Brett Ashcroft Green, CFP® is a CERTIFIED FINANCIAL PLANNER™ and advocate for early retirement through disciplined, tax-efficient investing. With a previous background working alongside high-net-worth and ultra-high-net-worth families, Brett specialized in private credit and commercial real estate mezzanine financing as a business director at a large family office. His experience spans the U.S. and Asia, including years living and working in China. He is fluent in Mandarin Chinese in both business and legal ...

Core Insights - Fluent, Inc. has been recognized as one of the 2026 Ad Age Best Places to Work, marking its third consecutive year on this prestigious list, which highlights companies excelling in employee satisfaction, benefits, leadership, and workplace culture [1][2] Company Recognition - The recognition by Ad Age reflects the company's commitment to its employees and its ability to adapt to evolving business needs, showcasing the creativity and dedication of its team [2][4] - The 2026 Best Places to Work list was published on January 20, 2026, and includes profiles of the 50 winning companies [2][3] Industry Context - This year's winners were selected based on high numerical scores from employer-submitted questionnaires and confidential employee surveys, demonstrating their ability to lead during economic uncertainty and changing brand priorities [3] - The recognition highlights the importance of investing in employee growth, flexibility, and a supportive culture that enhances performance and retention [4] Company Overview - Fluent, Inc. is a commerce media solutions provider that connects brands with engaged consumers, utilizing exclusive ad inventory, first-party data, and proprietary machine learning to drive measurable results [6]

Core Insights - FLINT Corp. has secured new contract awards and renewals estimated to generate approximately $451 million in backlog work, in addition to the previously announced $320 million [1][2] - About 30% of the new work is expected to be executed in 2026, with the remainder scheduled for 2027-2031 [1] Group 1: Financial Performance - The total backlog now reflects a significant increase, reinforcing customer confidence in FLINT's capabilities [2] - The new contracts span across core service lines and extend through 2031, indicating a strong long-term outlook for the company [2] Group 2: Operational Commitment - The company emphasizes its commitment to disciplined execution, safety, and operational excellence while collaborating with customers and stakeholders [3] - FLINT aims to deliver innovative solutions and expand its impact across the energy and industrial sectors [7] Group 3: Company Overview - FLINT Corp. has over 100 years of experience providing solutions for various markets, including Oil & Gas, Petrochemical, Mining, and more [4] - The company offers a range of services such as construction, maintenance, and environmental services, strategically located across Canada [4]

Core Viewpoint - The article discusses the performance of Adobe (NASDAQ: ADBE) shares, highlighting a previous unsuccessful investment that resulted in a 25% drop in share value [1]. Company Analysis - Adobe has been under scrutiny due to its stock performance, with significant declines noted in the past [1]. - The author expresses a long position in Adobe shares, indicating a belief in the company's potential for recovery [2]. Investment Strategy - The author identifies as a value investor, utilizing classical value ratios to inform investment decisions [1]. - The background in private credit and commercial real estate financing suggests a strong analytical foundation for evaluating Adobe's financial health [1].

Core Insights - Fluent, Inc. has secured a new $30 million financing facility with Bay View Funding, enhancing its financial flexibility and liquidity [1][2] - The new agreement is collateralized by all assets of Fluent and its subsidiaries and carries no liquidity or financial covenants [1] - This financing replaces the previous credit facility with SLR Credit Solutions, which has been fully repaid [1][2] Company Overview - Fluent, Inc. is a provider of commerce media solutions that connects brands with engaged consumers [4] - The company leverages exclusive ad inventory, first-party data, and proprietary machine learning to drive monetization and customer engagement [4] - Founded in 2010, Fluent focuses on performance marketing to enhance revenue streams for partners [4]

