Financial Data and Key Metrics Changes - The company reported Q2 2025 consolidated revenue of $44.7 million, reflecting a 19% decline compared to Q1 2025 [6] - Media margin for Q2 was $11.9 million, a decrease of 13% from Q1 2025 [6] - Adjusted EBITDA was negative $2.8 million, showing a 300k improvement from Q1 2025 [6][19] Business Line Data and Key Metrics Changes - Commerce Media Solutions revenue grew 121% year-over-year to $16.1 million, now representing 36% of total consolidated revenue, up from 12% in Q2 2024 [15][11] - Owned and operated revenue decreased approximately 49% in the quarter, primarily due to strategic shifts [17] - Commerce Media margin was $3.2 million or 20% of Commerce Media Solutions revenue, down from 30.4% in Q2 2024 [17] Market Data and Key Metrics Changes - The company anticipates that Commerce Media Solutions will become the majority of revenue by 2026 [7] - The commerce media market is projected to grow over $100 billion in the next five years, expected to account for 25% of all digital media spend by 2026 [11] Company Strategy and Development Direction - The company is shifting its focus towards Commerce Media Solutions, which is seen as a transformational pivot and a competitive advantage in a growing market [9][10] - The strategic pivot is supported by a recent equity financing of over $10 million to bolster the balance sheet and fuel growth [10][20] - The company aims to achieve positive adjusted EBITDA by Q4 2025 and for the full year 2026 [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Commerce Media Solutions, expecting continued triple-digit growth [14] - The company is optimistic about the partnerships being established, which are expected to drive long-term dividends [12] - Management acknowledged the challenges faced in the owned and operated segment due to regulatory headwinds and pricing volatility [7][25] Other Important Information - The company ended Q2 2025 with $4.9 million in cash and cash equivalents, alongside $2.4 million in restricted cash [19] - Total net long-term debt was $19.9 million as of June 30, 2025, down from $31.9 million at the end of 2024 [20] Q&A Session Summary Question: What drove the declines in the owned and operated segment? - Management attributed the decline to the FTC settlement, which restricted media buying capabilities and increased pricing volatility on biddable platforms [23][25] Question: How is the partnership with Revise progressing? - The partnership is still in early stages but is showing good momentum with onboarding merchant partners [26][28] Question: What are the dynamics affecting margin pressures in Commerce Media? - Management indicated that margin pressures are due to early-stage solutions, competitive pricing strategies, and lower margins in new partnerships [32][34] Question: Can you discuss new placements beyond post transactions? - The company is exploring loyalty plays and post-event monetization opportunities, which are still in early development [41][42] Question: How does first-party data differentiate the company from competitors? - First-party data allows for better consumer targeting and monetization, driving better results for partners and enhancing revenue sharing [47][51]

Core Viewpoint - Fluent, Inc. reported strong growth in its Commerce Media Solutions business, with a year-over-year revenue increase of 121% and a run rate growth of 23% compared to the first quarter of 2025, while also anticipating continued growth in the latter half of the year [2][3]. Financial Performance - Q2 2025 revenue was $44.7 million, a decrease of 24% from $58.7 million in Q2 2024 [6]. - Commerce Media Solutions revenue grew 121% to $16.1 million, representing 36% of total revenue, up from 12% in Q2 2024 [5][6]. - Owned and Operated revenue decreased 49% to $21.4 million compared to $42.0 million in Q2 2024 [6]. - The company reported a net loss of $7.2 million, or $0.30 per share, compared to a net loss of $11.6 million, or $0.75 per share, for Q2 2024 [6][7]. Strategic Outlook - The company expects Commerce Media Solutions to become the majority revenue contributor in the second half of 2025, marking a significant milestone [3]. - Fluent anticipates adjusted EBITDA profitability in Q4 2025 and full-year double-digit revenue growth and adjusted EBITDA profitability in 2026 [3][8]. Key Metrics - Commerce Media Solutions annual revenue run rate now exceeds $80 million, reflecting a 23% quarter-over-quarter increase [5]. - Gross profit (exclusive of depreciation and amortization) for Q2 2025 was $10.3 million, representing 23% of revenue, while Commerce Media Solutions reported a gross profit of $2.9 million, an increase of 43% over Q2 2024 [6][21]. - Adjusted EBITDA loss for Q2 2025 was $2.8 million, an improvement of $1.7 million compared to Q2 2024 [6][29]. Capital and Investment - The company raised $10.3 million from new investors and insiders subsequent to the quarter [5].

