Fluent (NASDAQ:FLNT) Posts Earnings Results, Beats Estimates By $0.01 EPS

Fluent (NASDAQ:FLNT) released its earnings results on Thursday. The company reported ($0.08) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.01, FiscalAI reports. Fluent had a negative return on equity of 155.09% and a negative net margin of 11.48%. The business had revenue of $53.64 million for the quarter, compared to analysts’ expectations of $50.08 million.

Here are the key takeaways from Fluent’s conference call:

• Commerce Media Solutions (CMS) continued to scale rapidly, doubling year over year to $37.5 million, or 70% of revenue, and reaching an annual revenue run rate above $145 million.
• Revenue from continuing businesses rose 29%, accelerating from 25% in Q2; total consolidated revenue increased 14% to $53.6 million, marking a second consecutive quarter of growth on the continuing-business basis.
• Profitability improved: gross profit increased 41% to $15.3 million, adjusted EBITDA was nearly break-even versus a $3.4 million loss a year earlier, and year-to-date operating cash flow was positive $2.8 million.
• Management expects double-digit revenue growth in Q4 and for full-year 2026 continuing businesses, positive Q4 adjusted EBITDA, and double-digit consolidated revenue growth in 2027. CMS growth is expected to remain high double digits in Q4, though moderate from Q3 as the partner mix diversifies.
• Q3 CMS gross margin benefited from a partner contract renegotiation that management said will not recur; it expects CMS gross margin to settle in the high-20% range. Fluent reported $11.4 million in cash against $31.5 million in short-term debt.

Fluent Trading Down 4.0%

NASDAQ FLNT traded down $0.14 during trading on Thursday, hitting $3.32. 79,877 shares of the company’s stock traded hands, compared to its average volume of 84,295. The stock has a fifty day moving average of $3.13 and a two-hundred day moving average of $3.27. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.88 and a current ratio of 0.88. Fluent has a 12-month low of $1.70 and a 12-month high of $4.49.

Insider Activity

In other news, Director David Graff sold 25,000 shares of the business’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $3.00, for a total value of $75,000.00. Following the completion of the sale, the director owned 95,438 shares of the company’s stock, valued at approximately $286,314. The trade was a 20.76% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, major shareholder Global Value Investment Corp. bought 12,376 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The shares were bought at an average price of $3.38 per share, with a total value of $41,830.88. Following the completion of the acquisition, the insider directly owned 3,229,627 shares in the company, valued at $10,916,139.26. This trade represents a 0.38% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have purchased 27,575 shares of company stock valued at $92,357 and have sold 28,830 shares valued at $89,764. Insiders own 38.40% of the company’s stock.

Analyst Upgrades and Downgrades

FLNT has been the topic of a number of research reports. Canaccord Genuity Group set a $4.50 price objective on Fluent and gave the company a “hold” rating in a report on Tuesday, August 11th. Lake Street Capital reissued a “buy” rating and set a $5.50 price target (up from $5.00) on shares of Fluent in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $5.00.

Fluent Company Profile

Fluent, Inc. is a digital marketing and advertising technology company that helps brands and agencies acquire, engage and retain customers. Its services are designed to support performance marketing campaigns across digital channels, using audience data, targeting tools and campaign optimization capabilities. The company provides solutions for programmatic advertising, customer acquisition, lead generation and audience engagement. Fluent’s offerings are intended to help advertisers reach relevant consumers, manage campaigns across multiple channels and measure marketing outcomes.