Patrick Scholl's questions to Fluent Inc (FLNT) leadership • Q2 2025
Question
Patrick Scholl from Barrington Research Associates, Inc. asked about the Commerce Media segment, specifically the structure of new partner agreements and the expected timeline for margin pressures to ease. He also questioned if new solutions require different advertising partners.
Answer
CEO Don Patrick identified three reasons for the Q2 margin compression in Commerce Media: launching new, early-stage solutions; using short-term competitive pricing incentives to win partners; and the mix effect from channel partnerships. He stated that margins are already improving in Q3 and expects a return to historical levels by Q4. Patrick also clarified that the new solutions primarily utilize the same group of advertisers.