Core Viewpoint - Fluent, Inc. has announced a definitive agreement for the issuance and sale of 5,871,427 shares of common stock at an effective purchase price of $1.75 per share, aiming to raise approximately $10.3 million in gross proceeds to bolster its balance sheet and support growth plans [1][3]. Group 1: Private Placement Details - The private placement includes pre-funded warrants with an exercise price of $0.0005, which will be exercisable upon stockholder approval [1]. - The warrants have an exercise price of $2.21 per share and will be exercisable starting six months after issuance, expiring five years from the initial exercisability date [1]. - The offering is expected to close on or about August 19, 2025, subject to customary closing conditions [1]. Group 2: Financial Implications - The gross proceeds from the private placement are expected to be approximately $10.3 million, before deducting fees and expenses [3]. - If fully exercised, the additional gross proceeds from the warrants and pre-funded warrants could amount to approximately $13.0 million [3]. - The net proceeds from the private placement are intended for working capital and general corporate purposes [3]. Group 3: Company Overview - Fluent, Inc. is a leader in commerce media solutions, connecting brands with engaged consumers through exclusive ad inventory and first-party data [7]. - The company has experienced triple-digit growth in its Commerce Media Solutions business, attracting a growing list of world-class brands [2]. - Founded in 2010, Fluent leverages performance marketing expertise to drive monetization and enhance customer engagement [7].

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 Data and Key Metrics Changes - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% year-over-year, with $5.2 million of that decline attributed to exited businesses in 2024 [16][17] - Commerce Media Solutions revenue increased by 99% to $12.7 million, indicating strong growth momentum [17] - Owned and operated revenue decreased by 30% year-over-year to $31.1 million, primarily due to challenges in acquiring media from social media channels [17][18] - Gross margins decreased compared to the prior year due to media cost pressures and a shift in revenue mix [18] - Adjusted EBITDA for Q1 2025 was a loss of $3.1 million, compared to a positive adjusted EBITDA of $0.7 million in Q1 2024 [19][20] - Net loss for Q1 2025 was $8.3 million, compared to a net loss of $6.3 million in the prior year [22] Business Line Data and Key Metrics Changes - Commerce Media Solutions now represents 23% of consolidated revenue, up from 10% a year ago [12] - Media margin for Q1 2025 was $13.7 million, or 24.9% of revenue, down from $22.1 million or 33.6% of revenue in the previous year [18] - Commerce Media gross margin was $3.1 million, or 24.6% of revenues, compared to $2 million or 31.3% of revenues in Q1 2024 [19] Market Data and Key Metrics Changes - The commerce media market is projected to grow to $100 billion over the next five years, accounting for more than 25% of digital media spend by 2026 [10] - The company is navigating cost pressures from international tariffs and broader retail inflation, creating uncertainty in the industry [12][13] Company Strategy and Development Direction - The company is focusing on growth opportunities in commerce media solutions, leveraging its owned and operated marketplaces as a foundation for expansion [5][6] - A strategic partnership with Rebuy Engine aims to enhance revenue opportunities and access a large Shopify ecosystem [6][10] - The company anticipates a shift in revenue mix towards commerce media solutions, which is expected to improve margins over time [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to year-over-year consolidated revenue growth and positive adjusted EBITDA in the second half of 2025 [9][12] - The company is optimistic about the growth potential in the commerce media industry, viewing it as a significant opportunity for long-term revenue growth [14][24] - Management acknowledged the challenges posed by economic uncertainty but believes that new commerce partners will help offset potential declines in consumer spending [51] Other Important Information - The company ended Q1 2025 with $6.1 million in cash and cash equivalents and reduced total debt to $25.6 million [22][23] - The company is strategically utilizing debt as a source of capital as the business scales [23] Q&A Session Summary Question: Can you share more about the Rebuy Engine partnership and its expected financial contributions? - Management highlighted the strategic importance of the partnership, providing access to a new sales channel in Shopify and enhancing revenue opportunities [26][30] Question: What are the key contributors to accelerating CMS revenue growth back to triple digits? - Management indicated that acquiring new commerce