Fluent, Inc. SEC 10-Q Report

Fluent, Inc., a leading data-driven performance marketing company, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and operational challenges during a period marked by revenue declines and strategic adjustments. Despite facing significant hurdles, Fluent, Inc. has shown improvements in cost management and operational efficiency.

Financial Highlights

• Total Revenue: $44.7 million for the three months ended June 30, 2025, reflecting a decrease from $58.7 million in the same period in 2024, primarily due to challenges in sourcing traffic and changes in third-party publisher relationships.
• Total Revenue: $99.9 million for the six months ended June 30, 2025, down from $124.7 million in the same period in 2024, indicating a continued decline in revenue.
• Loss from operations: $(7.1) million for the three months ended June 30, 2025, compared to $(10.4) million in the same period in 2024, showing a slight improvement in operational efficiency.
• Loss from operations: $(14.2) million for the six months ended June 30, 2025, compared to $(14.3) million in the same period in 2024, indicating stable operational performance despite revenue challenges.
• Net loss: $(7.2) million for the three months ended June 30, 2025, compared to $(11.6) million in the same period in 2024, reflecting improved cost management.
• Net loss: $(15.5) million for the six months ended June 30, 2025, compared to $(17.9) million in the same period in 2024, showing a reduction in net loss.
• Basic and diluted loss per share: $(0.30) for the three months ended June 30, 2025, compared to $(0.75) in the same period in 2024, indicating a decrease in loss per share.
• Basic and diluted loss per share: $(0.68) for the six months ended June 30, 2025, compared to $(1.11) in the same period in 2024, reflecting a significant improvement in per-share performance.

Business Highlights

• Revenue Segments: Fluent, Inc. reported revenue from several segments, including Owned and Operated, Commerce Media Solutions, Call Solutions, and AdParlor. The Owned and Operated segment generated $52,484 for the six months ended June 30, 2025, while Commerce Media Solutions contributed $28,740. Call Solutions added $15,709, and AdParlor accounted for $2,948.
• Geographical Performance: The company experienced significant revenue from international markets, with $33,131 generated outside the United States for the six months ended June 30, 2025. Notably, 18.6% of the company's consolidated revenue was earned from customers located in Israel.
• Operational Challenges: Fluent, Inc. faced challenges in sourcing traffic for its owned and operated digital media properties, impacting revenue and profitability. The FTC Consent Order also imposed more rigorous standards, affecting registration volumes.
• Cost Management: The company has implemented workforce reductions and restructured long-term contracts to align with cash flow requirements, aiming to address ongoing profitability challenges.
• Future Outlook: Management has expressed substantial doubt about the company's ability to continue as a going concern due to financial covenant non-compliance and liquidity challenges. However, efforts are underway to raise additional capital and modify financial covenants to stabilize operations.
• Segment Performance: The Fluent segment, which includes Owned and Operated and Commerce Media Solutions, remains the primary revenue driver, while the Call Solutions segment also contributes significantly to the company's performance.
• Strategic Adjustments: The company is considering potential divestments and further cost reduction measures to meet projected budgets and cash flow requirements, indicating a strategic focus on operational efficiency.

SEC Filing: Fluent, Inc. [ FLNT ] - 10-Q - Aug. 19, 2025