Fluent, Inc. (FLNT): Business Model Canvas [Dec-2025 Updated]

You're looking at Fluent, Inc., definitely in the middle of a major shift, and honestly, the Business Model Canvas below lays out the core engine of that pivot. After a decade analyzing firms like this, I see a clear move away from the legacy Owned & Operated (O&O) revenue, which brought in $20.7 million in Q3 2025, toward the high-growth Commerce Media Solutions (CMS) business, which hit $18.8 million that same quarter. The real story here is how they are using proprietary AI and exclusive post-purchase ad inventory-like the deal with Authentic Brands Group-to unlock new revenue for partners while keeping costs variable. If you want to see exactly how they plan to turn that $146.9 million YTD revenue (through Q3 2025) into sustainable profit, check out the nine building blocks right here.

Fluent, Inc. (FLNT) - Canvas Business Model: Key Partnerships

You're analyzing Fluent, Inc.'s (FLNT) strategic alliances as of late 2025, which are clearly focused on scaling the Commerce Media Solutions (CMS) segment. The partnerships are designed to inject significant scale and advanced data capabilities into the business, especially as the legacy Owned and Operated (O&O) revenue declined 52% to $20.7 million in Q3 2025.

Strategic Alliances for Scale and Monetization

The relationship with Authentic Brands Group (ABG) is a prime example of this scale focus. ABG, which owns a portfolio generating more than $32 billion in global annual retail sales, is expanding its use of Fluent's post-purchase monetization technology. This expanded agreement now covers brands like Reebok, Vince Camuto, Volcom, Champion, RVCA, and DC Shoes, building on prior success with Eddie Bauer, Nautica, Lucky Brand, and Aéropostale. Fluent aims to add millions of annual transactions to its network through this deeper tie-up. So, this isn't just about one-off campaigns; it's about embedding Fluent's tech into a massive retail ecosystem.

The technology backbone is being fortified through the Databricks partnership. This move marks the launch of Fluent's dedicated data solutions arm, designed for privacy-first data collaboration and real-time audience modeling. Databricks itself was valued at more than $100 billion in a recent funding round, showing the caliber of the infrastructure Fluent is adopting. This is critical because Fluent's CMS segment is on an annual revenue run rate exceeding $85 million and is expected to surpass the O&O segment as the main revenue contributor in Q4 2025.

To support this pivot and provide operational cushion, Fluent secured new financing. Chief Financial Officer Ryan Perfit announced a new $30 million financing facility with Bay View Funding, a subsidiary of Heritage Bank of Commerce, in early December 2025. This new agreement is collateralized by all assets of Fluent and its subsidiaries and, importantly, carries no liquidity or financial covenants. This replaces the previous credit facility with SLR Credit Solutions, which has been fully repaid. This financing came when Fluent's market capitalization was approximately $53 million and its current ratio stood at just 1.02.

Key Partnership Financial and Operational Metrics

Here's a quick look at how these key relationships map against Fluent, Inc.'s recent financial scale:

Partner Ecosystem Highlights

The partnerships mentioned in the outline form a critical layer of Fluent, Inc.'s strategy to drive performance marketing and commerce media. The focus is clearly on high-value, data-intensive collaborations.

• Authentic Brands Group: Post-purchase monetization across $32 billion in retail sales.
• Databricks: Enhancing data intelligence and AI capabilities.
• Bay View Funding: Providing $30 million in flexible, covenant-free liquidity.
• Top-tier media partners: Fanatics, Vivid Seats, and Forever 21 are part of the broader network.
• Rebuy Engine: Integration for post-purchase advertising on over 12,000 Shopify merchants.

For context, Fluent's overall reported revenue for the year-to-date period ending September 30, 2025, was $146.9 million. The CMS segment's growth, fueled by partners like ABG, saw its revenue increase 99% year-over-year in Q1 2025, which is a defintely strong signal of the strategic shift.

Fluent, Inc. (FLNT) - Canvas Business Model: Key Activities

You're focused on the engine room of Fluent, Inc. (FLNT) right now, the essential things they absolutely must do well to make this pivot work. It's all about execution on the technology and the partnerships that drive the Commerce Media Solutions (CMS) segment.

