Fluent (FLNT) FY Conference Summary Company Overview - Fluent is a digital advertising company focused on customer acquisition for major brands [2][4] - The company has pivoted towards a new digital marketing channel called Commerce Media, which has rapidly grown from $0 to $50 billion in less than four years and is expected to double again [5][13] Key Financial Metrics - Fluent achieved a $65 million annual run rate in its Commerce Media business and expects to double this in 2025 and again in 2026 [6][19] - The company has historically grown its legacy business at a compounded average growth rate of over 12% for the first 12 years [4] - The transition to Commerce Media is anticipated to return Fluent to double-digit revenue growth with improving margins and profitability [6][19] Strategic Pivot - The strategic pivot from legacy business to Commerce Media is driven by the need for higher growth and higher margins [34][36] - Fluent's first-party data asset is a key competitive advantage, allowing for better consumer targeting and ad relevance [26][49] - The company has integrated its technology into partner websites, enabling a performance-based revenue model with no upfront costs [15][16] Market Dynamics - The Commerce Media market is projected to grow from $50 billion to $100 billion by 2027 [13] - Fluent's business model allows for a revenue share split, typically $60 to the media partner and $40 to Fluent [10][45] - The company is positioned to benefit from tailwinds in digital advertising, particularly in the context of privacy and data compliance [14][18] Partnerships and Growth Opportunities - Fluent has launched a strategic partnership with Rebuy, a top Shopify app, which opens access to 12,000 merchants and enhances market penetration [22][23][42] - The company is exploring opportunities in additional verticals such as travel, finance, and entertainment beyond its current focus on retail, ticketing, grocery, and restaurants [21][22] Case Studies and Performance Metrics - A case study with a large sports retailer showed a 35% increase in revenue per consumer compared to competitors, highlighting the effectiveness of Fluent's data-driven approach [31] - Another case study with a gaming company demonstrated a 650% quarter-over-quarter growth in new users, indicating the scalability of Fluent's solutions [33] Conclusion - Fluent is undergoing a significant transformation towards a higher growth, higher margin business model through its Commerce Media solutions, leveraging its first-party data and technology integration to drive better results for advertisers and partners [39][40]

Core Viewpoint - Fluent, Inc. is set to report its financial results for the second quarter of 2025 on August 19, 2025, after the U.S. financial markets close [1] Group 1: Financial Reporting - The financial results will be discussed in a conference call scheduled for 4:30 pm ET on the same day [1] - The conference call will be accessible via phone after online registration and will also be webcast on Fluent's Investor Relations Page [2] - A recorded replay of the webcast will be available for one year following the call [2] Group 2: Company Overview - Fluent, Inc. is a commerce media solutions provider that connects brands with engaged consumers [3] - The company utilizes diverse ad inventory, first-party data, and proprietary machine learning to create additional revenue streams for partners [3] - Founded in 2010, Fluent specializes in performance marketing to enhance monetization and engagement throughout the customer journey [3]

Company Overview - Fluent, Inc. is a leader in commerce media, connecting top-tier brands with highly engaged consumers through exclusive ad inventory and robust first-party data [3] - The company utilizes proprietary machine learning to unlock additional revenue streams for partners and empower advertisers to acquire valuable customers at scale [3] - Founded in 2010, Fluent specializes in performance marketing to drive monetization and increase engagement throughout the customer journey [3] Upcoming Event - Don Patrick, the CEO of Fluent, will attend the 45th Annual Canaccord Genuity Growth Conference on August 13, 2025, at the InterContinental Boston [1] - Mr. Patrick will participate in a fireside chat at 12:00pm ET and will be available for one-on-one meetings throughout the day [1] Webcast Information - A live webcast of the fireside chat will be available at a specified link, with a replay accessible after the event [2]

Core Viewpoint - FLINT Corp. is initiating a recapitalization transaction aimed at significantly reducing debt and annual interest costs, simplifying its capital structure, and improving liquidity, ultimately positioning the company for future growth opportunities [1][5][10] Recapitalization Details - The recapitalization will be executed through a plan of arrangement under the Business Corporations Act (Alberta), involving the exchange of $135,335,053 in senior secured debentures for new common shares, which will represent approximately 90% of the total shares post-recapitalization [3][6] - Existing preferred shares will be extinguished, and holders will receive new common shares representing about 7.5% of the total shares post-recapitalization [3][6] - A share consolidation will occur at a ratio of one post-consolidation common share for every 40 pre-consolidation shares, resulting in existing common shareholders retaining approximately 2.5% of the total shares post-recapitalization [3][6] - Total debt will be reduced by approximately C$135,335,053, and annual cash interest expense will decrease by about C$10,826,804 [3][6] Stakeholder Support - Canso Investment Counsel Ltd., the largest shareholder and primary lender, has entered into a support agreement to vote in favor of the recapitalization [4][10] - Directors holding common and preferred shares have also agreed to vote in favor, representing approximately 6.9% of the issued common shares [4][12] Financial Advisory and Fairness Opinion - ATB Capital Markets has been engaged as a financial advisor, determining that the recapitalization is the most viable option for reducing debt and enabling growth [8] - Origin Merchant Partners has provided a fairness opinion to the Independent Committee, stating that the recapitalization is fair from a financial perspective for common and preferred shareholders [9][10] Required Approvals - The recapitalization requires approval from securityholders at separate meetings, with at least two-thirds of votes needed from each class of securityholders [13][15] - Regulatory approvals, including from the TSX and the Court of King's Bench of Alberta, are also necessary for the implementation of the recapitalization [15][14]

