FLNT

This article first appeared on GuruFocus. Revenue: $48.4 million in Q2 2026, up 8% year-over-year on a reported basis and up 25% on an aggregate continuing businesses basis. Commerce Media Solutions Revenue: $30.5 million, up 90% year-over-year, representing 63% of total consolidated revenue. Owned and Operated Revenue: $16.3 million, down 24% year-over-year. Gross Profit: $14 million, up 36% year-over-year, representing 28.9% of revenue. Commerce Media Solutions Gross Profit: $8.2 million, up 186% year-over-year, representing 27% of revenue. Media Margin: $17.5 million, or 36% of total consolidated revenue, compared with $11.9 million, or 26.7% of revenue, in the prior year period. Commerce Media Solutions Media Margin: $10.5 million, or 34% of revenue, compared with $3.2 million, or 20% of revenue, in Q2 2025. Operating Expenses: $17.3 million in Q2 2026, compared with $14.9 million in Q2 2025. Interest Expense: $637,000, down 9% year-over-year. Net Loss: $6.2 million in Q2 2026, compared with a net loss of $7.2 million in the prior year period. Adjusted Net Loss: $4.2 million, or a loss of $0.13 per share, compared with an adjusted net loss of $5.8 million, or a loss of $0.24 per share, in Q2 2025. Adjusted EBITDA: Loss of approximately $1.8 million, compared with a loss of $2.8 million in Q2 2025. Cash and Cash Equivalents: $6.9 million at June 30, 2026, compared with $12.9 million at December 31, 2025. Accounts Receivable: $39.4 million, compared with $48.7 million at year-end 2025. Operating Cash Flow: Approximately $300,000 in the first half of 2026. Short-Term Debt: Reduced from $30.8 million at year-end to $26.8 million as of June 30, 2026. Warning! GuruFocus has detected 7 Warning Signs with FLNT. Is FLNT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Fluent Inc (NASDAQ:FLNT) returned to year-over-year revenue growth, with aggregate continuing business revenue up 25% and total reported revenue up 8% in Q2 2026. Commerce Media Solutions revenue surged 90% year-over-year, marking the 10th consecutive quarter of high double-digit to triple-digit growth, with an annual run rate exceeding $125 million. Gross profit increased 36% year-over-year, with gross margin expanding to 28.9% of revenue, a 650 basis point improvement from Q1 2026, driven by improved monetization and scale. Adjusted EBITDA loss narrowed to $1.8 million, a sequential improvement of $1.8 million, with expectations for positive adjusted EBITDA in Q4 2026. Strategic partnerships, including CVS and BILT Technologies, expand Fluent Inc (NASDAQ:FLNT)'s market reach into new verticals like pharmacy and in-store commerce, positioning for future growth in 2027. Fluent Inc (NASDAQ:FLNT) still reported a net loss of $6.2 million and an adjusted net loss of $4.2 million in Q2 2026, indicating ongoing profitability challenges. Owned and operated revenue decreased 24% year-over-year to $16.3 million, reflecting continued headwinds from the FTC settlement and an uneven competitive landscape. Cash and cash equivalents declined to $6.9 million from $12.9 million at year-end 2025, raising concerns about liquidity despite improved operating cash flow. The in-store commerce media initiative is not expected to contribute meaningful revenue until 2027, with significant testing and learning required in the second half of 2026. The company faces uncertainty in the owned and operated business, which may not be stable long-term, and relies on the success of new partnerships to drive future growth. Q: What does the new CVS partnership mean for the commerce business, and what is the integration process like?A: Don Patrick (CEO) stated that CVS is one of the company's largest partner wins and brings Fluent into the pharmacy vertical, expanding its audience and diversifying its marketplace. The online integration is straightforward, similar to other partners, with Fluent's ad module placed on CVS's post-transaction site. He expects this win to help Fluent go deeper into the pharmacy vertical and attract other large retail partners. Q: Can you provide more detail on the operational mechanics of the new in-store commerce media offering and the required training for retail associates?A: Don Patrick (CEO) declined to provide specific details for competitive reasons but explained that the in-store experience will differ from online, leveraging larger screens at self-checkout kiosks or checkout areas. The strategy relies heavily on loyalty data to recognize shoppers, with the experience varying based on whether the consumer is a known loyalty member. He confirmed the company is in a testing and learning phase with BILT in Q3 and Q4 2026, with a rollout planned for 2027, and noted that several new in-store partners are already lined up for 2027. Q: Can you quantify the performance advantage Fluent provides to its customers compared to competitors?A: Don Patrick (CEO) cited a case study on the company's website showing a head-to-head comparison against its biggest competitor. Fluent drives close to 30% more revenue to its supply partners and achieves a similar ~30% improvement in the lifetime value of the consumer. He attributed this advantage to Fluent's proprietary first-party data asset built over 16 years and its deep understanding of advertiser audiences. Q: Given the success in the first half, should we expect an acceleration in the growth rate for the back half of the year?A: Ryan Perfit (CFO) did not provide specific guidance on the growth rate but confirmed the company expects to maintain and even grow upon its current double-digit growth rate for aggregate continuing businesses. Q: Is there a chance adjusted EBITDA could turn positive in Q3, or is Q4 the target?A: Ryan Perfit (CFO) confirmed the company expects to have a positive Q4, driven by seasonality. While not giving specific Q3 guidance, he stated the company expects continued improvement from current levels throughout the year. Q: Is there an opportunity to expand the CVS partnership to include the in-store offering?A: Don Patrick (CEO) confirmed that the clear roadmap with CVS includes both the online post-transaction business and expanding into in-store in 2027. He also noted that CVS went live with the online integration in Q3 and is scaling as planned. Q: Why can't the gross margin expand faster, and what is the long-term target?A: Ryan Perfit (CFO) explained that the 27% gross margin on Commerce Media Solutions represents a return to the mid-20s range as promised. The improvement was driven by better monetization and scale of key partnerships. He expects margins to be maintained in the mid-20s, grow to the upper-20s, and eventually reach the low-30s at scale, though not in 2026. He noted the company will continue to invest in opportunities that may temporarily impact margins. Q: How much of the incremental Commerce Media revenue came from existing customers versus new customers brought on in the last 12 months?A: Ryan Perfit (CFO) stated that while the company doesn't disclose specific stats, the growth is a mix of both. The largest influx of new partners typically occurs in Q3, while expansion from existing partners was a significant driver in the most recent quarter. Don Patrick (CEO) added that for enterprise partners, Fluent typically captures 80% to 90% of their transactions day one, so growth from that segment comes from new solutions like in-store and expanding into captive retail media networks. Q: What are you seeing on the consumer spending side, and do you have visibility for the balance of the year?A: Don Patrick (CEO) reported that consumer spending has been consistent with no meaningful changes, aside from minor rotations across verticals like shopping, loyalty, and gaming. He confirmed the company has visibility and expects the environment to remain stable for the balance of the year. Q: What are the criteria for entering new partnerships, and is the landscape selective?A: Don Patrick (CEO) explained that Fluent is vertically focused with an enterprise sales cycle. After starting in retail, the company has expanded into ticketing, grocery, and now retail pharmacy. He stated there are no specific mandates to enter new verticals, but the company will continue to expand within the verticals it has already established. