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Cardlytics Inc (CDLX)
NASDAQ:CDLX
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Cardlytics
(NASDAQ:CDLX)
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Rating:42Neutral
Price Target:
$1.00
▲(4.17% Upside)
Cardlytics' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, high leverage, and cash flow challenges. Technical indicators suggest bearish momentum, and valuation metrics indicate overvaluation. While the earnings call provided some positive strategic initiatives, the significant financial and operational challenges weigh heavily on the stock's outlook.
Positive Factors
Strategic Partnerships
New partnerships, such as with OpenTable, expand Cardlytics' reach and unlock new advertiser verticals, potentially driving long-term growth.
Cost Reduction Initiatives
Significant cost reductions improve financial stability and support profitability goals, enhancing long-term operational efficiency.
UK Market Performance
Strong growth in the UK market indicates successful international expansion and diversification, contributing to overall revenue stability.
Negative Factors
Revenue Decline
A significant revenue decline impacts financial health and limits resources for growth initiatives, posing long-term challenges.
High Leverage
High leverage increases financial risk and limits flexibility, potentially affecting Cardlytics' ability to invest in growth opportunities.
Content Restrictions Impact
Restrictions from a major partner limit revenue potential and highlight dependency risks, affecting long-term strategic stability.
Cardlytics (CDLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.30M
Dividend YieldN/A
Average Volume (3M)846.64K
Price to Earnings (P/E)―
Beta (1Y)2.68
Revenue Growth-14.41%
EPS Growth65.67%
CountryUS
Employees440
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-1.36
Shares Outstanding54,056,550
10 Day Avg. Volume716,279
30 Day Avg. Volume846,636
Financial Highlights & Ratios
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 Cap5.37
Enterprise Value/Revenue1.22
Enterprise Value/Gross Profit2.76
Enterprise Value/Ebitda-4.16
Forecast
1Y Price Target
$1.63Price Target Upside69.79% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-1.04
Revenue Forecast (FY)$232.79M
Cardlytics Business Overview & Revenue Model
Company DescriptionCardlytics (CDLX) is a financial technology company that operates in the digital marketing and advertising sector. It specializes in leveraging purchase data to provide targeted advertising solutions, primarily for banks and their customers. By embedding its platform within banking apps, Cardlytics enables businesses to deliver personalized offers to consumers based on their spending habits, ultimately driving customer engagement and loyalty. The company partners with financial institutions to enhance their customer offerings while helping brands to effectively reach their target audiences.
How the Company Makes MoneyCardlytics 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth opportunities through new CRP partnerships and strong performance in the UK market, alongside strategic cost reductions leading to improved adjusted EBITDA. However, challenges with content restrictions and a major decline in billings and revenue present notable headwinds.Q3-2025 Updates
Positive Updates
Expansion of CRP Partnerships
Cardlytics signed 3 new CRP partners, including OpenTable, which represents a significant growth opportunity by meeting more consumers where they are and unlocking new advertiser verticals.
UK Revenue Growth
The UK business showed a strong performance with a 22% year-over-year revenue growth, driven by higher billings and an increase in supply.
Improved Adjusted EBITDA
Despite top line challenges, Cardlytics achieved a positive adjusted EBITDA of $3.2 million, an increase of $5.0 million compared to the previous year.
High Adjusted Contribution Margin
Adjusted contribution margin reached 57.7%, the highest experienced to date, driven by a favorable partner mix and improved economics with new FI partners.
Strategic Cost Reductions
Cardlytics executed significant cost reductions, including a 30% workforce reduction, resulting in annualized cash savings of $26 million.
Negative Updates
Significant Decrease in Billings
Total billings decreased by 20.3% to $89.2 million due to content restrictions imposed by a major FI partner.
Revenue Decline
Revenue decreased by 22.4% to $52.0 million, primarily driven by a decrease in billings.
Challenges with Largest FI Partner
Content restrictions by the largest FI partner impacted the company's ability to sell larger budgets, with about 1/3 of total billings set to be blocked.
ACPU Decline
ACPU decreased by 31% year-over-year as a result of content restrictions and ramping of new FI partners.
Company Guidance
During the Q3 2025 earnings call, Cardlytics provided guidance indicating several key metrics and strategic initiatives. The company reported a 20.3% decrease in total billings to $89.2 million compared to the previous year, with a revenue decrease of 22.4% to $52.0 million, largely due to content restrictions from its largest financial institution (FI) partner. Despite these challenges, Cardlytics maintained a positive adjusted EBITDA of $3.2 million. The company saw a 21% increase in monthly qualified users (MQUs) to 230.3 million, driven by new FI partners, although the average consumer price unit (ACPU) dropped by 31% to $0.11. Looking ahead to Q4 2025, Cardlytics expects billings between $86 million and $96 million and adjusted EBITDA ranging from $0.9 million to $7.9 million. The company highlighted its focus on diversifying its supply and increasing engagement, with strategic partnerships such as the addition of OpenTable to its Cardlytics Rewards Platform (CRP), and efforts to improve advertiser demand through pilot programs with iconic brands. Additionally, Cardlytics is undertaking cost-saving measures, including a 30% workforce reduction, expected to yield $26 million in annualized savings. The company's outlook for 2026 emphasizes solidifying its foundation and growing its commerce media platform, with an aim to return to growth and profitability by leveraging new and existing partnerships.Cardlytics Financial Statement Overview
Summary
Cardlytics faces significant financial challenges across all verticals. The income statement shows declining revenue and profitability, the balance sheet indicates high leverage and potential solvency issues, and the cash flow statement reflects declining cash generation. The company needs to address these issues to improve financial stability and performance.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.35
Negative
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.30
Negative
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.40
Negative
| 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
Negative
0.96
Price Trends
1.54
Negative
1.57
Negative
1.72
Negative
Market Momentum
-0.13
Negative
33.11
Neutral
5.81
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 0.96 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.54, and below the 200-day MA of 1.72, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 33.11 is Neutral, neither overbought nor oversold. The STOCH value of 5.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDLX.
Cardlytics Risk Analysis
Cardlytics disclosed 56 risk factors in its most recent earnings report. Cardlytics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cardlytics Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.73B | 36.78 | 4.48% | ― | 15.51% | 39.60% | |
77 Outperform | $1.10B | 6.92 | 15.37% | ― | 0.32% | 69.78% | |
69 Neutral | $1.42B | 14.47 | 6.26% | ― | 5.70% | 97.88% | |
69 Neutral | $829.71M | 81.94 | 4.55% | ― | 43.12% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $979.15M | 229.17 | 1.21% | 1.21% | 11.18% | ― | |
42 Neutral | $57.30M | -0.46 | -341.04% | ― | -14.41% | 65.67% |
* Communication Services Sector Average
CDLX
Cardlytics
0.96
-2.59
-72.96%
ZD
Ziff Davis
35.75
-20.21
-36.12%
QNST
Quinstreet
14.75
-6.55
-30.75%
CRTO
Criteo SA
20.62
-22.63
-52.32%
EEX
Emerald Expositions Events
4.62
0.03
0.65%
IAS
Integral Ad Science
10.27
-0.15
-1.44%
Cardlytics Corporate Events
Executive/Board Changes
Cardlytics CFO Alexis DeSieno Announces Resignation
Neutral
Dec 5, 2025
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.
Business Operations and Strategy
Cardlytics Announces Major Workforce Reduction Plan
Negative
Oct 2, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.