Canaccord Genuity reiterates Hold rating on Fluent stock amid mixed Q2 results

Published 20/08/2025, 12:40
Canaccord Genuity reiterates Hold rating on Fluent stock amid mixed Q2 results

Investing.com - Canaccord Genuity has reiterated its Hold rating and $3.00 price target on Fluent Inc. (NASDAQ:FLNT) following the company’s second-quarter earnings report. According to InvestingPro data, the company currently trades at $2.28 and appears undervalued based on its Fair Value analysis. However, InvestingPro’s Financial Health Score of 1.17 indicates significant challenges ahead.

Fluent reported second-quarter results showing consolidated revenue declining approximately 24% year-over-year, falling about 10% below Canaccord’s estimate. This continues a concerning trend, with InvestingPro data showing a 15.07% revenue decline over the last twelve months to $243.85M. Despite the revenue miss, adjusted EBITDA performed slightly better than expected as the company maintained focus on preserving media margin and operating expense discipline, though trailing twelve-month EBITDA remains negative at -$11.04M.

The company’s owned and operated (O&O) business continued to face challenges in acquiring biddable media, with revenue down approximately $10 million sequentially. In contrast, Commerce Media revenue growth accelerated to 121% year-over-year, compared to 99% in the first quarter, reaching an $80 million annual revenue run rate versus $65 million in Q1.

To support growth initiatives and strengthen its balance sheet, Fluent announced a $10 million private placement funded by both institutional investors and insiders. Management reiterated expectations for triple-digit Commerce Media Solutions revenue growth this year and next, which they believe will support double-digit consolidated revenue growth and positive adjusted EBITDA in fiscal year 2026.

Canaccord noted that while progress in scaling Commerce Media Solutions is encouraging, the O&O segment still represents approximately half of the total business and is declining meaningfully year-over-year, leading the firm to maintain its neutral stance while monitoring for signs of consolidated revenue returning to sustained growth.

In other recent news, Fluent Inc. reported a significant decline in its second-quarter revenue for 2025. The company experienced a 19% year-over-year decrease, with total revenue amounting to $44.7 million. Despite the drop in revenue, Fluent’s stock saw an increase in aftermarket trading, indicating a positive reaction from investors. This reaction may be attributed to optimism surrounding the company’s strategic shift and potential future growth. These developments highlight the mixed sentiment in the market as Fluent navigates its current financial landscape.

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