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a milestone return to year-over-year revenue growth, driven by the strategic pivot toward Commerce Media Solutions which now represents 63% of total revenue. Commerce Media growth of 90% was fueled by momentum in online post-transaction moments and the expansion of non-endemic demand into captive retail media networks. Gross margin expansion of 650 basis points sequentially was attributed to improved monetization with key partners and a favorable shift in business mix toward higher-margin segments. Leveraged a decade of owned and operated (O&O) marketplace data to create a competitive moat, delivering approximately 30% higher revenue and lifetime value for partners compared to competitors. Maintained the O&O business as a strategic 'test and learn' environment to rapidly iterate creative and AI models before deploying them to enterprise commerce partners. Successfully onboarded CVS as a Tier 1 partner, marking a strategic entry into the retail pharmacy vertical and diversifying the available audience for advertisers. Management expects double-digit revenue growth for the aggregate continuing business for the full year 2026, supported by a strong partner pipeline converting in the second half. The new 'in-store' offering, launched via a partnership with Bilt, is positioned as a first-mover advantage to monetize the 83% of retail transactions occurring in physical stores. The second half of 2026 is designated as a 'test and learn' phase for in-store commerce, with material revenue contributions not expected until 2027. Adjusted EBITDA is projected to continue improving throughout the year, with seasonality expected to drive the company to positive territory in Q4 2026. Gross margins for Commerce Media Solutions are targeted to remain in the mid-20s for the remainder of 2026 as newer partnerships move beyond early-term incentive periods. The Owned and Operated segment continues to face an 'uneven playing field' due to the 2023 FTC settlement, leading to a 24% year-over-year revenue decline in that specific unit. Operating expenses increased year-over-year primarily due to higher incentive-based compensation tied directly to the company's improved financial performance. Liquidity is currently supported by an accounts receivable financing facility, with management focused on improving free cash flow as the Commerce Media business scales. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted CVS expands Fluent into the pharmacy vertical, allowing for deeper audience diversification and a case study for future retail pharmacy prospects. The integration uses Fluent's standard ad tech module for post-transaction sites, with a clear roadmap to expand into in-store commerce media in 2027. The solution utilizes physical checkout screens and self-service kiosks to engage shoppers, using loyalty data as the 'connective tissue' to recognize customers across channels. Management is being 'deliberate' about the rollout to protect competitive advantages, focusing on testing consumer experience and ROAS before scaling in 2027. Fluent is now providing non-endemic advertising demand (e.g., insurance or subscriptions) to large retailers who traditionally only focused on endemic products they sell directly. This strategy validates Fluent's performance lift capabilities, as they are reportedly delivering multiple times the performance lift compared to what these networks achieved internally.

Q2 2026 revenue of $48.4 million; H1 2026 revenue of $93.3 million, reflecting a return to growth in Q2 2026 Q2 2026 Commerce Media Solutions revenue grew 90% to $30.5 million, representing 63% of consolidated revenue from $16.1 million or 36% of consolidated revenue in Q2 2025 Commerce Media Solutions annual revenue run rate now exceeds $125 million, with gross margin of 27% Continue to expect full-year double-digit revenue growth on aggregate continuing business and adjusted EBITDA improvement for 2026 NEW YORK, Aug. 10, 2026 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT) (the “Company” or “Fluent”), a commerce media solutions provider, today reported unaudited financial results for the second quarter ended June 30, 2026. Don Patrick, Chief Executive Officer of Fluent, commented, “Our second quarter marked an inflection point we have been building toward. Consolidated revenue returned to year-over-year growth, increasing 8% to $48.4 million, revenue from aggregate continuing businesses increased 25% to $48.9 million, and Commerce Media Solutions revenue increased 90% to $30.5 million in the second quarter. For the period ended June 30, 2026, Commerce Media represented 63% of total consolidated revenue, with an annual revenue run rate exceeding $125 million. Just as important, the margin expansion we said would follow as our newer partnerships matured is now evident in the results — consolidated gross profit margin expanded to 29% from 23%, and Commerce Media Solutions gross margin recovered into the mid-twenties." Mr. Patrick continued, "Fluent continues to demonstrate a highly differentiated brand with a clear strategy to deliver superior and measurable outcomes for our media partners and advertisers. During the second quarter, we added several new important media partners and announced the launch of our new in-store commerce media offering that brings Commerce Media Solutions to the physical retail environment. In-store represents a major milestone for Fluent. With 83% of retail transactions taking place in a physical store, commerce media is now being deployed at the physical retail point of sale for the first time, creating a new, high-volume revenue stream that the retailer already owns and can now monetize. We're moving decisively to prove out this model in the second half of 2026, and we expect it to begin contributing materially to revenue in 2027." "We’re very pleased with the continued strong performance. With Commerce Media Solutions now the clear majority of our revenue and our strongest seasonal quarters ahead of us, we remain confident in delivering full-year double-digit revenue growth on our aggregate continuing businesses and improved full-year adjusted EBITDA," Mr. Patrick concluded. Second Quarter Financial Highlights Six Months Ended June 30, 2026 Financial Highlights Media margin, adjusted EBITDA, and adjusted net loss are non-GAAP financial measures, as defined and reconciled below. Business Outlook & Goals Conference Call Fluent, Inc. will host a conference call on Monday, August 10, 2026, at 4:30 PM ET to discuss its 2026 second quarter financial results. The conference call can be accessed by phone after registering online at https://register-conf.media-server.com/register/BIef43515989ce4f81a991fa3f398751a7. The call will also be webcast simultaneously on the Fluent website at https://investors.fluentco.com/. Following the completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please connect via https://edge.media-server.com/mmc/p/ccdmyf3p The replay will be available for one year, via the Fluent website https://investors.fluentco.com. About Fluent, Inc. Fluent, Inc. (NASDAQ: FLNT) is a commerce media solutions provider connecting top-tier brands with highly engaged consumers. Leveraging exclusive ad inventory, robust first-party data, and proprietary machine learning, Fluent unlocks additional revenue streams for partners and empowers advertisers to acquire their most valuable customers at scale. Founded in 2010, Fluent uses its deep expertise in performance marketing to drive monetization and increase engagement at key touchpoints across the customer journey. For more insights, visit http://www.fluentco.com/. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 The matters contained in this press release may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the intent, belief, or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations, except as required by law. Definitions, Reconciliations, and Uses of Non-GAAP Financial Measures The following non-GAAP measures are used in this release: Media margin is defined as that portion of gross profit (exclusive of depreciation and amortization) reflecting variable costs paid for media and related expenses and excluding non-media cost of revenue and one-time items. Gross profit (exclusive of depreciation and amortization) represents revenue minus cost of revenue (exclusive of depreciation and amortization). Media margin is also presented for the Commerce Media Solutions business and as percentages of revenue of the consolidated company and of the Commerce Media Solutions business, respectively. Adjusted EBITDA is defined as net income (loss), excluding (1) income taxes, (2) interest expense, net, (3) depreciation and amortization, (4) share-based compensation expense, (5) loss on early extinguishment of debt, (6) loss on disposal of assets, (7) goodwill impairment, (8) impairment of intangible assets, (9) fair value adjustment of Convertible Notes with related parties, (10) acquisition-related costs, (11) restructuring and other severance costs, (12) certain litigation and other related costs, and (13) other one-time items. Adjusted net income is defined as net income (loss) excluding (1) share-based compensation expense, (2) loss on early extinguishment of debt, (3) loss on disposal of assets, (4) goodwill impairment, (5) impairment of intangible assets, (6) fair value adjustment of Convertible Notes with related parties, (7) acquisition-related costs, (8) restructuring and other severance costs, (9) certain litigation and other related costs, and (10) other one-time items. Adjusted net income is also presented on a per share (basic and diluted) basis. We consider items one-time in nature if they are non-recurring, infrequent, or unusual and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. Below is a reconciliation of media margin from gross profit (exclusive of depreciation and amortization), which we believe is the most directly comparable U.S. GAAP measure. (1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses.(2) Includes a one-time non-media revenue adjustment of ($156) in connection with a settlement with a media partner. Below is a reconciliation of media margin from gross profit for Commerce Media Solutions (exclusive of depreciation and amortization), which we believe is the most directly comparable U.S. GAAP measure. (1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses.(2) Includes a one-time non-media revenue adjustment of ($156) in connection with a settlement with a media partner. Below is a reconciliation of adjusted EBITDA from net loss, which we believe is the most directly comparable U.S. GAAP measure. Below is a reconciliation of adjusted net income and the related measure of adjusted net income per share from net income (loss), which we believe is the most directly comparable U.S. GAAP measure. We present media margin, adjusted EBITDA, and adjusted net income as supplemental measures of our financial and operating performance because we believe they provide useful information to investors. More specifically: Media margin, as defined above, is a measure of the efficiency of the Company's operating model. We use media margin and the related measure of media margin as a percentage of revenue as primary metrics to measure the financial return on our media and related costs, specifically to measure the degree by which the revenue generated from our digital marketing services exceeds the cost to attract the consumers to whom offers are made through our services. Media margin is used extensively by our management to manage our consolidated operating performance, including evaluating operational performance against budgeted media margin and understanding the efficiency of our media and related expenditures. We also use media margin for performance evaluations and compensation decisions regarding certain personnel. Adjusted EBITDA, as defined above, is another primary metric by which we evaluate the operating performance of our business, on which certain operating expenditures and internal budgets are based and by which, in addition to media margin and other factors, our senior management is compensated. The first three adjustments represent the conventional definition of EBITDA, and the remaining adjustments are items recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. These adjustments include certain litigation and other related costs associated with legal matters outside the ordinary course of business. Adjusted net income (loss), as defined above, and the related measure of adjusted net income (loss) per share exclude certain items that are recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. We believe adjusted net income (loss) affords investors a different view of the overall financial performance of the Company than adjusted EBITDA and the U.S. GAAP measure of net income (loss). Media margin, adjusted EBITDA, adjusted net income, and adjusted net income per share are non-GAAP financial measures with certain limitations regarding their usefulness. They do not reflect our financial results in accordance with U.S. GAAP, as they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Accordingly, these metrics are not indicative of our overall results or indicators of past or future financial performance. Further, they are not financial measures of profitability and are neither intended to be used as a proxy for the profitability of our business nor to imply profitability. The way we measure media margin, adjusted EBITDA, and adjusted net income may not be comparable to similarly titled measures presented by other companies and may not be identical to corresponding measures used in our various agreements. Annual Revenue Run Rate Annual Revenue Run Rate is an operational metric that represents the annualized revenue of the Company’s media partnerships at current monetization levels, as of the end of the reporting period. The Company calculates Annual Revenue Run Rate as follows: The way the Company measures Annual Revenue Run Rate may not be comparable to similarly titled measures presented by other companies and should not be viewed as a projection of future revenue. Contact Information: Investor RelationsFluent, [email protected]

