Cardlytics (CDLX) AI Stock Analysis

• Market Cap: $44.91M
• Dividend Yield: N/A
• Average Volume (3M): 742.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.70
• Revenue Growth: -14.41%
• EPS Growth: 65.67%
• Country: US
• Employees: 440
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.15
• Shares Outstanding: 55,054,268
• 10 Day Avg. Volume: 755,479
• 30 Day Avg. Volume: 742,239
• PEG Ratio: 0.01
• Price to Book (P/B): -9.39
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 6.57
• Enterprise Value/Market Cap: 4.69
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 2.01
• Enterprise Value/Ebitda: -3.18
• 1Y Price Target: $1.13
• Price Target Upside: 37.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.84
• Revenue Forecast (FY): $219.14M

• Rating: 42 Neutral
• Price Target: $0.86 ▲(5.37% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial fundamentals (ongoing losses and a strained balance sheet) and negative near-term outlook from guidance tied to major partner/supply disruptions. Technicals also show a weak trend. Cost cuts, positive EBITDA/free cash flow, and the CFO appointment provide some support but are not yet enough to outweigh the top-line and balance-sheet risks.

Positive Factors

Embedded FI distribution & data moat

Cardlytics’ platform is embedded inside banks’ digital channels and uses transaction signals for targeting and attribution. That distribution plus first‑party purchase data creates a durable competitive advantage in measurable, performance‑oriented advertising and raises switching costs for advertisers.

Improving operating profitability

The company achieved positive adjusted EBITDA in 2025 and delivered sequential cash generation, signaling operational leverage from cost cuts. Sustainable positive EBITDA and recurring free cash flow provide runway to fund reinvestment and strengthen credibility with partners and lenders over the next several quarters.

Technology modernization & efficiency

Modernized infrastructure and AI tooling have materially cut infrastructure costs (~40%) and sped feature delivery (~20% faster). These productivity gains lower marginal cost per campaign, enable faster product improvements, and support margin sustainability and scalable growth as advertiser demand recovers.

Negative Factors

Balance sheet leverage

High absolute debt and a shift to slightly negative equity materially weaken the capital cushion and financial flexibility. Leverage constrains the ability to invest in sales/product initiatives, raises refinancing and covenant risk, and makes the firm more vulnerable to partner or demand shocks over months.

Loss of a major FI partner

The exit of Bank of America removes a large source of audience and campaign supply, causing immediate billings and ACPU pressure. Rebuilding equivalent distribution and economics takes many months and increases dependence on winning new FI relationships, a structural headwind to near‑term recovery.

Sustained top‑line and pricing pressure

Revenue and billings have declined materially and ACPU contracted sharply, indicating pricing and yield compression. Persistent top‑line weakness reduces operating leverage and makes it harder to convert positive adjusted EBITDA into durable net profitability without sustained recovery in advertiser yields and volume.

Cardlytics Business Overview & Revenue Model

Company Description

Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Cardlytics generates revenue primarily through its advertising services, which are based on a performance model. The company's key revenue streams include fees from brands and advertisers for placing offers and promotions within its network. Additionally, Cardlytics earns revenue by charging financial institutions for the integration and use of its platform, allowing these institutions to enhance their customer engagement efforts. Strategic partnerships with major banks and financial service providers are crucial to its business model, as they facilitate access to a large pool of consumer transaction data, which in turn enhances the effectiveness of targeted advertising campaigns. The company's ability to analyze this data and deliver measurable results for advertisers is a significant contributor to its revenue growth.

Cardlytics Financial Statement Overview

Summary

Financial profile remains pressured: revenue is declining and net losses persist, while the balance sheet is strained with high debt and slightly negative equity. Offsetting that, 2025 shows operational stabilization with positive EBITDA and a return to positive operating and free cash flow, but durability is still uncertain.

Income Statement

Revenue has trended down recently (2025: -7.1% vs. 2024: -10.0%) after modest growth in 2022–2023, showing inconsistent top-line momentum. Profitability remains weak with persistent net losses across all years shown; while 2025 shows positive EBITDA margin (~10.8%), net margin is still deeply negative (~-44%), indicating costs below EBITDA (e.g., depreciation/amortization, interest, other items) continue to pressure bottom-line results. Overall, the income statement reflects improving operating trajectory versus 2022–2024, but the business is still far from sustained profitability.

Balance Sheet

Leverage is a key concern. Total debt remains high (about $215M in 2025) while equity has deteriorated sharply—from positive equity in 2024 (~$70M) to slightly negative in 2025 (~-$6.5M), which materially weakens the capital cushion. Debt relative to equity is therefore unfavorable and less meaningful with negative equity, highlighting balance sheet strain. Total assets also declined versus prior years, suggesting a shrinking balance sheet alongside ongoing losses.

