Fluent Announces Second Quarter 2026 Financial Results; Commerce Media Solutions Annual Revenue Run Rate Exceeds $125 Million
Rhea-AI Summary
Fluent (NASDAQ: FLNT) reported Q2 2026 revenue of $48.4 million, up 8% year over year, with aggregate continuing-business revenue up 25%. Commerce Media Solutions revenue rose 90% to $30.5 million, now 63% of consolidated revenue and exceeding a $125 million annual run rate, with 27% gross margin.
Consolidated gross profit margin expanded to 29% from 23%, while media margin increased 46% to $17.5 million. Net loss narrowed to $6.2 million ($0.20 per share) and adjusted EBITDA loss to $1.8 million. For H1 2026, revenue was $93.3 million, down 7%, but Commerce Media Solutions grew 96% to $56.4 million. Cash and cash equivalents were $6.9 million and shareholders’ equity $8.1 million at June 30, 2026. According to Fluent, reliance on an uncommitted financing agreement raises substantial doubt about its ability to continue as a going concern, though the company continues to target 2026 double-digit revenue growth on aggregate continuing businesses and improved adjusted EBITDA.
Positive
- Q2 2026 revenue $48.4M, up 8% year over year
- Commerce Media Solutions Q2 revenue $30.5M, up 90% and 63% of total
- Commerce Media Solutions run rate now exceeds $125M annually
- Q2 2026 gross profit $14.0M, up 36%, margin 29% vs prior 23%
- Q2 media margin $17.5M, up 46%, 36% of revenue
- Q2 net loss improved to $6.2M from $7.2M; adjusted EBITDA loss to $1.8M from $2.8M
Negative
- H1 2026 revenue $93.3M, down 7% year over year
- Owned and Operated Q2 revenue down 24% to $16.3M; H1 down 39% to $32.0M
- Continuing net losses: $6.2M in Q2 and $11.5M in H1 2026
- Adjusted EBITDA still negative: $1.8M loss in Q2; $5.4M loss H1 2026
- Liquidity and capital: cash $6.9M, shareholders’ equity down to $8.1M from $18.2M
- Going-concern risk: reliance on uncommitted financing raises substantial doubt about ability to continue as a going concern
News Explained
At
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 13 | Q1 earnings report | Positive | +13.0% | Commerce Media growth and improved loss metrics accompanied the quarterly results. |
| Mar 09 | Q4 earnings report | Positive | -3.7% | Commerce Media growth and quarterly adjusted EBITDA profitability contrasted with full-year losses. |
| Nov 13 | Q3 earnings report | Negative | -5.0% | Total revenue and net loss weakened despite strong Commerce Media Solutions growth. |
| Aug 19 | Q2 earnings report | Negative | -12.7% | Revenue and net loss results remained pressured despite Commerce Media Solutions expansion. |
| May 15 | Q1 earnings report | Negative | -0.6% | Revenue and net loss declined as the company accelerated its strategic business pivot. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tag reactions were mixed, with four aligned outcomes and one divergence; the five-event average move was -1.8%.
Key Terms
adjusted ebitda financial
going concern financial
non-gaap financial measures financial
convertible notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Q2 2026 revenue of
$48.4 million ; H1 2026 revenue of$93.3 million , reflecting a return to growth in Q2 2026 - Q2 2026 Commerce Media Solutions revenue grew
90% to$30.5 million , representing63% of consolidated revenue from$16.1 million or36% of consolidated revenue in Q2 2025 - Commerce Media Solutions annual revenue run rate now exceeds
$125 million , with gross margin of27% - Continue to expect full-year double-digit revenue growth on aggregate continuing business and adjusted EBITDA improvement for 2026
NEW YORK, Aug. 10, 2026 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT) (the “Company” or “Fluent”), a commerce media solutions provider, today reported unaudited financial results for the second quarter ended June 30, 2026.
