Fluent, Inc. (NASDAQ: FLNT) reported unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025, revealing a significant rebound in its Commerce Media Solutions segment amid broader operational challenges. The company recorded $61.8 million in revenue for Q4 2025, a 5.5% decline from $65.4 million in the same period the prior year, but the Commerce Media Solutions division saw a 101% year-over-year revenue surge to $34.7 million, accounting for 56% of total revenue compared to 26% in Q4 2024. This growth marked a pivotal shift for the company, which has been refocusing its business model toward commerce media partnerships.
Donald Patrick, Fluent’s CEO, highlighted the momentum in Commerce Media Solutions during a conference call, citing a 101% revenue increase and a 33% gross profit margin (exclusive of depreciation and amortization) for the segment in Q4 2025. He attributed the progress to strategic pivots, including partnerships with high-profile entities like Authentic Brands Group, which manages brands generating over $32 billion in annual retail sales, and Rebuy, a platform enabling merchants on Shopify to monetize traffic through AI-driven advertising. “Our new business pipeline is strong, and we look forward to announcing additional partnerships in 2026,” Patrick said.
The company’s annual revenue run rate for Commerce Media Solutions now exceeds $105 million, with media margins improving sequentially by $20 million and five basis points compared to Q3 2025. However, the broader financial picture remains mixed. Full-year 2025 revenue totaled $208.8 million, a 18% decline from $254.6 million in 2024, as the company shifted away from its legacy “Owned and Operated” revenue model, which fell 44% to $94.5 million. This transition, while boosting Commerce Media Solutions’ share of revenue, contributed to a net loss of $27.2 million for the year, compared to a $29.3 million loss in 2024.
Fluent’s financial adjustments included a $10.3 million private placement in August 2025, which bolstered liquidity and introduced new institutional investors, and a November 2025 financing agreement to enhance borrowing flexibility. The company also sold its Call Solutions subsidiary in early 2026, reallocating resources to Commerce Media Solutions. Patrick emphasized that these moves were aimed at “scaling Commerce Media Solutions across new verticals” and improving gross margins to the mid-20s as newer partnerships mature.
The results underscore a strategic recalibration. While Commerce Media Solutions delivered a 99% revenue increase to $82.3 million for FY 2025, its gross profit margin slipped to 26% from 35% in 2024, partly due to a $4.3 million one-time adjustment from an early termination settlement with a commerce media partner. Media margins for the segment fell to 26% in 2025 from 35.1% in 2024, though the company cited “AI-powered monetization” and “first-party data” as tools to reverse this trend. Adjusted EBITDA for the year remained negative at $9 million, though it improved from $12.4 million in 2024.
Looking ahead, Fluent projected “double-digit consolidated revenue growth on a continuing operations basis” for 2026, alongside improved adjusted EBITDA. The company plans to expand its commerce media partner network, targeting verticals like travel, lifestyle, and home services, and leveraging its 15-year expertise in customer acquisition. Patrick noted that the “mid-twenties” gross margin target would be achieved through “increased monetization of commerce media placements.”
The results come as Fluent faces broader industry headwinds, including regulatory scrutiny of digital marketing practices and competitive pressures from dominant players in the post-transaction commerce media space. The company’s 2025 filings also highlighted risks such as “global economic instability,” “dependence on third-party service providers,” and “potential liabilities from platform malfunctions.” Despite these challenges, Fluent’s focus on Commerce Media Solutions appears to be gaining traction, with the segment now representing a majority of its revenue stream.
