Fluent, Inc. Q4 FY2025 earnings call

• Three years ago, Fluent pivoted into the high growth commerce media industry. - Commerce Media Solutions has made significant progress, with nearly 2x revenue growth over 2024. - Entered 2026 with strong momentum, expecting strong double-digit year-over-year growth in 2026. - Invested in commerce media strategic adjacencies like loyalty and pre-checkout. - Owned and operated business repositioned with a two-part mandate: gross profit generator and test and learn engine. - Added new partners across various verticals, launched Rebuy Monetize powered by Fluent, and built a world-class product and tech team.

In Q4 2025, Commerce Media Solutions contributed 56% of total consolidated revenue, up from 26% in Q4 2024 and 10% in Q4 2023. Full-year 2025 Commerce Media Solutions delivered revenue growth of 99% year over year and media margin growth of 48% year-over-year. Q4 2025 revenue was $61.8 million, median margin was $19.1 million, adjusted EBITDA was $0.2 million. Full-year 2025 revenue was $208.8 million, gross profit was $51.2 million, adjusted EBITDA loss was $9 million.

• Expect Q4 to be a tipping point with commerce media solutions representing a majority of consolidated revenue going forward. - Anticipate double-digit consolidated revenue growth on aggregate continuing businesses and improved full-year adjusted EBITDA in 2026. - Revising adjusted EBITDA target for 2026, no longer expecting adjusted EBITDA positive but expecting improved adjusted EBITDA compared to 2025. - Relatively flat year-over-year total company revenue in Q1 2026, then revenue to accelerate to double-digit year-over-year growth in the second half with aggregate revenue from continuing businesses achieving double-digit growth for the full year 2026.

• Discussed to view company's filings with SEC for risk and uncertainties associated with business. - Compliance headwinds in owned and operated segment. - Impact of macro environment on advertisers and partners, such as changes in ROAS and potential pullback, but no significant pushback on pricing seen yet.

Q: Maria Ripps asked about AI-based functionality in rebuy partnership and convergence between ONO and commerce media capabilities.

A: AI has been embedded with proprietary first-party data as secret sauce. ONO's data and skill set from 15 years enable unique audience sets for commerce media.

Q: Patrick Shaw asked about expectations for 2026 commerce media, churn, retention, margins, and macro environment impact.

A: Strong double-digit growth expected, early termination affected growth but pipeline is strong. Macro environment has partners prioritizing post-transaction growth and no significant pricing pushback from advertisers.

Q: David Marsh asked about SG&A run rate, gross margin goals, and competitive landscape.

A: SG&A run rate to be maintained with investment in commerce media products. Gross margins expected to improve to mid-20s in back half of 2026 and further in 2027. Competitors are less of a concern with smaller end and lack of enterprise grade platform.

Q: Bill DeZellum asked about 2026 commerce media revenue growth range, pipeline, adjacent opportunities, sales cycle, and owned and operated revenue.

A: Strong double digits expected, pipeline strengthened by differentiated brand and strategic conversations. Adjacent opportunities are large, existing partners have shorter sales cycles. Owned and operated is a competitive advantage brought into commerce media.