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NEW YORK - Advertising services company Fluent, Inc. (NASDAQ:FLNT), currently valued at $41.85 million in market capitalization, has successfully amended its credit agreement, providing the firm with an extended deadline to raise at least $5 million in additional capital by March 20, 2025, according to a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company operates with a significant debt burden and has been quickly burning through cash. The amendment follows a series of negotiations with lenders after the company was granted an extension for compliance certification originally due for the fiscal month ending December 31, 2024.
The subsidiary of Fluent, Inc., Fluent, LLC, entered into a credit agreement with SLR Credit Solutions serving as the administrative agent, alongside other lenders. The agreement has been adjusted several times, with the latest, the Fourth Amendment, being finalized on Monday. Financial metrics from InvestingPro show the company maintains a total debt of $37.42 million with a concerning debt-to-equity ratio of 1.5x. This amendment not only extends the capital-raising deadline but also waives non-compliance with financial covenants as of the end of 2024. It also adjusts the financial covenants and extends the duration of the call protection applicable to the loans.
Fluent, Inc. is exploring various funding options, including equity, equity-linked, or subordinated debt financings. The company’s ability to secure the necessary capital will depend on market conditions, the trading price of its common stock, regulatory limitations, and internal assessments of the most suitable funding sources for its operations. Recent financial data reveals concerning metrics, including negative EBITDA of -$11.49 million and a weak overall financial health score, as reported by InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering over 1,400 US stocks.
The NASDAQ-listed company (NASDAQ:FLNT), formerly known as Cogint, Inc., IDI, Inc., and Tiger Media, Inc., has undergone several name changes, with the most recent occurring in September 2016. Fluent, Inc. is headquartered in New York and operates under the advertising industry classification. The stock currently trades near its 52-week low of $2.04, having declined 33% over the past year. Investors seeking deeper insights into Fluent’s valuation and growth prospects can access detailed analysis and 13 additional ProTips through InvestingPro.
This latest financial maneuvering is part of Fluent, Inc.’s ongoing efforts to meet its obligations under the credit agreement and to secure the financial stability required for future operations. The information contained in this article is based on the company’s SEC filing.
In other recent news, Fluent Inc. reported a 10% year-over-year decline in revenue for the fourth quarter of 2024, totaling $65.4 million, and a widened net loss of $3.4 million compared to $1.9 million in the same period last year. Despite these setbacks, Fluent’s Commerce Media Solutions (CMS) division demonstrated significant growth, with a 139% increase in Q4 and a 284% increase for the full year, achieving an annual revenue run rate exceeding $60 million. Looking ahead, Fluent projects triple-digit year-over-year growth for the CMS segment in fiscal year 2025, driven by expanding media partnerships across various sectors.
However, the company’s Owned and Operated (O&O) segment experienced a decline of over 20% in the fourth quarter, mainly due to a write-down in the Call Solutions segment related to the Affordable Care Act (ACA) business. In response to these mixed results, Canaccord Genuity adjusted its price target for Fluent’s stock to $3.50 from the previous $4.00, while maintaining a Hold rating. Analysts have highlighted the promising trajectory of the CMS business but cautioned about financial uncertainties, including the potential need for Fluent to secure additional capital.
For the first half of 2025, Fluent anticipates revenue to remain relatively flat year-over-year, factoring in the discontinuation of the ACA business and the seasonal nature of the CMS business. Despite these challenges, Fluent is optimistic about achieving double-digit growth for the full fiscal year 2025, suggesting a significant acceleration in the second half. The company continues to focus on stabilizing its O&O business and driving growth from its CMS division.
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