Fluent (FLNT) investor relations material

Business overview and strategy

• Focuses on customer acquisition for major brands through commerce media, enabling incremental revenue streams for partners.

• Commerce media leverages first-party data for highly targeted, one-to-one marketing, addressing privacy and compliance challenges.

• The business model features long-term contracts, predictable revenue, and a rev share structure with partners.

• Growth strategy centers on entering new verticals, building case studies, and expanding into areas like travel, fintech, and home services.

• Proprietary first-party data and AI-driven targeting are key differentiators, enhancing conversion rates and partner value.

Financial performance and growth

• Pivoted to commerce media in early 2023, reaching a $105 million annual run rate within three years.

• Commerce media grew at nearly triple digits from 2023-2025, now over 50% of total revenue and expected to remain above this level.

• Seasonal spikes in Q4 drive significant revenue jumps, with 101% year-over-year growth in Q4 2025.

• Cost reductions and operational efficiencies have improved Adjusted EBITDA, with further margin expansion expected into 2027.

• Margins in commerce media are projected to rise to high 20s or low 30s percent by 2027 as scale and efficiencies increase.

Market opportunity and competitive positioning

• Commerce media market estimated at $50 billion in 2025, expected to double by 2027, with strong tailwinds from digital budget shifts.

• Post-checkout is the primary focus, but expansion into CRM, loyalty, and pre-checkout is underway for future growth.

• Early adoption in retail, ticketing, and restaurants, with post-transaction penetration at about 30% and significant room for expansion.

• Case studies show 25% higher revenue per session for partners and up to 500% conversion lift for advertisers.

• AI and proprietary data assets create a competitive moat, driving superior results and scalability for both partners and advertisers.