Fluent (FLNT) AI Stock Analysis

• Market Cap: $47.75M
• Dividend Yield: N/A
• Average Volume (3M): 12.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -14.67%
• EPS Growth: 59.39%
• Country: US
• Employees: 208
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): -0.18
• Shares Outstanding: 20,669,188
• 10 Day Avg. Volume: 16,545
• 30 Day Avg. Volume: 12,517
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.93
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.50
• Price Target Upside: 44.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Fluent faces significant financial and operational challenges, leading to a low overall score. The company's declining revenues, persistent losses, and high leverage pose substantial risks. While there is potential in the growing Commerce Media Solutions segment, current financial health and technical indicators are concerning. The company's strategic pivot could improve future prospects, but current fundamentals remain weak.

Positive Factors

Commerce Media Growth

Commerce Media Solutions revenue increased more than 65% quarter-over-quarter and now has an annual revenue run rate of more than $60 million.

Partnership Expansion

Bringing on additional partners after the end of the year is expected to support further growth in the Commerce Media sector.

Negative Factors

Financial Covenant Compliance

Fluent does not expect to be in compliance with existing financial covenants over the next twelve months under the current agreement.

Regulatory Challenges

The impact to revenue as it seeks to mitigate regulatory headwinds has been a challenge, and efforts to diversify to other revenue categories have taken time to develop.

Fluent Business Overview & Revenue Model

Company Description

Fluent, Inc. provides data-driven digital marketing services primarily in the United States. The company operates through Fluent and All Other segments. It offers customer acquisition services by operating digital marketing campaigns, through which the company connects its advertiser clients with consumers. The company also delivers data and performance-based marketing executions to approximately 500 consumer brands, direct marketers, and agencies across a range of industries, including financial products and services, media and entertainment, health and wellness, retail and consumer, and staffing and recruitment. Fluent, Inc. is headquartered in New York, New York.

How the Company Makes Money

Fluent makes money primarily through its performance marketing solutions, where it generates revenue by delivering customer leads, sales, or other desired actions to its clients. The company's key revenue streams include cost-per-action (CPA) and cost-per-lead (CPL) models, where clients pay Fluent based on the performance of delivered marketing campaigns. Additionally, Fluent collaborates with strategic partners to enhance its data capabilities and reach, further contributing to its revenue. The company's ability to analyze consumer data and optimize marketing strategies is crucial to maintaining its competitive edge and driving earnings.

Fluent Financial Statement Overview

Summary

Fluent's financial performance is weak, with declining revenues and consistent net losses. The company also faces operational inefficiencies, negative cash flows, and increased leverage, which indicate significant financial challenges and a need for strategic realignment.

Income Statement

Fluent has experienced a consistent decline in revenue over the past years, with a significant decrease in gross profit margin from 24.5% in 2020 to 23.9% in 2024. The net profit margin remains negative, indicating ongoing losses, with the latest being -11.5% for 2024. The company also faces declining EBIT and EBITDA margins, reflecting operational inefficiencies and challenges in cost management.

Balance Sheet

The company's financial health is concerning with a rising debt-to-equity ratio, reaching 1.49 in 2024, indicating increased leverage and financial risk. Return on equity remains negative, consistent with net losses. The equity ratio has declined over the years, standing at 26.7% in 2024, suggesting reduced financial stability and asset ownership.

Cash Flow

Fluent's cash flow situation is challenging, with negative operating and free cash flow in the latest period. The operating cash flow to net income ratio is poor due to consistent net losses. Despite these challenges, the company managed to secure financing, but reliance on external funding raises sustainability concerns.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
298.40M	361.13M	329.25M	310.72M	281.68M
	Gross Profit
78.52M	93.65M	85.53M	95.58M	87.25M
	EBIT
-60.13M	-8.32M	-4.31M	8.38M	5.22M
	EBITDA
-49.25M	-106.38M	5.54M	23.68M	19.16M
	Net Income Common Stockholders
-63.22M	-123.33M	-10.06M	2.21M	-1.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.80M	25.55M	34.47M	21.09M	18.68M
	Total Assets
111.87M	183.97M	318.18M	310.22M	317.09M
	Total Debt
34.48M	46.73M	53.25M	50.16M	62.31M
	Net Debt
18.68M	21.18M	18.78M	29.07M	43.63M
	Total Liabilities
77.46M	90.01M	104.77M	93.33M	106.16M
	Stockholders Equity
34.40M	93.95M	213.41M	216.88M	210.94M
Cash Flow		Free Cash Flow
2.27M	-2.44M	9.43M	17.45M	21.31M
	Operating Cash Flow
8.14M	1.96M	12.42M	20.30M	26.02M
	Investing Cash Flow
-7.11M	-5.44M	-2.99M	-4.27M	-11.96M
	Financing Cash Flow
-10.77M	-5.45M	2.47M	-13.62M	-13.15M

Fluent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNT, the sentiment is Positive. The current price of 2.42 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.33, and below the 200-day MA of 2.77, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 35.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLNT.

Fluent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWAG	60 Neutral	$19.17M	―	-12.29%	―	8.76%	-969.71%
Sector *	60 Neutral	$13.74B	7.25	-2.74%	3.81%	2.21%	-37.97%
INUV	57 Neutral	$58.01M	―	-37.84%	―	13.37%	50.36%
CDLX	49 Neutral	$112.18M	―	-184.87%	―	-10.00%	-11.58%
HHS	47 Neutral	$32.65M	―	-145.85%	―	-3.26%	-1829.89%
FLNT	39 Underperform	$47.75M	―	-98.64%	―	-14.67%	59.39%
MCHX	38 Underperform	$57.51M	―	-14.44%	―	-3.58%	50.73%

Fluent Corporate Events

Fluent Expands Board, Appoints James P. Geygan

On January 17, 2025, Fluent, Inc. expanded its Board of Directors from six to seven members by appointing James P. Geygan as an independent director. Mr. Geygan brings experience from his roles at Global Value Investment Corporation, where he has been Interim CEO and President since May 2024. His appointment is expected to enhance Fluent’s corporate governance and capital markets expertise. As a director, Geygan will receive quarterly compensation and restricted stock units, with additional eligibility for further grants. Fluent has also entered an indemnification agreement with him, ensuring protection under Delaware law.