FLUENT Reports Third Quarter 2025 Results | CNTMF Stock News

11/28/2025 - 08:15 AM Focused on Margin Expansion, Operational Efficiency, and Strategic Market Positioning Ahead of Buffalo, New York and Rosa, Florida Premium Indoor Facility Activations in Q4 2025TAMPA, Fla., Nov. 28, 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 third quarter ended September 30, 2025. Unless otherwise indicated, all financial results are presented in U.S. dollars. Management Commentary “During the third quarter, we continued to execute on our strategic priorities with a clear focus on reversing the declining margin profile and enhancing operational efficiency across our footprint ahead of our new indoor capacity hitting retail shelves in the fourth quarter,” said Dave Vautrin, Interim CEO of FLUENT. “While consolidated revenue was relatively consistent year-over-year, we recognized pressure on gross margins driven by correcting extraction inefficiencies and a shifting product mix in Florida. We have already taken decisive actions to address these challenges, including optimizing our retail portfolio, improving distillate yields, accelerating product innovation, and bringing key indoor production facilities fully online.” Vautrin continued, “We have also made disciplined investments during the current quarter in markets where we expect meaningful margin contribution. In Florida, we operationalized our large-scale Rosa indoor cultivation facility in November, nearly doubling our premium flower capacity. The Rosa facility is ramping up as planned and is now delivering true premium-quality flower and measurable improvements in yield, which we expect will support our objectives of achieving stronger margins through larger capture of the Florida premium market opportunity heading into 2026. In New York, we have operationalized our large-scale Buffalo premium indoor cultivation facility in Q4 2025 and are now preparing for the launch of premium SKUs from Connected and Alien Labs, which we believe will energize our efforts to improve our wholesale revenue and margin contribution. Across all markets, our near-term focus remains on optimizing operational excellence, capital efficiency, and driving sustainable margin expansion as we position FLUENT for long-term value creation.” Q3 2025 Financial Highlights (vs. Q3 2024) Revenue: $26.0 million compared to $26.1 million in Q3 2024.Florida revenue: $21.6 million compared to $22.0 million in Q3 2024, reflecting pricing pressures.Gross profit before fair value adjustments1: $8.0 million (31% of revenue) compared to $14.3 million (54.6% of revenue) in Q3 2024.Adjusted EBITDA2: $2.8 million compared to $7.5 million in Q3 2024, primarily due to lower revenue and reduced margins.Cash flow from operations: Cash used in operations of $.8 million, compared to cash provided by operations of $9.5 million in Q3 2024.Balance sheet: On September 30, 2025, the Company had cash and cash equivalents of approximately $15.1 million and total debt outstanding of $72.2 million, compared to $8.9 million of cash and cash equivalents and $71.4 million in total debt outstanding on September 30, 2024. Common shares outstanding on an as-converted basis were approximately 714 million in Q3 2025 compared to 342 million common shares outstanding on an as-converted basis in Q3 2024. Recent Operational Highlights Company Footprint: FLUENT currently operates at a total of 37 retail locations and 8 production facilities across its key markets of Florida, New York, Pennsylvania, and Texas. Florida: Closed five of the lowest-performing dispensaries and opened a new location in Brandon, bringing total number of active stores to 31.Anticipated new dispensaries in Orlando Sand Lake (expected to open in Q4 2025) and Palm Bay (expected to open in Q1 2026) to grow statewide reach to 33 locations.Relaunched physician and community outreach programs to strengthen patient engagement.Completed first harvests at Rosa indoor production facility. Focused on continued scaling up of canopy, improving consistency, yield, and throughput.The Company anticipates improved distillate yields will contribute to margin recovery in Q4 2025.Launched Bag-O 7g ground flower, now available statewide. New York: Buffalo production facility nearing full operational status; initial retail and wholesale launch of Connected and Alien Labs SKUs expected this December, with 9 Alien Labs and 11 Connected strains in the first wave.ENTOURAGE, the Company’s wholesale division, continues to expand distribution and revenue statewide.Rebranding completed for all three co-located dispensaries in Manhattan, White