raise capital to fund our operations;
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Our ability to maintain our listing on The Nasdaq Capital Market;
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The volatility of our stock price and concentration of stock ownership;
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Potential dilutive effect of any future issuances of shares of our common stock;
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Lack of cash dividends for the foreseeable future;
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Status of a smaller reporting company and non-accelerated filer, which involves certain reduced governance and disclosure requirements; and
These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations, except as required by law.
FLUENT, INC.CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share and per share data)(unaudited)
June 30, 2025
December 31, 2024
ASSETS:
Cash and cash equivalents
$
4,929
$
9,439
Accounts receivable, net of allowance for credit losses of $502 and $487, respectively
31,227
46,532
Prepaid expenses and other current assets
9,119
8,729
Current restricted cash
1,673
1,255
Total current assets
46,948
65,955
Non-current restricted cash
710
—
Property and equipment, net
193
304
Operating lease right-of-use assets
3,214
1,570
Intangible assets, net
19,618
21,797
Other non-current assets
3,788
3,991
Total assets
$
74,471
$
93,617
LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts payable
$
8,715
$
8,776
Accrued expenses and other current liabilities
19,696
21,905
Deferred revenue
335
556
Current portion of long-term debt
19,860
31,609
Current portion of operating lease liability
1,045
1,836
Total current liabilities
49,651
64,682
Long-term debt, net
—
250
Convertible Notes, at fair value with related parties
3,322
3,720
Operating lease liability, net
2,375
9
Other non-current liabilities
—
1
Total liabilities
55,348
68,662
Contingencies
Shareholders' equity:
Preferred stock, $0.0001 par value, 10,000,000 Shares authorized; Shares outstanding, 0 shares for both periods
—
—
Common stock, $0.0005 par value, 200,000,000 Shares authorized; Shares issued, 25,037,334 and 20,791,431, respectively; and Shares outstanding, 24,268,739 and 20,022,836, respectively
50
47
Treasury stock, at cost, 768,595 and 768,595 Shares, respectively
(11,407
)
(11,407
)
Additional paid-in capital
456,767
447,110
Accumulated deficit
(426,287
)
(410,795
)
Total shareholders' equity
19,123
24,955
Total liabilities and shareholders' equity
$
74,471
$
93,617
FLUENT, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except share and per share data)(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenue
$
44,706
$
