Fluent's Q3: Revenue Up 14% to $53.6M as Loss Narrows to $3.1M

Fluent posted $53.6 million in third-quarter revenue, up 14% from $47 million a year earlier, and narrowed its net loss to $3.1 million from $7.6 million. The Commerce Media Solutions business doubled in size during the quarter and now anchors the company's growth story. On an earnings call with analysts, management guided to double-digit revenue growth from continuing businesses for full-year 2026 and double-digit consolidated growth in 2027, based on current visibility.

Don Patrick, the company's chief executive officer, framed the numbers as the payoff from a deliberate bet. "The results reflected the company's investment in commerce media following a strategic pivot in 2023," he said on the call. The pivot has reshaped the revenue base in eleven straight quarters.

How fast is Commerce Media growing?

Fast, and consistently. Commerce Media Solutions revenue rose 100% year over year to $37.5 million — its 11th consecutive quarter of high double-digit growth or better. The segment now accounts for 70% of consolidated revenue, up from 40% a year earlier, and closed the quarter at an annual revenue run rate above $145 million.

The rest of the business moved the other way. Revenue from Fluent's Owned and Operated segment fell 33% to $13.8 million, a decline the company accepted as it shifts focus toward commerce media.

Revenue from aggregate continuing businesses increased 29% in the quarter. The prior-year total still included the Call Solutions business, which Fluent divested in January, along with other runoff revenue.

Patrick highlighted two partnerships. CVS went live on Fluent's platform in the third quarter and is scaling. He also cited work with one of the largest retail media networks, unnamed, as a growth opportunity: Fluent helps partners show consumers offers outside a retailer's core categories — travel or insurance offers at a grocery checkout, for example.

What did margins and losses do?

Gross profit, excluding depreciation and amortization, climbed 41% to $15.3 million, or 28% of revenue. Commerce Media Solutions gross profit jumped 173% to $11.1 million, a 30% segment margin.

Chief Financial Officer Ryan Perfit credited improved monetization with certain partners and a partner contract renegotiation. One caveat: the renegotiation benefit will not recur in future periods, and Fluent continues to guide toward a gross margin in the high-20% range for the business.

The bottom line improved markedly. Adjusted EBITDA, a non-GAAP measure, came in at a loss of $43,000, against a $3.4 million loss in the prior-year quarter. Fluent expects positive adjusted EBITDA in the fourth quarter.

Operating expenses rose to $16.7 million from $14.7 million, excluding depreciation and amortization. Perfit attributed the increase to performance-related compensation, sales commissions, higher share-based compensation, and a $504,000 provision for credit losses on a note receivable from the January divestiture.

What about the fourth quarter and 2027?

Perfit expects Commerce Media Solutions growth to moderate from the third quarter's pace but to remain in high double digits year over year. He pointed to the business's larger scale and a more diversified partner base — including CVS and Wyndham — whose businesses carry less pronounced retail seasonality.

On whether double-digit consolidated revenue growth could hold in every quarter of 2027, Perfit called that a "fair assumption," while noting the company had not stated it specifically. He said Fluent expects continued adjusted EBITDA improvement in 2027 but gave no specific profitability forecast.

How strong is the balance sheet?

Cash and cash equivalents stood at $11.4 million at the end of September, down from $12.9 million at the end of 2025. Short-term debt, net of unamortized discount and fees, was $31.5 million. Operating cash flow turned positive: the company generated $2.8 million in the first nine months of 2026, versus $4.3 million used in the same period a year earlier. On September 30, Fluent amended its Bay View Funding facility to increase maximum credit to $35 million.

What comes next in-store?

Patrick said Fluent is testing in-store and loyalty offerings with key partners in the fourth quarter and plans to discuss the opportunity more substantially in 2027. CVS launched online post-transaction services in the third quarter; Fluent has an in-store testing and integration plan with the partner for 2027.

Chief Strategy Officer Ryan Schulke said the company's focus includes tailoring offers to individual shoppers and helping advertisers manage differences among retail partners. The call's forward-looking statement disclaimer noted that actual results could differ materially, citing risks that include Fluent's ability to continue as a going concern.

Fluent, Inc. (NASDAQ:FLNT) is a digital marketing and advertising technology company serving brands and agencies across programmatic advertising, customer acquisition, lead generation and audience engagement.

The takeaway: a doubling segment, a nearly breakeven quarter, and a going-concern caveat that investors cannot ignore.