Developing proprietary AI/machine learning algorithms for ad relevance

Fluent, Inc. uses its proprietary technology platforms to transform data into intelligence, which is the core of its value proposition in commerce media. This activity is about making sure the ad targeting is sharp, which directly impacts monetization for partners. While specific R&D spend isn't detailed here, the output is visible in segment performance and new integrations.

The company explicitly states a key goal is to leverage AI capabilities to improve monetization of commerce media placements. This is a continuous, knowledge-based activity, fitting the 'Problem Solving' category of Key Activities, requiring constant learning and training to stay ahead.

Scaling the high-growth Commerce Media Solutions (CMS) business

Scaling CMS is the primary focus, moving resources away from the legacy Owned and Operated business, which saw a year-over-year decline of approximately 52% in Q3 2025 revenue. The success of this scaling is clear in the segment's financial contribution.

Here's a quick look at the CMS scale as of the third quarter of 2025:

The company expects this segment to surpass the legacy business as the main revenue contributor in the fourth quarter of 2025. Honestly, the goal is to get the entire business to adjusted EBITDA profitability in Q4 2025, so this scaling is defintely critical.

Onboarding new enterprise media partners like Dick's Sporting Goods

Securing and integrating major partners is a necessary activity to fuel the CMS growth engine. While Dick's Sporting Goods wasn't specifically named in the latest release, Fluent, Inc. highlighted significant additions that show the breadth of their appeal.

Key partnership onboarding activities include:

• Securing deals with Authentic Brands, a brand owner generating over $32 billion in global annual retail sales.
• Entering a collaboration with Databricks to expand data intelligence and collaboration capabilities.
• Scaling the Rebuy Monetize powered by Fluent partnership across the Shopify platform.

If onboarding takes 14+ days, churn risk rises, so speed in integration matters here.

Performance-based ad placement and monetization across partner sites

This activity is where the rubber meets the road, turning data and algorithms into actual revenue through placements. The focus is on driving monetization and engagement at customer journey touchpoints.

The Rebuy Monetize partnership provides a concrete example of this monetization in action:

• Saw over one million ad unit sessions in September 2025 alone.
• This represented a 79% increase on a month-over-month basis for that specific placement.

The company is actively working to return the Commerce Media Solutions gross margin to the high twenties percentage range, indicating this monetization efficiency is a core, ongoing task.

Fluent, Inc. (FLNT) - Canvas Business Model: Key Resources

You're looking at the core assets Fluent, Inc. (FLNT) relies on to power its Commerce Media Solutions (CMS) pivot. These aren't just abstract concepts; they are hard assets and proprietary systems that create a competitive moat, or at least, that is the strategy. Honestly, the shift away from Owned & Operated (O&O) channels makes these technology and data assets even more critical.

Robust first-party data and identity graph for targeting is arguably the most important intangible resource. Fluent has built this foundation over time, now boasting an extensive first-party database. This asset is augmented through strategic alliances, like the one with Experian, to create a more complete, privacy-safe view of consumers.

• Proprietary first-party profiles: over 200M+ profiles maintained.
• Experience in customer acquisition: 14 years at the forefront.
• Data enhancement: Integration of Experian's online and offline identity data.

The second pillar is the proprietary machine learning and AI-driven ad technology. This isn't just about having data; it's about what you do with it in real-time. The AI engine continuously optimizes offer delivery to maximize engagement and partner yield. This technology is what allows Fluent to promise better performance than legacy post-purchase solutions, claiming up to 40% higher revenue per transaction in some contexts.

The exclusive, high-intent ad inventory on partner checkout pages is the physical manifestation of the CMS business. This inventory is where the data and AI meet the consumer transaction. Fluent has been aggressively expanding this network, bringing in major players to monetize the post-purchase moment. The quality of these partners is a resource in itself.

• Partner network includes: Authentic Brands Group, Fanatics, Vivid Seats, and Forever 21.
• The network is built on over 100 million annual transactions.
• CMS segment annual revenue run rate: Exceeded $80 million as of Q2 2025, growing to over $85 million by the end of Q3 2025.

Finally, you always need liquidity to execute strategy, especially during a turnaround. The balance sheet holds the necessary working capital. Here's the quick math on the cash position as reported for Q2 2025, which is the period you asked about, though later reports show different figures as the company raised capital.

What this estimate hides is the debt load, which was $78.1 million as of June 30, 2025, and the fact that the company raised over $10 million in a private placement after Q2 to support growth. Finance: draft 13-week cash view by Friday.

