Cardlytics (CDLX) AI Stock Analysis

• Market Cap: $93.98M
• Dividend Yield: N/A
• Average Volume (3M): 878.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.48
• Revenue Growth: -12.77%
• EPS Growth: 19.71%
• Country: US
• Employees: 440
• Sector: Communication Services
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): -0.26
• Shares Outstanding: 52,502,390
• 10 Day Avg. Volume: 401,339
• 30 Day Avg. Volume: 878,005
• PEG Ratio: -0.07
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.75
• Enterprise Value/Market Cap: 2.82
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 2.28
• Enterprise Value/Ebitda: -0.41
• 1Y Price Target: $2.60
• Price Target Upside: 45.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 42 Neutral
• Price Target: $2.00 ▲(11.73%Upside)

Cardlytics is currently facing multiple headwinds with substantial financial difficulties, as reflected by its declining revenues and high leverage. Despite some strategic expansions and partnerships, technical indicators and valuation metrics are not favorable, reflecting the company's uncertain outlook.

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

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.

Financial Challenges

A sizable net debt position and expectations for ongoing cash burn raise concerns.

Outlook

The outlook was light, and recovery is expected to remain uneven.

Cardlytics Business Overview & Revenue Model

Company Description

Cardlytics (CDLX) is a digital advertising platform that specializes in providing transaction-driven marketing solutions. The company operates primarily in the fintech and advertising sectors, leveraging its unique access to purchase data to offer banks and marketers insights into consumer behavior. Cardlytics partners with financial institutions to provide their clients with personalized cash-back offers directly within their online and mobile banking applications.

How the Company Makes Money

Cardlytics makes money by partnering with financial institutions to use their purchase data to create targeted marketing campaigns. These campaigns are funded by advertisers who pay Cardlytics to deliver personalized offers to consumers based on their purchasing behavior. Cardlytics earns revenue by charging advertisers a fee for each transaction that occurs as a result of a consumer redeeming an offer. Additionally, they may have revenue-sharing agreements with their banking partners, where they share a portion of the fees collected from advertisers. Key partnerships with major banks are significant contributors to the company's earnings, as they provide access to a large and diverse consumer base.

Cardlytics Financial Statement Overview

Summary

Cardlytics faces significant financial challenges with declining revenues, persistent losses, high leverage, and negative equity returns. While there are improvements in operating cash flow, profitability and debt management remain critical issues.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
272.59M	278.30M	309.20M	298.54M	267.12M	186.89M
	Gross Profit
116.29M	120.89M	130.38M	112.63M	103.34M	63.27M
	EBIT
-192.40M	-195.50M	-135.67M	-135.54M	-96.85M	-53.92M
	EBITDA
-140.77M	-152.53M	-99.00M	-418.98M	-89.91M	-39.51M
	Net Income Common Stockholders
-178.31M	-189.30M	-134.70M	-465.26M	-128.56M	-58.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.05M	65.59M	91.83M	121.91M	233.47M	293.24M
	Total Assets
369.07M	392.71M	574.14M	691.24M	1.26B	422.54M
	Total Debt
220.73M	221.65M	266.11M	235.26M	197.23M	188.12M
	Net Debt
168.68M	156.06M	174.28M	113.36M	-36.24M	-105.12M
	Total Liabilities
304.98M	322.72M	439.35M	479.63M	573.10M	265.35M
	Stockholders Equity
64.09M	69.99M	134.80M	211.60M	690.70M	157.19M
Cash Flow		Free Cash Flow
-12.46M	-28.12M	-12.58M	-67.39M	-51.09M	-17.71M
	Operating Cash Flow
2.09M	-8.82M	-185.00K	-53.90M	-38.52M	-7.60M
	Investing Cash Flow
-17.90M	-18.75M	-10.06M	-15.76M	-506.69M	-10.12M
	Financing Cash Flow
-29.91M	1.44M	-20.03M	-39.99M	486.00M	206.43M

Cardlytics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.79 is below the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.74, and below the 200-day MA of 3.01, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 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
DLX	69 Neutral	$665.28M	11.93	9.10%	8.07%	-2.69%	61.73%
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
MCHX	57 Neutral	$83.85M	―	-16.55%	―	-2.67%	21.65%
TSQ	53 Neutral	$117.40M	―	74.55%	11.04%	-0.16%	57.03%
INUV	49 Neutral	$57.70M	―	-34.39%	―	18.20%	50.14%
CDLX	42 Neutral	$93.98M	―	-135.48%	―	-12.77%	19.71%
FLNT	41 Neutral	$40.10M	―	-123.16%	―	-15.07%	33.40%

Cardlytics Corporate Events

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.

Cardlytics Faces Bank of America Non-Renewal Notice

Cardlytics, Inc. announced that Bank of America has issued a non-renewal notice for their existing agreements, set to expire on July 31, 2025, with operations continuing until January 27, 2026. Despite the non-renewal, Cardlytics believes the impact on its financial results will be minimal due to potential new arrangements with Bank of America and growth from other financial partners. Additionally, Cardlytics amended its loan facility with Banc of California, extending the maturity date to April 15, 2028, while maintaining $60 million in unused borrowings.