Fluent, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $53.6 million, a 14% increase compared to $47.0 million in Q3 2025; nine-month 2026 revenue was $146.9 million, flat compared to $146.9 million for the same period in 2025.
• Commerce Media Solutions revenue grew 100% year-over-year in Q3 2026 to $37.5 million (70% of consolidated revenue) from $18.8 million in Q3 2025; for the first nine months, it increased 98% to $94.0 million from $47.5 million.
• Owned and Operated revenue decreased 33% in Q3 2026 to $13.8 million from $20.7 million in Q3 2025, and decreased 37% for the first nine months to $45.8 million from $73.2 million.
• Aggregate continuing business revenue grew 29% in Q3 2026 and 16% for the first nine months compared to the prior year periods.
• Net loss for Q3 2026 was $3.1 million ($0.10 per share), a 59% reduction from $7.6 million ($0.27 per share) in Q3 2025; for the first nine months, net loss was $14.7 million ($0.47 per share), a 36% reduction from $23.0 million ($0.94 per share).
• Gross profit (exclusive of depreciation and amortization) was $15.3 million (28% of revenue) in Q3 2026, up 41% from Q3 2025; for the first nine months, it was $39.3 million (27% of revenue), up 21%.
• Commerce Media Solutions gross margin was 30% in Q3 2026, up from 22% in Q3 2025; for the first nine months, it was 26%, up from 21%.
• Media margin was $18.9 million (35% of revenue) in Q3 2026, up 48% from Q3 2025; for the first nine months, it was $50.4 million (34% of revenue), up 31%.
• Adjusted EBITDA was $0.0 million in Q3 2026 compared to a loss of $3.4 million in Q3 2025; for the first nine months, adjusted EBITDA loss was $5.0 million compared to $9.2 million in the prior year.
• Adjusted net loss was $2.5 million ($0.08 per share) in Q3 2026 compared to $6.5 million ($0.23 per share) in Q3 2025; for the first nine months, adjusted net loss was $12.0 million ($0.39 per share) compared to $19.0 million ($0.78 per share).
• Net cash provided by operating activities was $2.8 million for the first nine months of 2026, compared to net cash used of $4.3 million in the same period of 2025.
• Cash and cash equivalents were $11.4 million as of September 30, 2026, down from $12.9 million as of December 31, 2025.
• Short-term debt, net, was $31.5 million as of September 30, 2026, up from $30.8 million as of December 31, 2025.
• Deferred revenue was $0.3 million as of September 30, 2026, down from $0.7 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company expects full-year 2026 double-digit revenue growth on aggregate continuing businesses and improved adjusted EBITDA.
• For Q4 2026, the Company expects double-digit revenue growth on aggregate continuing businesses and positive adjusted EBITDA, with Commerce Media Solutions growth in the high double digits but moderating from Q3.
• For 2027, the Company expects double-digit consolidated revenue growth as it continues to scale Commerce Media Solutions.
• The Company aims to maintain Commerce Media Solutions gross margins in the high twenties.
• The Company plans to expand Commerce Media Solutions partnerships into new verticals including travel, lifestyle, and home services.
• The Company intends to launch and scale a new in-store commerce media offering across existing and new retail partners.

Business Segments and Product Lines:

• Commerce Media Solutions now represents 70% of consolidated revenue, up from 40% in Q3 2025.
• The Company is shifting its revenue mix away from Owned and Operated revenue toward Commerce Media Solutions.
• The Company continues to add new partners to its network.
• The Company is launching a new in-store commerce media offering.
• The Company is expanding beyond traditional retail channels into travel, lifestyle, and home services.

Market and Competitive Landscape:

• The Company operates in a competitive, rapidly changing, and highly regulated industry.
• The Company relies on the gaming industry.
• The Company faces a competitive disadvantage due to a more selective approach to traffic sources.
• The Company faces risks regarding the supply of media available through third parties and potential price increases.

Risks and Challenges:

• Reliance on an uncommitted financing agreement raises substantial doubt about the ability to continue as a going concern.
• Dependence on the gaming industry and potential reduction in online marketing spend by clients.
• Credit and collection risks, including collectability of the note received from the sale of Call Solutions.
• Need to continue investing in technology for Commerce Media Solutions.
• Challenges scaling infrastructure and products while maintaining profitability.
• Global economic or political instability, including tariffs, inflation, and military conflicts.
• Compliance with significant governmental laws and regulations regarding telemarketing, privacy, and data protection.
• Potential loss of competitiveness from slow mobile adoption and Customer Relationship Management dependence.
• Dependence on key personnel and third-party service providers.
• Risk of dilution from future share issuances and potential failure to maintain Nasdaq listing.
• The Company has not paid cash dividends and does not expect to in the foreseeable future.

Management Commentary and Tone:

• CEO Don Patrick described the third quarter as "another strong quarter" driven by Commerce Media Solutions growth.
• Management noted that Commerce Media Solutions is "reshaping the profile of our Company," driving growth, improving revenue quality, and contributing to near-breakeven adjusted EBITDA.
• Management expressed being "highly encouraged" by demand for commerce media offerings.
• Management stated confidence in delivering full-year double-digit revenue growth and improved adjusted EBITDA.
• Management believes the Company is "well positioned to close out a strong year" as revenue mix improves and margin profiles strengthen.

Other Key Points:

• Commerce Media Solutions annual revenue run rate now exceeds $145 million.
• Call Solutions was sold in January 2026; Q3 2025 revenue included $5.3 million from this segment.
• The ACA business was discontinued in the third quarter of 2024, resulting in a $0.4 million revenue write-down in the first nine months of 2026.
• A one-time non-media revenue adjustment of $0.156 million was recorded in Q2 2026 in connection with a settlement with a media partner.
• The Company recorded a gain on the conveyance of the membership interest of Winopoly in January 2026 of $2.352 million.
• The Company incurred a $0.698 million write-off of intangibles related to the write-off of TAPP Influencers Corp. in May 2025.
• Share-based compensation expense was $0.875 million for Q3 2026 and $3.667 million for the first nine months of 2026.
• The Company hosts a conference call on November 12, 2026, at 4:30 PM ET to discuss results.