Fluent, Inc. Common Stock 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Fluent reported second quarter 2026 revenue of $48.4 million, up 25% year over year on an aggregate continuing business basis and 8% on a reported basis including divestitures.
- Commerce Media Solutions revenue grew 90% year over year to $30.5 million, representing 63% of total revenue, with an annual revenue run rate exceeding $125 million.
- Gross profit was $14 million, up 36% year over year, representing 28.9% of revenue, a 650 basis point improvement from Q1 2026.
- Adjusted EBITDA loss improved to -$1.8 million with a margin of -4%, a $1.8 million sequential improvement from Q1 2026.
- Net loss was $6.2 million compared to $7.2 million in the prior year period; adjusted net loss was $4.2 million or $0.13 per share, improved from $5.8 million or $0.24 per share in Q2 2025.
- Owned and operated revenue decreased 24% to $16.3 million compared to Q2 2025.
- Media margin was $17.5 million or 36% of total revenue, with Commerce Media Solutions media margin at 34% of its revenue.
- Operating expenses increased to $17.3 million due to higher incentive-based compensation.
- Cash and cash equivalents were $6.9 million at June 30, 2026, down from $12.9 million at year-end 2025; accounts receivable decreased to $39.4 million.
- Fluent launched an in-store commerce media partnership with Built Technologies, targeting physical retail checkout with expected material revenue impact beginning in 2027.
- CVS, one of the largest retail pharmacy chains, became a partner in Q3 2026 for online post-transaction commerce media, with plans for in-store integration in 2027.
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Transcript
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Good afternoon and welcome. Thank you for joining us to discuss Fluent's second quarter 2026 earnings results. With me today are Fluent's Chief Executive Officer, Don Patrick, Chief Financial Officer, Ryan Perfit, and Chief Strategy Officer, Ryan Schulke. Our call today will begin with comments from Don Patrick and Ryan Perfit, followed by a question and answer session. I would like to remind you that this call is being webcast live and recorded. Additionally, there is a slide presentation that accompanies today's remarks, which can be accessed via the webcast and is also available on Fluent's website. A replay of the event will be also available following the call on Fluent's website. To access the webcast and slide presentation, please follow the investor relations page at fluentco.com.
Before we begin, I would like to advise listeners that certain information discussed by management during this conference call will contain forward-looking statements covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements made during this call only speak of the date hereof. Actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with the company's business. These statements may be identified by words such as expects, plans, projects, could, will, estimates, and other words of similar meaning. The company undertakes no obligation to update the information provided on this call.
For a discussion of the risks and uncertainties associated with Fluent's business, we encourage you to review the company's filings with the Securities and Exchange Commission, including the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. During the call, management will also present certain non-GAAP financial information relating to media margin, adjusted EBITDA, and adjusted net income. Management evaluates the financial performance of the company's business on a variety of indicators, including these non-GAAP metrics. The definitions of these metrics and reconciliations to the most directly comparable GAAP financial measure are provided in the earnings press release issued earlier today. With that, I'm pleased to introduce Fluent's CEO, Don Patrick.
Good afternoon, and thank you for joining us today. I'm here with Ryan Schulke, our Chief Strategy Officer and company co-founder, and Ryan Perfit, our Chief Financial Officer. Our Q2 financial results marked an important milestone in the execution of our business strategy. Fluent returned to year-over-year revenue growth. On an aggregate continuing business basis, revenue grew 25% year-over-year in the second quarter, and even on a reported basis, inclusive of the Call Solutions divestiture, total revenue grew 8%. This is not an isolated data point. As we discussed in previous earning calls, this is part of our strategic plan that we have been aggressively investing to capture the significant opportunity in front of us in commerce media. We are solidly positioned to accelerate as we become a recognized brand in the industry based on the results we provide our partners. This quarter is the proof.
Revenue growth paired with improving margins, the signature of a sustainable business strategy, showing up on a consolidated level, not just within a single business line. Looking ahead, we believe that we are well-positioned to drive double-digit growth in revenue on an aggregate continuing business for full year 2026. Q2 was also a quarter where we leveraged our credentials and extended our platform into new adjacent Commerce Media markets with innovative first-mover advantage. In June, we announced our in-store partnership with Bilt, extending Commerce Media beyond digital post-transaction moments and into physical checkout. More than 80% of retail transactions still happen in the physical store, and this gives us a way to engage our partners' most valuable customers wherever they shop, online or in person. I'll go deeper on this in a few minutes.
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