Cash Flow

Cash flow shows a notable improvement in 2025 with positive operating cash flow and positive free cash flow (~$9.3M), a sharp turnaround from negative free cash flow in 2024–2020. However, the trend is volatile: free cash flow fell sharply in 2025 versus 2024 levels, and operating cash generation has been inconsistent historically. Positive free cash flow is a clear near-term strength, but durability is not yet proven given the loss-making earnings profile and prior-year volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	233.27M	278.30M	309.20M	298.54M	267.12M
Gross Profit	0.00	120.89M	130.38M	112.63M	103.34M
EBITDA	25.24M	-152.53M	-99.00M	-420.41M	-88.21M
Net Income	-103.49M	-189.30M	-134.70M	-465.26M	-128.56M
Balance Sheet
Total Assets	285.64M	392.71M	574.14M	691.24M	1.26B
Cash, Cash Equivalents and Short-Term Investments	48.72M	65.59M	91.83M	121.91M	233.47M
Total Debt	215.31M	221.65M	266.11M	235.26M	197.23M
Total Liabilities	292.15M	322.72M	439.35M	479.63M	573.10M
Stockholders Equity	-6.51M	69.99M	134.80M	211.60M	690.70M
Cash Flow
Free Cash Flow	9.29M	-28.12M	-12.58M	-67.39M	-51.09M
Operating Cash Flow	9.29M	-8.82M	-185.00K	-53.90M	-38.52M
Investing Cash Flow	-15.30M	-18.75M	-10.06M	-15.76M	-506.69M
Financing Cash Flow	-11.12M	1.44M	-20.03M	-39.99M	486.00M

Cardlytics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDLX, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.89, below the 50-day MA of 1.05, and below the 200-day MA of 1.51, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 37.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDLX.

Cardlytics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QNST	68 Neutral	$713.56M	4.07	4.55%	―	43.12%	―
CRTO	67 Neutral	$986.72M	7.45	13.16%	―	0.32%	69.78%
ZD	63 Neutral	$1.64B	30.42	2.66%	―	5.70%	97.88%
EEX	62 Neutral	$862.44M	-17.49	1.21%	1.29%	11.18%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CDLX	42 Neutral	$44.91M	-0.59	-341.04%	―	-14.41%	65.67%

Cardlytics Corporate Events

Cardlytics to Sell Bridg Platform Assets to PAR

On January 23, 2026, Cardlytics, Inc. agreed to sell all assets, properties and rights primarily related to its Bridg platform to DB Sub, LLC, an indirectly wholly owned subsidiary of PAR Technology Corporation, in a transaction structured as an asset sale with certain specified liabilities assumed by the buyer. As consideration, Cardlytics will receive PAR common stock valued at between $27.5 million and up to $30 million, subject to adjustments for new customer contracts and certain revenue-related closing adjustments, with PAR committing to register the resale of those shares and Cardlytics agreeing to five-year non-compete and non-solicitation covenants on the sold business; the deal, already approved by Cardlytics’ board, remains contingent on customary closing conditions, the absence of material adverse effects, and completion by March 24, 2026, unless extended or terminated under the agreement.

The most recent analyst rating on (CDLX) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Cardlytics stock, see the CDLX Stock Forecast page.

Cardlytics Reappoints David Evans as Chief Financial Officer

On December 18, 2025, Cardlytics announced that company alumnus David Evans will return as Chief Financial Officer, principal financial officer, and principal accounting officer effective January 12, 2026, succeeding outgoing CFO Alexis DeSieno, who will remain in a non-officer advisory role through March 6, 2026 to ensure a smooth transition. Evans, who previously helped steer Cardlytics through its early growth and 2018 IPO and later served as CEO of Passport Labs and an advisor and board member to several technology firms, will oversee finance, accounting and investor relations as the company navigates a self-described critical stage of its turnaround, with a compensation package that includes a $400,000 base salary, a target bonus equal to his salary, a 1,000,000-unit RSU inducement grant with staged vesting, a $200,000 signing bonus subject to clawback if he departs within 12 months, and severance protections that underscore the board’s bid to secure experienced financial leadership and signal continuity and renewed discipline to investors and other stakeholders.

The most recent analyst rating on (CDLX) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Cardlytics stock, see the CDLX Stock Forecast page.

Cardlytics CFO Alexis DeSieno Announces Resignation

On December 3, 2025, Cardlytics announced that its Chief Financial Officer, Alexis DeSieno, plans to resign by March 6, 2026, or upon the appointment of her successor. Her resignation is not due to any disagreements with the company, and she will continue in an advisory role until her departure. The company has expressed gratitude for her contributions, particularly in improving the balance sheet and optimizing the cost structure.

The most recent analyst rating on (CDLX) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Cardlytics stock, see the CDLX Stock Forecast page.