Fluent, Inc. (FLNT) - Canvas Business Model: Value Propositions

You're looking at the core benefits Fluent, Inc. (FLNT) delivers across its Commerce Media Solutions pivot. Honestly, the value proposition is all about monetizing the point right after a customer buys something.

For Partners: Unlocking new, non-endemic revenue streams on post-purchase pages.

Fluent helps partners, like major retailers, generate income from advertising slots on their post-purchase pages-think the order confirmation screen. This is where they unlock new, non-endemic revenue streams. The scale is significant; Fluent is working with a growing media network comprised of over 100 million annual transactions. This volume underpins the monetization potential.

For Advertisers: Acquiring high-value customers at scale via performance-based models.

Advertisers get to reach consumers when they are in a buying mindset, driving lower-funnel engagements. Fluent empowers them to acquire their most valuable customers at scale using outcome-based programs. The success of this model is reflected in the Commerce Media Solutions (CMS) segment's rapid financial scaling, which is the direct result of this value delivery.

Here's the quick math on how the CMS segment, which embodies this value proposition, has been growing:

What this table shows you is a clear, accelerating shift in revenue mix toward the performance-based CMS model, which is where the core value proposition for advertisers lives.

Enhanced ad relevance and engaging content for the end consumer.

For the consumer, the value is relevance. Fluent's adflow product uses a first-party identity graph and advanced AI-driven algorithms. This tech stack is key; it's designed to enhance ad relevance and boost conversions, creating stronger connections. They see post-transaction advertising as a mutually beneficial balance of consumer, retailer, and advertiser interests, delivering relevant and meaningful offers to shoppers.

Monetization of over 100 million annual partner transactions.

This is the raw scale Fluent is operating at. The company is capitalizing on a growing media network comprised of over 100 million annual transactions to maximize revenue opportunities for its partners.

Finance: draft 13-week cash view by Friday.

Fluent, Inc. (FLNT) - Canvas Business Model: Customer Relationships

You're looking at how Fluent, Inc. manages its relationships with the brands and media companies that form the backbone of its Commerce Media Solutions (CMS) pivot. This isn't just about selling ads; it's about embedding their technology into partner ecosystems.

Dedicated account management for large enterprise brand partners

The relationship structure for the largest partners is clearly high-touch, given the strategic nature of the deals secured. For instance, the expanded partnership with Authentic Brands Group (Authentic) brings a portfolio of iconic brands into the network, aiming to add millions of annual transactions to the commerce media partner network. This level of integration suggests dedicated resources are deployed to manage these complex, multi-brand relationships.

• The partnership with Authentic Brands Group is a key example of a strategic, portfolio-level relationship.
• The goal with partners like Authentic is unlocking premium ad inventory and driving new revenue streams.

Assisted service model for Commerce Media Solutions advertisers

The Commerce Media Solutions segment is the primary focus now, driving significant growth and representing 40% of consolidated revenue in Q3 2025, up from 16% in Q3 2024. This segment relies on Fluent's platform to monetize partner media by placing relevant ads at contracted moments of consumer engagement. The revenue generated by this segment in Q3 2025 was $18.8 million.

Here's how the financial performance of this customer-facing segment looked through the first three quarters of 2025:

Automated, performance-driven ad delivery for consumers

For the end consumer, the experience is designed to be automated and performance-driven, leveraging Fluent, Inc.'s core technological assets. The company uses its proprietary first-party data and AI-driven algorithms to enhance ad relevance and boost conversions. This focus is key to unlocking additional revenue streams for partners and helping advertisers acquire valuable customers at scale. The Commerce Media Solutions business surpassed an annual revenue run rate of over $85 million as of September 30, 2025, based on active contracts and current monetization levels.

• The company leverages its robust database of first-party user data.
• AI-powered technology consistently drives increased rates of monetization on partner platforms.
• The goal is to deliver personalized, non-endemic offers that drive incremental revenue without disrupting the consumer journey.

Strategic contract incentives to secure long-term media partner deals

Securing these high-value, long-term media partners required strategic financial commitments upfront. Management noted that in Q2 2025, media margins were compressed due to offering 'early-term contract incentives to secure some longer-term media partner contracts'. The company expects these margins to normalize over time as the list of top-tier media partners expands. The strategic pivot is expected to result in adjusted EBITDA profitability in Q4 2025.

