- Q1 Revenue Grew 5.91% YoY to $26.7 million

- Ended quarter with $30.7 million of cash and cash equivalents

- New York operations continuing to progress as Buffalo cultivation facility nears completion

TAMPA, Fla., May 29, 2025 (GLOBE NEWSWIRE) -- FLUENT Corp. (CSE: FNT.U) (OTCQB: CNTMF) ("FLUENT" or the "Company"), a vertically-integrated, multi-state cannabis company, today announced its financial and operating results for the first quarter ended March 31, 2025. Unless otherwise indicated, all financial results are presented in U.S. dollars.

Management Commentary

"In Q1 2025, we generated $26.7 million in revenue, a 5.9% increase year-over-year, despite continued price compression and increased market saturation in Florida," said Robert Beasley, Chief Executive Officer of FLUENT. "While adjusted EBITDA declined to $3.5 million, largely due to softness in Florida, our core fundamentals remain strong. We continue to invest in infrastructure and brand development to support long-term growth. Despite industry-wide challenges this quarter, we remained focused on disciplined execution."

Beasley added, "In New York, integration of the RIV Capital assets is progressing well, with the Buffalo cultivation facility nearing completion and the FLUENT retail rebrand underway. In Florida, we launched new products and completed construction of the Roza facility, expanding production capacity ahead of our next planned harvest. Our cash position of $30.7 million, up from $8.5 million a year ago, gives us the flexibility to support near-term priorities and long-term growth."

He concluded, "While macro and regulatory uncertainties remain, we are focused on strengthening our core markets, managing costs, and positioning the company to adapt and grow as market conditions evolve."

Q1 2025 Financial Highlights (vs. Q1 2024)

   -- Revenue was $26.7 million compared to $25.2 million. 
 
   -- Florida revenue was $19.2 million compared to $21.1 million. 
 
   -- Gross profit before fair value adjustments1 was $12.5 million or 46.8% of 
      revenue, compared to $12.3 million or 48.6% of revenue. 
 
   -- Adjusted EBITDA was $3.5 million compared to $6.8 million, reflecting the 
      ongoing startup and ramp-up in the New York market following the RIV 
      acquisition, as well as continued softness in the Florida market. 
 
   -- Cash flow used in operations for the three months ending March 31, 2025, 
      was $1.5 million compared to cash flow provided by operations of $4.1 
      million in the prior year. The decline is primarily attributable to the 
      settlement of payments that had been carried over from previous periods. 
 
   -- On March 31, 2025, the Company had approximately $30.7 million of cash 
      and cash equivalents and $79.1 million of total debt outstanding, with 
      approximately 700 million shares outstanding on an as-converted basis, 
      compared to $8.5 million of cash and cash equivalents and $62.9 million 
      of total debt, with approximately 300 million shares outstanding on March 
      31, 2024. 

Recent Operational Highlights

Company Footprint:

   -- As of the end of the reporting period, FLUENT operates a total of 42 
      retail locations and 8 production facilities across its key markets of 
      Florida, New York, Pennsylvania, and Texas. 

Florida:

   -- Currently operating thirty-five retail locations and five production 
      facilities. 
 
   -- On track to opening three additional stores in Florida by the end of 
      2025. 
 
   -- Successfully relocated the North Miami Beach dispensary to Aventura, 
      offering more points of sale, larger vault storage, and a refreshed store 
      design. 
 
   -- Completed construction of the new Rosa cultivation facility in Tampa; 
      cultivation commenced in early May with the first harvest expected in 
      August 2025. 
 
   -- Launched two differentiated whole flower brands: 
 
          -- KNACK -- a high-quality, affordable offering. 
 
          -- Bag-O -- a value-driven line available in larger formats. 
 
   -- Introduced 10mg THC chocolate bites, FLUENT's first single-serve edible 
      product. 

New York:

   -- Currently operating four retail locations and one production facility. 
 
   -- Construction of Buffalo, our second cultivation facility in New York, is 
      nearing completion. The first planting is expected in Q2 2025, with the 
      inaugural harvest projected for Q4 2025. 
 
   -- Initiated rebranding of New York retail locations to FLUENT following the 
      successful acquisition of RIV Capital assets. 
 
   -- Expanded the KNACK brand portfolio in New York to include pre-rolls, 
      alongside a rotating selection of whole flower strains. 

Texas:

   -- Currently operating one production facility and a delivery program. 
 
   -- Commenced construction of the Houston Education and Pick-Up Center, with 
      an expected opening in Q3 2025. 

Pennsylvania:

   -- Currently operating three retail locations in the state. 

The company is actively monitoring legislative developments and is encouraged by the accelerating momentum toward adult-use legalization in Pennsylvania and the potential expansion of the medical program in Texas, both of which represent promising future growth catalysts.

_____________________________

(1) Gross profit before fair value adjustments is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates gross profit before fair value adjustments from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.

Conference Call

The Company will host a conference call and live audio webcast today at 4:30 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.