Financial Performance - Revenue decreased 27% to $47.0 million for Q3 2025, compared to $64.5 million in Q3 2024[181] - Net loss for Q3 2025 was $7.6 million, or $0.27 per share, compared to a net loss of $7.9 million, or $0.48 per share in Q3 2024[181] - Gross profit for Q3 2025 decreased 31% to $10.9 million, representing 23% of revenue, down from $15.7 million, or 24% of revenue in Q3 2024[181] - Adjusted EBITDA for Q3 2025 was negative $3.4 million, compared to negative $0.1 million in Q3 2024[181] - Revenue for the nine months ended September 30, 2025, decreased 22% to $146.9 million, compared to $189.2 million in the same period of 2024[181] - Adjusted net loss for the three months ended September 30, 2025, was $(6.5) million, compared to $(3.7) million in 2024[200] - The company reported a net loss of $(7.6) million for the three months ended September 30, 2025, compared to $(7.9) million in 2024[200] - Loss before income taxes for the three months ended September 30, 2025 was $7,568,000, a 5% improvement from $7,979,000 in 2024; for the nine months, the loss was $22,934,000, an 11% improvement from $25,749,000 in 2024[239][241] - Net loss for the three months ended September 30, 2025 was $7,556,000, a 5% improvement from $7,944,000 in 2024; for the nine months, the net loss was $23,048,000, an 11% improvement from $25,847,000 in 2024[246][248] Revenue Streams - The Commerce Media Solutions business served ads to over 100 million consumers in 2024, driving significantly higher ROAS compared to O&O Sites[185] - The company launched Commerce Media Solutions in 2023 to access high-value consumers and mitigate sourcing challenges from the FTC Consent Order[185] - The company expects growth in Commerce Media Solutions to partially offset revenue declines from divested subscription business and discontinued Affordable Care Act business[186] - Revenue for the three months ended September 30, 2025, was $47.0 million, a decrease of 27% compared to $64.5 million in the same period of 2024[205] - Revenue for the nine months ended September 30, 2025, was $146.9 million, down 22% from $189.2 million in the same period of 2024[205] - Commerce Media Solutions revenue increased from $10.4 million in 2024 to $18.8 million in 2025, driven by new long-term contracts[206] - For the nine months ended September 30, 2025, revenue was $73.2 million from O&O Sites, $47.5 million from Commerce Media Solutions, and $26.2 million from other streams, compared to $130.2 million, $24.0 million, and $35.0 million in the same period of 2024, indicating a significant decline in O&O Sites revenue due to decreased media supply[207] Cost Management - Cost of revenue (exclusive of depreciation and amortization) for the nine months ended September 30, 2025 was $114.4 million, a decrease of 20% from $142.3 million in 2024, with O&O Sites media costs dropping from $103.2 million to $58.2 million[208][211] - The total cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue increased to 78% for the nine months ended September 30, 2025, compared to 75% in 2024, driven by shifts in revenue mix and the discontinuation of certain businesses[213] - Sales and marketing expenses for the nine months ended September 30, 2025 were $10.8 million, down 19% from $13.4 million in 2024, primarily due to lower employee-related costs from a decline in headcount[217][219] - Product development expenses for the nine months ended September 30, 2025 were $9.0 million, a decrease of 34% from $13.7 million in 2024, attributed to lower salaries and reduced spending on IT-related vendors[220][222] - General and administrative expenses for the nine months ended September 30, 2025 were $25.9 million, down 8% from $28.3 million in 2024, mainly due to reduced salaries and benefits from a smaller workforce[223][225] - The company reduced its workforce by 20, 19, 29, and 24 employees in the first three quarters of 2024 and the first quarter of 2025, resulting in lower future salary and benefits expenses[226] Challenges and Compliance - The company faced challenges in maintaining consistent volume on social media platforms due to compliance with the FTC Consent Order[206] - The company faced challenges in acquiring media due to compliance with the FTC Consent Order, impacting traffic and ad spend from key clients[209][212] Financing and Cash Flow - Cash used in operating activities for the nine months ended September 30, 2025 was $4,300,000, an improvement from $12,000,000 in 2024; adjustments to reconcile net loss to cash used decreased by $6,400,000[249] - Cash used in investing activities for the nine months ended September 30, 2025 was $4,900,000, compared to $4,700,000 in 2024, primarily due to increased investment in capitalized software[250] - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash of $10,000,000, a decrease of $700,000 from $10,700,000 as of December 31, 2024[251] - The company has noncancelable operating lease commitments of $3,900,000 and long-term debt with a principal balance of $25,700,000 as of September 30, 2025[251] - The company has a $20.0 million term loan and a revolving credit facility of up to $30.0 million under the SLR Credit Agreement[259] - As of September 30, 2025, the outstanding principal balance of the SLR Credit Facility was $22.6 million, maturing on April 2, 2029[259] - The SLR Credit Facility is secured by substantially all of the company's assets and contains restrictive covenants limiting additional debt and certain investments[260] - The company raised gross proceeds of $5.1 million by March 19, 2025, and $10.3 million by August 19, 2025, through securities purchase agreements[262][263] - Future cash requirements will depend on various factors, including cash flows from O&O Sites and costs related to client expansion and product development[258] - The company may seek additional financing through public or private means to support potential acquisitions or investments[258] Accounting and Estimates - The company evaluates critical accounting estimates that affect reported amounts of assets, liabilities, revenues, and expenses[266]