Plains, and Kingston.Closed Syracuse medical-only dispensary, planning a new medical-only location in 2026. Texas: Houston Education and Pick-Up Center expected to open in December 2025.Production underway for new Rick Simpson Oil (RSO) and distillate syringe products, with additional SKUs in active R&D. Pennsylvania: The Company currently operates three dispensaries in south-central Pennsylvania (Hanover, Mechanicsburg and Annville).The Company continues to evaluate regulatory developments to assess future growth opportunities. _______________________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.2 Adjusted EBITDA 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 Adjusted EBITDA as EBITDA (being calculated as the net income (loss), plus (minus) interest expense (income) and finance transactions costs, plus taxes, plus depreciation and amortization) plus (minus) the changes in fair value of biological assets, plus (minus) the changes in fair market value of derivatives, plus (minus) certain one-time non-operating expenses, as determined by management. Regulatory ProgressThe United States federal government recently announced plans to close what proponents call the hemp-derived THC loophole created under the 2018 Farm Bill that allowed hemp-derived products containing tetrahydrocannabinol, orTHC,to be sold. Management views this as a potentially meaningful tailwind for regulated operators that is expected to curb the widespread availability of intoxicating hemp products that currently operate outside the licensed cannabis framework. The impact is expected to be particularly significant in Florida and Texas: Florida: Unregulated hemp-derived THC has impacted pricing and category mix in the Florida market. A federal crackdown is expected to reduce illicit competition and support margin recovery in the regulated medical market. Currently, the Florida Department of Agriculture and Consumer Services estimates that there are more than 9,500 hemp retailers in the state3, while Florida’s office of Medical Marijuana Use reports 734 licensed dispensaries4, meaning for every one legal licensed dispensary there are approximately 12 resellers of hemp derived cannabis in Florida.Texas: With more than 8,000 hemp resale licenses in Texas5, the state has become a major market for hemp-derived THC products. Management of the Company believes that the recent regulatory changes in Texas and the recently announced U.S. federal action are expected to materially rebalance the competitive landscape in Texas and enhance long-term economics for compliant medical operators in the state. FLUENT anticipates these regulatory developments may pave a path forward for a more stable, regulated market environment, which will in turn support the Company’s focus on improving margins across its portfolio. Conference CallThe Company will not host an earnings call for the quarter. _______________________3 Source: https://www.miamiherald.com/news/politics-government/state-politics/article294313734.html 4Source: https://knowthefactsmmj.com/about/weekly-updates/ 5Source: https://www.bakerinstitute.org/research/texas-lawmakers-have-chance-get-hemp-regulation-right About FLUENT Corp.FLUENT, a national cannabis consumer packaged goods company and retailer, is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by FLUENT's unrelenting commitment to operational excellence in cultivation, production, distribution, and retail experience. FLUENT produces an assortment of cannabis products under a diverse portfolio of brands including MOODS, Knack, Wandr, Bag-O and Hyer Kind. FLUENT operates in Florida, New York, Pennsylvania, and Texas. Headquartered in Tampa, Florida, FLUENT employs 700 employees across 8 cultivation and manufacturing facilities, 37 active retail locations and a wholesale division which trades under ENTOURAGE servicing third party retailers in New York. For more information on the Company’s wholesale division ENTOURAGE, please visit https://entouragewholesale.com/. FLUENT’s common shares trade on the Canadian Securities Exchange under the symbol “FNT.U” and on the OTCQB Venture Market under the symbol “CNTMF”. For more information about the Company, please visit www.getFLUENT.com and investors.getFLUENT.com/. Forward-Looking InformationCertain information in this news release may constitute forward-looking information within the meaning of applicable securities laws 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" or similar expressions and includes, but is not limited to, statements with respect to the Company’s focus on reversing declining margins and enhancing operational efficiency across the Company’s footprint; expectations regarding the Company’s new indoor capacity; expectations regarding stronger margins, wholesale revenue and margin contribution; the timing, occurrence and expectations regarding future product offerings, dispensaries, medical-only locations and pick-up centers; the Company’s ongoing evaluation of regulatory developments and the timing, occurrence expectations of such developments; the anticipated impacts of recent regulatory changes in Florida and Texas; and the Company’s expectations regarding operational excellence, capital efficiency, driving sustainable margin expansion and long-term value creation. 