Date: Thursday, May 29, 2025

Time: 4:30 p.m. Eastern time

Toll-free dial-in number: 1-844-763-8274 (toll -free)

International dial-in number: 1-412-717-9224 (international)

Join Instructions: Participants to ask to be joined into the FLUENT Corp. call.

Link: FLUENT Corp Conference Call

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

The conference call will also be available for replay for up to two weeks via the News & Events section of the Company's investor relations website at https://investors.getFLUENT.com/.

Forward-Looking Information

Certain information in this news release may constitute forward-looking information within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent the Company's expectations, estimates, and projections regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control.

Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available on its SEDAR+ profile at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

For further information visit: https://getfluent.com/ and https://investors.getFLUENT.com/

Investor Relations Contact

investors@getFLUENT.com

Media Contact:

press@getfluent.com

Officer Contact:

Robert Beasley, CEO

(850) 972-8077

 
 
Fluent Corp. 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
As of March 31, 2025 and December 31, 2024 
(USD '000) 
                                            March 31,     December 31, 
                                               2025           2024 
------------------------------------------  ----------  ---------------- 
 
Assets 
Current assets 
    Cash and cash equivalents               $  30,744    $     40,106 
    Accounts receivable                           235             422 
    Biological assets                           3,298           3,162 
    Inventory, net                             20,051          15,155 
    Prepaid expenses and other current 
     assets                                     1,824           2,587 
  Total current assets                      $  56,152    $     61,432 
------------------------------------------   --------       --------- 
 
Property and equipment, net                    53,757          52,200 
Intangible assets, net                         37,315          37,590 
Right-of-use assets, net                       45,523          46,731 
Goodwill                                        1,525           1,525 
Deferred tax assets                             1,248           1,039 
Other assets                                    6,534           6,476 
  Total assets                              $ 202,053    $    206,992 
==========================================   ========       ========= 
 
Liabilities and shareholders' equity 
Current liabilities 
    Accounts payable                        $   4,439    $      6,331 
    Accrued expenses                            8,923           8,423 
    Income taxes payable                        1,003           1,003 
    Derivative liabilities                      1,691           2,148 
    Short term provision liability              5,000           4,957 
    Current portion of notes payable              458             755 
    Lease obligations - current portion         4,943           4,751 
  Total current liabilities                 $  26,457    $     28,368 
------------------------------------------   --------       --------- 
 
Long-term liabilities 
      Notes payable, net of current 
       portion and financing costs             69,261          68,775 
      Lease obligations, net of current 
       portion                                 51,168          51,727 
      Deferred tax liability                    5,542           4,817 
      Uncertain tax position                   48,176          43,314 
      Long term provision liability             8,980           9,044 
      Convertible notes, net                    6,729           6,482 
      Other long-term liabilities               3,447           3,447 
  Total long-term liabilities               $ 193,303    $    187,606 
------------------------------------------   --------       --------- 
  Total liabilities                         $ 219,760    $    215,974 
------------------------------------------   --------       --------- 
 
Shareholders' equity 
      Share capital                           206,419         206,419 
      Share-based compensation reserve          7,300           7,275 
      Equity conversion feature                 7,097           7,097 
      Warrants                                 29,634          29,634 
      Accumulated deficit                    (266,961)       (258,211) 
      Accumulated other comprehensive 
       income (loss)                           (1,196)         (1,196) 
  Total shareholders' equity                  (17,707)         (8,982) 
------------------------------------------   --------       --------- 
 
  Total liabilities and shareholders' 
   equity                                   $ 202,053    $    206,992 
==========================================   ========       ========= 
 
 
 
 
Fluent Corp. 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE 
 INCOME (LOSS) 
For the three months ended March 31, 2025 and March 
 31, 2024 
(USD '000)                                 For the three months ended 
                                        -------------------------------- 
                                            March 31,        March 31, 
                                               2025             2024 
                                        -----------------  ------------- 
 
Revenue, net                               $      26,717   $   25,227 
Cost of goods sold                                14,195       12,966 
--------------------------------------  ----  ----------    --------- 
Gross profit before fair value 
 adjustments                                      12,522       12,261 
 
Fair value adjustments on inventory 
 sold                                               (301)       1,628 
Unrealized gain (loss) on changes in 
 fair value of biological assets                   3,025        1,047 
--------------------------------------  ----  ----------    --------- 
Gross profit                                      15,246       14,936 
 
Operating expenses: 
  General and administrative                       4,894        3,963 
  Sales and marketing                              6,319        5,434 
  Depreciation and amortization                    2,025        1,730 
  Share-based compensation                            25           49 
--------------------------------------  ----  ----------    --------- 
Total operating expenses                          13,263       11,176 
 
Income from operations                             1,982        3,760 
 
Other expense (income): 
  Finance costs, net                               4,423        4,711 
  Gain on change in fair value of 
   derivative liability                             (457)      (1,687) 
  Loss on disposal of assets                           -          212 
  Other expense, net                                  12            2 
--------------------------------------  ----  ----------    --------- 
Total other expense                                3,978        3,238 
 