Don Patrick, Chief Executive Officer of Fluent, commented, “Our second quarter marked an inflection point we have been building toward. Consolidated revenue returned to year-over-year growth, increasing
Mr. Patrick continued, "Fluent continues to demonstrate a highly differentiated brand with a clear strategy to deliver superior and measurable outcomes for our media partners and advertisers. During the second quarter, we added several new important media partners and announced the launch of our new in-store commerce media offering that brings Commerce Media Solutions to the physical retail environment. In-store represents a major milestone for Fluent. With
"We’re very pleased with the continued strong performance. With Commerce Media Solutions now the clear majority of our revenue and our strongest seasonal quarters ahead of us, we remain confident in delivering full-year double-digit revenue growth on our aggregate continuing businesses and improved full-year adjusted EBITDA," Mr. Patrick concluded.
Second Quarter Financial Highlights
| • | Revenue of • Commerce Media Solutions revenue increased • Owned and Operated revenue decreased • Q2 2025 revenue included | |
| • | Net loss of | |
| • | Gross profit (exclusive of depreciation and amortization) of | |
| • | Media margin of | |
| • | Adjusted EBITDA loss of | |
| • | Adjusted net loss of |
Six Months Ended June 30, 2026 Financial Highlights
| • | Revenue of • Commerce Media Solutions revenue increased • Owned and Operated revenue decreased • H1 2025 revenue included | |
| • | Net loss of | |
| • | Gross profit (exclusive of depreciation and amortization) of | |
| • | Media margin of | |
| • | Adjusted EBITDA loss of | |
| • | Adjusted net loss of |
Media margin, adjusted EBITDA, and adjusted net loss are non-GAAP financial measures, as defined and reconciled below.
Business Outlook & Goals
| • | Continue to scale and grow Commerce Media Solutions as a percentage of total consolidated revenue; maintain Commerce Media Solutions gross margins in the mid-to-high twenties |
| • | Enhance Fluent’s Commerce Media Solutions partnership network by adding top-tier media partners and expanding beyond traditional retail channels and into new verticals including travel, lifestyle, and home services |
| • | Launch and scale Fluent’s new in-store commerce media offering across existing and new retail partners |
| • | Drive consolidated revenue growth and improved profitability. Given current visibility, the Company expects full-year double-digit consolidated growth in revenue on aggregate continuing businesses and improved full-year adjusted EBITDA in 2026 |
Conference Call
Fluent, Inc. will host a conference call on Monday, August 10, 2026, at 4:30 PM ET to discuss its 2026 second quarter financial results. The conference call can be accessed by phone after registering online at https://register-conf.media-server.com/register/BIef43515989ce4f81a991fa3f398751a7. The call will also be webcast simultaneously on the Fluent website at https://investors.fluentco.com/. Following the completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please connect via https://edge.media-server.com/mmc/p/ccdmyf3p The replay will be available for one year, via the Fluent website https://investors.fluentco.com.
About Fluent, Inc.
Fluent, Inc. (NASDAQ: FLNT) is a commerce media solutions provider connecting top-tier brands with highly engaged consumers. Leveraging exclusive ad inventory, robust first-party data, and proprietary machine learning, Fluent unlocks additional revenue streams for partners and empowers advertisers to acquire their most valuable customers at scale. Founded in 2010, Fluent uses its deep expertise in performance marketing to drive monetization and increase engagement at key touchpoints across the customer journey. For more insights, visit http://www.fluentco.com/.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The matters contained in this press release may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the intent, belief, or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following:
