Fluent (FLNT) investor relations material

Executive summary

• Q2 2025 revenue declined 24% year-over-year to $44.7 million, with net loss improving to $7.2 million from $11.6 million last year; H1 2025 revenue was $99.9 million, down 20% year-over-year.

• Commerce Media Solutions revenue grew 121% year-over-year to $16.1 million in Q2, now 36% of total revenue, with annual run rate exceeding $80 million.

• Declines in owned and operated revenue were driven by regulatory headwinds, FTC Consent Order compliance, and reduced media channel diversification.

• The company raised $10.3 million in equity after the quarter to support growth and address liquidity needs.

• Strategic shift to commerce media is expected to drive future growth, with new partners and expanded e-commerce channels.

Financial highlights

• Q2 2025 gross profit was $10.3 million (23% margin), down 18% year-over-year; media margin was $11.9 million (26.7% margin), flat year-over-year.

• Commerce Media Solutions gross profit rose 43% to $2.9 million (18% margin); media margin up 45% to $3.2 million (20% margin).

• Adjusted EBITDA loss improved to -$2.8 million in Q2 from -$4.5 million last year; adjusted net loss was $5.8 million ($0.24/share), improved from $7.3 million ($0.47/share).

• Cash, cash equivalents, and restricted cash totaled $7.3 million as of June 30, 2025.

• Net long-term debt at June 30, 2025 was $19.9 million, down from $31.9 million at year-end 2024.

Outlook and guidance

• Commerce Media Solutions expected to continue triple-digit growth in 2025 and become the majority revenue contributor in H2 2025.

• Expects adjusted EBITDA profitability in Q4 2025 and for the full year 2026, with double-digit consolidated revenue growth.

• Plans to leverage AI and first-party data to improve monetization and gross margin.

• Management continues to focus on cost reductions, workforce realignment, and potential divestitures to meet cash flow requirements.