Canaccord has revised its price target for Fluent (FLNT, Financial), lowering it from $3.50 to $3, while maintaining a Hold rating on the stock. This adjustment comes in the wake of Fluent's weaker-than-anticipated first-quarter performance, where both revenue and profitability fell short of market expectations. The company continues to face challenges within its O&O business segment, although there is some positive momentum from its Commerce Media Solutions division.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Fluent Inc (FLNT, Financial) is $3.00 with a high estimate of $3.00 and a low estimate of $3.00. The average target implies an upside of 21.95% from the current price of $2.46. More detailed estimate data can be found on the Fluent Inc (FLNT) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Fluent Inc's (FLNT, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fluent Inc (FLNT, Financial) in one year is $2.31, suggesting a downside of 6.1% from the current price of $2.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Fluent Inc (FLNT) Summary page.
FLNT Key Business Developments
Release Date: May 15, 2025
- 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.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fluent Inc (FLNT, Financial) 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 (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 (FLNT) is facing challenges in acquiring media for its owned and operated sites, particularly from social media channels, impacting revenue.