The shift in focus is stark when comparing the legacy segment to the growth engine:

Finance: draft 13-week cash view by Friday.

Fluent, Inc. (FLNT) - Canvas Business Model: Channels

The Channels component of Fluent, Inc. (FLNT)'s business model as of late 2025 is heavily weighted toward Commerce Media Solutions, with legacy channels actively being de-emphasized.

The primary channels driving growth are centered around strategic partnerships that provide access to high-intent consumer moments, particularly post-purchase environments.

• Rebuy Monetize powered by Fluent (Shopify Ecosystem Access):
• Active merchant adoption saw over 700% growth since launching in May 2025.
• Recorded over one million ad unit sessions in September alone.
• This represented a 79% month-over-month increase in sessions in September.
• Merchants using the platform are reportedly earning $0.35+ in pure incremental profit per order.
• The underlying Rebuy Engine platform generates over $1 billion in new revenue annually for its merchants.
• Fluent leverages its database of over 200 million first-party data profiles to power personalization within this channel.

The table below summarizes the financial contribution and trajectory of the key revenue-driving channels as of the third quarter of 2025.

The direct sales effort targets enterprise advertisers, which is the core of the Commerce Media Solutions segment, though the exact size of the direct sales team is not quantified.

• Commerce Media Solutions achieved an annual revenue run rate exceeding $85 million as of September 30, 2025.
• The company expects CMS to overtake the O&O business as the main driver of consolidated revenue in the fourth quarter of 2025.

The Owned and Operated (O&O) channel is clearly in a phase of strategic reduction, with resources being reallocated to the higher-growth Commerce Media Solutions.

• Owned and Operated revenue decreased 52% from the prior year in Q3 2025.
• The year-over-year decline of roughly 50% was expected to continue into Q4 2025.
• In Q1 2025, O&O revenue was $31.1 million, down 30% from $44.7 million in Q1 2024.

Fluent, Inc. has also secured new high-profile partnerships that feed into the enterprise/CMS channel, such as agreements with Databricks and Authentic Brands Group, which generates more than $32 billion in global annual retail sales.

Fluent, Inc. (FLNT) - Canvas Business Model: Customer Segments

You're looking at the customer base for Fluent, Inc. (FLNT) as of late 2025, which is clearly split between the legacy business and the high-growth Commerce Media Solutions (CMS) engine. The focus is heavily on advertisers who need measurable customer acquisition, which is where the CMS segment shines.

The customer segments are defined by the type of advertising solution they seek and the platform they operate on. The shift is dramatic; the legacy Owned and Operated (O&O) segment is shrinking fast, while CMS is rapidly becoming the primary revenue contributor.

Here's a breakdown of the key groups Fluent is serving right now:

• Top-tier retail and lifestyle brands seeking customer acquisition, evidenced by new partnerships like Authentic Brands.
• E-commerce merchants, especially those on the Shopify platform, gained through the Rebuy Engine partnership, which gives access to over 12,000 Shopify brands.
• Performance-driven advertisers utilizing Cost-Per-Action (CPA) models, who are the core users of the CMS business.
• The legacy audience from Fluent's Owned and Operated digital properties, which is being strategically de-emphasized.

The financial data from the third quarter ended September 30, 2025, clearly shows this segmentation in action. The CMS business is the future, and its customer base is driving that growth.

Here's the quick math on the revenue mix as of Q3 2025:

The top-tier brand segment is crucial for validating the CMS strategy. For instance, the partnership with Authentic Brands, a brand owner generating over $32 billion in global annual retail sales, signals Fluent's ability to secure major players in the lifestyle vertical. Similarly, securing Dick's Sporting Goods as a new enterprise client shows competitive wins in securing performance marketing spend.

For the e-commerce merchant side, the partnership with Rebuy Engine is the direct link to the Shopify ecosystem, providing access to over 12,000 brands. These merchants are targeted with performance-driven advertising solutions like Rebuy Ads powered by Fluent, focusing on post-purchase engagement.

The performance advertisers segment is served by the CMS business, which is built on Fluent's 14-year leadership in customer acquisition and its proprietary first-party user data. This focus on measurable outcomes is what attracts CPA-model advertisers.

What this estimate hides is the Q1 2025 O&O revenue of $31.1 million, which helps illustrate the speed of the decline compared to the Q3 2025 CMS revenue of $18.8 million. Finance: draft 13-week cash view by Friday.

