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    FLNT
    Earnings call· Jun 2026(Q2 FY26)

    Fluent Q2 FY26 earnings call FLNT

    Aug 10, 2026 Source

    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

    6
    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

    4
    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—

    Operational metrics

    12
    Gross profit
    $14 millionup 36% YoY
    Q2 FY26

    650 basis point improvement from Q1 FY26.

    Adjusted EBITDA
    -$1.8 millionsequential improvement of $1.8 million from Q1 FY26
    Q2 FY26

    Compared with a loss of $2.8 million in Q2 2025.

    Media margin
    $17.5 millionvs $11.9 million in Q2 2025
    Q2 FY26

    Compared with 26.7% of revenue in Q2 2025. Major driver was improved monetization and scale of certain media partners.

    Total operating expense
    $17.3 millionvs $14.9 million in Q2 2025
    Q2 FY26

    Year-over-year increase driven by higher incentive-based compensation.

    Interest expense
    $637,000decreased 9% YoY
    Q2 FY26

    Down from $702,000 in Q2 2025, reflecting lower average daily outstanding loan balance and lower amortization of debt costs.

    Adjusted net loss per share
    -$0.13vs -$0.24 per share in Q2 2025
    Q2 FY26

    Adjusted net loss of $4.2 million compared with $5.8 million in Q2 2025.

    Cash and cash equivalents
    $6.9 millionvs $12.9 million at December 31, 2025
    as of June 30, 2026

    Balance sheet item.

    Accounts receivable
    $39.4 millionvs $48.7 million at year-end 2025
    as of June 30, 2026

    Balance sheet item.

    Short-term debt
    $26.8 millionreduced from $30.8 million at year-end 2025
    as of June 30, 2026

    Balance sheet item.

    In-store transactions market share
    83%
    current

    Percentage of retail transactions that still happen in physical stores, representing a large market opportunity for in-store commerce media.

    Enterprise partner focus
    100%
    historical

    Fluent's historical focus on enterprise partners for its commerce media business.

    Gross margin (analyst estimate)
    29%
    Q2 FY26

    Analyst's estimate of gross margin for Q2, confirmed by management as being in the mid-20s range.

    Industry KPIs

    6
    MetricValueDetails
    Total revenue$48.4 millionUSD
    Net income EPS-$6.2 millionUSD
    Adjusted EBITDA-$1.8 millionUSD
    Total operating expenses$17.3 millionUSD
    Cash marketable securities$6.9 millionUSD
    Free cash flow operating cash flow$300,000USD

    Product announcements

    1
    ProductTypeDetails
    In-store commerce medialaunch

    Deals & partnerships

    3
    BILT TechnologiesPartnership 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.

    CVSPartnership 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

    3
    Decline in Owned and Operated businessOngoing

    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 businessOngoing

    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 businessLong-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

    4

    In-store commerce media validation

    H2 FY26
    CurrentTesting and learning in H2 2026 with Beyond Inc.
    TargetProof 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.

    Q&A highlights

    8

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.