Fluent, Inc.

Good afternoon and welcome. Thank you for joining us to discuss Fluent's fourth quarter and year-end 2025 earnings results. With me today are Fluent's Chief Executive Officer, Don Patrick, Chief Financial Officer, Ryan Perfect, and Chief Strategy Officer, Ryan Schuelke. Our call today will begin with comments from Don and Ryan Perfect, followed by a question and answer session. I would like to remind you that this call is being webcast live and recorded. Additionally, there's a slide presentation that accompanies today's remarks, which can be accessed via the webcast and is also available on Fluent's website. A replay of the event will also be made available following the call on Fluent's website. To access the webcast and slide presentation, please visit the investor relations page at www.fluetco.com. Before we begin, I would like to advise listeners that certain information discussed by management during this conference call will contain forward looking statements covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward looking statements made during this call only speak as of the date hereof. Actual results could differ materially from those stated and implied by such forward looking statements due to risk and uncertainties associated with the company's business. These statements may be identified by words such as expects, plans, projects, could, will, estimates, and other words of similar meaning. The company undertakes no obligation to update information provided on this call. For discussion of the risk and uncertainties associated with Fluent's business, we encourage you to view the company's filings with the Securities and Exchange Commission including the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. During the call, management will also present non-GAAP financial information relating to median margin, adjusted EBITDA, and adjusted net income. Management evaluates the financial performance of the company's business on a variety of indicators, including these non-GAAP metrics. The definition of these metrics and reconciliations to the most directly Comparable GAAP financial measures are provided in the earnings press release issued earlier today. With that, I'm pleased to introduce Fluent's CEO, Don Patrick.

Good afternoon, and thank you all for joining us today.