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. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the Company’s ability to execute its go-forward strategy; stock market volatility; changes in the business activities, focus and plans of the Company and the timing associated therewith; the timing of any changes to federal laws in the U.S. to allow for the general cultivation, distribution, and possession of cannabis; regulatory and licensing risks; changes in cannabis industry growth and trends; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation, including the Company’s interpretation of such regulation; public opinion and perception of the cannabis industry; and the risk factors described in the public filings of the Company filed with Canadian securities regulators and available under the Company’s 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. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. The Company, through several of its subsidiaries, is directly involved in the manufacture, possession, use, sale, and distribution of cannabis in the adult-use and medical cannabis marketplace in the United States. Local state laws where the Company operates permit such activities however, investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the United States Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable United States federal money laundering legislation. While the approach to enforcement of such laws by the federal government in the United States has trended toward nonenforcement against individuals and businesses that comply with adult-use and medical cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under United States federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect operations and financial performance. 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:Matt Mundy, Chief Legal Officer(850) 972-8077 FLUENT CORP.CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs of September 30, 2025 and December 31, 2024(USD '000) September 30, December 31, 20252024AssetsCurrent assetsCash and cash equivalents (includes $4,500 of restricted cash)$15,112$40,106Accounts receivable862422Biological assets3,1123,162Inventory, net15,79515,155Prepaid expenses and other current assets2,8262,587Total current assets$ 37,707 $ 61,432 Property and equipment, net54,54952,200Right-of-use assets, net68,58546,731Intangible assets, net37,25937,590Goodwill1,5251,525Deferred tax assets1,8991,039Other assets2,1076,476Total assets$ 203,631 $ 206,993 Liabilities and shareholders' equityCurrent liabilitiesAccounts payable$5,343$6,332Accrued expenses9,8528,423Income taxes payable-1,003Derivative liabilities1,6162,148Short term provision liability-4,957Current portion of notes payable1,983755Lease obligations - current portion5,5724,751Total current liabilities$ 24,366 $ 28,369 Long-term liabilitiesNotes payable, net of current portion and financing costs70,20268,775Lease liabilities, net of current portion70,80651,727Deferred tax liability4,7084,817Uncertain tax position55,99443,314Long term provision liability7,4149,044Convertible notes, net7,2586,482Other long-term liabilities3,4473,447Total long-term liabilities$ 219,829 $ 187,606 Total liabilities$ 244,195 $ 215,975 Shareholders' equityShare capital206,629206,419Share-based compensation reserve7,4927,275Equity conversion feature7,0977,097Warrants29,63429,634Accumulated deficit(290,220)(258,211)Accumulated other comprehensive loss(1,196)(1,196)Total shareholders' equity $ (40,564)$ (8,982)Total liabilities and shareholders' equity$ 203,631 $ 206,993 FLUENT CORP.CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)For the three and nine months ended September 30, 2025 and 2024(USD '000)For the three months endedFor the nine months endedSeptember 30,2025September 30,2024September 30,2025September 30,2024Revenue, net of discounts$26,037$26,147$79,485$78,643Cost of goods sold18,00811,85948,50338,315Gross profit before