Net income (loss) before income taxes             (1,996)         522 
 
Income tax expense                                 6,754        4,685 
 
Comprehensive income (loss)                $      (8,750)  $   (4,163) 
======================================  ====  ==========    ========= 
 
Net loss per share - basic and diluted     $       (0.02)  $    (0.01) 
 
 
 
 
Fluent Corp. 
CONSOLIDATED STATEMENTS OF CASH FLOW 
For the three months ended March 31, 2025 and March 
 31, 2024 
(USD '000) 
                                           For the three months ended 
                                        -------------------------------- 
                                            March 31,        March 31, 
                                               2025             2024 
--------------------------------------  -----------------  ------------- 
 
Cash flows used in operating 
activities 
  Net loss                                 $      (8,750)  $   (4,163) 
 
Adjustments for non-cash items: 
  Bargain purchase gain on business 
  combination 
  Loss on issuance and extinguishment 
  of debt instruments, net 
  Intangible assets impairment 
  Unrealized (gain) loss on changes in 
   fair value of biological assets                (3,025)      (1,047) 
  Realized (gain) loss on fair value 
   amounts included in inventory sold                301       (1,628) 
  Share-based compensation expense                    25           49 
  Depreciation and amortization                    4,553        3,703 
  Accretion and interest expense                   4,332        4,686 
  Net change in fair value of 
   derivative                                       (457)      (1,687) 
  Loss on dispositions of fixed assets                 -          212 
  Uncertain tax position                           4,862            - 
  Deferred tax expense                               516        1,216 
  Changes in non-cash working capital 
    Accounts receivable                              187          (17) 
    Inventory                                      3,279        3,939 
    Biological assets                             (5,587)      (3,551) 
    Prepaid expenses and other current 
     assets                                          763          747 
    Right of use assets / liabilities             (1,000)      (1,317) 
    Other assets                                     (58)         (90) 
    Accounts payable                              (1,892)         630 
    Accrued expenses                                 500       (4,192) 
    Income taxes                                       -        6,938 
    Other long-term liabilities                        -         (375) 
--------------------------------------  ----  ----------    --------- 
Net cash provided by operating 
 activities                                $      (1,451)  $    4,053 
--------------------------------------  ----  ----------    --------- 
 
Cash flows used in investing 
activities 
  Purchase of property and equipment       $      (4,179)  $   (2,948) 
                                        ----  ----------    --------- 
Net cash provided by used in investing 
 activities                                $      (4,179)  $   (2,948) 
--------------------------------------  ----  ----------    --------- 
 
Cash flows provided by used in 
financing activities 
  Principal repayments of notes 
   payable                                        (2,681)      (2,340) 
  Payment of lease obligations                    (1,051)        (765) 
--------------------------------------  ----  ----------    --------- 
Net cash used in financing activities      $      (3,732)  $   (3,105) 
--------------------------------------  ----  ----------    --------- 
 
Net decrease in cash and cash 
 equivalents                               $      (9,362)  $   (2,000) 
 
Cash, beginning of period                         40,106       10,521 
--------------------------------------  ----  ----------    --------- 
 
Cash, end of period                        $      30,744   $    8,521 

--------------------------------------  ----  ----------    --------- 
 
 
 
 
Fluent Corp. 
EBITDA AND ADJUSTED EBITDA CALCULATION 
For the three months ended March 31, 2025 and March 
 31, 2024 
(USD '000) 
 
                                           For the three months ended 
                                        -------------------------------- 
                                            March 31,        March 31, 
                                               2025             2024 
--------------------------------------  -----------------  ------------- 
Net loss                                   $      (8,750)  $   (4,163) 
Finance costs, net                                 4,423        4,711 
Income taxes                                       6,754        4,685 
Depreciation and amortization                      4,014        3,702 
EBITDA                                     $       6,441   $    8,935 
--------------------------------------  ----  ----------    --------- 
 
 
                                           For the three months ended 
                                        -------------------------------- 
                                            March 31,        March 31, 
                                               2025             2024 
--------------------------------------  -----------------  ------------- 
EBITDA                                     $       6,441   $    8,935 
Change in fair value of biological 
 assets                                           (2,724)      (2,675) 
Change in fair market value of 
 derivative                                         (457)      (1,687) 
Professional fees(1)                                  74        1,789 
One-time employee costs(2)                           133          160 
Share-based compensation                              25           49 
Loss on disposal of assets                             -          212 
Other non-recurring expense                           12            2 
Adjusted EBITDA                            $       3,504   $    6,785 
--------------------------------------  ----  ----------    --------- 
 
(1) Legal and professional fees associated with potential 
 transactions and professional fees associated with 
 prior periods. 
(2) Severance and relocation costs. 
 
 

(END) Dow Jones Newswires

May 29, 2025 16:45 ET (20:45 GMT)