Fluent (NASDAQ:FLNT) Issues Earnings Results

Key Points

• Fluent beat EPS expectations with a quarterly loss of $0.19 per share versus estimates for a $0.21 loss, though revenue of $44.85 million came in below the $48.80 million consensus.
• Commerce Media Solutions was the standout, with revenue up 104% year over year to $25.9 million and now representing 58% of total company revenue, showing a continued shift in Fluent’s business mix.
• Management pointed to improving cash generation and a stronger outlook, citing positive operating cash flow, reduced net debt, and expectations for double-digit revenue growth in continuing businesses with better full-year EBITDA in 2026.

Fluent (NASDAQ:FLNT - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($0.19) earnings per share for the quarter, beating the consensus estimate of ($0.21) by $0.02, FiscalAI reports. The business had revenue of $44.85 million during the quarter, compared to the consensus estimate of $48.80 million. Fluent had a negative return on equity of 119.04% and a negative net margin of 13.01%.

Here are the key takeaways from Fluent's conference call:

• Commerce Media Solutions revenue jumped 104% year over year to $25.9 million in Q1, and it now makes up 58% of total company revenue, underscoring the business mix shift the company is targeting.
• Management said Q1 revenue was down 19% overall to $44.9 million, but excluding the divested Call Solutions business, revenue was down only 3% as Commerce Media growth offset weakness in Owned and Operated Marketplaces.
• The company highlighted continued partner wins, including Wyndham Hotels and Squire, as validation that its Commerce Media platform can expand beyond traditional retail into new verticals like travel and marketplace services.
• Adjusted EBITDA was a loss of $3.6 million, slightly worse than last year, but operating expenses fell to $12.3 million and operating cash flow turned positive at $5.1 million, helping reduce net debt to $23.5 million.
• Management said it expects double-digit revenue growth on continuing businesses and improved full-year Adjusted EBITDA in 2026, with Q2 revenue expected to be similar to Q1 and margins improving as incentives roll off and Commerce Media scales.

Fluent Price Performance

Shares of NASDAQ FLNT traded up $0.34 on Thursday, hitting $2.96. The company's stock had a trading volume of 202,819 shares, compared to its average volume of 43,284. The stock has a 50 day moving average of $3.25 and a 200-day moving average of $2.85. The company has a market capitalization of $88.26 million, a price-to-earnings ratio of -2.72 and a beta of 1.03. Fluent has a 12-month low of $1.50 and a 12-month high of $4.15. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.04 and a quick ratio of 1.04.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on FLNT shares. Lake Street Capital began coverage on shares of Fluent in a report on Thursday, April 23rd. They issued a "buy" rating and a $5.00 target price for the company. Canaccord Genuity Group increased their price objective on Fluent from $2.50 to $3.50 and gave the stock a "hold" rating in a research report on Tuesday, March 10th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, Fluent currently has a consensus rating of "Moderate Buy" and an average target price of $4.25.

Trending Headlines about Fluent

Here are the key news stories impacting Fluent this week:

• Positive Sentiment: Fluent said its Commerce Media Solutions annual revenue run rate has exceeded $110 million, signaling continued growth in one of its core businesses. Article Title
• Positive Sentiment: Management said Commerce Media gross margin is expected to return to the mid-20% range in 2026 as the company expands beyond retail, which suggests improving profitability ahead. Article Title
• Neutral Sentiment: In Q1, Fluent reported an adjusted loss of $0.19 per share, better than the consensus loss estimate of $0.21, but revenue of $44.85 million fell short of the $48.80 million forecast. Article Title
• Negative Sentiment: The company continued to post a negative net margin and negative return on equity, underscoring that profitability remains a challenge. Article Title
• Negative Sentiment: Fluent also trimmed New York cannabis operations ahead of a Vireo deal, highlighting ongoing restructuring in parts of the business outside Commerce Media. Article Title

Insider Activity at Fluent

In related news, Director James Geygan bought 65,148 shares of the stock in a transaction on Friday, March 13th. The shares were purchased at an average price of $3.47 per share, for a total transaction of $226,063.56. Following the acquisition, the director owned 3,040,655 shares in the company, valued at $10,551,072.85. This represents a 2.19% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, major shareholder Global Value Investment Corp. purchased 65,148 shares of the company's stock in a transaction on Friday, March 13th. The shares were bought at an average cost of $3.47 per share, with a total value of $226,063.56. Following the transaction, the insider directly owned 3,089,676 shares of the company's stock, valued at $10,721,175.72. This represents a 2.15% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 164,835 shares of company stock valued at $572,666 over the last 90 days. Insiders own 38.40% of the company's stock.

Institutional Trading of Fluent

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Millennium Management LLC purchased a new position in Fluent in the 4th quarter valued at about $84,000. Geode Capital Management LLC grew its holdings in shares of Fluent by 44.7% during the fourth quarter. Geode Capital Management LLC now owns 144,713 shares of the company's stock worth $347,000 after buying an additional 44,684 shares in the last quarter. Finally, Susquehanna International Group LLP grew its holdings in shares of Fluent by 65.3% during the third quarter. Susquehanna International Group LLP now owns 39,947 shares of the company's stock worth $89,000 after buying an additional 15,777 shares in the last quarter. Hedge funds and other institutional investors own 23.33% of the company's stock.

Fluent Company Profile

Fluent, Inc is a performance marketing and customer acquisition platform that helps consumer brands drive leads and sales through data-driven digital campaigns. The company specializes in direct-response marketing, executing campaigns across multiple channels including email, display, paid search, social media and native advertising. By focusing on measurable outcomes such as cost per acquisition and return on ad spend, Fluent tailors solutions to meet the specific objectives of its clients.

The company's proprietary technology leverages first-party data sourced from its network of consumer-facing digital properties and programmatic partnerships.

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