Fluent, Inc. Reports 24% Revenue Decline and Net Loss in Q2 2025

Fluent, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenue decreasing by 24% to $44.7 million compared to $58.7 million in the same period last year. For the first half of 2025, revenue also fell by 20% to $99.9 million from $124.7 million in the prior year. The company recorded a net loss of $7.2 million, or $0.30 per share, for the second quarter, an improvement from a net loss of $11.6 million, or $0.75 per share, in the previous year. The decrease in revenue was attributed primarily to challenges in sourcing traffic for its owned and operated digital media properties, exacerbated by compliance measures related to a Federal Trade Commission (FTC) inquiry.

In terms of operational metrics, Fluent's gross profit for the second quarter was $10.3 million, representing 23% of revenue, down from $12.6 million or 21% of revenue in the same quarter of 2024. The company's media margin also decreased to $11.9 million, maintaining a consistent percentage of revenue at 26.7%. Adjusted EBITDA improved to a loss of $2.8 million from a loss of $4.5 million year-over-year, indicating some operational efficiencies despite the revenue decline. The company’s total assets decreased to $74.5 million as of June 30, 2025, down from $93.6 million at the end of 2024.

Strategically, Fluent has been focusing on its Commerce Media Solutions business, which has shown growth, generating $16.1 million in revenue for the second quarter, up from $7.3 million in the prior year. This segment aims to leverage partnerships with media owners to enhance customer acquisition without the challenges faced by its owned and operated sites. The company has also made workforce reductions to align its resources with current business needs and has restructured long-term contracts to better match its cash flow requirements.

Fluent's operational challenges have led to a reduction in its workforce and a reevaluation of its business strategies. As of June 30, 2025, the company was not in compliance with its financial covenants under the SLR Credit Agreement, which could have resulted in an event of default. However, a Fifth Amendment to the agreement was executed on August 15, 2025, allowing the company to raise at least $8.5 million in additional capital by August 19, 2025. Fluent successfully entered into securities purchase agreements for approximately $10.3 million in equity capital, expected to close on the same date.

Looking ahead, Fluent anticipates that the growth of its Commerce Media Solutions business will partially offset the revenue decline from its owned and operated business. The company remains focused on improving its media sourcing strategies and enhancing customer engagement through its digital platforms. However, management has expressed substantial doubt about the company's ability to continue as a going concern over the next year, contingent on its ability to meet financial covenants and secure necessary capital.