Fluent, Inc. reported a decline in financial performance for the first quarter of 2025, with revenue decreasing by 16% to $55.2 million compared to $66.0 million in the same period last year. The company also experienced a net loss of $8.3 million, or $0.39 per share, up from a net loss of $6.3 million, or $0.45 per share, in the prior year. The decrease in revenue was primarily attributed to reduced media supply and spending from key clients, particularly in the Media & Entertainment and Staffing & Recruitment sectors, as the company adjusted its business practices to comply with the Federal Trade Commission (FTC) Consent Order.
In terms of operational metrics, Fluent's gross profit, excluding depreciation and amortization, fell by 39% to $11.4 million, representing 21% of revenue, down from 28% in the previous year. The media margin also decreased by 38% to $13.7 million, or 24.9% of revenue. Adjusted EBITDA was negative $3.1 million, compared to a positive $0.7 million in the prior year. The company noted that its Commerce Media Solutions business continued to grow, contributing $12.7 million in revenue, up from $6.4 million, as it secured long-term contracts with new media partners.
Fluent's operational challenges have led to workforce reductions, with 24 employees laid off in the first quarter of 2025. The company has also restructured certain long-term contracts to better align with its financial performance and cash flow requirements. As of March 31, 2025, Fluent had cash, cash equivalents, and restricted cash totaling $6.1 million, a decrease of $4.6 million from the end of 2024. The company is currently in compliance with its financial covenants under the SLR Credit Agreement but has indicated that future compliance may be at risk.
Looking ahead, Fluent's management has expressed concerns about its ability to continue as a going concern over the next twelve months, citing the need for additional capital to fund operations. The company has entered into securities purchase agreements to raise approximately $4.1 million, but it remains uncertain whether this will be sufficient. Fluent plans to continue monitoring its business units for potential divestments and will consider further cost-reduction measures to meet its projected budget and cash flow requirements.
About Fluent, Inc.
Fluent, Inc. is a leading digital marketing services provider specializing in customer acquisition through scalable campaigns. The company connects over 500 brands with consumers via its owned media properties and performance marketplaces. With a $300 billion market opportunity in performance marketing, Fluent targets diverse industries, including media, finance, and healthcare. Key innovations include a proprietary technology platform and a focus on first-party data, enhancing client engagement and campaign effectiveness.
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