Fluent, Inc. — financial distress indicators
Financial-health summary
Fluent, Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 69/100). The main indicators are losses in each of the last 3 years, material debt with no ebitda and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 98% and the market-implied (Merton) default probability is 0.7%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Debt is 43% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 3.83 → model probability 98%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Current ratio is 0.95.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Revenue changed -18% year over year.
Falling sales reduce cash available for debt service.
Short-term debt is 2.6× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (50%) aligns management with survival.
📰 Recent news scan
- Fluent (NasdaqCM:FLNT) Stock Forecast & Analyst Predictions - Simply Wall StreetGoogle News · 2026-10-01
- Fluent Inc (NASDAQ: FLNT) Share Price, FLNT Stock News, FLNT Share Price & Updates - kalkine.caGoogle News · 2026-09-22
- Insider at Fluent (FLNT) buys stock and holds 78,425-share warrant stake - Stock TitanGoogle News · 2026-09-16
- Fluent (FLNT) Upgraded to Buy: Here's Why - Yahoo FinanceGoogle News · 2026-08-24
- Fluent: Low Valuation In A Growing Sector (NASDAQ:FLNT) - Seeking AlphaGoogle News · 2026-08-12
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Fluent, Inc.'s financial-health indicators show?
As of 2026-10-08, Fluent, Inc.'s public financial data places it in the 'Weak' band with a distress score of 69/100, driven by losses in each of the last 3 years, material debt with no ebitda and operations consume cash. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Fluent, Inc.'s financial distress score?
69/100 ('Weak'). Ohlson O-score 3.83 (model 1-year failure probability 98%). Merton distance-to-default 2.48 σ (model default probability 0.7%).
What works in Fluent, Inc.'s favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (50%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Telecom & Media companies with distress indicators
- FreeCast, Inc. (CAST)Very weak 100/100
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- K Wave Media Ltd. (KWM)Very weak 100/100
- Reading International, Inc. (RDIB)Very weak 100/100
- SurgePays, Inc. (SURG)Very weak 100/100
- Upexi, Inc. (UPXI)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.