NEW YORK, May 13, 2026 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT), a commerce media solutions provider, today reported unaudited financial results for the first quarter ended March 31, 2026.
Don Patrick, Chief Executive Officer of Fluent, commented, “Commerce Media Solutions continued its strong momentum in the first quarter, reaching $25.9 million in revenue — a 104% increase year over year — and representing 58% of total consolidated revenue, compared to 23% in the first quarter of 2025. This marks the second consecutive quarter in which Commerce Media Solutions has exceeded half of our consolidated revenue, underscoring the rapid evolution of our business mix. Total revenue declined 19% year over year, primarily reflecting the loss of revenue from the Call Solutions conveyance in January 2026. Revenue from our aggregate continuing business declined approximately 3% year over year, as Commerce Media Solutions growth largely offset the expected contraction of our owned and operated business.
"The sale of Call Solutions earlier this year allows us to focus resources on the Commerce Media Solutions opportunity," Mr. Patrick continued. "In January, we launched with Wyndham Hotels & Resorts, extending our platform into travel and hospitality. In March, we added Squire, an appointment-based platform — reflecting the applicability of our model across transaction-rich environments beyond traditional retail. Our pipeline reflects growing demand across these verticals.
"With the visibility we have today, we believe we are well positioned to deliver full-year double-digit consolidated growth on revenue from aggregate continuing businesses and full-year adjusted EBITDA improvement," Mr. Patrick concluded.
First Quarter Financial Highlights
Media margin, adjusted EBITDA, and adjusted net loss are non-GAAP financial measures, as defined and reconciled below.
Business Outlook & Goals
Conference Call
Fluent, Inc. will host a conference call on Wednesday, May 13, 2026, at 4:30 PM ET to discuss its 2026 first quarter financial results. The conference call can be accessed by phone after registering online at https://register-conf.media-server.com/register/BI10ac999bd5f64f20bcc6c9c2d30110f2. 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/fiocttbz/. 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:
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.
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FLUENT, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) (unaudited) |
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| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS: | ||||||||
| Cash and cash equivalents | $ | 10,299 | $ | 12,935 | ||||
| Accounts receivable, net of allowance for credit losses of $158 and $163, respectively | 31,765 | 46,735 | ||||||
| Prepaid expenses and other current assets | 7,367 | 7,799 | ||||||
| Total current assets | 49,431 | 67,469 | ||||||
| Non-current restricted cash | 710 | 710 | ||||||
| Property and equipment, net | 128 | 104 | ||||||
| Operating lease right-of-use assets | 2,676 | 2,859 | ||||||
| Intangible assets, net | 16,704 | 17,276 | ||||||
| Other non-current assets | 2,622 | 715 | ||||||
| Total assets | $ | 72,271 | $ | 89,133 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||
| Accounts payable | $ | 7,483 | $ | 7,200 | ||||
| Accrued expenses and other current liabilities | 20,024 | 25,163 | ||||||
| Deferred revenue | 143 | 721 | ||||||
| Short-term debt, net | 23,456 | 30,846 | ||||||
| Current portion of operating lease liability | 1,104 | 1,104 | ||||||
| Total current liabilities | 52,210 | 65,034 | ||||||
| Convertible Notes, at fair value with related parties | 4,571 | 3,734 | ||||||
| Operating lease liability, net | 1,784 | 1,985 | ||||||
| Other non-current liabilities | 420 | 168 | ||||||
| Total liabilities | 58,985 | 70,921 | ||||||
| Contingencies | ||||||||
| Shareholders' equity: | ||||||||
| Preferred stock — $0.0001 par value, 10,000,000 Shares authorized; Shares outstanding — 0 shares for both periods | — | — | ||||||
| Common stock — $0.0005 par value, 200,000,000 Shares authorized; Shares issued — 30,584,307 and 30,404,779, respectively; and Shares outstanding — 29,815,712 and 29,636,184, respectively | 54 | 53 | ||||||
| Treasury stock, at cost — 768,595 and 768,595 Shares, respectively | (11,407 | ) | (11,407 | ) | ||||
| Additional paid-in capital | 467,955 | 467,528 | ||||||
