Fluent (FLNT -2.65%) reported second-quarter 2025 results on August 19, with revenue of $44.7 million, down 24% year over year, and a consolidated adjusted EBITDA loss of $2.8 million. The quarter marked a pivotal phase in the company’s shift toward commerce media solutions, which grew revenue 121% year over year to $16.1 million, now representing 36% of consolidated revenue and establishing an annual revenue run rate above $80 million as of June 30, 2025.

Commerce media revenue accelerates at Fluent

Fluent(FLNT -2.65%) saw its commerce media solutions revenue more than double year over year, reaching $16.1 million, while the segment’s share of consolidated revenue expanded from 12% in the second quarter of 2024 to 36%. The annualized run rate surpassed $80 million as of June 30, 2025, representing over a 20% sequential increase compared to the first quarter of 2025.

"As of 06/30/2025, our commerce media revenue grew 121% compared to the prior year, representing 36% of our consolidated revenue and has surpassed an annual revenue run rate of $80 million, over 20% sequential increase from Q1."
-- Don Patrick, Chief Executive Officer

This rapid expansion positions the company to capture a larger share of an industry projected to reach $100 billion in five years, with commerce media expected to account for 25% of all digital media spend by 2026.

Margin pressure reflects Fluent’s growth investments

Commerce media margin dropped to 20% in the second quarter of 2025 from 30.4% in the prior year, due to short-term pricing incentives to win new partnerships and increased volumes in lower-margin verticals. Company-wide media margin (non-GAAP) was $11.9 million, driven by the swift decline in owned and operated revenue, which fell 49% year over year.

"Second quarter commerce media margin was compressed related to flexibility around our pricing structure to remain competitive and win long-term partners and gain traction in new verticals. As we improve monetization in those new verticals and move past short-term pricing incentives, we expect media margin to return to the high twenties."
-- Ryan Perfit, Chief Financial Officer

The company is prioritizing long-term strategic relationships and vertical expansion, even at the expense of near-term profitability, to drive future margin recovery and sustainable growth.

Capital raise strengthens Fluent’s liquidity

The company ended the quarter with $4.9 million in cash and $2.4 million in restricted cash, and closed a new private placement exceeding $10 million, announced on August 19, 2025, with participation from insiders and institutional investors. Fluent reduced net long-term debt by $12 million since the start of the year, now at $19.9 million as of June 30, 2025, and maintains a $20 million term loan and a revolving credit facility of up to $30 million, both maturing in 2029.

"To support the strategic pivot we are executing, today, we announced over $10 million equity financing with a high-quality and diversified group of fundamental investors who are also joined by insiders. This financing bolsters our balance sheet and will fuel the growth of profitability."
-- Don Patrick, Chief Executive Officer

This capital injection extends the company’s runway amid operating losses, enabling continued investment in commerce media product scaling and client onboarding.

Looking ahead

Management expects commerce media solutions to continue triple-digit revenue growth in 2025 and 2026, with the segment projected to become the primary revenue generator by year-end 2025. The company forecasts a return to positive adjusted EBITDA (non-GAAP) in the fourth quarter of 2025, with full-year adjusted EBITDA (non-GAAP) profitability and double-digit consolidated revenue growth targeted for 2026.