Fluent Inc. reported its third‑quarter 2025 earnings on November 13, 2025, posting a net loss of $7.6 million and a revenue of $47 million, both below consensus estimates.
Revenue fell 8.5% from $51.3 million in Q3 2024 to $47 million, missing the consensus of $52.92 million. The shortfall was driven largely by a 52% year‑over‑year decline in the legacy Owned and Operated (O&O) segment, which accounted for 48% of total revenue in the quarter. In contrast, the Commerce Media Solutions (CMS) segment grew 81% YoY to $18.8 million, representing 40% of total revenue and offsetting some of the O&O erosion.
The company recorded an adjusted net loss per share of $0.23, compared with the consensus estimate of $0.12, a miss of $0.11. The net loss of $7.6 million was slightly narrower than the $7.9 million loss reported in Q3 2024, reflecting modest cost containment amid the O&O decline.
CMS has become the engine of growth, with gross margins improving sequentially to 22% from 18% in Q2 2025, as new partnerships with Authentic Brands Group, Databricks, and DICK'S Sporting Goods expand the platform’s reach. The O&O segment, however, continues to contract, with revenue down 52% YoY, underscoring the challenge of replacing legacy revenue streams.
Media margin for the quarter stood at $12.8 million, or 27.2% of revenue, down from $18.2 million (28.1%) in Q3 2024. The compression reflects higher investment in CMS infrastructure and short‑term partner incentives, but management expects margins to climb into the high‑20s as those incentives phase out and scale is achieved.
Management reiterated guidance for adjusted EBITDA profitability in Q4 2025 and full‑year double‑digit revenue growth, with a target of $85 million annualized run‑rate for CMS. The company also projected full‑year 2026 adjusted EBITDA profitability, signaling confidence in the long‑term turnaround.
Investors responded positively to the forward‑looking guidance, while remaining cautious about the continued decline in O&O revenue and advertiser budget pullbacks that weighed on the quarter’s results. Analysts noted that the company’s ability to sustain CMS growth will be critical to achieving the projected profitability.
Fluent flagged substantial doubt about its ability to continue as a going concern, citing its cash position and liabilities. The company has reduced net long‑term debt from $35.6 million to $26 million, and its strategic partnerships are expected to accelerate CMS adoption. Industry analysts project that commerce media will account for over 25% of digital media spend by 2026, positioning Fluent to capture a growing share of that market.
Overall, the quarter highlights a company in transition: legacy revenue streams are shrinking, but a high‑growth CMS platform is gaining traction. The guidance for profitability and the improving margin trajectory suggest that management believes the company is on a path to return to profitability, though the going‑concern warning and O&O decline remain significant risks.
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