partners and leveraging technology investments will drive growth [32] Question: Can you discuss efforts to expand supply channels for the owned and operated segment? - Management noted ongoing challenges due to regulatory impacts but is exploring new nontraditional platforms to stabilize the business [34][39] Question: What level of stabilization is needed in the O&O segment to achieve positive EBITDA? - Management confirmed that the O&O business remains profitable and expects revenue growth from commerce media to drive overall profitability [46] Question: How does economic uncertainty affect commerce media signings? - Management observed an acceleration in the pipeline during economic uncertainty, indicating a faster conversion of potential clients [55][56] Question: What does the future business model for commerce media look like? - Management expects strong operating leverage and a shift towards contribution margin positivity in 2025 [61][62]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% year-over-year, with $5.2 million of that decline attributed to exited businesses in 2024 [16] - Commerce Media Solutions revenue increased by 99% to $12.7 million, indicating strong growth momentum [17] - Owned and operated revenue decreased by 30% year-over-year to $31.1 million, primarily due to challenges in acquiring media from social media channels [17] - Gross margins decreased compared to the prior year due to media cost pressures and a shift in revenue mix [18] - Adjusted EBITDA for Q1 2025 was a loss of $3.1 million, compared to a positive adjusted EBITDA of $0.7 million in Q1 2024 [20] - Net loss for Q1 2025 was $8.3 million, compared to a net loss of $6.3 million in the prior year [21] Business Line Data and Key Metrics Changes - Commerce Media Solutions now represents 23% of consolidated revenue, up from 10% a year ago [12] - Media margin for Q1 was $13.7 million, representing 24.9% of revenue, down from 33.6% in the previous year [18] - Commerce Media gross margin was $3.1 million or 24.6% of revenues, compared to $2 million or 31.3% in Q1 2024, showing strong growth despite lower margins [19] Market Data and Key Metrics Changes - The commerce media market is projected to grow to $100 billion over the next five years, accounting for over 25% of digital media spend by 2026 [10] - The company is navigating cost pressures from international tariffs and broader retail inflation, creating uncertainty in the industry [12] Company Strategy and Development Direction - The company is pivoting towards growth opportunities in commerce media solutions, leveraging its owned and operated marketplaces [5][6] - A strategic partnership with Rebuy Engine aims to enhance revenue opportunities and expand market share within the Shopify ecosystem [6][10] - The company anticipates a stabilization of its owned and operated business while focusing on the growth of commerce media solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to year-over-year consolidated revenue growth and positive adjusted EBITDA in the latter half of 2025 [9] - The company is optimistic about the potential of the commerce media marketplace, viewing it as a significant growth opportunity [14] - Management acknowledged the challenges posed by economic uncertainty but believes new commerce partners will offset potential declines in consumer spending [47] Other Important Information - The company ended Q1 2025 with $6.1 million in cash and cash equivalents and reduced total debt to $25.6 million [21][22] - The partnership with Rebuy is expected to provide significant upside, with initial clients already live on the platform [67] Q&A Session Summary Question: Can you share more about the Rebuy Engine partnership and its expected financial contributions? - The partnership is seen as a major milestone, providing access to a large sales channel in Shopify, with initial integrations already live [25][26] Question: What are the key contributors to accelerating CMS revenue growth back to triple digits? - The focus is on acquiring new commerce partners and leveraging technology investments made over the past two years [30] Question: What efforts are being made to expand supply channels for the owned and operated segment? - The company is exploring new nontraditional platforms and working with demand partners to improve media buying strategies [32][35] Question: How does the economic environment affect commerce media signings? - There is an acceleration in the pipeline during economic uncertainty, with faster movement through sales phases [51][52] Question: What is the outlook for the enterprise pipeline in commerce media? - The pipeline has doubled in size, with larger opportunities compared to the previous year, reflecting strong brand building and results [72]

