Summary of Fluent, Inc. Conference Call Company Overview - **Company**: Fluent, Inc. - **Industry**: Digital Advertising, specifically in the commerce media space - **Business Model**: Customer acquisition company that connects consumers to brands through targeted advertising during the checkout process on e-commerce sites [2][6][12] Core Insights and Arguments - **Commerce Media Growth**: Commerce media is identified as the third transformative wave in digital advertising, following search and paid social. It leverages first-party data for more personalized marketing [4][7][10] - **Targeted Marketing**: The model allows for one-to-one marketing, enhancing consumer experience and avoiding privacy compliance issues prevalent in other digital advertising channels [10][11] - **Revenue Model**: Fluent operates on a revenue-sharing model with partners, typically sharing 60% of the revenue generated from ads with media partners [14][12] - **Market Opportunity**: The commerce media market is projected to grow from $50 billion in 2023 to $100 billion by 2027, driven by shifts in advertising budgets [24][25] Financial Performance - **Annual Run Rate**: Fluent has achieved a $105 million annual run rate in less than three years since pivoting to commerce media [19][25] - **Growth Rates**: The commerce media segment has seen nearly triple-digit growth from 2023 to 2024 and is expected to maintain high double-digit growth into 2026 [21][19] - **Revenue Contribution**: Commerce media is expected to constitute over 50% of Fluent's total revenue going forward, up from 10% in Q4 2023 [23][21] Strategic Positioning - **First-Party Data Asset**: Fluent has built a significant proprietary first-party data asset over 15 years, which enhances its ability to deliver targeted advertising [30][17] - **Vertical Expansion**: The company is expanding into various verticals, including retail, travel, and fintech, to drive growth [27][28] - **AI Integration**: AI is embedded in Fluent's commerce media solutions to optimize consumer targeting and ad serving [32][30] Additional Insights - **Consumer Experience**: The post-checkout advertising model enhances consumer experience by providing relevant offers at the point of purchase, increasing the likelihood of repeat purchases [11][29] - **Operational Efficiency**: Fluent has focused on cutting costs and improving operational efficiencies, which is expected to enhance adjusted EBITDA in the coming years [21][20] - **Future Growth Areas**: Beyond commerce media, Fluent is exploring opportunities in CRM and loyalty programs, indicating potential for further revenue streams [29][38] Conclusion Fluent, Inc. is strategically positioned in the rapidly growing commerce media sector, leveraging its first-party data and innovative advertising solutions to drive significant revenue growth. The company anticipates continued expansion and improved profitability as it capitalizes on market trends and consumer behavior shifts.

Accelerating Growth For The World's Leading Brands fluentco.com fluentco.com This presentation contains "non-GAAP financial measures," which are adjusted financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States, or "GAAP." We present non-GAAP measures, such as Media Margin Adjusted EBITDA, and adjusted net income (loss) and ratios based on these financial measures, herein as supplemental measures of our financial and operating ...

Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $61.8 million, a 31% increase compared to Q3 2025 [6] - Media margin reached $19.1 million, up 49% from Q3 2025 [6] - Adjusted EBITDA was $0.2 million, an increase of $3.6 million from Q3 2025, representing 0.3% of Q4 revenue [6] - For the full year 2025, total revenue was $208.8 million, reflecting an 18% decline versus 2024 [7] - Adjusted EBITDA loss for the full year was $9 million, representing -4.3% of revenue [7] Business Line Data and Key Metrics Changes - Commerce Media Solutions contributed 56% of total Q4 revenue, more than doubling from 26% in Q4 2024 [4][7] - Commerce Media Solutions revenue for Q4 2025 was $34.7 million, representing 101% growth compared to Q4 2024 [16] - For the full year, Commerce Media Solutions revenue totaled $82.3 million, a 99% increase over 2024 [17] Market Data and Key Metrics Changes - The U.S. Commerce Media market is projected to grow at a compounded average growth rate of 21% from 2023 to 2027, reaching a total market value of $100 billion by 2027 [8] - As of December 31, 2025, Commerce Media Solutions is operating at an annual run rate of $105 million [9] Company Strategy and Development Direction - The company is focused on a strategic pivot towards the high-growth Commerce Media industry, leveraging its owned and operated marketplaces [4] - Investments are being made in strategic adjacencies to further differentiate the Fluent brand and enhance industry leadership [10] - The company aims to maintain a profitable capital-efficient contribution from its owned and operated business while focusing on Commerce Media growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2026, marking a return to year-over-year growth after a period of decline [24] - The company anticipates maintaining gross margins in the mid-20s over the course of 2026 [24] - Management highlighted the importance of strategic partnerships and the evolving Commerce Media landscape as key drivers for future growth [40][54] Other Important Information - The company ended 2025 with $12.9 million in cash and cash equivalents, compared to $9.4 million at the end of 2024 [22] - A new financing agreement was established in November 2025, improving financial flexibility [23] - The sale of the Call Solutions business was completed in January 2026, allowing for better resource allocation towards Commerce Media Solutions [23] Q&A Session Summary Question: Can you talk about the AI-based functionality in your Rebuy partnership? - Management indicated that AI has been embedded in their solutions for a long time, enhancing performance through proprietary first-party data [30] Question: Can you elaborate on the convergence between ONO and Commerce Media capabilities? - Management explained that their legacy business has valuable data that enables them to drive unique audience sets across different media partners [34] Question: What are your expectations for 2026 regarding Commerce Media growth? - Management expects strong double-digit growth for Commerce Media, despite an early contract termination impacting projections [39] Question: How is the macro environment affecting advertiser acquisition? - Management noted that they have not seen pushback on pricing and that return on ad spend remains stable [42][44] Question: Can you comment on the SG&A cost run rate going forward? - Management confirmed that they will maintain a focus on cost efficiency while investing in Commerce Media Solutions [50] Question: What is the competitive landscape like in your industry? - Management stated that while there are competitors, Fluent's direct approach and established relationships provide a competitive advantage [53][56]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $61.8 million, a 31% increase compared to Q3 2025 [6][17] - Media margin reached $19.1 million, up 49% from Q3 2025 [6][17] - Adjusted EBITDA was approximately $0.2 million, an increase of $3.6 million from Q3 2025, representing 0.3% of Q4 revenue [7][21] - Full year 2025 revenue totaled $208.8 million, reflecting an 18% decline versus 2024 [8] - Adjusted EBITDA loss for the full year was $9 million, representing -4.3% of revenue [8][21] Business Line Data and Key Metrics Changes - Commerce Media Solutions contributed 56% of total Q4 revenue, more than doubling from 26% in Q4 2024 [4][8] - Commerce Media Solutions revenue for Q4 2025 was $34.7 million, representing 101% growth compared to Q4 2024 [17] - For the full year, Commerce Media Solutions revenue totaled $82.3 million, a 99% increase over 2024 [18] Market Data and Key Metrics Changes - The U.S. commerce media market is projected to grow at a compounded average growth rate of 21% from 2023 to 2027, reaching a total market value of $100 billion by 2027 [10] - As of year-end 2025, Commerce Media Solutions is operating at an annual run rate of $105 million [10] Company Strategy and Development Direction - The company has pivoted towards the high-growth commerce media industry, leveraging its owned and operated marketplaces [4] - The focus is on expanding Commerce Media Solutions and investing in strategic adjacencies to enhance brand differentiation and industry leadership [11][12] - The company aims to maintain a profitable contribution from its owned and operated business while using it as a test and learn engine for commerce media strategy [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2026, supported by the growth of Commerce Media Solutions [23][27] - The company anticipates a return to year-over-year revenue growth, ending a multi-year period of managed decline [26] - Management highlighted the importance of maintaining financial flexibility and liquidity to support growth initiatives [25] Other Important Information - The company raised over $19 million in equity capital during 2025 to support growth investments [24] - A new financing agreement was entered into, providing expanded borrowing availability and improved financial flexibility [24] Q&A Session Summary Question: Can you discuss the AI-based functionality in your Rebuy partnership? - Management indicated that AI has been embedded in their solutions for improved performance, leveraging proprietary first-party data [31][32] Question: Can you elaborate on the convergence between owned and operated and Commerce Media capabilities? - Management emphasized the competitive advantage gained from extensive consumer data and the ability to drive unique audience sets [35][36] Question: What are your expectations for 2026 regarding Commerce Media growth? - Management expects strong double-digit growth for Commerce Media, with a range of greater than 50% and lower than 100% [66] Question: How is the macro environment impacting advertiser acquisition? - Management noted no significant pushback on pricing from advertisers, despite changes in return on ad spend [45][47] Question: What is the outlook for gross margins moving forward? - Management anticipates gross margins to expand into the mid-20s% by the latter half of 2026 [56] Question: How do you view the competitive landscape in the commerce media space? - Management acknowledged limited competition at the enterprise level, with a focus on building a competitive moat through direct partnerships [57][58]

