FLUENT Reports Second Quarter 2025 Results

Executive Summary

• FLUENT Corp. reported financial and operating results for the second quarter ended June 30, 2025, alongside significant operational milestones including the largest harvest in company history at its Rosa facility and the commencement of operations at its Buffalo facility via a partnership with Connected Cannabis.
• The company appointed Dave Vautrin as Interim CEO, who outlined a strategic turnaround focused on operational excellence, customer-centricity, and disciplined cost management.
• Financial results showed a slight decline in revenue and significant drops in gross profit and Adjusted EBITDA compared to the prior year period, driven by lower revenue and increased production costs, though cash flow from operations improved.

Key Details

• Q2 2025 Financial Highlights (vs. Q2 2024):
  • Revenue: $26.7 million (down from $27.3 million).
  • Florida Revenue: $19.3 million (down from $23.1 million).
  • Gross Profit (before fair value adjustments): $10.4 million (39% of revenue), compared to $13.8 million (50.5% of revenue).
  • Adjusted EBITDA: $3.9 million, compared to $7.7 million.
  • Cash Flow from Operations: $3.2 million generated, compared to $2.8 million provided in Q2 2024.
  • Balance Sheet (June 30, 2025):
    • Cash and cash equivalents: ~$22.9 million (up from $8.5 million).
    • Total debt: $78.1 million (up from $67.5 million).
    • Common shares outstanding: ~475 million (as-converted), compared to ~300 million.
• Operational Highlights:
  • Florida: The Rosa indoor cultivation facility completed its inaugural harvest in August, marking the largest harvest in FLUENT’s history. A review of the Florida retail network is underway to drive profitable growth.
  • New York: The Buffalo indoor cultivation facility commenced operations in an exclusive partnership with Connected New York Inc. (“Connected Cannabis”). This partnership doubles FLUENT’s capacity and supports the cultivation of single-tier high-quality indoor flower. Connected Cannabis products (including Connected and Alien Labs) are expected to hit shelves in late Q4 2025.
  • Texas: Construction of the Houston Education and Pick-Up Center is nearing completion; management awaits state legislative guidance.
  • Pennsylvania: The company continues to monitor legislative changes for growth opportunities.
  • Footprint: As of the reporting period, FLUENT operates 42 retail locations and 8 production facilities across Florida, New York, Pennsylvania, and Texas.
• Management Changes: Dave Vautrin appointed as Interim CEO.
• Conference Call: The Company will not host an earnings call for the quarter.

Notable Quotes

• “While Q2 results fell below expectations, just a few weeks into my role as Interim CEO I have been deeply impressed by the energy and focus of our entire team as we drive a strategic turnaround. We remain fully committed to operational excellence — with a clear focus on being customer-centered, achieving profitable growth, maintaining disciplined cost management, and executing our strategic initiatives,” said Dave Vautrin, Interim CEO of FLUENT.
• “We believe we are entering a strategic inflection point on several fronts. On the cultivation side, we are proud to celebrate the first harvest from our new Rosa facility in Florida. This harvest, the largest in FLUENT’S history, paired with enhanced quality, underscores the growing strength of our cultivation platform.”