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Fluent (FLNT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 10, 2026

Source: earnings call transcript

Executive summary

Fluent Q2 FY26 — Return to Revenue Growth Driven by Commerce Media Solutions

Fluent achieved a significant milestone by returning to year-over-year revenue growth, primarily fueled by its rapidly expanding Commerce Media Solutions segment. The company is strategically investing in new adjacent markets like in-store commerce media, which is expected to drive future growth and further differentiate its offerings. While the owned and operated business continues to decline, management remains confident in its full-year financial targets and continued adjusted EBITDA improvement.

Highlights

5

  • Total consolidated revenue grew 8% year-over-year to $48.4 million, marking a return to positive growth.

  • Aggregate continuing businesses revenue increased 25% year-over-year, demonstrating strong underlying performance.

  • Commerce Media Solutions revenue surged 90% year-over-year to $30.5 million, now representing 63% of total consolidated revenue.

  • Gross profit increased 36% year-over-year to $14 million, reaching 28.9% of revenue, a 650 basis point improvement from Q1 FY26.

  • Adjusted EBITDA improved sequentially by $1.8 million from Q1 FY26 to a loss of $1.8 million, reflecting ongoing commitment to profitability.

Concerns

3

  • Owned and operated revenue decreased 24% year-over-year to $16.3 million, continuing its decline.

  • The company reported a net loss of $6.2 million and an adjusted net loss of $4.2 million, or $0.13 per share.

  • Cash and cash equivalents decreased to $6.9 million at June 30, 2026, from $12.9 million at December 31, 2025.

Guidance & targets

CategoryTargetConfidence
Aggregate continuing business revenue growth
double-digit growth
high materiality
High
Aggregate continuing business consolidated revenue growth
double-digit growth
high materiality
High
Gross margin
maintain expansion reflected in Q2
medium materiality
Medium
Adjusted EBITDA
continued improvement
high materiality
Medium
Adjusted EBITDA
positive
high materiality
High
In-store financial contribution
meaningful financial contribution
medium materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Total Consolidated
Return to year-over-year revenue growth compared to $44.7 million in Q2 2025.
$48.4 million8%——
Aggregate Continuing Businesses
Excluding the impact of the Call Solutions divestiture and other divested and runoff revenue. Expected to drive double-digit growth through the balance of the year.
—25%——
Commerce Media Solutions
10th consecutive quarter of high double-digit to triple-digit growth. Firmly established as the main driver of total consolidated revenue. Media margin compared to $3.2 million (20% of revenue) in Q2 2025. Gross profit increased 186% compared to Q2 2025.
Annual Revenue Run Rate: over $125 millionMedia Margin: $10.5 million (34% of revenue)
$30.5 million90%—$8.2 million gross profit (27% of revenue)
Owned and Operated
Revenue decreased compared to $21.4 million in Q2 2025. Business has ebbs and flows, used as a test and learn environment for Commerce Media Solutions.
$16.3 million-24%flat—

Product announcements

ProductTypeDetails
In-store commerce medialaunch

Deals & partnerships

BILT Technologies Partnership to extend commerce media beyond digital post-transaction moments and into physical checkout.

BILT offers a nationwide commerce and loyalty network with in-store point-of-sale systems for retailers. This partnership aims to measure and monetize the in-store segment of the commerce media industry.

Beyond Inc. (operator of Bed Bath & Beyond, Bye Bye Baby, and The Container Store) First customer for the new in-store commerce media offering.

The partnership launches later this year (H2 2026) with Beyond Inc. as the initial client for the in-store offering.

CVS Partnership for online post-transaction commerce media.

CVS came online in Q3 FY26. Integration is standard for online post-transaction. Clear roadmap for in-store integration in 2027.

Risks & headwinds

Decline in Owned and Operated business Ongoing

Revenue decreased 24% YoY to $16.3 million.

Mitigation:Business is being strategically pivoted to support and enhance Commerce Media Solutions, serving as a test-and-learn environment rather than a primary financial growth driver. Focus on profitability within the segment.

Competitive marketplace and uneven playing field for Owned and Operated business Ongoing

Not quantified, but described as 'uneven playing field' against competitors post-FTC settlement.

Mitigation:Management emphasizes the strategic value of the O&O business for testing and learning for CMS, rather than competing directly on revenue growth.

Uncertainty in long-term stability of Owned and Operated business Long-term

Not quantified.

Mitigation:Management does not have enough foresight to believe it is ultimately a stable business yet, but aims for quarter-over-quarter stability and profitability.

What to watch in Q3 FY26

In-store commerce media validation

H2 FY26
Current Testing and learning in H2 2026 with Beyond Inc.
Target Proof of consumer experience, measurement, and advertiser return on ad spend.

Why it matters

Successful validation is crucial for meaningful financial contribution from this large market opportunity starting in 2027.

In the second half of 2026, we are committed to testing and learning, proving at the consumer experience, the measurement and the advertiser return on ad spend. We are not expecting any meaningful financial contribution from in-store this year. We expect that in 2027 once we've validated the Model X scale.

Find out whether FLNT delivers this. Inve re-checks your case every morning.

Q&A highlights

What does the CVS partnership mean for the commerce business, its integration, and attracting other partners?

CVS is a major win, expanding Fluent into the pharmacy vertical and diversifying its audience for advertisers. Integration is standard for online post-transaction. The partnership is expected to serve as a case study to attract more big-name retail partners and deepen Fluent's presence in the pharmacy vertical.

“It is going to be one of our largest partner wins, but more importantly, it brings us into a different vertical, you know, obviously heavily into pharmacy and into along with their retail pieces. So it expands our audience, which obviously plays well into our diversified advertiser strategy.”

asked by Maria Ripps · answered by Donald Patrick

2 min read 6 chapters

Detailed narrative

Strategic Pivot and Growth Drivers

Fluent's strategic pivot to commerce media is yielding results, with aggregate continuing business revenue growing 25% year-over-year. The Commerce Media Solutions segment, which now accounts for 63% of total revenue, is the primary growth engine, driven by continued momentum in online post-transaction offerings and expansion into new adjacent markets.

In-Store Commerce Media Expansion

The company announced a strategic partnership with BILT Technologies to extend commerce media into physical retail checkout, targeting the 83% of transactions that occur offline. This in-store offering, launching with Beyond Inc. (Bed Bath & Beyond, The Container Store) in H2 2026, is expected to provide meaningful financial contribution starting in 2027 after a testing and learning phase.

Partner Acquisition and Diversification

Fluent continues to attract world-class partners, including CVS, which came online in Q3. This partnership expands Fluent's reach into the pharmacy vertical and diversifies its advertiser base. The company's partner pipeline has grown significantly in size and quality, with conversion expected to accelerate in the second half of the year.

Non-Endemic Advertising Demand

A key trend is the increasing demand from captive retail media networks for non-endemic advertising, where Fluent's post-transaction business enables them to monetize products and services they don't directly sell. This expands Fluent's addressable market and validates its competitive position, with one of the largest retail media networks already utilizing Fluent for non-endemic demand.

Owned and Operated Business Strategy

The owned and operated business, while declining in revenue, remains profitable and serves as a strategic asset for testing and learning. It provides a rapid environment for A/B testing and feeding AI models, contributing to superior creative approaches and driving better results for the Commerce Media Solutions segment.

Operational Efficiency and Margin Improvement

The company demonstrated improving margins, with gross profit increasing 36% year-over-year and adjusted EBITDA showing sequential improvement. This is attributed to improved monetization with key commerce media solution partners and the increasing share of higher-margin business in the overall mix.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.