fair value adjustments8,02914,28830,98240,328Fair value adjustments on inventory sold611(2,099)(1,876)(2,259)Unrealized gain (loss) on changes in fair value of biological assets(551)(611)1,4758,704Gross profit8,08911,57830,58146,773ExpensesGeneral and administrative4,3193,91313,32512,483Sales and marketing5,6855,84618,50717,298Depreciation and amortization2,0051,7376,1845,247Share-based compensation(101)228217419Total expenses11,90811,72438,23335,447Income (loss) from operations(3,819)(146)(7,652)11,326Other expense (income)Finance costs, net5,5355,15415,60614,700Change in fair value of derivative liability144(898)(532)(8,292)Change in remeasurement of provision liabillity67-(4,723)-Loss on disposal of assets343-519212Loss from termination of a contract6-65Other expense (income)45-15-Total other (income) expense6,1404,25610,8916,625Income (loss) before income taxes(9,959)(4,402)(18,543)4,701Income tax expense3,6287,37913,46619,700Net comprehensive income (loss)$(13,587)$(11,781)$(32,009)$(14,999)Net loss per shareBasic and diluted - continuing operations$(0.02)$(0.04)$(0.06)$(0.05)Weighted average number of sharesBasic number of shares604,753,362300,522,916517,497,692299,617,665Diluted number of shares700,549,856341,807,051697,326,649341,616,139 FLUENT CORP.CONSOLIDATED STATEMENTS OF CASH FLOWFor the nine months endedSeptember 30, 2025 and September 30, 2024(USD '000)For the nine months ended September 30,20252024Cash flows provided by operating activitiesNet loss$(32,009)$(14,999)Adjustments for non-cash items:Unrealized gain on changes in fair value of biological assets(1,475)(8,704)Realized loss on fair value amounts included in inventory sold1,8762,259Share-based compensation expense217419Depreciation and amortization17,85311,366Accretion and interest expense16,11814,680Loss on disposition of fixed assets490212Gain on remeasurement of provision liability(4,654)-Loss on lease modification2-Loss on termination of contract6-Loss on loan modification36-Change in fair value of derivative(532)(8,292)Uncertain tax position12,68038,816Deferred tax expense(969)4,835Net change in non-cash working capitalAccounts receivable(440)164Biological assets(16,977)(11,294)Inventory15,98610,944Prepaid expenses and other current assets1,802960Right of use assets/liabilities(10,097)(3,520)Other assets4,369(466)Accounts payable(2,993)2,510Accrued expenses709(4,354)Other long-term liabilities-(435)Income taxes(1,003)(18,672)Net cash provided by operating activities$995$16,429Cash flows used in investing activitiesPurchases of property and equipment(14,119)(10,543)Purchase of intangible assets(318)(1,332)Net cash used in investing activities$(14,437)$(11,875)Cash flows used in financing activitiesProceeds from issuance of convertible debenture and warrants210-Proceeds from issuance of convertible debenture and warrants-3,983Payments of lease obligations(3,433)(2,126)Net proceeds from equipment loan-48Principal and interest repayments of notes payable(8,329)(8,048)Net cash used in financing activities$(11,552)$(6,143)Net decrease in cash(24,994)(1,589)Cash, beginning of period40,10610,521Cash, end of period$15,112$8,932 FLUENT CORP.EBITDA AND ADJUSTED EBITDA CALCULATIONFor the three and nine months endedSeptember 30, 2025 and September 30, 2024(USD '000)Three months endedSeptember 30,2025September 30,2024VarianceNet loss$(13,587)$(11,781)$(1,806)Interest expense5,5355,154381Income taxes3,6287,379(3,751)Depreciation and amortization6,1053,8012,304EBITDA$1,681$4,553$(2,872)Three months endedSeptember 30,2025September 30,2024VarianceEBITDA$1,681$4,553$(2,872)Change in fair value of biological assets(60)2,710(2,770)Change in fair market value of derivative144(898)1,042Change in provision liability67-67Professional fees132529(397)One-time employee costs124162(38)Share-based compensation(101)228(329)Loss on disposal of assets343-343Other non-recurring expense507243264Adjusted EBITDA$2,837$7,527$(4,690)Nine months endedSeptember 30,2025September 30,2024VarianceNet loss$(32,009)$(14,999)$(17,010)Interest expense15,60614,700906Income taxes13,46619,700(6,234)Depreciation and amortization16,17711,2744,903EBITDA$13,240$30,675$(17,435)Nine months endedSeptember 30,2025September 30,2024VarianceEBITDA$13,240$30,675$(17,435)Change in fair value of biological assets401(6,445)6,846Change in fair market value of derivative(532)(8,292)7,760Change in provision liability(4,723)-(4,723)Professional fees2164,170(3,954)One-time employee costs302776(474)Share-based compensation217419(202)Loss on disposal of assets519212307Other non-recurring expense/(income)477486(9)Adjusted EBITDA$10,117$22,001$(11,884)