Market Overview - U.S. stock futures declined following a significant sell-off on Thursday, with major indices showing lower futures despite the government reopening [1][2] - The Nasdaq 100 index, typically strong in November, was down 3.34% month-to-date, contrasting with its historical average gain of 2.64% since 1985 [1] Treasury Yields and Market Projections - The 10-year Treasury bond yielded 4.13%, while the two-year bond was at 3.58%, with a 49.6% likelihood of the Federal Reserve cutting interest rates in December [2] Stocks in Focus - Warner Bros Discovery Inc. rose 3.34% amid acquisition interest from Comcast, Netflix, and Paramount, maintaining a strong price trend [5] - Nu Holdings Ltd. gained 2.98% after exceeding earnings expectations and adding 4.3 million new customers in Q3 [5] - Globant SA fell 3.31% after reporting earnings of $1.53 per share, missing estimates, although sales of $617.143 million exceeded expectations [5] - Applied Materials Inc. declined 4.82% despite better-than-expected Q4 results, impacted by a drop in China revenue [5] - Fluent Inc. dropped 6.93% after reporting disappointing Q3 results [5] Sector Performance - Consumer discretionary, information technology, and communication services sectors recorded the largest losses, while energy stocks closed higher [6] Analyst Insights - The current economic environment is described as a "K-shaped economy," with high-income consumers benefiting while low-income households face challenges [8] - Optimism for a potential economic reversal by 2026 is noted, driven by tax cuts, deregulation, and lower interest rates [9] - Investment opportunities are highlighted in technology-related trends, particularly in artificial intelligence [9] - The Financials sector is rated as most favorable, along with Industrials and Utilities [10]

Core Insights - U.S. stock futures are trading lower, indicating a cautious market sentiment ahead of earnings reports from several companies [1] Company Summaries - **Spire Inc (NYSE:SR)**: Expected to report a quarterly loss of 42 cents per share on revenue of $422.09 million. Shares fell 1.5% to close at $89.16 [2] - **Fluent Inc (NASDAQ:FLNT)**: Reported worse-than-expected third-quarter results, leading to a 6.9% decline in shares to $1.88 in after-hours trading [2] - **Legence Corp (NASDAQ:LGN)**: Analysts anticipate quarterly earnings of 6 cents per share on revenue of $639.78 million. Shares rose 3.7% to $34.56 in after-hours trading [2] - **Globant SA (NYSE:GLOB)**: Reported quarterly earnings of $1.53 per share, missing the consensus estimate of $1.54. However, sales of $617.143 million exceeded the estimate of $615.376 million. Shares fell 4.5% to $60.02 in after-hours trading [2] - **Applied Materials Inc (NASDAQ:AMAT)**: Reported better-than-expected fourth-quarter results, with expected first-quarter revenue of $6.85 billion, surpassing estimates of $6.76 billion. Shares declined 4.5% to $213.10 in after-hours trading [2]

Financial Data and Key Metrics Changes - Total consolidated revenue for Q3 2025 was $47 million, down from $64.5 million in the prior year [14] - Commerce Media Solutions revenue grew 81% year-over-year to $18.8 million, compared to $10.4 million in Q3 2024 [14] - Media margin in Q3 was $12.8 million, representing 27.2% of revenue, compared to $18.2 million or 28.1% of revenue last year [15] - The company reported a net loss of $7.6 million in Q3 2025, compared to a net loss of $7.9 million in the prior year [17] - Adjusted EBITDA for Q3 2025 was a loss of $3.4 million, compared to a loss of $71,000 in Q3 2024 [17] Business Line Data and Key Metrics Changes - Commerce Media Solutions accounted for 40% of total revenue in Q3 2025, up from 16% in Q3 2024 and 4% in Q3 2023 [9][14] - Owned and operated marketplaces saw a decline of nearly 50% year-over-year [6] - Commerce Media Solutions' media margin was $4.6 million, or 25% of its revenue, compared to $3.5 million or 34% of revenue in Q3 2024 [16] Market Data and Key Metrics Changes - The company experienced advertiser pricing and budget pullbacks in late Q3, which continued into early Q4 [5][29] - The annual revenue run rate for Commerce Media Solutions surpassed $85 million as of September 30, 2025 [5][7] Company Strategy and Development Direction - The company is focused on establishing a leadership position in the commerce media industry, with expectations of double-digit revenue growth in 2026 [8][21] - The strategic pivot towards Commerce Media Solutions is expected to enhance profitability and revenue growth [8][20] - New partnerships with Databricks and Authentic Brands Group are seen as key drivers for growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging environment due to delays in onboarding new partners and advertiser budget pullbacks [4][5] - The company expects to achieve positive adjusted EBITDA in Q4 2025 and full-year adjusted EBITDA profitability in 2026 [18][21] - The convergence of owned and operated capabilities with Commerce Media is anticipated to create differentiated opportunities [9][13] Other Important Information - The company completed a $10.3 million equity raise, strengthening its balance sheet and providing capital for growth [7][18] - Total net long-term debt was reduced to $26 million as of September 30, 2025, down from $35.6 million at the end of 2024 [19] Q&A Session Summary Question: About the Rebuy partnership - The Rebuy partnership has shown strong early results, with over 1 million ad unit sessions in September, indicating rapid expansion [22][23] Question: Ad pullbacks in the Commerce Media segment - The pullbacks were primarily due to conservative budgeting by partners and specific industry issues affecting traditional advertisers [29][30] Question: Dynamics leading to stabilization in owned and operated business - Stabilization is attributed to the convergence strategy and the ability to bring in proprietary advertisers [48][49] Question: Expectations for Commerce Media Solutions margins - Margins are expected to improve as new solutions scale and initial incentives roll off [36][44] Question: Dick's Sporting Goods partnership - Dick's Sporting Goods became a client in September 2025 after previously selecting a competitor, indicating a significant win for the company [38][40]

