Fluent, Inc. reported second quarter 2026 revenue of $48.4 million, up 8% year over year, while the net loss narrowed to $6.2 million, or $0.20 per share, from $7.2 million a year earlier. The quarter's story is not the headline growth rate. It is the mix shift underneath it. Commerce Media Solutions, the division that embeds ad serving technology into partner sites and apps, generated $30.5 million of the $48.4 million, roughly 63% of consolidated revenue, against 36% in the prior year quarter. The legacy owned and operated sites business contributed $16.3 million, down from $21.4 million, and the divested call center business left a $1.6 million residue in other streams versus $7.2 million a year ago. The company has traded a shrinking, regulatory constrained consumer acquisition engine for a long term contracted, lower inventory risk media business, and the quarter shows the transition is well advanced rather than in its first inning.
The margin expansion is the second leg of the argument. Gross profit, exclusive of depreciation and amortization, rose 36% to $14.0 million, lifting the gross margin from 23% to 29% of revenue. Media margin, the company's non GAAP measure of revenue net of variable media costs, grew 46% to $17.5 million, or 36.1% of revenue, from 26.7%. Cost of revenue was essentially flat year over year at $34.4 million even as revenue climbed 8%, which means the incremental dollar of revenue carried almost no incremental media cost. Adjusted EBITDA, a non GAAP earnings proxy that adds back interest, taxes, depreciation, share based compensation and a list of one time items, improved to negative $1.8 million from negative $2.8 million. Each of these moves is attributable to durable operating change, the Commerce Media Solutions mix and improved monetization with non revenue share partners, rather than to one time items, though a $156,000 non media settlement adjustment sits in the reconciliation.
The stock trades near the bottom of its range. As of the most recent close the shares stood at $3.51, near the $1.70 low of the 52 week range that tops out at $4.49, implying a market capitalization around $111 million on roughly 31.25 million weighted average shares. Against $93.3 million of first half revenue, the multiple is roughly 1.2x the first six months of 2026 sales and about 2.4x an annualized run rate. For a company that is still loss making, carrying the overhang of a 2023 Federal Trade Commission consent order on its legacy business, and selling an asset light media franchise, the price is not asking for perfection. It is asking for proof that the Commerce Media Solutions growth is durable, that the owned and operated wind down does not stall before the new engine is fully sized, and that the cash burn stays contained through the transition. The next two quarters of partner onboarding and margin trajectory decide whether the market re rates this as a media business or leaves it as a repositioning story.