| • | Our reliance on an uncommitted financing agreement raises substantial doubt about our ability to continue as a going concern; | |
| • | Ability to operate in a competitive, rapidly changing and highly regulated industry, which makes it difficult to evaluate our business and prospects; | |
| • | Dependence on the gaming industry; | |
| • | Unfavorable publicity and negative public perception about the digital marketing industry or us; | |
| • | A potential sudden reduction in online marketing spend by our clients, a loss of clients or lower advertising yields; | |
| • | Credit risk from certain clients; | |
| • | Our Commerce Media Solutions business is relatively new and operates in a market with established competitors, which may impact our ability to scale effectively; | |
| • | Our need to continue investing in technology for our Commerce Media Solutions business; | |
| • | Our competitive disadvantage due to our more selective approach to traffic sources; | |
| • | A potential decline in the supply of media available to us through third parties or an increase in the price of such media; | |
| • | Potential loss of competitiveness from slow mobile adoption and CRM dependence; | |
| • | Challenges scaling infrastructure and products to support growth while maintaining profitability; | |
| • | Global economic or political instability, including the potential impact of tariffs, inflation, interest rates, military conflicts and other geopolitical developments, including the ongoing military conflicts in the Middle East; | |
| • | Challenges managing the complexity of our international operations and workforce; | |
| • | Strategic alternatives that could complicate operations or divert management's attention; | |
| • | Dependence on our key personnel and ability to attract or retain employees; | |
| • | Dependence upon third-party service providers and potential liability related to their actions or platform malfunctions; | |
| • | Compliance with a significant number of governmental laws and regulations, including those regarding telemarketing, email marketing, text messaging, privacy, and data protection; | |
| • | The outcome of litigation, inquiries, investigations, examinations, or other legal proceedings in which we are or may become involved, or in which our clients or competitors are involved; | |
| • | Potential sales and use taxes and other taxes on our business; | |
| • | Our actual or perceived failure to safeguard any personal information or user privacy; | |
| • | Failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; | |
| • | Potential liability or expenses for legal claims based on the nature and content of the materials we create or distribute, including those provided by third parties, as a creator and a distributor of digital media content; | |
| • | Our potential access to additional capital in the future may be limited or unavailable on acceptable terms; | |
| • | Our ability to maintain our listing on The Nasdaq Capital Market; | |
| • | The volatility of our stock price and impact on our investors; | |
| • | Potential dilutive effect of any future issuances of shares of our common stock; | |
| • | Lack of cash dividends for the foreseeable future; and | |
| • | Status of a smaller reporting company and non-accelerated filer, which involves certain reduced governance and disclosure requirements. |
These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations, except as required by law.
| FLUENT, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) (unaudited) | ||||||||
| June30, 2026 (unaudited) | December31, 2025 | |||||||
| ASSETS: | ||||||||
| Cash and cash equivalents | $ | 6,877 | $ | 12,935 | ||||
| Accounts receivable, net of allowance for credit losses of | 39,399 | 46,735 | ||||||
| Prepaid expenses and other current assets | 6,350 | 7,799 | ||||||
| Total current assets | 52,626 | 67,469 | ||||||
| Non-current restricted cash | 710 | 710 | ||||||
| Property and equipment, net | 150 | 104 | ||||||
| Operating lease right-of-use assets | 2,487 | 2,859 | ||||||
| Intangible assets, net | 16,720 | 17,276 | ||||||
| Other non-current assets | 2,440 | 715 | ||||||
