Update shared on 16 Nov 2025
Fair value Decreased 17%Narrative Update on Fluent Price Target
Analysts have revised Fluent's fair value estimate downward from $3.00 to $2.50 per share. This change is attributed to adjustments in discount rates as well as updated projections for revenue growth and profit margins.
What's in the News
- Fluent, Inc. announced a securities purchase agreement with company officers, directors, and accredited investors to issue over 3.5 million shares at $1.75 per share, raising nearly $6.2 million. (Key Developments)
- The company will also offer pre-funded warrants for up to 2.3 million shares and regular warrants for up to 5.8 million shares. This brings total proceeds to approximately $10.3 million. (Key Developments)
- Warrants are exercisable at $2.21 per share for five and a half years, with pre-funded warrants immediately exercisable at $0.0005 per share. Both are subject to future adjustments. (Key Developments)
- Benchmark, serving as underwriter, will receive a cash fee equal to 7% of the aggregate gross proceeds and be reimbursed for certain expenses. (Key Developments)
- The offering is expected to close on August 19, 2025. (Key Developments)
Valuation Changes
- Fair Value Estimate: Lowered from $3.00 to $2.50 per share, reflecting a decrease in the projected price target.
- Discount Rate: Reduced slightly from 7.55% to 7.38%, indicating a modest shift in risk assessment.
- Revenue Growth: Increased from 5.92% to 7.33%, suggesting an improved outlook for future sales expansion.
- Net Profit Margin: Marginally higher from 10.13% to 10.30%, pointing to expectations for slightly improved profitability.
- Future P/E Ratio: Increased from 3.91x to 4.12x, indicating higher projected earnings multiples.
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