Cardlytics (CDLX) AI Stock Analysis

• Market Cap: $98.70M
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.27
• Revenue Growth: -12.77%
• EPS Growth: 19.71%
• Country: US
• Employees: 440
• Sector: Communication Services
• Sector Strength: 78
• Industry: Advertising Agencies
• EPS (TTM): -0.26
• Shares Outstanding: 52,502,390
• 10 Day Avg. Volume: 2,973,871
• 30 Day Avg. Volume: 1,707,394
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.67
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: -1.87
• 1Y Price Target: $3.00
• Price Target Upside: 59.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 45 Neutral
• Price Target: $2.00 ▲(6.38%Upside)

Cardlytics is experiencing significant financial difficulties with negative profit margins and high leverage. Despite some technical stability, the valuation is challenging with a negative P/E ratio and volatile beta. While there are strategic expansions and partnerships, financial instability and market uncertainties remain key concerns.

Positive Factors

Balance Sheet

The balance sheet update was constructive and gives more confidence that there is enough runway for CDLX to execute on its turnaround.

Financial Performance

CDLX's 1Q results beat Street numbers on the top and bottom line, as new pipeline conversions and better execution resulted in a solid quarter.

Pricing Model Adoption

The adoption of engagement-based pricing increased to 61% of advertisers, up from 51% last quarter, with 90%+ new brands adopting this model in Q4, showing improved visibility.

Negative Factors

Contract Uncertainty

The bigger question mark concerns the relationship with Bank of America, as the current contract is set to lapse.

Price Target Adjustment

The target price is lowered to $3 due to broader multiple compression in the space, despite maintaining a Hold rating.

Revenue Outlook

Mgmt’s Q1 outlook was muted and mgmt commentary for the remainder of FY25 suggests to us a more gradual billings rebound than we had previously expected.

Cardlytics Business Overview & Revenue Model

Company Description

Cardlytics (CDLX) is a digital advertising platform that operates within the fintech sector. It specializes in providing purchase intelligence and data-driven marketing solutions. The company partners with financial institutions to provide targeted, data-based marketing campaigns, leveraging consumer purchase data to deliver personalized advertising to customers within their banking platforms.

How the Company Makes Money

Cardlytics makes money primarily through its card-linked marketing platform, which generates revenue by charging marketers for accessing its services. The company partners with banks and other financial institutions to access anonymized purchase data, which is used to create targeted advertising campaigns for businesses looking to reach specific consumer segments. Cardlytics earns revenue through a combination of fees for ad placements and performance-based pricing models, where they receive a share of the sales generated from the campaigns. Significant partnerships with major banks enhance their data reach and audience targeting capabilities, further contributing to their revenue.

Cardlytics Financial Statement Overview

Summary

Cardlytics is facing considerable financial challenges with declining revenues and persistent losses. The company has a high debt-to-equity ratio, negative profit margins, and negative equity returns, highlighting significant financial risks. Despite improvements in operating cash flow, the need to address profitability and manage debt effectively remains crucial.

Income Statement

Cardlytics has experienced declining revenue over the recent period, with a revenue decrease of 2.05% from the previous year. The company's gross profit margin remains relatively stable at 42.68% for TTM (Trailing-Twelve-Months), but net profit margin is significantly negative at -65.43%, indicating ongoing challenges in achieving profitability. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 3.44, indicating significant leverage and potential risk if revenues continue to decline. Return on equity is negative at -278.25% due to ongoing net losses. The equity ratio is low at 17.36%, suggesting limited equity cushion and a reliance on liabilities for financing.

Cash Flow

While Cardlytics has managed to improve its operating cash flow, turning positive in the TTM period, free cash flow remains negative. The free cash flow to net income ratio is low, indicating limited conversion of accounting profits to cash. The operating cash flow to net income ratio is positive but reflects the company's struggle to generate cash consistently.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.30M	309.20M	298.54M	267.12M	186.89M
Gross Profit	120.89M	130.38M	112.63M	103.34M	63.27M
EBITDA	-152.53M	-99.00M	-418.98M	-89.91M	-39.51M
Net Income	-189.30M	-134.70M	-465.26M	-128.56M	-58.47M
Balance Sheet
Total Assets	392.71M	574.14M	691.24M	1.26B	422.54M
Cash, Cash Equivalents and Short-Term Investments	65.59M	91.83M	121.91M	233.47M	293.24M
Total Debt	221.65M	266.11M	235.26M	197.23M	188.12M
Total Liabilities	322.72M	439.35M	479.63M	573.10M	265.35M
Stockholders Equity	69.99M	134.80M	211.60M	690.70M	157.19M
Cash Flow
Free Cash Flow	-28.12M	-12.58M	-67.39M	-51.09M	-17.71M
Operating Cash Flow	-8.82M	-185.00K	-53.90M	-38.52M	-7.60M
Investing Cash Flow	-18.75M	-10.06M	-15.76M	-506.69M	-10.12M
Financing Cash Flow	1.44M	-20.03M	-39.99M	486.00M	206.43M

Cardlytics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.88 is below the 20-day moving average (MA) of 2.05, above the 50-day MA of 1.88, and below the 200-day MA of 2.70, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 is Positive, 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
DLX	71 Outperform	$697.49M	12.51	9.10%	7.70%	-2.69%	61.73%
MCHX	61 Neutral	$84.51M	―	-16.55%	―	-2.67%	21.65%
INUV	60 Neutral	$70.23M	―	-34.39%	―	18.20%	50.08%
Sector *	55 Neutral	HK$63.09B	-0.94	-4.02%	5.55%	-3.40%	-16.18%
TSQ	54 Neutral	$112.01M	―	74.55%	11.61%	-0.16%	57.03%
CDLX	45 Neutral	$98.70M	―	-135.48%	―	-12.77%	19.71%
FLNT	45 Neutral	$43.41M	―	-123.16%	―	-15.07%	33.40%

Cardlytics Corporate Events

Cardlytics Extends Agreement with JPMorgan Chase

On July 7, 2025, Cardlytics, Inc. announced the extension of its Master Agreement with JPMorgan Chase Bank until November 18, 2028, through a Fourth Amendment. This amendment includes changes to Supplier Billings Share, Incentive Bonus, and Quality Credits, with a notable reduction in Supplier Billings Share starting January 1, 2026, although it remains higher than the level before the Third Amendment.

The most recent analyst rating on (CDLX) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Cardlytics stock, see the CDLX Stock Forecast page.

Cardlytics Annual Meeting Approves Key Proposals

On May 20, 2025, Cardlytics held its Annual Meeting where stockholders voted on several key proposals. The election of three board nominees, the ratification of Deloitte & Touche LLP as the independent auditor, the approval of the 2025 Equity Incentive Plan, and the advisory approval of executive compensation were all passed with majority votes. This meeting reflects the company’s ongoing governance and strategic planning efforts, potentially impacting its operational and financial strategies moving forward.

The most recent analyst rating on (CDLX) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Cardlytics stock, see the CDLX Stock Forecast page.