| Total assets | $ | 75,133 | $ | 89,133 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||
| Accounts payable | $ | 8,229 | $ | 7,200 | ||||
| Accrued expenses and other current liabilities | 23,471 | 25,163 | ||||||
| Deferred revenue | 120 | 721 | ||||||
| Short-term debt, net | 26,759 | 30,846 | ||||||
| Current portion of operating lease liability | 1,104 | 1,104 | ||||||
| Total current liabilities | 59,683 | 65,034 | ||||||
| Convertible Notes, at fair value with related parties | 5,155 | 3,734 | ||||||
| Operating lease liability, net | 1,578 | 1,985 | ||||||
| Other non-current liabilities | 613 | 168 | ||||||
| Total liabilities | 67,029 | 70,921 | ||||||
| Contingencies | ||||||||
| Shareholders' equity: | ||||||||
| Preferred stock — Shares outstanding — 0 shares for both periods | — | — | ||||||
| Common stock — Shares issued — 32,362,277 and 30,404,779, respectively; and Shares outstanding — 31,593,682 and 29,636,184, respectively | 55 | 53 | ||||||
| Treasury stock, at cost — 768,595 and 768,595 Shares, respectively | (11,407 | ) | (11,407 | ) | ||||
| Additional paid-in capital | 468,949 | 467,528 | ||||||
| Accumulated deficit | (449,493 | ) | (437,962 | ) | ||||
| Total shareholders' equity | 8,104 | 18,212 | ||||||
| Total liabilities and shareholders' equity | $ | 75,133 | $ | 89,133 | ||||
| FLUENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share data) (unaudited) | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Revenue | $ | 48,449 | $ | 44,706 | $ | 93,301 | $ | 99,916 | |||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of revenue (exclusive of depreciation and amortization) | 34,440 | 34,426 | 69,253 | 78,201 | |||||||||||||
| Sales and marketing | 4,777 | 3,751 | 9,198 | 8,325 | |||||||||||||
| Product development | 3,046 | 2,283 | 5,690 | 4,983 | |||||||||||||
| General and administrative (including | 9,427 | 8,873 | 14,615 | 17,649 | |||||||||||||
| Depreciation and amortization | 1,710 | 2,479 | 3,391 | 4,940 | |||||||||||||
| Loss on disposal of assets | — | — | 14 | — | |||||||||||||
| Total costs and expenses | 53,400 | 51,812 | 102,161 | 114,098 | |||||||||||||
| Loss from operations | (4,951 | ) | (7,106 | ) | (8,860 | ) | (14,182 | ) | |||||||||
| Interest expense, net | (637 | ) | (702 | ) | (1,242 | ) | (1,582 | ) | |||||||||
| Fair value adjustment of Convertible Notes with related parties | (584 | ) | 478 | (1,421 | ) | 398 | |||||||||||
| Loss before income taxes | (6,172 | ) | (7,330 | ) | (11,523 | ) | (15,366 | ) | |||||||||
| Income tax (expense) benefit | (5 | ) | 107 | (8 | ) | (126 | ) | ||||||||||
| Net loss | $ | (6,177 | ) | $ | (7,223 | ) | $ | (11,531 | ) | $ | (15,492 | ) | |||||
| Basic and diluted loss per share: | |||||||||||||||||
| Basic | $ | (0.20 | ) | $ | (0.30 | ) | $ | (0.37 | ) | $ | (0.68 | ) | |||||
| Diluted | $ | (0.20 | ) | $ | (0.30 | ) | $ | (0.37 | ) | $ | (0.68 | ) | |||||
| Weighted average number of shares outstanding: | |||||||||||||||||
| Basic | 31,544,934 | 24,061,803 | 31,464,810 | 22,661,951 | |||||||||||||
| Diluted | 31,544,934 | 24,061,803 | 31,464,810 | 22,661,951 | |||||||||||||
| FLUENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (11,531 | ) | $ | (15,492 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 3,391 | 4,940 | ||||||
| Non-cash loan amortization expense | 159 | 365 | ||||||
| Non-cash gain on divestiture | (2,352 | ) | — | |||||
| Share-based compensation expense | 2,792 | 666 | ||||||
| Fair value adjustment of Convertible Notes with related parties | 1,421 | (398 | ) | |||||
| Loss on disposal of asset | 14 | — | ||||||
| Non-cash loss on asset write-off | — | 698 | ||||||
| Allowance for credit losses | 478 | 18 | ||||||
| Changes in assets and liabilities, net of business acquisitions: | ||||||||
| Accounts receivable | 7,286 | 15,287 | ||||||
| Prepaid expenses and other current assets | 1,142 | (490 | ) | |||||
| Other non-current assets | (5 | ) | 134 | |||||
| Operating lease assets and liabilities, net | (35 | ) | (69 | ) | ||||
| Accounts payable | 1,029 | (61 | ) | |||||
| Accrued expenses and other current liabilities | (2,864 | ) | (2,329 | ) | ||||
