Fluent (FLNT) AI Stock Analysis

• Market Cap: $44.80M
• Dividend Yield: N/A
• Average Volume (3M): 11.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -14.67%
• EPS Growth: 59.39%
• Country: US
• Employees: 208
• Sector: Communication Services
• Sector Strength: 98
• Industry: Advertising Agencies
• EPS (TTM): -1.87
• Shares Outstanding: 20,643,660
• 10 Day Avg. Volume: 4,969
• 30 Day Avg. Volume: 11,498
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.13
• Price to Cash Flow (P/CF): 7.00
• P/FCF Ratio: 6.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.50
• Price Target Upside: 61.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Fluent, Inc. is currently facing significant financial challenges with declining revenues and persistent losses. The technical indicators suggest a bearish trend, compounded by a negative P/E ratio and lack of dividends. However, there is potential in the Commerce Media Solutions segment, which shows promise for future growth. The recent board appointment may improve corporate governance, but the overall outlook remains challenging due to financial instability and operational inefficiencies.

Positive Factors

Commerce Media Growth

Commerce Media Solutions revenue increased more than 65% quarter-over-quarter and now has an annual revenue run rate of more than $60M.

Future Revenue Growth

The company continues to expect 2025 revenue to grow at a double-digit pace over the full year, building to that pace from a roughly flat first half.

Negative Factors

Financial Covenant Compliance

Fluent does not expect to be in compliance with existing financial covenants over the next twelve months under the current agreement.

Regulatory Headwinds

The impact to revenue as it seeks to mitigate regulatory headwinds has been a challenge, and efforts to diversify to other revenue categories have taken time to develop.

Fluent Business Overview & Revenue Model

Company Description

Fluent, Inc. (FLNT) is a leading data-driven performance marketing company. The company operates within the digital marketing sector, offering services that connect brands with consumers through engaging experiences. Fluent leverages its proprietary technology platform to reach a wide audience, delivering scalable, performance-based marketing solutions. Its core services include lead generation, customer acquisition, and customer engagement, tailored to meet the specific needs of various industries.

How the Company Makes Money

Fluent makes money primarily through its performance marketing solutions, where it generates revenue by delivering customer leads, sales, or other desired actions to its clients. The company's key revenue streams include cost-per-action (CPA) and cost-per-lead (CPL) models, where clients pay Fluent based on the performance of delivered marketing campaigns. Additionally, Fluent collaborates with strategic partners to enhance its data capabilities and reach, further contributing to its revenue. The company's ability to analyze consumer data and optimize marketing strategies is crucial to maintaining its competitive edge and driving earnings.

Fluent Financial Statement Overview

Summary

Fluent faces significant challenges with declining revenues, persistent operating losses, and weakened financial stability due to high leverage. The company's negative cash flow trends and stressed balance sheet require strategic intervention, despite maintaining some liquidity.

Income Statement

Fluent's TTM (Trailing-Twelve-Months) performance shows a concerning trend with declining revenues, negative EBIT and EBITDA margins, and a negative net profit margin. The revenue has decreased from $361.13M in 2022 to $261.98M in the TTM period, indicating a significant contraction. The gross profit margin is fairly stable but the continued operating losses highlight substantial profitability challenges.

Balance Sheet

The balance sheet reflects a stressed financial position with a high debt-to-equity ratio due to falling stockholders' equity, which reduced from $93.96M in 2022 to $19.98M in the TTM period. The equity ratio has decreased, indicating increased leverage and financial risk. However, the company maintains positive cash and short-term investments, which provide some liquidity buffer.

Cash Flow

Fluent exhibits negative free cash flow growth with a significant deterioration in operating cash flow. The operating cash flow to net income ratio is negative, highlighting cash flow difficulties. The free cash flow has turned negative in the TTM period, indicating potential liquidity issues if this trend persists.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
261.98M	298.40M	361.13M	329.25M	310.72M	281.68M
	Gross Profit
64.97M	78.52M	93.65M	85.53M	95.58M	87.25M
	EBIT
-19.29M	-60.13M	-8.32M	-4.31M	8.38M	5.22M
	EBITDA
-16.04M	-49.25M	-106.38M	5.54M	23.68M	19.16M
	Net Income Common Stockholders
-27.75M	-63.22M	-123.33M	-10.06M	2.21M	-1.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.85M	15.80M	25.55M	34.47M	21.09M	18.68M
	Total Assets
93.30M	111.87M	183.97M	318.18M	310.22M	317.09M
	Total Debt
618.00K	34.48M	46.73M	53.25M	50.16M	62.31M
	Net Debt
-20.23M	18.68M	21.18M	18.78M	29.07M	43.63M
	Total Liabilities
51.32M	77.46M	90.01M	104.77M	93.33M	106.16M
	Stockholders Equity
41.98M	34.40M	93.95M	213.41M	216.88M	210.94M
Cash Flow		Free Cash Flow
-15.42M	2.27M	-2.44M	9.43M	17.45M	21.31M
	Operating Cash Flow
-13.68M	8.14M	1.96M	12.42M	20.30M	26.02M
	Investing Cash Flow
-6.47M	-7.11M	-5.44M	-2.99M	-4.27M	-11.96M
	Financing Cash Flow
7.48M	-10.77M	-5.45M	2.47M	-13.62M	-13.15M

Fluent Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNT, the sentiment is Negative. The current price of 2.17 is below the 20-day moving average (MA) of 2.18, below the 50-day MA of 2.55, and below the 200-day MA of 2.89, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 53.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLNT.

Fluent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PERI	67 Neutral	$356.24M	30.36	1.75%	―	-32.95%	-89.11%
PUBM	67 Neutral	$382.40M	33.49	4.36%	―	9.08%	43.58%
TTD	66 Neutral	$26.85B	69.34	15.37%	―	25.63%	118.49%
MGNI	64 Neutral	$1.55B	78.15	3.10%	―	7.82%	―
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%
APPS	50 Neutral	$239.42M	―	-101.69%	―	-15.51%	-54.09%
FLNT	34 Underperform	$44.80M	―	-98.64%	―	-14.67%	59.39%

Fluent Corporate Events

Fluent Expands Board, Appoints James P. Geygan

On January 17, 2025, Fluent, Inc. expanded its Board of Directors from six to seven members by appointing James P. Geygan as an independent director. Mr. Geygan brings experience from his roles at Global Value Investment Corporation, where he has been Interim CEO and President since May 2024. His appointment is expected to enhance Fluent’s corporate governance and capital markets expertise. As a director, Geygan will receive quarterly compensation and restricted stock units, with additional eligibility for further grants. Fluent has also entered an indemnification agreement with him, ensuring protection under Delaware law.