Cardlytics (CDLX) AI Stock Analysis

• Market Cap: $65.95M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.69
• Revenue Growth: -14.41%
• EPS Growth: 65.67%
• Country: US
• Employees: 440
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -1.36
• Shares Outstanding: 54,056,550
• 10 Day Avg. Volume: 826,416
• 30 Day Avg. Volume: 1,066,480
• PEG Ratio: -0.16
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -6.38
• Enterprise Value/Market Cap: 4.66
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: -4.16
• 1Y Price Target: $1.63
• Price Target Upside: 33.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.04
• Revenue Forecast (FY): $232.79M

• Rating: 40 Underperform
• Price Target: $1.00 ▼(-18.03% Downside)

Cardlytics' overall stock score is primarily impacted by its poor financial performance and bearish technical indicators. The company's high leverage and declining revenue present significant risks. While strategic initiatives and cost reductions offer some hope, the negative valuation metrics and oversold technical conditions weigh heavily on the stock's attractiveness.

Positive Factors

CRP Partnerships Expansion

The expansion of CRP partnerships, including with OpenTable, enhances Cardlytics' market reach and diversifies its advertiser base, potentially driving long-term revenue growth.

UK Revenue Growth

Strong revenue growth in the UK market indicates successful market penetration and operational effectiveness, contributing positively to Cardlytics' international expansion strategy.

Strategic Cost Reductions

The strategic cost reductions, resulting in $26 million in annualized savings, improve financial efficiency and provide a stronger foundation for future profitability.

Negative Factors

Revenue Decline

The significant revenue decline reflects challenges in maintaining sales momentum, impacting Cardlytics' ability to sustain growth and profitability.

Content Restrictions Impact

Content restrictions from a major FI partner limit Cardlytics' advertising capacity, posing a risk to revenue streams and necessitating diversification efforts.

High Leverage

High leverage increases financial risk and limits operational flexibility, potentially hindering Cardlytics' ability to invest in growth opportunities.

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

Cardlytics faces significant financial challenges with declining revenue, high leverage, and negative cash flow growth. The income statement shows a negative net profit margin and declining revenue, while the balance sheet indicates high financial risk with a concerning debt-to-equity ratio and negative stockholders' equity. Cash flow challenges are evident with a negative free cash flow growth rate.

Income Statement

Cardlytics has experienced declining revenue growth with a negative rate of -5.65% in the TTM period. The company also faces significant profitability challenges, with a negative net profit margin of -68.87% and negative EBIT and EBITDA margins. Despite a relatively stable gross profit margin, the overall income statement reflects financial instability and declining performance.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio of 3.75, indicating high leverage. The negative stockholders' equity and return on equity of -279.38% highlight significant financial distress. The equity ratio is also negative, suggesting potential solvency issues. Overall, the balance sheet reflects high financial risk and instability.

Cash Flow

Cardlytics' cash flow statement reveals a negative free cash flow growth rate of -52.11% in the TTM period, indicating declining cash generation. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. However, the free cash flow to net income ratio is relatively high, suggesting some efficiency in converting net income to free cash flow despite overall negative cash flow figures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.18M	278.30M	309.20M	298.54M	267.12M	186.89M
Gross Profit	111.46M	120.89M	130.38M	112.63M	103.34M	63.27M
EBITDA	-73.98M	-152.53M	-99.00M	-420.41M	-88.21M	-40.78M
Net Income	-110.83M	-189.30M	-134.70M	-465.26M	-128.56M	-55.42M
Balance Sheet
Total Assets	292.81M	392.71M	574.14M	691.24M	1.26B	422.54M
Cash, Cash Equivalents and Short-Term Investments	43.96M	65.59M	91.83M	121.91M	233.47M	293.24M
Total Debt	221.43M	221.65M	266.11M	235.26M	197.23M	188.11M
Total Liabilities	297.51M	322.72M	439.35M	479.63M	573.10M	265.35M
Stockholders Equity	-4.70M	69.99M	134.80M	211.60M	690.70M	157.19M
Cash Flow
Free Cash Flow	-9.64M	-28.12M	-12.58M	-67.39M	-51.09M	-17.71M
Operating Cash Flow	-741.00K	-8.82M	-185.00K	-53.90M	-38.52M	-7.60M
Investing Cash Flow	-17.11M	-18.75M	-10.06M	-15.76M	-506.69M	-10.12M
Financing Cash Flow	-5.31M	1.44M	-20.03M	-39.99M	486.00M	206.43M

Cardlytics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.22
• 50DMA: Negative
• 100DMA: Negative
• 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 1.22 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.92, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.91 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
CRTO	78 Outperform	$1.04B	6.64	15.37%	―	0.32%	69.78%
IAS	78 Outperform	$1.72B	36.75	4.48%	―	15.51%	39.60%
QNST	65 Neutral	$863.99M	191.84	4.55%	―	43.12%	―
ZD	62 Neutral	$1.30B	13.29	6.26%	―	5.70%	97.88%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EEX	53 Neutral	$720.02M	168.52	1.21%	1.65%	11.18%	―
CDLX	40 Underperform	$65.95M	―	-341.04%	―	-14.41%	65.67%

Cardlytics Corporate Events

Cardlytics’ Earnings Call: Growth Amid Challenges

Cardlytics, Inc. recently held its earnings call, revealing a mixed sentiment among its stakeholders. The company is optimistic about its growth prospects through new partnerships and strong UK market performance. However, it faces significant challenges due to content restrictions and a notable decline in billings and revenue.

Cardlytics Reports Q3 2025 Financial Results

Cardlytics, Inc., a commerce media platform, leverages first-party purchase data to enhance customer loyalty and drive incremental sales for advertisers and publishers, with significant visibility into card-based transactions in the U.S. and U.K. In its third-quarter 2025 financial results, Cardlytics reported a revenue of $52 million, marking a 22% decline from the previous year. Despite this, the company managed to reduce its net loss by 50% year-over-year, highlighting a strategic focus on financial health and growth initiatives.

Cardlytics Announces Major Workforce Reduction Plan

On October 1, 2025, Cardlytics, Inc. announced a workforce reduction plan affecting approximately 90 full-time employees, about 24% of its workforce, as part of a broader cost-reduction initiative. This plan aims to optimize the company’s cost structure, with expected non-recurring charges of $2.3 million primarily in the fourth quarter of 2025. Additionally, on October 2, 2025, Cardlytics revealed a broader cost savings initiative, reducing its workforce by 120 employees and contractors, representing 30% of its total workforce. This move is projected to save at least $26 million annually and is part of efforts to achieve positive adjusted EBITDA for 2025 and 2026.

The most recent analyst rating on (CDLX) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Cardlytics stock, see the CDLX Stock Forecast page.