Fri, May 16, 9:01 PM (64 days ago)
**Fluent, Inc. (FLNT) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $55.2 million, down 16% YoY from $65.9 million. - **Net Loss:** $8.3 million, or $0.39 per share, compared to a net loss of $6.3 million or $0.45 per share. - **Gross Profit (exclusive of depreciation and amortization):** $11.4 million, representing 21% of revenue, down 39% from $18.6 million or 28% of revenue. - **Adjusted EBITDA:** Negative $3.1 million, compared to positive $0.7 million. - **Cash Flow:** $2.1 million provided by operating activities, compared to $0.1 million used in operating activities. **Segment Performance:** - **Owned and Operated (O&O) Sites:** Revenue decreased due to reduced media supply and compliance with the FTC Consent Order. - **Commerce Media Solutions:** Revenue increased due to new media partner contracts. - **Call Solutions:** Revenue impacted by increased media costs and regulatory delays. **Trends and Uncertainties:** - **Traffic Quality Initiative (TQI):** Ongoing efforts to improve traffic quality and compliance. - **FTC Consent Order:** Continued impact on O&O Sites revenue and profitability. - **Economic Conditions:** Uncertainty due to inflation, interest rates, and consumer confidence. - **Going Concern:** Substantial doubt about the ability to continue as a going concern for one year post-reporting date. **Future Operations Impact:** - **Cost Reduction:** Workforce reductions and restructuring to align with strategic initiatives. - **Capital Raising:** Plans to raise additional capital to fund operations and meet financial covenants. - **Strategic Initiatives:** Focus on Commerce Media Solutions and improving user monetization. **Financial Covenants and Debt:** - **SLR Credit Agreement:** Compliance with financial covenants at risk in the next 12 months. - **Debt Maturity:** $25.2 million in scheduled future maturities, with significant amounts due in 2025 and 2029. **Stock and Equity:** - **Reverse Stock Split:** Completed in April 2024, reducing shares outstanding. - **Pre-Funded Warrants:** Issued in May, December, and March 2025, with varying exercise prices and terms. **Conclusion:** Fluent, Inc. faces significant challenges in maintaining profitability and compliance with financial covenants. The company is focusing on cost reduction, strategic initiatives, and capital raising to navigate these uncertainties and ensure long-term sustainability.