Fluent, Inc. (FLNT) - Canvas Business Model: Cost Structure

You're looking at the cost structure for Fluent, Inc. (FLNT) as the company aggressively pivots its business model toward Commerce Media Solutions (CMS). This pivot means the cost base is shifting, with legacy costs declining while new platform investments ramp up.

The most direct cost component tied to ad inventory acquisition is the variable media cost, which directly impacts the gross margin. For instance, in Q1 2025, the consolidated gross profit margin, exclusive of depreciation and amortization, stood at 21% of revenue. This compares to a media margin of 24.9% of revenue for the same period, showing the direct cost of media spend relative to revenue. By Q3 2025, the consolidated gross profit margin (ex-D&A) was 23% of revenue, while the overall media margin was 27% of revenue. The CMS segment itself saw its media margin compress slightly from 34% in Q3 2024 to 25% of its revenue in Q3 2025, reflecting early-stage expansion and client incentives.

Investment in technology and data infrastructure is embedded within the operating expenses, supporting the growth of CMS, which management expects to become the majority of revenue by 2026. While a specific dollar figure for AI/ML investment isn't broken out, the strategic shift relies on leveraging data intelligence to drive performance-based ad placements. The cost discipline efforts show up in the reduction of operating expenses across key areas.

The Selling, General, and Administrative (SG&A) expenses are part of the total operating expenses. In Q1 2025, Fluent reported that sales and marketing, product development, and general administrative expenses all decreased year-over-year, signaling cost management efforts.

Here's a look at the recent operating expense and profitability figures you asked about. The company is clearly still in an investment phase, as shown by the ongoing net losses.

The operating expenses of $16.1 million in Q1 2025 were part of a total cost reduction of 11% compared to the prior year's $69.9 million in total costs. This focus on expense control is critical as the company works toward its goal of achieving adjusted EBITDA profitability in Q4 2025.

The net loss of $7.6 million in Q3 2025, compared to a loss of $7.9 million in Q3 2024, demonstrates ongoing investment while showing a slight improvement year-over-year in the net loss amount. This ongoing loss is the financial reality of aggressively shifting capital and effort away from the declining Owned and Operated (O&O) segment, which saw revenue drop 52% in Q3 2025, toward the high-growth CMS segment.

You can see the cost structure pressure points in the segment performance:

• Owned and Operated (O&O) revenue declined 30% in Q1 2025 and 52% in Q3 2025.
• Commerce Media Solutions (CMS) revenue grew 99% year-over-year in Q1 2025 and 81% in Q3 2025.
• CMS media margin was 24.6% in Q1 2025, while overall media margin was 24.9%.

Finance: draft 13-week cash view by Friday.

Fluent, Inc. (FLNT) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for Fluent, Inc. (FLNT)'s revenue streams as of late 2025, focusing on the clear shift in their business mix. Honestly, the story here is the pivot away from the older model toward Commerce Media Solutions (CMS).

The latest reported figures from the third quarter of 2025 show this transition clearly. The Commerce Media Solutions segment brought in $18.8 million in revenue for Q3 2025. This segment is the growth engine, and its annual revenue run rate has already surpassed $85 million as of that same quarter. To put that in perspective, CMS represented 40% of the total consolidated revenue in Q3 2025, up significantly from just 16% in Q3 2024.

The legacy segment, Owned and Operated (O&O) revenue, is seeing a planned contraction. For Q3 2025, O&O revenue was reported at $20.7 million, reflecting a year-over-year decline of about 52% as Fluent reallocates capital and effort to CMS.

Here's a quick snapshot of the key revenue figures through the third quarter of 2025:

The nature of the CMS revenue stream is fundamentally performance-based advertising fees. This means Fluent, Inc. is primarily compensated based on measurable outcomes for its partners. The core monetization mechanism relies on:

• Performance-based advertising fees (CPA/CPL model).
• Driving customer acquisition at scale for advertisers.
• Monetizing exclusive ad inventory and first-party data.

The industry standard for this type of digital advertising is heavily weighted toward performance, which is why Fluent, Inc. is pushing this model; it's where the market demands measurable ROI. Cost Per Acquisition (CPA) is a key metric here, calculated by dividing the total campaign cost by the number of conversions generated, aiming for the lowest possible cost per outcome.

Finance: draft 13-week cash view by Friday.