Cardlytics (CDLX) AI Stock Analysis

• Market Cap: $52.35M
• Dividend Yield: N/A
• Average Volume (3M): 831.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.77
• 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: 779,020
• 30 Day Avg. Volume: 831,517
• 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: 4.39
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: -3.11
• 1Y Price Target: $1.67
• Price Target Upside: 72.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.98 ▲(1.44% Upside)

CDLX scores low primarily due to weak financial performance (declining revenue, very large losses, high leverage and negative equity) and bearish technicals (below all major moving averages with negative MACD). The earnings call provides some offset via positive adjusted EBITDA, margin strength and major cost reductions, but near-term fundamentals remain pressured by partner-driven content restrictions and sharp billings/revenue declines.

Positive Factors

High contribution margin

A 57.7% adjusted contribution margin indicates the core platform delivers strong economics per sale, providing a durable profit buffer as the company scales. High contribution margins allow fixed-cost absorption, improving leverage to revenue recovery and supporting sustainable unit economics.

Cost restructuring and positive EBITDA

Achieving positive adjusted EBITDA alongside announced $26M annualized savings from a 30% workforce reduction strengthens cash flow prospects and extends runway. Structural cost discipline can accelerate path to profitability and free up resources for product investment or partner diversification.

Growing platform reach and partnerships

21% MQU growth to 230.3M and new CRP partners expand the addressable audience and advertiser inventory. Greater reach and partner diversification enhance network effects, improving product attractiveness to brands and reducing single-market reliance over the medium term.

Negative Factors

Partner concentration and content restrictions

Reliance on a major FI partner whose content restrictions block roughly one-third of billings is a structural revenue risk. Persistent limitations on offers reduce monetization per user, constrain ACPU, and force prolonged remediation or heavy re‑engineering of go‑to‑market and product strategy.

Declining top-line trends

Material year-over-year declines in billings and revenue signal weakening demand and monetizeability of the platform. Sustained top-line contraction hampers scale benefits, pressures margins and cash flows, and lengthens the timeline to rebuild advertiser confidence and long-term growth.

Weak balance sheet and high leverage

High leverage and negative equity indicate solvency and refinancing risk, limiting strategic flexibility. Elevated debt burdens increase fixed obligations, reduce tolerance for cyclical revenue dips, and can impede investment in product development or sales necessary to restore durable growth.

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

Overall fundamentals are weak: declining TTM revenue growth (-5.65%), very large losses (net margin -68.87%) and negative EBIT/EBITDA margins. The balance sheet adds significant risk with high leverage (debt-to-equity 3.75) and negative equity, while cash generation is also deteriorating (TTM free cash flow growth -52.11%), despite some relative efficiency versus net income.

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: 0.97
• 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 0.97 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.17, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 13.56 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	76 Outperform	$1.01B	6.44	15.37%	―	0.32%	69.78%
ZD	69 Neutral	$1.51B	15.47	6.26%	―	5.70%	97.88%
QNST	66 Neutral	$754.23M	73.83	4.55%	―	43.12%	―
EEX	62 Neutral	$996.95M	233.33	1.21%	1.29%	11.18%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CDLX	41 Neutral	$52.35M	-0.46	-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.