Revenue Performance - Q3 2025 revenue was $47.0 million, a decrease of 27% compared to $64.5 million in Q3 2024[8] - Owned and Operated revenue decreased 52% to $20.7 million compared to $43.5 million in Q3 2024, as the company shifted focus to Commerce Media Solutions[8] - Revenue for the three months ended September 30, 2025, was $47,029 thousand, a decrease of 27% compared to $64,516 thousand for the same period in 2024[19] Profitability and Loss - The net loss for Q3 2025 was $7.6 million, or $0.27 per share, compared to a net loss of $7.9 million, or $0.48 per share, for Q3 2024[8] - Adjusted net loss for Q3 2025 was $6,544,000, compared to $3,686,000 in Q3 2024, with a nine-month adjusted net loss of $19,049,000 versus $15,226,000 in the prior year[33] - Net loss for the nine months ended September 30, 2025, was $23,048 thousand, compared to a net loss of $25,847 thousand for the same period in 2024, representing a 10.8% improvement[21] Adjusted EBITDA - Adjusted EBITDA loss was $3.4 million, representing 7% of revenue, an improvement compared to the previous year[8] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(9,224) thousand, worsening from $(3,910) thousand in 2024[31] - The company expects adjusted EBITDA profitability in Q4 2025 and full-year double-digit revenue growth in 2026[5] Gross Profit and Margins - Commerce Media Solutions reported gross profit of $4.1 million, an increase of 27% over Q3 2024, representing 22% of revenue for Q3 2025[8] - Media margin for the three months ended September 30, 2025, was $12,797 thousand, accounting for 27% of revenue, compared to 28% in the same period of 2024[26] - Gross profit (exclusive of depreciation and amortization) for the nine months ended September 30, 2025, was $32,589 thousand, down 30% from $46,898 thousand in 2024[26] Cost Management - Total costs and expenses for the three months ended September 30, 2025, were $53,332 thousand, down from $68,404 thousand in 2024[19] - Cash used in operating activities for the nine months ended September 30, 2025, was $(4,257) thousand, an improvement from $(11,963) thousand in 2024[21] Shareholder Metrics - The weighted average number of shares outstanding for the three months ended September 30, 2025, was 28,097,016, compared to 16,452,273 in 2024[19] - The company reported a basic and diluted loss per share of $(0.94) for the nine months ended September 30, 2025, compared to $(1.75) in 2024[19] Strategic Initiatives - The company entered new partnerships with Authentic Brands and Databricks, enhancing data intelligence capabilities[4] - The company aims to leverage AI capabilities and proprietary first-party data to improve monetization and return Commerce Media Solutions gross margin to the high twenties[11] Key Metrics and Definitions - Adjusted EBITDA is a primary metric for evaluating operating performance, with adjustments made for non-recurring and unusual items to provide a clearer view of business operations[35] - Annual Revenue Run Rate is calculated based on active media partner contracts, reflecting the company's current monetization levels and operational performance[38] - The company emphasizes media margin as a key metric for evaluating operational performance, indicating its importance in assessing the efficiency of digital marketing services[34]