Core Insights - Fluent, Inc. reported strong year-over-year growth in its Commerce Media Solutions business, achieving nearly triple-digit growth since its launch in early 2023 [2][4] - The company experienced a decrease in overall revenue, primarily due to attrition in its Owned and Operated business, but anticipates stable revenue in the second quarter of 2025 [2][5] - A strategic partnership with Rebuy Engine was announced to enhance advertising capabilities for Shopify merchants [2][4] Financial Performance - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% from $66.0 million in Q1 2024 [5] - Commerce Media Solutions revenue grew 99% to $12.7 million, representing 23% of consolidated revenue, compared to $6.4 million or 10% in Q1 2024 [4][5] - Owned and Operated revenue decreased 30% to $31.1 million from $44.7 million in Q1 2024 [5] Profitability Metrics - The net loss for Q1 2025 was $8.3 million, or $0.39 per share, compared to a net loss of $6.3 million, or $0.45 per share, in Q1 2024 [5][18] - Gross profit margin for Commerce Media Solutions was 22% in Q1 2025, compared to 21% for the consolidated business [4][5] - Adjusted EBITDA for Q1 2025 was negative $3.1 million, a decrease of $3.7 million compared to Q1 2024 [5][30] Business Outlook - The company aims to establish its Commerce Media Solutions business as a leader in performance marketing and drive revenue growth in the second half of 2025 [10] - Fluent plans to leverage its extensive first-party data to differentiate itself in the commerce media space [10] - The company expects to continue meaningful growth in its Commerce Media Solutions business through 2025 [2][10]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $65.4 million, a decrease of 10% from the prior year [25] - Adjusted EBITDA for Q4 2024 was negative $1.7 million compared to positive $2.5 million in Q4 2023 [31] - Net loss for Q4 2024 was $3.4 million, compared to a net loss of $1.9 million in the prior year [33] - Full-year 2024 net loss was $29.3 million, an improvement from a net loss of $63.2 million in 2023 [33] Business Line Data and Key Metrics Changes - Commerce Media Solutions revenue increased 139% to $17.2 million in Q4 2024 compared to Q4 2023, and for the full year, it totaled $41.3 million, an increase of 284% [26] - Owned and operated revenue decreased by 23% in Q4 2024 compared to the prior year, and a decrease of 29% for the full year [26] - Media margin in Q4 2024 was $16.5 million, representing 25.3% of revenue, down from 33.1% in the previous year [27] Market Data and Key Metrics Changes - Commerce Media Solutions accounted for 26% of consolidated revenue in Q4 2024, up from 16% in 2023 [19] - The commerce media industry is estimated to be valued at over $50 billion and expected to reach over $100 billion in the next five years [16] Company Strategy and Development Direction - The company is strategically shifting its business mix towards commerce media solutions, which is seen as a significant growth opportunity [9] - The focus is on building partnerships with major brands and enhancing market credibility [37] - The company plans to continue investing in technology and analytics to support the growth of commerce media solutions [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong year-over-year triple-digit revenue growth in commerce media solutions throughout 2025 [8] - The company anticipates a return to year-over-year double-digit consolidated revenue growth and profit growth in 2025 [15] - Management acknowledged challenges in Q4 due to increased media costs and a write-down related to ACA revenue [12][14] Other Important Information - The company ended Q4 2024 with $10.7 million in cash and cash equivalents [34] - Total debt as of December 31, 2024, was $31.9 million, an increase from $30.5 million at the end of 2023 [35] - The company has appointed Adrian Stack as the new Chief Product Officer to further its goals in commerce media [37] Q&A Session Summary Question: What is the pace of growth for Commerce Media Solutions going forward? - Management indicated that they expect to continue growing at a triple-digit rate in 2025 and beyond, supported by a strong pipeline and competitive advantages [42][44] Question: Is there a portion of the owned and operated revenue that is more durable? - Management views the owned and operated segment as a competitive advantage but does not expect it to be a growth engine, focusing instead on stabilizing it while prioritizing commerce media solutions [51] Question: Can you elaborate on the pipeline in the commerce media business? - Management confirmed that the pipeline is significant and growing, with potential transformative partnerships that could accelerate growth [74][76] Question: What is the conversion rate for post-sale ads compared to the competition? - Management stated that their consumers are over 25% more valuable than those connected through competitors, indicating a strong competitive advantage [85]