Interested in Fluent, Inc.? Here are five stocks we like better. Commerce Media Solutions drove Fluent’s growth, with revenue up 90% year over year to $30.5 million, or 63% of consolidated revenue. Total revenue rose 8% to $48.4 million, while continuing-business revenue increased 25%. Profitability improved but remained negative: gross margin expanded to 28.9%, adjusted EBITDA loss narrowed to $1.8 million, and net loss declined to $6.2 million. Management expects positive adjusted EBITDA in the fourth quarter. Fluent expanded its commerce-media pipeline through partnerships with CVS, Bilt Technologies and Beyond, with in-store commerce-media initiatives expected to begin contributing meaningfully in 2027. The company reiterated its full-year outlook for double-digit continuing-business revenue growth, despite cash declining to $6.9 million at quarter-end. Fluent (NASDAQ:FLNT) reported second-quarter 2026 revenue growth as its Commerce Media Solutions business expanded sharply and became a larger share of the company’s overall mix. Management said the quarter marked a milestone in the company’s strategic shift toward commerce media, while maintaining its full-year expectations for double-digit revenue growth from aggregate continuing businesses and improved adjusted EBITDA. Total consolidated revenue was $48.4 million for the quarter, up 8% from $44.7 million a year earlier. On an aggregate continuing-business basis, excluding the effects of the Call Solutions divestiture and other divested or run-off revenue, revenue increased 25% year over year. → MarketBeat Week in Review – 08/03 - 08/07 “Commerce Media continues to be the lead story of our company,” Chief Executive Officer Don Patrick said, pointing to growth in online post-transaction offerings and the company’s planned expansion into in-store commerce media. Commerce Media Solutions revenue rose 90% year over year to $30.5 million, representing 63% of consolidated revenue, compared with 36% in the prior-year period. Patrick said the segment has now posted its 10th consecutive quarter of high-double-digit to triple-digit growth and ended the quarter with an annual revenue run rate above $125 million. → Quantum Earnings Week: Winners and Losers Are Finally Emerging By comparison, revenue from Fluent’s Owned and Operated business declined 24% to $16.3 million from $21.4 million a year earlier. Chief Financial Officer Ryan Perfit said the company does not yet have sufficient visibility to characterize the Owned and Operated business as stable over the long term, though it remained flat sequentially during the quarter and its margins improved. Management described the Owned and Operated platform as a strategic asset that supports Fluent’s commerce-media efforts. Patrick said it allows the company to conduct tests quickly, use results to inform its artificial-intelligence models and creative approaches, and leverage first-party data and advertiser campaign data. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War In response to an analyst question, Patrick said a case study published on Fluent’s website showed the company generating nearly 30% more revenue for supply partners and close to a 30% improvement in customer lifetime value compared with its largest competitor. He said those results were representative across customers rather than an anomaly. Gross profit increased 36% year over year to $14 million, equal to 28.9% of revenue and a 650-basis-point improvement from the first quarter. Perfit said improved monetization and increased scale with certain media partners, particularly those not operating under revenue-sharing agreements, helped drive the margin improvement. Commerce Media Solutions generated media margin of $10.5 million, or 34% of segment revenue, compared with $3.2 million, or 20%, in the prior-year quarter. Segment gross profit rose 186% to $8.2 million and represented 27% of Commerce Media Solutions revenue. Perfit said Fluent expects Commerce Media Solutions margins to remain in the mid-20% range and potentially improve to the upper 20% range over time. He said the company will continue to invest in new opportunities that may initially carry lower margins while Fluent works to optimize monetization. Media margin totaled $17.5 million, or 36% of revenue, compared with $11.9 million, or 26.7% of revenue, a year earlier. Total operating expenses were $17.3 million, up from $14.9 million, primarily due to higher incentive-based compensation. Net loss narrowed to $6.2 million from $7.2 million in the prior-year period. Adjusted net loss was $4.2 million, or $0.13 per share, compared with $5.8 million, or $0.24 per share, a year earlier. Adjusted EBITDA loss improved to approximately $1.8 million from a $2.8 million loss in the prior-year quarter. Perfit said Fluent expects continued adjusted EBITDA improvement through the year and expects a positive adjusted EBITDA result in the fourth quarter, aided by seasonal factors. The company did not provide specific third-quarter financial guidance. Fluent said CVS selected the company as a commerce-media partner and came online in the third quarter. Patrick called CVS one of Fluent’s largest partner wins and said the relationship expands Fluent into the retail pharmacy category while adding a new audience for its advertiser base. The initial CVS integration is a post-transaction implementation in which Fluent’s advertising technology and module are placed within CVS’ post-transaction site. Patrick said the technical integration is similar to other Fluent partner integrations and that the partnership was live and scaling as planned. Management also sees a potential path for CVS to participate in Fluent’s in-store offering in 2027. Patrick said the company’s roadmap with CVS includes both online post-transaction commerce media and in-store capabilities. Separately, Fluent announced an in-store commerce-media partnership with Bilt Technologies, a nationwide commerce and loyalty network that provides in-store point-of-sale systems for retailers. The offering is scheduled to launch later in 2026 with Beyond Inc., the operator of Bed Bath & Beyond, buybuy BABY and The Container Store. Patrick said Fluent does not expect meaningful financial contributions from in-store during 2026. The company plans to use the second half to test consumer experiences, measurement and advertiser return on ad spend, with an expectation of material revenue impact beginning in 2027 if the model is validated at scale. Management said loyalty data will be central to connecting online and physical-store activity. Patrick said the goal is to build a single commerce platform that can recognize and engage shoppers whether they transact digitally or at a physical register. He added that Fluent has additional in-store partners prepared for rollout in 2027 but did not identify them. Fluent reiterated its expectation for double-digit consolidated revenue growth on an aggregate continuing-business basis for full-year 2026. Perfit said Commerce Media Solutions is expected to continue growing at a high-double-digit rate and increase as a share of total revenue. The company reported $6.9 million in cash and cash equivalents as of June 30, down from $12.9 million at the end of 2025. Accounts receivable declined to $39.4 million from $48.7 million, while total assets were $75.1 million. Fluent generated approximately $300,000 in operating cash flow during the first half and reduced short-term debt to $26.8 million from $30.8 million at year-end. Perfit said liquidity remains supported by the company’s accounts-receivable financing facility and that Fluent remains focused on improving free cash flow and liquidity as Commerce Media Solutions scales. Patrick said management had not seen meaningful changes in consumer spending trends, though the company is monitoring the environment closely. Fluent, Inc is a performance marketing and customer acquisition platform that helps consumer brands drive leads and sales through data-driven digital campaigns. The company specializes in direct-response marketing, executing campaigns across multiple channels including email, display, paid search, social media and native advertising. By focusing on measurable outcomes such as cost per acquisition and return on ad spend, Fluent tailors solutions to meet the specific objectives of its clients. The company's proprietary technology leverages first-party data sourced from its network of consumer-facing digital properties and programmatic partnerships. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fluent Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Commerce Media Solutions (CMS) now represents 58% of total revenue, up from 23% a year ago, signaling a fundamental shift from legacy operations to high-growth commerce media. CMS revenue grew 104% year-over-year, marking the ninth consecutive quarter of double-to-triple digit growth despite competing against incumbents with decade-long head starts. The post-transaction platform is scaling via a network effect where increased commerce partners drive higher consumer touchpoints, attracting more advertiser demand and improving yields. Management is intentionally repositioning the Owned and Operated (O&O) marketplace as a 'live test-and-learn engine' to feed first-party data and intent signals into the CMS platform. The O&O business is being managed for margin rather than growth, with resources deliberately redeployed to CMS to capture higher-quality, long-term durable revenue. Strategic expansion into new verticals like travel (Wyndham Hotels) and services (Squire) validates the platform's adaptability beyond traditional retail environments. Management expects double-digit year-over-year revenue growth for its aggregate continuing businesses for the full year 2026, driven by Commerce Media Solutions acceleration in the second half. Gross margins are projected to return to the mid-20s as early-term partner incentives roll off and newer partnerships move beyond introductory periods. The company anticipates returning to year-over-year revenue growth on aggregate continuing businesses starting in Q2 2026. Future growth is expected to be bolstered by 'demand-driven' adjacent solutions that extend the platform beyond the post-transaction moment into new consumer journey stages. Seasonality remains a factor, with the second half of the year expected to be the strongest period for revenue and adjusted EBITDA improvement. Divested the Call Solutions business in January 2026, resulting in a $2.4 million noncash gain and impacting year-over-year revenue comparisons. The Owned and Operated segment faces persistent headwinds from inconsistent industry compliance standards, which management now treats as a structural reality. Net debt was reduced to $23.5 million as of March 31, 2026, following a $6.3 million paydown on the revolving credit facility. Operating expenses decreased by $1.4 million year-over-year (excluding divestiture gains), reflecting a continued focus on cost discipline during the business transition. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Margins are currently impacted by legacy incentives, investments in subscale adjacent solutions, and the ramp-up period for new partners. Management confirmed that introductory incentives are no longer part of the current sales strategy and will continue to roll off throughout 2026. The Wyndham and Squire partnerships were performance-based wins where Fluent displaced existing competitors by proving superior results. Entry into these verticals helps diversify the business and may eventually reduce the heavy seasonality currently tied to retail cycles. The O&O business allows Fluent to test creative and offers within hours, providing a data-driven advantage when entering new verticals like travel. This proprietary infrastructure shortens the learning curve for understanding new audiences compared to competitors without first-party data assets.

Q1 2026 revenue of $44.9 million Q1 2026 Commerce Media Solutions revenue grew 104% to $25.9 million, representing 58% of consolidated revenue from $12.7 million or 23% of consolidated revenue in Q1 2025 Commerce Media Solutions annual revenue run rate now exceeds $110 million, with gross margin of 19% Expects full year double-digit revenue growth on aggregate continuing business and adjusted EBITDA improvement for 2026 NEW YORK, May 13, 2026 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT), a commerce media solutions provider, today reported unaudited financial results for the first quarter ended March 31, 2026. Don Patrick, Chief Executive Officer of Fluent, commented, “Commerce Media Solutions continued its strong momentum in the first quarter, reaching $25.9 million in revenue — a 104% increase year over year — and representing 58% of total consolidated revenue, compared to 23% in the first quarter of 2025. This marks the second consecutive quarter in which Commerce Media Solutions has exceeded half of our consolidated revenue, underscoring the rapid evolution of our business mix. Total revenue declined 19% year over year, primarily reflecting the loss of revenue from the Call Solutions conveyance in January 2026. Revenue from our aggregate continuing business declined approximately 3% year over year, as Commerce Media Solutions growth largely offset the expected contraction of our owned and operated business. "The sale of Call Solutions earlier this year allows us to focus resources on the Commerce Media Solutions opportunity," Mr. Patrick continued. "In January, we launched with Wyndham Hotels & Resorts, extending our platform into travel and hospitality. In March, we added Squire, an appointment-based platform — reflecting the applicability of our model across transaction-rich environments beyond traditional retail. Our pipeline reflects growing demand across these verticals. "With the visibility we have today, we believe we are well positioned to deliver full-year double-digit consolidated growth on revenue from aggregate continuing businesses and full-year adjusted EBITDA improvement," Mr. Patrick concluded. First Quarter Financial Highlights Revenue of $44.9 million, a decrease of 19%, compared to $55.2 million in Q1 2025 Owned and Operated revenue decreased 50% to $15.7 million compared to $31.1 million in Q1 2025, as the Company continued its shift in focus and revenue mix to Commerce Media Solutions Commerce Media Solutions revenue increased 104% to $25.9 million, compared to $12.7 million in Q1 2025 Net loss of $5.4 million, or $0.17 per share, compared to a net loss of $8.3 million, or $0.39 per share, for Q1 2025 Gross profit (exclusive of depreciation and amortization) of $10.0 million, a decrease of 12% compared to Q1 2025 and representing 22% of revenue. Commerce Media Solutions reported gross profit (exclusive of depreciation and amortization) of $5.0 million, an increase of 78% over Q1 2025 and representing 19% of revenue for Q1 2026 Media margin of $14.0 million, an increase of 2% compared to Q1 2025 and representing 31% of revenue. Commerce Media Solutions reported media margin of $7.7 million, an increase of 149% over Q1 2025 and representing 30% of revenue for Q1 2026 Adjusted EBITDA loss of $3.6 million, compared to $3.1 million for Q1 2025, and representing 8% of revenue Adjusted net loss of $5.9 million, or $0.19 per share, compared to $6.7 million, or $0.31 per share, for Q1 2025 Media margin, adjusted EBITDA, and adjusted net loss are non-GAAP financial measures, as defined and reconciled below. Business Outlook & Goals Continue to scale and grow Commerce Media Solutions as a percentage of total consolidated revenue; return Commerce Media Solutions gross margins to the mid-twenties. Enhance Fluent’s Commerce Media Solutions partnership network by adding top-tier media partners and expanding beyond traditional retail channels and into new verticals including appointment-based platforms, travel, lifestyle, and home services. Drive consolidated revenue growth and improved profitability. Given current visibility, the Company expects full-year double-digit consolidated growth in revenue on aggregate continuing businesses and improved full-year adjusted EBITDA improvement in 2026. Conference Call Fluent, Inc. will host a conference call on Wednesday, May 13, 2026, at 4:30 PM ET to discuss its 2026 first quarter financial results. The conference call can be accessed by phone after registering online at https://register-conf.media-server.com/register/BI10ac999bd5f64f20bcc6c9c2d30110f2. The call will also be webcast simultaneously on the Fluent website at https://investors.fluentco.com/. Following the completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please connect via https://edge.media-server.com/mmc/p/fiocttbz/. The replay will be available for one year, via the Fluent website https://investors.fluentco.com. About Fluent, Inc. Fluent, Inc. (NASDAQ: FLNT) is a commerce media solutions provider connecting top-tier brands with highly engaged consumers. Leveraging exclusive ad inventory, robust first-party data, and proprietary machine learning, Fluent unlocks additional revenue streams for partners and empowers advertisers to acquire their most valuable customers at scale. Founded in 2010, Fluent uses its deep expertise in performance marketing to drive monetization and increase engagement at key touchpoints across the customer journey. For more insights visit http://www.fluentco.com/. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 The matters contained in this press release may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the intent, belief or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: Our reliance on an uncommitted financing agreement raises substantial doubt about our ability to continue as a going concern; Ability to operate in a competitive, rapidly changing and highly regulated industry, which makes it difficult to evaluate our business and prospects; Dependence on the gaming industry; Unfavorable publicity and negative public perception about the digital marketing industry or us; A sudden reduction in online marketing spend by our clients, a loss of clients or lower advertising yields; Credit risk from certain clients; Our Commerce Media Solutions business is relatively new and operates in a market with established competitors, which may impact our ability to scale effectively; Our need to continue investing in technology for our Commerce Media Solutions business; Our competitive disadvantage due to our more selective approach to traffic sources; A decline in the supply of media available to us through third parties or an increase in the price of such media; Potential loss of competitiveness from slow mobile adoption and CRM dependence; Challenges scaling infrastructure and products to support growth while maintaining profitability; Global economic or political instability, including the potential impact of tariffs, inflation, interest rates, military conflicts and other geopolitical developments, including the ongoing military conflicts in the Middle East; Challenges managing the complexity of our international operations and workforce; Strategic alternatives that could complicate operations or divert management's attention; Dependence on our key personnel and ability to attract or retain employees; Dependence upon third-party service providers and potential liability related to their actions or platform malfunctions; Compliance with a significant number of governmental laws and regulations, including those regarding telemarketing, email marketing, text messaging, privacy, and data protection; The outcome of litigation, inquiries, investigations, examinations, or other legal proceedings in which we are or may become involved, or in which our clients or competitors are involved; Potential sales and use taxes and other taxes on our business; Our actual or perceived failure to safeguard any personal information or user privacy; Failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; Potential liability or expenses for legal claims based on the nature and content of the materials we create or distribute, including those provided by third parties, as a creator and a distributor of digital media content; Our potential access to additional capital in the future may be limited or unavailable on acceptable terms; Our ability to maintain our listing on The Nasdaq Capital Market; The volatility of our stock price and impact on our investors; Potential dilutive effect of any future issuances of shares of our common stock; Lack of cash dividends for the foreseeable future; and Status of a smaller reporting company and non-accelerated filer, which involves certain reduced governance and disclosure requirements. These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations, except as required by law. Definitions, Reconciliations and Uses of Non-GAAP Financial Measures The following non-GAAP measures are used in this release: Media margin is defined as that portion of gross profit (exclusive of depreciation and amortization) reflecting variable costs paid for media and related expenses and excluding non-media cost of revenue and one-time items. Gross profit (exclusive of depreciation and amortization) represents revenue minus cost of revenue (exclusive of depreciation and amortization). Media margin is also presented for the Commerce Media Solutions business and as percentages of revenue of the consolidated company and of the Commerce Media Solutions business, respectively. Adjusted EBITDA is defined as net income (loss), excluding (1) income taxes, (2) interest expense, net, (3) depreciation and amortization, (4) share-based compensation expense, (5) loss on early extinguishment of debt, (6) loss on disposal of assets, (7) goodwill impairment, (8) impairment of intangible assets, (9) fair value adjustment of Convertible Notes with related parties, (10) acquisition-related costs, (11) restructuring and other severance costs, (12) certain litigation and other related costs, and (13) other one-time items. Adjusted net income is defined as net income (loss) excluding (1) share-based compensation expense, (2) loss on early extinguishment of debt, (3) loss on disposal of assets, (4) goodwill impairment, (5) impairment of intangible assets, (6) fair value adjustment of Convertible Notes with related parties, (7) acquisition-related costs, (8) restructuring and other severance costs, (9) certain litigation and other related costs, and (10) other one-time items. Adjusted net income is also presented on a per share (basic and diluted) basis. We consider items one-time in nature if they are non-recurring, infrequent or unusual and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. Below is a reconciliation of media margin from gross profit (exclusive of depreciation and amortization), which we believe is the most directly comparable U.S. GAAP measure. (1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses. Below is a reconciliation of media margin from gross profit for Commerce Media Solutions (exclusive of depreciation and amortization) for Commerce Media Solutions, which we believe is the most directly comparable U.S. GAAP measure. (1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses. Below is a reconciliation of adjusted EBITDA from net loss, which we believe is the most directly comparable U.S. GAAP measure. Below is a reconciliation of adjusted net income and the related measure of adjusted net income per share from net income (loss), which we believe is the most directly comparable U.S. GAAP measure. We present media margin, adjusted EBITDA, and adjusted net income as supplemental measures of our financial and operating performance because we believe they provide useful information to investors. More specifically: Media margin, as defined above, is a measure of the efficiency of the Company's operating model. We use media margin and the related measure of media margin as a percentage of revenue as primary metrics to measure the financial return on our media and related costs, specifically to measure the degree by which the revenue generated from our digital marketing services exceeds the cost to attract the consumers to whom offers are made through our services. Media margin is used extensively by our management to manage our consolidated operating performance, including evaluating operational performance against budgeted media margin and understanding the efficiency of our media and related expenditures. We also use media margin for performance evaluations and compensation decisions regarding certain personnel. Adjusted EBITDA, as