Financial Data and Key Metrics Changes - In Q4 2025, total consolidated revenue was $61.8 million, a 31% increase compared to Q3 2025 [5][6] - Media margin reached $19.1 million, up 49% from Q3 2025 [5][6] - Adjusted EBITDA was $0.2 million, an increase of $3.6 million from Q3 2025, representing 0.3% of Q4 revenue [6][20] - Full year 2025 revenue totaled $208.8 million, reflecting an 18% decline versus 2024 [7] - Adjusted EBITDA loss for the full year was $9 million, representing -4.3% of revenue [7][20] Business Line Data and Key Metrics Changes - Commerce Media Solutions contributed 56% of total Q4 revenue, more than doubling from 26% in Q4 2024 [5][7] - Q4 2025 revenue from Commerce Media Solutions was $34.7 million, representing 101% growth compared to Q4 2024 [16] - For the full year, Commerce Media Solutions revenue totaled $82.3 million, a 99% increase over 2024 [7][17] Market Data and Key Metrics Changes - The U.S. commerce media market is projected to grow at a compounded average growth rate of 21% from 2023 to 2027, reaching a total market value of $100 billion by 2027 [9] - As of year-end 2025, Commerce Media Solutions is operating at an annual run rate of $105 million [9] Company Strategy and Development Direction - The company has pivoted towards the high-growth commerce media industry, leveraging its owned and operated marketplaces [4] - The focus is on maintaining a profitable contribution from owned and operated businesses while investing in commerce media strategic adjacencies [10][11] - The company aims to establish leadership credentials in the commerce media segment and expand its geographical presence [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong double-digit year-over-year growth throughout 2026 [6][25] - The company anticipates a return to year-over-year revenue growth, ending a multi-year period of managed top-line decline [25] - Management highlighted the importance of maintaining financial flexibility and liquidity to support growth in Commerce Media Solutions [24] Other Important Information - The company raised over $19 million in equity capital during 2025 to support growth initiatives [23] - A new financing agreement was established, improving financial flexibility [23] Q&A Session Summary Question: Can you talk about the AI-based functionality in your Rebuy partnership? - Management indicated that AI has been embedded in their solutions for a long time, driving better performance through proprietary first-party data [31][32] Question: Can you elaborate on the convergence between owned and operated and Commerce Media capabilities? - Management noted that the legacy business has valuable data that enhances their ability to drive unique audience sets across different media partners [35][36] Question: What are your expectations for 2026 regarding Commerce Media growth? - Management expects strong double-digit growth for Commerce Media, despite an early contract termination impacting projections [40][41] Question: How is the macro environment affecting advertiser acquisition? - Management reported no significant pushback on pricing from advertisers and noted that return on ad spend has remained stable [43][44] Question: What is the outlook for gross margins moving forward? - Management anticipates gross margins to expand into the mid-20s% by the latter half of 2026 [54] Question: How do you view the competitive landscape in the commerce media space? - Management acknowledged limited competition from larger players and emphasized their direct engagement with advertisers as a competitive advantage [56][57]

Fourth Quarter & Full Year 2025 Results Monday, March 9, 2026 4Q25 Earnings Presentation | Nasdaq: FLNT Nasdaq: FLNT Forward-looking statements Forward-Looking Statements Safe Harbor Non-GAAP Financial Measures This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements speak only as of the date hereof and are based on the Company's current plans and expectations. While we believe these expec ...

Core Insights - Rezolve Ai has acquired Reward for $230 million in an all-cash deal, aiming to innovate in AI-powered banking and commerce [1] - The acquisition combines Reward's customer engagement capabilities with Rezolve Ai's conversational commerce platform, enhancing the customer journey from discovery to transaction [1] - The partnership is positioned for global scalability, leveraging established relationships with banks and retailers across multiple regions [1] Company Overview - Reward is a leader in customer engagement and commerce media, having returned over $2.5 billion to customers and aiming to reach $4 billion by 2030 [1] - Rezolve Ai specializes in AI-powered solutions, focusing on customer engagement and operational efficiency, with its Brain Suite being the first enterprise AI platform for Agentic Commerce [1] Strategic Goals - The combined entity aims to create a unique AI-driven commerce platform that enhances customer experiences and drives measurable sales growth [1] - The acquisition is expected to accelerate international expansion, particularly in the Americas, by leveraging Rezolve Ai's existing market presence [1]

Core Insights - Fluent, Inc. has completed the sale of its Call Solutions subsidiary, Winopoly LLC, to InsureCo, LLC, to focus on its Commerce Media Solutions business [1] - The Commerce Media Solutions segment has experienced triple-digit compound annual revenue growth since its launch in Q1 2023, achieving a 98% year-over-year growth through the first three quarters of 2025 [2] - This segment now accounts for 40% of Fluent's consolidated enterprise revenue, up from 16% in Q3 2024, and has surpassed an annual revenue run rate of $85 million [2] Company Strategy - The divestiture of the non-core Call Solutions business is part of Fluent's strategy to concentrate resources on the rapidly growing Commerce Media Solutions [1][3] - The CEO of Fluent emphasized that this transformation aligns the company with market trends and enhances its ability to invest in a business that is delivering sustained growth and long-term value [3] Business Overview - Fluent, Inc. is a provider of commerce media solutions that connects brands with engaged consumers using exclusive ad inventory, first-party data, and proprietary machine learning [3] - Founded in 2010, Fluent leverages its expertise in performance marketing to drive monetization and enhance customer engagement across various touchpoints [3]

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]

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]