Core Viewpoint - FLINT Corp reported a decrease in revenues year-over-year but achieved improved operating results, demonstrating resilience in its business model and operational strength [3][4]. Financial Performance - Revenue for Q2 2025 was $148.3 million, a decrease of 10.1% from Q2 2024, but an increase of 7.6% from Q1 2025 [8][9]. - Gross profit for Q2 2025 was $18.5 million, up 2.9% from Q2 2024 and up 28.5% from Q1 2025, with a gross profit margin of 12.5% [10][11]. - Adjusted EBITDAS for Q2 2025 was $9.6 million, representing a 16.1% increase from Q2 2024 and an 88.3% increase from Q1 2025, with an Adjusted EBITDAS margin of 6.5% [12][9]. - SG&A expenses for Q2 2025 were $9.4 million, down 7.5% from Q2 2024, maintaining a consistent percentage of revenue [11][9]. Liquidity and Capital Resources - As of June 30, 2025, liquidity, including cash and available credit facilities, was $97.4 million, an increase of 133.5% from $41.7 million in the same period of 2024 [8][9]. - The company has an asset-based revolving credit facility with a maximum borrowing limit of $50 million, maturing on April 14, 2027 [14]. Corporate Updates - The annual meeting of common shareholders was held on June 24, 2025, where the election of directors and the appointment of auditors were approved [19].

Core Points - FLINT Corp. held its annual meeting where all matters presented for approval were approved, with 24,877,170 Common Shares represented, accounting for approximately 22.62% of the issued and outstanding Common Shares [1] - All nominees listed in FLINT's management information circular were elected as directors, with Barry Card, H. Fraser Clarke, Katrisha Gibson, Karl Johannson, Dean T. MacDonald, and Sean D. McMaster receiving significant support [2] - Ernst & Young LLP was appointed as FLINT's auditor until the next annual meeting, with 99.69% of votes in favor of this appointment [2] Company Overview - FLINT Corp. has over 100 years of experience providing solutions for the Energy and Industrial markets, including Oil & Gas, Petrochemical, Mining, Power, Agriculture, Forestry, Infrastructure, and Water Treatment [3] - The company offers maintenance, turnaround, construction, wear technology, and environmental services to help customers optimize resource management [3]

Core Insights - Fluent, Inc. has announced the formation of its inaugural Board of Advisors to enhance its commerce media solutions and drive growth and innovation [1][10] - The Board will collaborate with Fluent's executive team to inform strategic decisions, improve brand partnerships, and identify new revenue opportunities in the commerce media sector [2][10] Board Composition - The Board of Advisors includes industry veterans with extensive experience in scaling businesses and digital transformation [3] - Notable members include: - Drew Cashmore, former architect of Walmart Connect, who scaled the business beyond $2 billion [4] - Charlie Cole, a two-time turnaround CEO with expertise in digital transformation and ecommerce [5] - Shawna Hausman, who led a 300% increase in revenue at FSA Store, contributing to its acquisition [6] - Jennifer Olsen, who increased market cap by 40% at Caleres and achieved a 100% revenue increase at UNTUCKit [7] - Brian Wong, a founding partner at Ascii Ventures and co-founder of Kiip, known for his innovative marketing strategies [9] Strategic Goals - The formation of the Board is part of Fluent's strategy to leverage industry expertise for market expansion and innovation in commerce media solutions [10] - Fluent has reported triple-digit year-over-year revenue growth in its unaudited Q4 results, indicating strong momentum in the commerce media space [10][12]

