Fluent stock price target lowered to $2.50 at Canaccord on soft Q3 results

Investing.com - Canaccord Genuity lowered its price target on Fluent Inc. (NASDAQ:FLNT) to $2.50 from $3.00 on Friday, while maintaining a Hold rating following the company’s third-quarter results. This new target aligns closely with InvestingPro’s Fair Value assessment, with the stock currently trading at $2.02 and showing signs of being slightly undervalued.

Fluent reported third-quarter revenue declined approximately 27% year-over-year, coming in about 11% below consensus estimates. The company faced continued softness in its Owned & Operated (O&O) business, along with advertiser budget pullbacks in late Q3 that have extended into early Q4, which management indicated appears to be tariff-related.

Despite overall revenue challenges, Fluent’s Commerce Media segment grew over 80% year-over-year, driven by progress onboarding new enterprise partners such as Authentic Brands Group and initial momentum with Rebuy. The fourth quarter is expected to mark an inflection point where Commerce Media revenue exceeds O&O revenue for the first time.

Management reiterated expectations for triple-digit Commerce Media growth in the second half of 2025, implying more than 100% year-over-year growth for the segment in Q4. For fiscal year 2026, Fluent maintained its goal to achieve double-digit year-over-year revenue growth and adjusted EBITDA profitability. This would mark a significant turnaround, as InvestingPro data shows the company posted negative EBITDA of $9.41 million in the last twelve months.

Canaccord noted that while it is encouraged by progress in scaling Commerce Media and potential for new solutions beyond post-transaction offerings, the rapid decline in the O&O business and delayed return to meaningful consolidated revenue growth until the second half of 2026 support its Hold rating.

In other recent news, Fluent Inc. has released its Q3 2025 earnings report, highlighting a notable shift in its revenue composition and strategic focus. The company reported total consolidated revenue of $47 million, which marks a decline from the $64.5 million reported in the same quarter last year. Despite this overall decrease, Fluent’s Commerce Media Solutions segment experienced significant growth, with an 81% increase year-over-year. These developments indicate a strategic pivot towards areas showing potential for expansion. Investors may find these figures noteworthy as they reflect the company’s evolving business strategy. Fluent’s recent performance and strategic adjustments have drawn attention from analysts, though specific upgrades or downgrades were not mentioned. As the company continues to adapt its focus, these earnings results provide insight into its current trajectory.

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