| Deferred revenue | (601 | ) | (221 | ) | ||||
| Other | (4 | ) | (1 | ) | ||||
| Net cash provided by operating activities | 320 | 3,047 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capitalized costs included in intangible assets | (3,203 | ) | (3,200 | ) | ||||
| Proceeds from note receivable | 282 | — | ||||||
| Acquisition of property and equipment | (88 | ) | (31 | ) | ||||
| Net cash used in investing activities | (3,009 | ) | (3,231 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of short and long-term debt | 115,717 | 34,332 | ||||||
| Repayments of short and long-term debt | (119,086 | ) | (46,377 | ) | ||||
| Debt financing costs | — | (125 | ) | |||||
| Proceeds from issuance of pre-funded and common stock warrants | — | 8,972 | ||||||
| Net cash used in financing activities | (3,369 | ) | (3,198 | ) | ||||
| Net decrease in cash, cash equivalents, and restricted cash | (6,058 | ) | (3,382 | ) | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 13,645 | 10,694 | ||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 7,587 | $ | 7,312 | ||||
Definitions, Reconciliations, and Uses of Non-GAAP Financial Measures
The following non-GAAP measures are used in this release:
Media margin is defined as that portion of gross profit (exclusive of depreciation and amortization) reflecting variable costs paid for media and related expenses and excluding non-media cost of revenue and one-time items. Gross profit (exclusive of depreciation and amortization) represents revenue minus cost of revenue (exclusive of depreciation and amortization). Media margin is also presented for the Commerce Media Solutions business and as percentages of revenue of the consolidated company and of the Commerce Media Solutions business, respectively.
Adjusted EBITDA is defined as net income (loss), excluding (1) income taxes, (2) interest expense, net, (3) depreciation and amortization, (4) share-based compensation expense, (5) loss on early extinguishment of debt, (6) loss on disposal of assets, (7) goodwill impairment, (8) impairment of intangible assets, (9) fair value adjustment of Convertible Notes with related parties, (10) acquisition-related costs, (11) restructuring and other severance costs, (12) certain litigation and other related costs, and (13) other one-time items.
Adjusted net income is defined as net income (loss) excluding (1) share-based compensation expense, (2) loss on early extinguishment of debt, (3) loss on disposal of assets, (4) goodwill impairment, (5) impairment of intangible assets, (6) fair value adjustment of Convertible Notes with related parties, (7) acquisition-related costs, (8) restructuring and other severance costs, (9) certain litigation and other related costs, and (10) other one-time items. Adjusted net income is also presented on a per share (basic and diluted) basis.
We consider items one-time in nature if they are non-recurring, infrequent, or unusual and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules.
Below is a reconciliation of media margin from gross profit (exclusive of depreciation and amortization), which we believe is the most directly comparable U.S. GAAP measure.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (In thousands, except percentages) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | $ | 48,449 | $ | 44,706 | $ | 93,301 | $ | 99,916 | ||||||||
| Less: Cost of revenue (exclusive of depreciation and amortization) | 34,440 | 34,426 | 69,253 | 78,201 | ||||||||||||
| Gross profit (exclusive of depreciation and amortization) | $ | 14,009 | $ | 10,280 | $ | 24,048 | $ | 21,715 | ||||||||
| Gross profit (exclusive of depreciation and amortization) % of revenue | 29 | % | 23 | % | 26 | % | 22 | % | ||||||||
| Non-media cost of revenue(1) | 3,640 | 1,663 | 7,601 | 3,959 | ||||||||||||
| One-time item(2) | (156 | ) | — | (156 | ) | — | ||||||||||
| Media margin | $ | 17,493 | $ | 11,943 | $ | 31,493 | $ | 25,674 | ||||||||
| Media margin % of revenue | 36.1 | % | 26.7 | % | 33.8 | % | 25.7 | % | ||||||||
(1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses.
