Fluent (FLNT) Q1 2026 earnings summary

Executive summary

• Entered 2026 with a strategy focused on aggressive investment in high-growth Commerce Media, leveraging Owned and Operated Marketplaces as a foundation.

• Commerce Media Solutions revenue surged 104% year-over-year to $25.9 million, now 58% of consolidated revenue.

• Net loss improved to $5.4 million ($0.17 per share) from $8.3 million ($0.39 per share) in Q1 2025, driven by cost reductions and a non-cash gain on divestiture.

• Strategic partnerships with Wyndham Hotels and Squire expanded vertical reach, validating demand and platform scalability.

• Divestiture of Call Solutions in January 2026 impacted year-over-year revenue comparisons and resulted in a $2.4 million non-cash gain.

Financial highlights

• Q1 2026 consolidated revenue was $44.9 million, down 19% year-over-year due to the Call Solutions divestiture; Commerce Media Solutions revenue reached $25.9 million, up 104% year-over-year.

• Owned and Operated revenue declined 49-50% to $15.7 million, reflecting a strategic focus shift.

• Gross profit was $10 million (22% margin), down 12% year-over-year; Commerce Media gross profit grew 78%.

• Media margin increased to $14 million (31% of revenue), up from $13.7 million (25%) in Q1 2025.

• Adjusted EBITDA loss was $3.6 million, compared to a $3.1 million loss in Q1 2025.

• Adjusted Net Loss was $5.9 million ($0.19/share), improved from $6.7 million ($0.31/share) in Q1 2025.

Outlook and guidance

• Expect double-digit consolidated revenue growth for full year 2026 on aggregate continuing businesses, driven by Commerce Media acceleration in the second half.

• Q2 revenue expected to be similar to Q1 with improving margins; strongest seasonal quarters ahead.

• Anticipate expanding gross margins as Commerce Media becomes a larger share of the mix and as new media partner placements mature.

• Adjusted EBITDA improvement expected as revenue growth and margin expansion flow through.

• Management expects sufficient liquidity for the next twelve months but notes substantial doubt about the company’s ability to continue as a going concern due to reliance on an uncommitted financing facility.