| Accumulated deficit | (443,316 | ) | (437,962 | ) | ||||
| Total shareholders' equity | 13,286 | 18,212 | ||||||
| Total liabilities and shareholders' equity | $ | 72,271 | $ | 89,133 | ||||
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FLUENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share data) (unaudited) |
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| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 44,852 | $ | 55,210 | ||||
| Costs and expenses: | ||||||||
| Cost of revenue (exclusive of depreciation and amortization) | 34,813 | 43,775 | ||||||
| Sales and marketing | 3,724 | 4,070 | ||||||
| Product development | 2,821 | 3,398 | ||||||
| General and administrative | 5,708 | 8,582 | ||||||
| Depreciation and amortization | 1,681 | 2,461 | ||||||
| Loss on disposal of assets | 14 | — | ||||||
| Total costs and expenses | 48,761 | 62,286 | ||||||
| Loss from operations | (3,909 | ) | (7,076 | ) | ||||
| Interest expense, net | (605 | ) | (880 | ) | ||||
| Fair value adjustment of Convertible Notes with related parties | (837 | ) | (80 | ) | ||||
| Loss before income taxes | (5,351 | ) | (8,036 | ) | ||||
| Income tax expense | (3 | ) | (233 | ) | ||||
| Net loss | $ | (5,354 | ) | $ | (8,269 | ) | ||
| Basic and diluted loss per share: | ||||||||
| Basic | $ | (0.17 | ) | $ | (0.39 | ) | ||
| Diluted | $ | (0.17 | ) | $ | (0.39 | ) | ||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 31,332,710 | 21,211,439 | ||||||
| Diluted | 31,332,710 | 21,211,439 | ||||||
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FLUENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (unaudited) |
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| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (5,354 | ) | $ | (8,269 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 1,681 | 2,461 | ||||||
| Non-cash loan amortization expense | 79 | 176 | ||||||
| Non-cash gain on divestiture | (2,352 | ) | — | |||||
| Share-based compensation expense | 954 | 335 | ||||||
| Fair value adjustment of Convertible Notes with related parties | 837 | 80 | ||||||
| Loss on disposal of asset | 14 | — | ||||||
| Allowance for credit losses | (5 | ) | (4 | ) | ||||
| Changes in assets and liabilities, net of business acquisitions: | ||||||||
| Accounts receivable | 14,975 | 9,517 | ||||||
| Prepaid expenses and other current assets | 123 | 603 | ||||||
| Other non-current assets | 131 | 106 | ||||||
| Operating lease assets and liabilities, net | (18 | ) | (83 | ) | ||||
| Accounts payable | 283 | (263 | ) | |||||
| Accrued expenses and other current liabilities | (5,658 | ) | (2,331 | ) | ||||
| Deferred revenue | (578 | ) | (215 | ) | ||||
| Other | — | (1 | ) | |||||
| Net cash provided by operating activities | 5,112 | 2,112 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capitalized costs included in intangible assets | (1,493 | ) | (1,570 | ) | ||||
| Proceeds from note receivable | 69 | — | ||||||
| Acquisition of property and equipment | (57 | ) | — | |||||
| Net cash used in investing activities | (1,481 | ) | (1,570 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of short and long-term debt | 62,757 | 21,841 | ||||||
| Repayments of short and long-term debt | (69,024 | ) | (31,869 | ) | ||||
| Debt financing costs | — | (125 | ) | |||||
| Proceeds from issuance of common stock and warrants | — | 5,000 | ||||||
| Net cash used in financing activities | (6,267 | ) | (5,153 | ) | ||||
| Net decrease in cash, cash equivalents, and restricted cash | (2,636 | ) | (4,611 | ) | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 13,645 | 10,694 | ||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 11,009 | $ | 6,083 | ||||
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 March 31, | ||||||||
| (In thousands, except percentages) | 2026 | 2025 | ||||||
| Revenue | $ | 44,852 | $ | 55,210 | ||||
| Less: Cost of revenue (exclusive of depreciation and amortization) | 34,813 | 43,775 | ||||||
| Gross profit (exclusive of depreciation and amortization) | $ | 10,039 | $ | 11,435 | ||||
| Gross profit (exclusive of depreciation and amortization) % of revenue | 22 | % | 21 | % | ||||
| Non-media cost of revenue(1) | 3,961 | 2,296 | ||||||
| Media margin | $ | 14,000 | $ | 13,731 | ||||
| Media margin % of revenue | 31.2 | % | 24.9 | % | ||||
(1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses.
