Fluent Inc ((FLNT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Fluent Inc’s recent earnings call presented a mixed bag of outcomes, with notable growth in the commerce media segment and strategic partnerships, yet overshadowed by significant revenue declines and challenges in the owned and operated segment. The sentiment was cautiously optimistic, buoyed by new equity financing but tempered by media margin compression.
Commerce Media Solutions Growth
Fluent’s commerce media revenue witnessed a remarkable 121% growth compared to the previous year, now accounting for 36% of the company’s consolidated revenue. This segment has surpassed an annual revenue run rate of $80 million, marking a 20% sequential increase from Q1. This growth underscores the company’s strategic focus on expanding its commerce media solutions.
New Strategic Partnerships
The company has successfully added 15 new partners to its commerce media platform since the beginning of Q2. Notable expansions include partnerships with Authentic Brands and Rebuy Engine, which provide access to over 12,000 e-commerce brands. These partnerships are pivotal in driving Fluent’s growth in the commerce media landscape.
Equity Financing
Fluent announced over $10 million in equity financing from high-quality investors and insiders. This financial boost is aimed at strengthening the company’s balance sheet and supporting its growth trajectory towards profitability.
Improvement in Financial Metrics
There was a notable improvement in Fluent’s financial metrics, with adjusted EBITDA losses decreasing from $4.5 million in Q2 2024 to $2.8 million in Q2 2025. Additionally, the net loss improved from $11.6 million in Q2 2024 to $7.2 million in Q2 2025, indicating a positive trend in financial health.
Revenue Decline
Despite the growth in commerce media, Fluent’s total revenue for Q2 2025 was $44.7 million, marking a 24% decrease from the prior year. The owned and operated revenue segment saw a significant decline of approximately 49% during the quarter.
Media Margin Compression
The company’s commerce media margins were compressed to 20% of revenue in Q2 2025, down from 30.4% in Q2 2024. This compression was attributed to pricing structure flexibility and new vertical traction.
Challenges in Owned and Operated Segment
Fluent faced a 31% quarter-over-quarter decline in its owned and operated marketplace revenue. This was exacerbated by regulatory headwinds and volatility in media costs on biddable platforms, posing significant challenges to the segment.
Forward-Looking Guidance
Fluent’s forward-looking guidance indicates a strategic pivot towards its Commerce Media Solutions, which is expected to become the majority of revenue by 2026. Despite a 19% revenue decline from Q1 2025, the company anticipates continued triple-digit growth in this segment through 2025 and into 2026. Fluent forecasts a return to adjusted EBITDA positivity by Q4 2025 and sustained profitability in 2026, supported by $10 million in equity financing aimed at achieving double-digit consolidated revenue growth and positive cash flow.
In summary, Fluent Inc’s earnings call highlighted a dual narrative of strong growth in commerce media and strategic partnerships, contrasted by significant revenue declines and challenges in the owned and operated segment. The company’s forward-looking guidance reflects a strategic shift towards its burgeoning commerce media solutions, with an optimistic outlook for profitability and growth in the coming years.