FLUENT Reports Third Quarter 2025 Results

Core Insights - FLUENT Corp. is focusing on margin expansion, operational efficiency, and strategic market positioning ahead of the activation of new premium indoor facilities in Buffalo, New York, and Rosa, Florida, expected in Q4 2025 [1][2] Financial Performance - For Q3 2025, consolidated revenue was $26.0 million, slightly down from $26.1 million in Q3 2024, with gross profit before fair value adjustments at $8.0 million (31% of revenue), compared to $14.3 million (54.6% of revenue) in Q3 2024 [4][24] - Adjusted EBITDA for Q3 2025 was $2.8 million, down from $7.5 million in Q3 2024, primarily due to lower revenue and reduced margins [4][27] - Cash flow from operations showed a significant decline, with cash used in operations of $0.8 million compared to cash provided by operations of $9.5 million in Q3 2024 [4][25] Operational Highlights - The company operates 37 retail locations and 8 production facilities across Florida, New York, Pennsylvania, and Texas [4][13] - In Florida, revenue was $21.6 million, down from $22.0 million in Q3 2024, reflecting pricing pressures [4] - The Rosa indoor cultivation facility was operationalized in November 2025, nearly doubling premium flower capacity, while the Buffalo facility is set to launch premium SKUs from Connected and Alien Labs in December 2025 [2][9] Regulatory Environment - Recent federal plans to close the hemp-derived THC loophole are expected to benefit regulated operators by reducing the availability of unregulated hemp products, particularly in Florida and Texas [8][10] - The Florida Department of Agriculture estimates over 9,500 hemp retailers compared to 734 licensed dispensaries, indicating significant competition from unregulated sources [10] - Management believes that regulatory changes in Texas and federal actions will rebalance the competitive landscape and enhance long-term economics for compliant medical operators [10][11] Strategic Initiatives - The company has closed five low-performing dispensaries and opened a new location in Brandon, increasing its active stores to 31, with plans for further expansion [5] - FLUENT is focused on optimizing operational excellence, capital efficiency, and driving sustainable margin expansion to create long-term value [2][11]