Financial Performance - Revenue decreased 16% to $55.2 million, compared to $66.0 million in the same period last year[156]. - Net loss was $8.3 million, or $0.39 per share, compared to a net loss of $6.3 million, or $0.45 per share[156]. - Gross profit decreased 39% to $11.4 million, representing 21% of revenue, down from $18.6 million, or 28% of revenue[156]. - Adjusted EBITDA was negative $3.1 million, compared to positive $0.7 million in the prior year[156]. - Adjusted net loss for the three months ended March 31, 2025, was $(6.7) million, compared to $(4.2) million in the same period of 2024, with adjusted net loss per share of $(0.31) for both basic and diluted[175]. - The net loss for Q1 2025 was $8.3 million, a 32% increase from the $6.3 million loss in Q1 2024[204][205]. Revenue Breakdown - Owned and operated marketplaces revenue decreased from $44.7 million in Q1 2024 to $31.1 million in Q1 2025, primarily due to reduced media supply[181]. - Commerce Media Solutions revenue increased from $6.4 million in Q1 2024 to $12.7 million in Q1 2025, driven by new long-term contracts with media partners[181]. - Revenue for the three months ended March 31, 2025, was $55.2 million, a decrease of 16% compared to $65.983 million in the same period of 2024[180]. Cost and Expenses - Media margin decreased 38% to $13.7 million, representing 24.9% of revenue, compared to $22.1 million, or 33.6% of revenue[156]. - Cost of revenue (exclusive of depreciation and amortization) for the three months ended March 31, 2025, was $43.8 million, an 8% decrease from $47.3 million in 2024[182]. - Total cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue increased to 79% in Q1 2025 from 72% in Q1 2024[184]. - Sales and marketing expenses for the three months ended March 31, 2025, were $4.1 million, a decrease of 15% from $4.8 million in the same period of 2024[187]. - Product development expenses for the three months ended March 31, 2025, were $4.8 million, an increase of 30% from $3.4 million in 2024[189]. - General and administrative expenses fell by 17% from $10.4 million in Q1 2024 to $8.6 million in Q1 2025, driven by lower salaries and reduced acquisition-related costs[191][192]. Operational Challenges - The company has faced challenges in acquiring and maintaining traffic volume due to the FTC Consent Order, impacting revenue and gross profit[159]. - Current economic conditions, including inflation and rising interest rates, have led to cautious spending from clients and their customers[167]. - Workforce reductions included the termination of 24 employees in Q1 2025, part of a strategy to align resources with strategic initiatives[193]. Cash Flow and Financing - Net cash provided by operating activities increased to $2.1 million in Q1 2025 from a cash used of $0.1 million in Q1 2024, despite a net loss increase to $8.3 million[206]. - Cash used in financing activities rose to $5.2 million in Q1 2025 from $2.2 million in Q1 2024, mainly due to net repayments on the SLR debt revolver[208]. - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash of $6.1 million, down from $10.7 million at the end of 2024[209]. Debt and Compliance - The company faces substantial doubt about its ability to continue as a going concern, indicating potential risks in meeting financial covenants in the next twelve months[210][211]. - As of March 31, 2025, the company was in compliance with the financial covenants under the SLR Credit Agreement[222]. - The company entered into the Fourth Amendment to the SLR Credit Agreement, requiring the raising of at least $5.0 million of additional capital by March 20, 2025[221]. - The current interest rate on borrowings under the SLR Credit Agreement is 10.33%, which is subject to a 1.50% floor plus an Applicable Margin of 5.75%[220]. - The Applicable Margin will be reduced to 5.0% when the fixed charge coverage ratio exceeds 1.10 to 1[220]. Capital Raising - The company raised gross proceeds of $5.1 million from the issuance of pre-funded warrants to purchase up to 2,332,104 shares at a price of $2.174 per warrant on March 20, 2025[223]. - The company raised $5.1 million in gross proceeds before deducting offering expenses of $0.1 million[221].

Group 1 - The conference call is focused on Fluent's First Quarter 2025 Earnings Results, featuring comments from CEO Don Patrick and CFO Ryan Perfit [1] - The call is being webcast live and will be available for replay on Fluent's website [2] - Management will discuss forward-looking statements that may involve risks and uncertainties related to the company's business [3][4] Group 2 - Certain non-GAAP financial information will be presented during the call [5]

Core Viewpoint - Fluent (FLNT) reported a quarterly loss of $0.31 per share, which was better than the Zacks Consensus Estimate of a loss of $0.38, indicating an earnings surprise of 18.42% [1] - The company’s revenues for the quarter were $55.21 million, missing the Zacks Consensus Estimate by 1.57% and down from $65.98 million a year ago [2] Financial Performance - Over the last four quarters, Fluent has surpassed consensus EPS estimates two times [2] - The company has not been able to beat consensus revenue estimates over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $65.76 million, and for the current fiscal year, it is -$0.43 on revenues of $272.6 million [7] Stock Performance - Fluent shares have declined approximately 6.8% since the beginning of the year, while the S&P 500 has gained 0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Advertising and Marketing industry, to which Fluent belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Fluent's stock performance [5]