(2) Includes a one-time non-media revenue adjustment of (
Below is a reconciliation of media margin from gross profit for Commerce Media Solutions (exclusive of depreciation and amortization), which we believe is the most directly comparable U.S. GAAP measure.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
| (In thousands, except percentages) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Revenue | $ | 30,546 | $ | 16,080 | $ | 56,411 | $ | 28,740 | |||||||||||
| Less: Cost of revenue (exclusive of depreciation and amortization) | 22,323 | 13,200 | 43,181 | 23,048 | |||||||||||||||
| Gross profit (exclusive of depreciation and amortization) | $ | 8,223 | $ | 2,880 | $ | 13,230 | $ | 5,692 | |||||||||||
| Gross profit (exclusive of depreciation and amortization) % of revenue | 27 | % | 18 | % | 23 | % | 20 | % | |||||||||||
| Non-media cost of revenue(1) | 2,406 | 337 | 5,139 | 636 | |||||||||||||||
| One-time item(2) | (156 | ) | — | (156 | ) | — | |||||||||||||
| Media margin | $ | 10,473 | $ | 3,217 | $ | 18,213 | $ | 6,328 | |||||||||||
| Media margin % of revenue | 34.3 | % | 20.0 | % | 32.3 | % | 22.0 | % | |||||||||||
(1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses.
(2) Includes a one-time non-media revenue adjustment of (
Below is a reconciliation of adjusted EBITDA from net loss, which we believe is the most directly comparable U.S. GAAP measure.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Net loss | $ | (6,177 | ) | $ | (7,223 | ) | $ | (11,531 | ) | $ | (15,492 | ) | |||||||
| Income tax expense | 5 | (107 | ) | 8 | 126 | ||||||||||||||
| Interest expense, net | 637 | 702 | 1,242 | 1,582 | |||||||||||||||
| Depreciation and amortization | 1,710 | 2,479 | 3,391 | 4,940 | |||||||||||||||
| Share-based compensation expense | 1,838 | 331 | 2,792 | 666 | |||||||||||||||
| Loss on disposal of assets | — | — | 14 | — | |||||||||||||||
| Fair value adjustment of Convertible Notes with related parties | 584 | (478 | ) | 1,421 | (398 | ) | |||||||||||||
| Acquisition-related costs(1) | — | 1,213 | (2,352 | ) | 1,094 | ||||||||||||||
| Restructuring and other severance costs | — | 10 | 51 | 1,325 | |||||||||||||||
| Certain litigation and other related costs | (250 | ) | 300 | (250 | ) | 300 | |||||||||||||
| One-time item(2) | (156 | ) | — | (156 | ) | — | |||||||||||||
| Adjusted EBITDA | $ | (1,809 | ) | $ | (2,773 | ) | $ | (5,370 | ) | $ | (5,857 | ) | |||||||
| (1) | Balance includes gain on the conveyance of the membership interest of Winopoly in January 2026 of |
| (2) | Includes a one-time non-media revenue adjustment of ( |
Below is a reconciliation of adjusted net income and the related measure of adjusted net income per share from net income (loss), which we believe is the most directly comparable U.S. GAAP measure.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
| (In thousands, except share and per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Net loss | $ | (6,177 | ) | $ | (7,223 | ) | $ | (11,531 | ) | $ | (15,492 | ) | |||||||
| Share-based compensation expense | 1,838 | 331 | 2,792 | 666 | |||||||||||||||
| Loss on disposal of assets | — | — | 14 | — | |||||||||||||||
| Fair value adjustment of Convertible Notes with related parties | 584 | (478 | ) | 1,421 | (398 | ) | |||||||||||||
| Acquisition-related costs(1) | — | 1,213 | (2,352 | ) | 1,094 | ||||||||||||||
| Restructuring and other severance costs | — | 10 | 51 | 1,325 | |||||||||||||||
| Certain litigation and other related costs | (250 | ) | 300 | (250 | ) | 300 | |||||||||||||
| One-time item(2) | (156 | ) | — | (156 | ) | — | |||||||||||||
| Adjusted net loss | $ | (4,161 | ) | $ | (5,847 | ) | $ | (10,011 | ) | $ | (12,505 | ) | |||||||
| Adjusted net loss per share: | |||||||||||||||||||
| Basic | $ | (0.13 | ) | $ | (0.24 | ) | $ | (0.32 | ) | $ | (0.55 | ) | |||||||
| Diluted | $ | (0.13 | ) | $ | (0.24 | ) | $ | (0.32 | ) | $ | (0.55 | ) | |||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||
| Basic | 31,544,934 | 24,061,803 | 31,464,810 | 22,661,951 | |||||||||||||||
| Diluted | 31,544,934 | 24,061,803 | 31,464,810 | 22,661,951 | |||||||||||||||
| (1) | Balance includes gain on the conveyance of the membership interest of Winopoly in January 2026 of |
| (2) | Includes a one-time non-media revenue adjustment of ( |
We present media margin, adjusted EBITDA, and adjusted net income as supplemental measures of our financial and operating performance because we believe they provide useful information to investors. More specifically:
Media margin, as defined above, is a measure of the efficiency of the Company's operating model. We use media margin and the related measure of media margin as a percentage of revenue as primary metrics to measure the financial return on our media and related costs, specifically to measure the degree by which the revenue generated from our digital marketing services exceeds the cost to attract the consumers to whom offers are made through our services. Media margin is used extensively by our management to manage our consolidated operating performance, including evaluating operational performance against budgeted media margin and understanding the efficiency of our media and related expenditures. We also use media margin for performance evaluations and compensation decisions regarding certain personnel.
