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• Total Revenue: $55.2 million in Q1 2025, a decrease of 16% from the prior year.

• Commerce Media Solutions Revenue: Increased 99% to $12.7 million in Q1 2025.

• Owned and Operated Revenue: Decreased 30% year-over-year to $31.1 million.

• Gross Margin: Remained at 21% excluding depreciation and amortization.

• Media Margin: $13.7 million, representing 24.9% of revenue.

• Commerce Media Gross Margin: $3.1 million, or 24.6% of revenues.

• Operating Expense: $16.1 million in Q1 2025, down from $20 million in Q1 2024.

• Adjusted EBITDA: Loss of $3.1 million compared to $700,000 in Q1 2024.

• Net Loss: $8.3 million in Q1 2025 compared to $6.3 million in the prior year.

• Adjusted Net Loss: $6.7 million, or $0.31 per share.

• Cash and Cash Equivalents: $6.1 million as of March 31, 2025.

• Total Debt: Reduced to $25.6 million from $35.6 million at December 31, 2024.

• Credit Facility: Outstanding principal balance of $21.7 million with SLR Credit Solutions.

• Warning! GuruFocus has detected 3 Warning Signs with FLNT.

Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fluent Inc (NASDAQ:FLNT) is experiencing strong year-over-year growth in its Commerce Media Solutions segment, with revenue surpassing an annual run rate of over $65 million.

• The company has formed a strategic partnership with Rebuy Engine, providing access to a large Shopify ecosystem and enhancing revenue opportunities for Shopify merchants.

• Commerce Media Solutions revenue grew to 23% of consolidated revenue in Q1 2025, up from 10% a year ago, indicating a successful strategic pivot.

• Fluent Inc (NASDAQ:FLNT) has significantly reduced its total debt from $35.6 million to $25.6 million, improving its financial position.

• The company anticipates accelerated growth in the second half of the year, supported by triple-digit growth in Commerce Media Solutions.

Negative Points

• Total revenue for Q1 2025 decreased by 16% compared to the prior year, with a notable decline in owned and operated revenue by 30%.

• The company reported a net loss of $8.3 million in Q1 2025, compared to a net loss of $6.3 million in the prior year.

• Adjusted EBITDA was a loss of $3.1 million in Q1 2025, down from a positive $700,000 in Q1 2024, indicating financial challenges.

• Gross margins decreased due to media cost pressures and the strategic discontinuation of certain businesses in 2024.

• Fluent Inc (NASDAQ:FLNT) is facing challenges in acquiring media for its owned and operated sites, particularly from social media channels, impacting revenue.