I'm here with Ryan Schuelke, our chief strategy officer and company co-founder, and Ryan Perfect, our chief financial officer. Three years ago, we made a deliberate and decisive strategic choice to aggressively invest in pivoting our business into the high growth commerce media industry, leveraging the competitive advantages of our owned and operated marketplaces as our foundation. We've made significant progress on the strategic pivot over the last 12 months, capped off by key milestones for this business. Commerce Media Solutions contributed 56% of total Q4 revenue, more than doubling from 26% in Q4 2024. Building on this success, we entered 2026 with strong momentum that is accelerating. We have built a highly differentiated Fluent brand with a clear and compelling purpose, delivering superior, measurable performance outcomes for our commerce partners and advertisers. And in the process, we are being recognized as the market leader in our industry. We are no longer a company in transition. We are a company that has reached a transformative inflection point, and we are confident our best days are ahead of us. In today's earnings release, we reported Q4 in full year 2025 results that reflect significant progress in our commerce media transformation. Commerce Media Solutions delivered nearly 2x revenue growth over 2024, a powerful demonstration of our market validation and competitive differentiation. A recap on Q4 2025 consolidated financial results were as follows. Revenue of $61.8 million, an increase of 31% versus Q3 2025. median margin of $19.1 million, an increase of 49% versus Q3 2025, an adjusted EBITDA of $0.2 million, an increase of $3.6 million from Q3 2025, and representing 0.3% of Q4 revenue. Our Q4 performance achieved the roadmap we laid out in previous earnings releases. Commerce Media Solutions continued to accelerate, adding new commerce partners in the quarter and more than doubling revenue year-over-year, while also expanding our media margin on a sequential basis. That marked strong double to triple-digit year-over-year revenue growth for Commerce Media Solutions for eight consecutive quarters. That trend represents our strategic and financial trajectory. and we expect strong double-digit year-over-year growth to continue throughout 2026. Full-year 2025 financial results were as follows. Revenue of $208.8 million, reflecting a top-line decline of 18% versus 2024, consistent with our deliberate managed transition away from our legacy revenue streams. Gross profit of $51.2 million, a decrease of 15.8% versus 2024. An adjusted EBITDA loss of $9 million, representing negative 4.3% of revenue. The most powerful validation of the strategy is in the numbers. As I mentioned before, in Q4 2025, Commerce Media Solutions contributed 56% to total consolidated revenue. representing more than 50% of total company revenue for the first time since the launch of this business in the first quarter of 2023, compared to 26% in Q4 2024 and 10% in Q4 2023. And we expect that share to continue to grow in 2026. In full year 2025, Commerce Media Solutions delivered revenue growth of 99% year over year and media margin growth of 48% year-over-year. These results confirm three things. First, we are establishing our brand equity and operating in a large, long-term growth market. Second, our differentiated approach is resonating with our commerce partners and advertisers who continue to join our proven business model. And third, The strong performance we deliver is real and repeatable as we continue to establish leadership credentials in our segment. Industry growth projections position us favorably for growth in the U.S. market. According to a recent McKinsey study, the U.S. commerce media market is expected to grow a compounded average growth rate of 21 percent from 2023 to 2027. and reach a total market value of 100 billion by 2027. As of December 31st, 2025, Commerce Media Solutions is operating an annual run rate of 105 million. And as you can see, we believe there is significant opportunity to increase our market share as this high growth industry continues to evolve and we expand our geographical presence. Putting it simply, Media partners and advertisers want to work with Fluent because Fluent delivers the best results. This is demonstrated by the impressive network of partners and advertisers that leverage our offerings. We continue to expand our relationships with leading names across diverse industries and market verticals. We deliver strategic validation by way of our financial performance, and we continue to look and plan forward as we do so. We are investing with discipline in commerce media strategic adjacencies that will further differentiate the Fluent brand, elevate our industry leadership position, earn us more partnerships, all while providing long-term margin accretion. We've discussed on previous earning calls that we have existing partners who have a need to expand into loyalty and pre-checkout. Although it is early stage, These adjacent solutions open additional large market opportunities that not only strengthen our existing relationships, but meaningfully raises the bar for new partners evaluating who in the commerce media truly understands the full customer journey and where the market is headed. In turn, we're making targeted, purposeful investments designed to extend our competitive vote in commerce media for years to come. We are very excited about these opportunities on our roadmap. They represent significant upside to Fluent's strategic and financial growth plan. More to follow here in future investor updates. On our owned and operated businesses, we are clear-eyed and deliberate. Given our commitment to play an industry leadership role in traffic quality, coupled with the inherent compliance headwinds in that segment, we are repositioning owned and operated with a focused two-part mandate. Number one, gross profit generator, maintaining a profitable capital efficient contribution to the enterprise. And number two, a test and learn engine, a real time proving ground that sharpens and feeds our commerce media strategy and product development. Narrowing our focus reflects our conviction that the commerce media market represents an enormous multi-year strategic opportunity, that concentrating our resources in our highest conviction business is the right decision for our shareholders. In doing so, we are also quite excited in validating that our owned and operated business is not only a core asset, but a competitive advantage in fueling our commerce media growth. Our commerce media growth continues to be validated by the strength of our partnerships with premier brands and companies, and the addition of key talent that has helped us to maximize performance and efficiency as we continue to scale. During 2025, we added several new partners across a variety of exciting verticals. Among the highlights, we partnered with a number of world-class brands, including Authentic Brands Group, Dick's Sporting Goods, and Michaels. We also launched Rebuy Monetize powered by Fluent, which brings Fluent's AI-powered advertiser marketplace and demand generation expertise to merchants on the Shopify platform. And our new business pipeline remains strong and growing. We look forward to announcing additional partnerships throughout 2026. On the talent side, we have built a world-class product and tech team focused on accelerating AI innovation for our commerce media offerings. Adrian Stack, our chief product officer, and his team bring years of experience as strategic product management to the Fluent team and are driving Fluent's investments in data infrastructure and product innovation. Virginia Marsh joined Fluent in Q2 in conjunction with our partnership with Databricks. to expand and enhance our data collaboration capabilities, coming on as head of data and agencies to scale our data monetization and further support our overall growth. These partnerships and additions to our team reflect our commitment to earning an industry-leading position with Commerce Media and allowed us to nearly double revenue and scale from 60 million annual run rate to 105 million annual run rate at year end. a commitment that required significant investments to build something durable and sustainable in a high-growth marketplace. The 2026 outlook we're sharing today is a direct payoff of that discipline and our strategic and financial resolve. With that, I'll turn it over to Ryan Perfect for a deeper look at our financials.