Adjusted EBITDA, as defined above, is another primary metric by which we evaluate the operating performance of our business, on which certain operating expenditures and internal budgets are based and by which, in addition to media margin and other factors, our senior management is compensated. The first three adjustments represent the conventional definition of EBITDA, and the remaining adjustments are items recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. These adjustments include certain litigation and other related costs associated with legal matters outside the ordinary course of business.
Adjusted net income (loss), as defined above, and the related measure of adjusted net income (loss) per share exclude certain items that are recognized and recorded under U.S. GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. We believe adjusted net income (loss) affords investors a different view of the overall financial performance of the Company than adjusted EBITDA and the U.S. GAAP measure of net income (loss).
Media margin, adjusted EBITDA, adjusted net income, and adjusted net income per share are non-GAAP financial measures with certain limitations regarding their usefulness. They do not reflect our financial results in accordance with U.S. GAAP, as they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Accordingly, these metrics are not indicative of our overall results or indicators of past or future financial performance. Further, they are not financial measures of profitability and are neither intended to be used as a proxy for the profitability of our business nor to imply profitability. The way we measure media margin, adjusted EBITDA, and adjusted net income may not be comparable to similarly titled measures presented by other companies and may not be identical to corresponding measures used in our various agreements.
Annual Revenue Run Rate
Annual Revenue Run Rate is an operational metric that represents the annualized revenue of the Company’s media partnerships at current monetization levels, as of the end of the reporting period. The Company calculates Annual Revenue Run Rate as follows:
| • | Media partners within Commerce Media Solutions with an active contract are assessed and assigned an annual media volume estimate based on the active term of the contract and the average monetization rate during the reporting period. The Company considers a media partner contract to be active when the contractual term commences (the "start date") until its right to serve the partner’s commerce traffic ends. Even if the contract with the customer is executed before the start date, the contract will not count toward Annual Revenue Run Rate until the media partner’s right to receive the benefit of the services has commenced. |
| • | As Annual Revenue Run Rate includes only contracts that are active at the end of the reporting period, it does not reflect assumptions or estimates regarding new business. For contracts expiring within 12 months of the period-end calculation date, Annual Revenue Run Rate does reflect expectations of renewal. |
| • | The Company’s Commerce Media Solutions platform provides the technology to effectively monetize the partner’s media by placing relevant ads at a contracted moment of consumer engagement. Although from inception to date, improvements in the platform’s AI-powered technology have consistently driven increased rates of monetization, for the purpose of Annual Revenue Run Rate, the Company assumes a consistent monetization level equal to the average monetization for each media partner during the reporting period. |
The way the Company measures Annual Revenue Run Rate may not be comparable to similarly titled measures presented by other companies and should not be viewed as a projection of future revenue.
Contact Information:
Investor Relations
Fluent, Inc.
InvestorRelations@fluentco.com
