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.
“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 Drives Growth
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.
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.
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.
Margins Improve, Though Losses Continue
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.
CVS Partnership and In-Store Expansion
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.
Outlook and Liquidity
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.
About Fluent (NASDAQ:FLNT)
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 contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Fluent, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Fluent wasn't on the list.
While Fluent currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Get This Free Report
