Mr. Dave Vautrin reports

FLUENT REPORTS THIRD QUARTER 2025 RESULTS

Fluent Corp. has released its financial and operating results for the third quarter ended Sept. 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 chief executive officer 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 on line."

Mr. 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 [stock-keeping units] 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 (versus Q3 2024):

• Revenue: $26-million compared with $26.1-million in Q3 2024;
• Florida revenue: $21.6-million compared with $22-million in Q3 2024, reflecting pricing pressures;
• Gross profit before fair-value adjustments: $8-million (31 per cent of revenue) compared with $14.3-million (54.6 per cent of revenue) in Q3 2024;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $2.8-million compared with $7.5-million in Q3 2024, primarily due to lower revenue and reduced margins;
• Cash flow from operations: cash used in operations of $800,000, compared with cash provided by operations of $9.5-million in Q3 2024;
• Balance sheet: on Sept. 30, 2025, the company had cash and cash equivalents of approximately $15.1-million and total debt outstanding of $72.2-million, compared with $8.9-million of cash and cash equivalents and $71.4-million in total debt outstanding on Sept. 30, 2024; common shares outstanding on an as-converted basis were approximately 714 million in Q3 2025 compared with 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 eight 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 and improving consistency, yield and throughput;
• The company anticipates improved distillate yields will contribute to margin recovery in Q4 2025;
• Launched Bag-O seven-gram 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 nine 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 pickup centre expected to open in December, 2025;
• Production under way for new Rick Simpson Oil (RSO) and distillate syringe products, with additional SKUs in active R&D (research and development).

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.

Regulatory progress

The U.S. federal government recently announced plans to close what proponents call the hemp-derived THC (tetrahydrocannabinol) loophole created under the 2018 Farm Bill that allowed hemp-derived products containing THC 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 state, while Florida's office of Medical Marijuana Use reports 734 licensed dispensaries, 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 licences in Texas, 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 call

The company will not host an earnings call for the quarter.

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, Fla., Fluent employs 700 employees across eight cultivation and manufacturing facilities, 37 active retail locations and a wholesale division that trades under Entourage, servicing third party retailers in New York.

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.

We seek Safe Harbor.