Digital ad firm Fluent Q2 revenue misses estimates

Overview

• Fluent Inc Q2 revenue falls 24% to $44.7 mln, missing analyst expectations

• Commerce Media Solutions revenue grows 121% yr/yr, contributing 36% to total revenue

• Adjusted EPS beats estimates, company reports net loss of $7.2 mln

Outlook

• Fluent expects adjusted EBITDA profitability in Q4 2025

• Company anticipates full-year double-digit revenue growth in 2026

• Fluent sees Commerce Media Solutions as majority revenue contributor in H2 2025

• Company expects full-year adjusted EBITDA profitability in 2026

Result Drivers

• COMMERCE MEDIA GROWTH - Revenue from Commerce Media Solutions surged 121% yr/yr, now making up 36% of total revenue, reflecting strategic focus shift

• MARGIN PRESSURE - Commerce Media Solutions margins were lower due to strategic expansion and contract incentives, expected to normalize over time

• OWNED REVENUE DECLINE - Owned and Operated revenue fell 49% as resources were reallocated to Commerce Media Solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advertising & marketing peer group is "buy."

• Wall Street's median 12-month price target for Fluent Inc is $3.00, about 26.3% above its August 18 closing price of $2.21

Press Release: ID:nGNX5bL7CF