Below is a reconciliation of media margin from gross profit for Commerce Media Solutions (exclusive of depreciation and amortization) for Commerce Media Solutions, which we believe is the most directly comparable U.S. GAAP measure.
| Three Months Ended March 31, | ||||||||
| (In thousands, except percentages) | 2026 | 2025 | ||||||
| Revenue | $ | 25,865 | $ | 12,660 | ||||
| Less: Cost of revenue (exclusive of depreciation and amortization) | 20,858 | $ | 9,847 | |||||
| Gross profit (exclusive of depreciation and amortization) | $ | 5,007 | $ | 2,813 | ||||
| Gross profit (exclusive of depreciation and amortization) % of revenue | 19 | % | 22 | % | ||||
| Non-media cost of revenue(1) | 2,734 | $ | 298 | |||||
| Media margin | $ | 7,741 | $ | 3,111 | ||||
| Media margin % of revenue | 29.9 | % | 24.6 | % | ||||
(1) Represents the portion of cost of revenue (exclusive of depreciation and amortization) not attributable to variable costs paid for media and related expenses.
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 March 31, | ||||||||
| (In thousands) | 2026 | 2025 | ||||||
| Net loss | $ | (5,354 | ) | $ | (8,269 | ) | ||
| Income tax expense | 3 | 233 | ||||||
| Interest expense, net | 605 | 880 | ||||||
| Depreciation and amortization | 1,681 | 2,461 | ||||||
| Share-based compensation expense | 954 | 335 | ||||||
| Loss on disposal of assets | 14 | — | ||||||
| Fair value adjustment of Convertible Notes with related parties | 837 | 80 | ||||||
| Acquisition-related costs(1) | (2,352 | ) | (119 | ) | ||||
| Restructuring and other severance costs | 51 | 1,315 | ||||||
| Adjusted EBITDA | $ | (3,561 | ) | $ | (3,084 | ) | ||
| (1 | ) | Balance includes gain on the conveyance of the membership interest of Winopoly in January 2026 of $2,352. Balance also includes compensation expense related to non-compete agreements and earn-out expense incurred as a result of business combinations, and non-cash loss on asset write-offs. The earn-out expense was $0 and ($119) for the three months ended March 31, 2026 and 2025, respectively. The non-compete agreements expense was $0 and $0 for the three months ended March 31, 2026 and 2025, respectively. |
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 March 31, | ||||||||
| (In thousands, except share and per share data) | 2026 | 2025 | ||||||
| Net loss | $ | (5,354 | ) | $ | (8,269 | ) | ||
| Share-based compensation expense | 954 | 335 | ||||||
| Loss on disposal of assets | 14 | — | ||||||
| Fair value adjustment of Convertible Notes with related parties | 837 | 80 | ||||||
| Acquisition-related costs(1) | (2,352 | ) | (119 | ) | ||||
| Restructuring and other severance costs | 51 | 1,315 | ||||||
| Adjusted net loss | $ | (5,850 | ) | $ | (6,658 | ) | ||
| Adjusted net loss per share: | ||||||||
| Basic | $ | (0.19 | ) | $ | (0.31 | ) | ||
| Diluted | $ | (0.19 | ) | $ | (0.31 | ) | ||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 31,332,710 | 21,211,439 | ||||||
| Diluted | 31,332,710 | 21,211,439 | ||||||
| (1 | ) | Balance includes gain on the conveyance of the membership interest of Winopoly in January 2026 of $2,352. Balance also includes compensation expense related to non-compete agreements and earn-out expense incurred as a result of business combinations, and non-cash loss on asset write-offs. The earn-out expense was $0 and ($119) for the three months ended March 31, 2026 and 2025, respectively. The non-compete agreements expense was $0 and $0 for the three months ended March 31, 2026 and 2025, respectively. |
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:
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