defined above, is another primary metric by which we evaluate the operating performance of our business, on which certain operating expenditures and internal budgets are based and by which, in addition to media margin and other factors, our senior management is compensated. The first three adjustments represent the conventional definition of EBITDA, and the remaining adjustments are items recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. These adjustments include certain litigation and other related costs associated with legal matters outside the ordinary course of business. Adjusted net income (loss), as defined above, and the related measure of adjusted net income (loss) per share exclude certain items that are recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. We believe adjusted net income (loss) affords investors a different view of the overall financial performance of the Company than adjusted EBITDA and the U.S. GAAP measure of net income (loss). Media margin, adjusted EBITDA, adjusted net income, and adjusted net income per share are non-GAAP financial measures with certain limitations regarding their usefulness. They do not reflect our financial results in accordance with U.S. GAAP, as they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Accordingly, these metrics are not indicative of our overall results or indicators of past or future financial performance. Further, they are not financial measures of profitability and are neither intended to be used as a proxy for the profitability of our business nor to imply profitability. The way we measure media margin, adjusted EBITDA, and adjusted net income may not be comparable to similarly titled measures presented by other companies and may not be identical to corresponding measures used in our various agreements. Annual Revenue Run Rate Annual Revenue Run Rate is an operational metric that represents the annualized revenue of the Company’s media partnerships at current monetization levels, as of the end of the reporting period. The Company calculates Annual Revenue Run Rate as follows: Media partners within Commerce Media Solutions with an active contract are assessed and assigned an annual media volume estimate based on the active term of the contract and the monetization rate at the end of the reporting period. The Company considers a media partner contract to be active when the contractual term commences (the "start date") until its right to serve the partner’s commerce traffic ends. Even if the contract with the customer is executed before the start date, the contract will not count toward Annual Revenue Run Rate until the media partner’s right to receive the benefit of the services has commenced. As Annual Revenue Run Rate includes only contracts that are active at the end of the reporting period, it does not reflect assumptions or estimates regarding new business. For contracts expiring within 12 months of the period-end calculation date, Annual Revenue Run Rate does reflect expectations of renewal. The Company’s Commerce Media Solutions platform provides the technology to effectively monetize the partner’s media by placing relevant ads at a contracted moment of consumer engagement. Although from inception to date, improvements in the platform’s AI-powered technology have consistently driven increased rates of monetization, for the purpose of Annual Revenue Run Rate, the Company assumes a consistent monetization level to that as measured on each media partner at the end of the reporting period. The way the Company measures Annual Revenue Run Rate may not be comparable to similarly titled measures presented by other companies and should not be viewed as a projection of future revenue. Contact Information: Investor Relations Fluent, Inc. [email protected]

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Commerce Media Solutions revenue grew by 104% year-over-year, now representing 58% of total consolidated revenue. Gross profit for Commerce Media Solutions increased by 78% year-over-year. Fluent Inc (NASDAQ:FLNT) has entered into new partnerships with Wyndham Hotels and Squire, expanding into new verticals. The company has demonstrated nine consecutive quarters of strong double to triple-digit commerce media revenue growth. Fluent Inc (NASDAQ:FLNT) is strategically repositioning its owned and operated marketplace to support its commerce media platform, leveraging proprietary consumer data and intent signals. Total consolidated revenue decreased by 19% compared to Q1 2025, primarily due to the divestiture of Call Solutions. Gross profit decreased by 12% compared to Q1 2025, representing 22% of revenue. Adjusted EBITDA was negative $3.6 million, compared to a negative $3.1 million in Q1 2025. Revenue from the owned and operated business declined by 49% year-over-year. The company reported a net loss of $5.4 million in the first quarter of 2026. Warning! GuruFocus has detected 5 Warning Signs with FLNT. Is FLNT fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the pricing dynamics within your commerce media segment and whether the price incentives for newer clients have stabilized? Are these incentives a key factor for returning to mid-20s gross margins? A: Yes, we initially used incentives to scale the commerce media business, but they are no longer part of our sales strategy. The remaining incentives will phase out throughout 2026. The margin is influenced by these incentives, investments in adjacent commerce media solutions, and new partners that haven't yet reached projected yields. Q: You mentioned expanding into new verticals beyond retail. Can you elaborate on the timeline for scaling these verticals and the factors influencing this development? A: Retail has been our primary focus, but we've entered ticketing, grocery, travel with Wyndham, and a marketplace platform with Squire. These new verticals validate our platform's scalability beyond retail. As we expand in 2026, you'll see growth in these areas, which will help diversify our seasonality. Q: Regarding the expansion of partners and the flywheel effect on advertisers, what additional scale is needed, and which advertiser categories are underutilizing your inventory? A: We are heavily involved in retail, cashback, streaming services, and credit card offers. As we expand into other verticals like travel, you'll see diversification. Squire, for example, targets a specific demographic, opening new vertical opportunities. Our advertiser base is diversified, with no single advertiser dominating. Q: How is the shift in strategy away from promotional margins affecting client acquisition and the competitive environment? A: We've proven our ability to deliver superior results compared to competitors, attracting partners who have left competitors for us. Our focus is on driving results and managing commerce sites strategically. The competitive environment includes aggressive large competitors and smaller price-focused ones, but we compete on results. Q: What lessons have you learned from the Wyndham implementation in the travel/hospitality sector? A: Our owned and operated strategy provides a competitive advantage by understanding audience behavior. Wyndham scaled quickly due to our experience in curating audiences. Our owned and operated business allows rapid testing and results, informing our commerce media strategies and providing a competitive edge in new verticals. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Fluent, Inc.? Here are five stocks we like better. Commerce Media Solutions was the standout growth engine, with revenue up 104% year over year to $25.9 million and now making up 58% of Fluent’s total revenue. Management said this marks a strategic transformation as the segment has become the majority of the business. Total revenue fell 19% to $44.9 million, mainly because of the January 2026 divestiture of Call Solutions and continued weakness in the Owned and Operated business. Excluding the divestiture, continuing businesses were down about 3% year over year. Fluent improved cash flow and reduced debt, generating $5.1 million in operating cash flow and paying down $6.3 million on its revolver, which lowered net debt to $23.5 million. The company reaffirmed its 2026 outlook for double-digit revenue growth on continuing businesses, with stronger margins expected in the second half. Fluent (NASDAQ:FLNT) reported a sharp shift in its business mix in the first quarter of 2026, with management pointing to continued rapid growth in Commerce Media Solutions as the company’s central growth driver, even as total revenue declined following the divestiture of its Call Solutions business. Chief Executive Officer Don Patrick said the quarter provided “proof” that Fluent’s strategy is gaining traction, as the company continues to invest in what it views as a high-growth, high-margin commerce media market. Commerce Media Solutions revenue rose 104% year over year to $25.9 million and represented 58% of total consolidated revenue, compared with 23% in the first quarter of 2025. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “In four quarters, Commerce Media went from less than a quarter of our business to more than half,” Patrick said. “That is not incremental progress. This represents strategic transformation.” Total consolidated revenue was $44.9 million in the first quarter, down 19% from $55.2 million in the prior-year period. Management said the decline primarily reflected the January 2026 divestiture of Call Solutions, which contributed $10.9 million of revenue in the first quarter of 2025. Excluding that impact, revenue from Fluent’s aggregate continuing businesses declined approximately 3% year over year. → MP Materials Is Quietly Building a Rare Earth Powerhouse Gross profit was $10 million, down 12% from the first quarter of 2025 and equal to 22% of revenue. Fluent said Commerce Media gross profit increased 78% year over year, while gross profit from aggregate continuing businesses declined 7%. Chief Financial Officer Ryan Perfit said the company’s first-quarter results were in line with expectations and reflected the ongoing transformation of its business mix. He said Commerce Media growth “largely offset” the expected contraction in the Owned and Operated business. → MercadoLibre Boldly Invests in Growth: Discount Deepens Owned and Operated revenue fell 49% to $15.7 million from $31.1 million in the year-earlier quarter. Patrick said that business continues to face “persistent headwinds” and an “uneven competitive landscape,” but added that Fluent is repositioning it as a core enabler of Commerce Media through first-party consumer data, intent signals and audience relationships. Management said Commerce Media has now delivered nine consecutive quarters of strong double- to triple-digit year-over-year revenue growth. Patrick said the company’s post-transaction platform remains central to the segment’s growth, describing the moment immediately after a consumer purchase as “premium real estate for advertisers.” Fluent said Commerce Media Solutions currently operates at an annual revenue run rate of $110 million. Patrick also cited expectations that the U.S. commerce media market will reach $100 billion by 2027 and grow at a 21% compound annual growth rate from 2023 to 2027. During the quarter, Fluent added Wyndham Hotels and Squire, a barbershop booking platform, as new commerce partners. Patrick said the additions move Fluent into travel and marketplace-style platforms and validate demand outside traditional retail. Management also said the company is piloting adjacent commerce media opportunities beyond the post-transaction moment, driven by requests from existing partners. In response to analyst questions, management said Fluent had previously used incentives to win early Commerce Media business but has stopped using those incentives as part of its current sales strategy. Those incentives are expected to roll off during 2026. Management said margins are also being affected by investments in adjacent Commerce Media Solutions that have not yet scaled and by newer partners that have not reached projected yield levels. Media margin was $14 million in the quarter, representing 31% of total consolidated revenue, compared with $13.7 million, or 25% of revenue, in the prior-year period. Commerce Media Solutions media margin was $7.7 million, or 30% of segment revenue, compared with $3.1 million, or 25% of revenue, in the first quarter of 2025. Commerce Media Solutions gross profit was $5 million, representing 19% of revenue. Perfit said Fluent expects Commerce Media gross margin to return to the mid-20% range over the course of 2026 as newer partnerships and placements move beyond early-term incentive periods. Total operating expense was $12.3 million, down from $16.1 million in the first quarter of 2025. The reduction included a $2.4 million non-cash gain on the sale of Call Solutions and $1.4 million of other operating expense reductions, which management attributed to cost discipline. Interest expense declined 31% to $605,000 from approximately $880,000 a year earlier, reflecting a lower average daily loan balance under the company’s new facility with Bayview. Fluent reported a net loss of $5.4 million, compared with a net loss of $8.3 million in the first quarter of 2025. Adjusted net loss was $5.9 million, or $0.19 per share, compared with an adjusted net loss of $6.7 million, or $0.31 per share, in the prior-year quarter. Adjusted EBITDA loss was $3.6 million, compared with a loss of $3.1 million a year earlier. Fluent ended the quarter with $10.3 million in cash and cash equivalents, down from $12.9 million at the end of 2025. Accounts receivable declined to $31.8 million from $46.7 million, reflecting normal first-quarter seasonal collections and the Call Solutions divestiture. Operating cash flow was positive at $5.1 million, compared with $2.1 million in the first quarter of 2025. Perfit said that cash flow funded a net $6.3 million paydown on the company’s revolving facility, reducing net debt to $23.5 million as of March 31 from $30.8 million at year-end. Management said its view of 2026 has not changed. Fluent expects second-quarter revenue to be similar to the first quarter, with improving margins. Patrick said that would represent a return to year-over-year revenue growth from aggregate continuing businesses. For full-year 2026, Fluent expects double-digit year-over-year consolidated revenue growth on aggregate continuing businesses, driven by Commerce Media acceleration in the second half. The company also expects expanding gross margins and improved adjusted EBITDA as Commerce Media becomes a larger share of the business. “The strongest seasonal quarters of the year are ahead of us in the second half,” Patrick said, adding that Fluent is planning conservatively around the strategic repositioning of its Owned and Operated Marketplaces while focusing resources on Commerce Media growth. Fluent, Inc is a performance marketing and customer acquisition platform that helps consumer brands drive leads and sales through data-driven digital campaigns. The company specializes in direct-response marketing, executing campaigns across multiple channels including email, display, paid search, social media and native advertising. By focusing on measurable outcomes such as cost per acquisition and return on ad spend, Fluent tailors solutions to meet the specific objectives of its clients. The company's proprietary technology leverages first-party data sourced from its network of consumer-facing digital properties and programmatic partnerships. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fluent Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.