Cardlytics (CDLX) AI Stock Analysis

• Market Cap: $105.94M
• Dividend Yield: N/A
• Average Volume (3M): 9.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.51
• Revenue Growth: -12.84%
• EPS Growth: 5.09%
• Country: US
• Employees: 440
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.18
• Shares Outstanding: 53,236,900
• 10 Day Avg. Volume: 1,205,397
• 30 Day Avg. Volume: 9,512,506
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.46
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: -1.78
• 1Y Price Target: $1.75
• Price Target Upside: -15.46% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 45 Neutral
• Price Target: $2.00 ▼(-3.38% Downside)

Cardlytics' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, high leverage, and negative cash flow. Technical indicators suggest limited momentum, and the valuation appears unfavorable due to a negative P/E ratio. The earnings call provided mixed signals, with significant challenges overshadowing positive developments.

Positive Factors

Partnership Expansion

Expanding partnerships, such as with Hy-Vee's RedMedia, enhance Cardlytics' market reach and strengthen its competitive position by accessing a broader consumer base.

Cost Savings Initiative

The cost savings initiative, including workforce reduction, is expected to deliver annualized cash savings of at least $26 million, improving financial health and operational efficiency.

High Contribution Margin

A high contribution margin indicates efficient cost management and profitability potential, which is crucial for sustaining long-term business operations and growth.

Negative Factors

Content Restrictions

Content restrictions from a major financial institution partner limit Cardlytics' ability to deliver targeted marketing, impacting revenue and growth potential.

Revenue Decline

A decline in revenue reflects challenges in maintaining advertiser engagement and performance, which could hinder long-term financial stability and growth.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting Cardlytics' ability to invest in growth opportunities and weather economic downturns.

Cardlytics Business Overview & Revenue Model

Company Description

Cardlytics, Inc. is a technology company that operates in the digital advertising sector, specializing in transaction-based marketing. The company provides a platform that connects brands with consumers through financial institutions' digital banking channels. Its core services include targeted marketing solutions that leverage purchase data to deliver relevant offers to consumers, thereby driving customer engagement and sales for advertisers. Cardlytics primarily serves banks and credit unions, enabling them to provide valuable offers to their customers while helping brands reach their target audiences more effectively.

How the Company Makes Money

Cardlytics generates revenue primarily through a performance-based advertising model. The company's main revenue streams include: 1) Advertising Fees: Cardlytics earns fees from advertisers based on the performance of their campaigns, typically measured by the number of transactions generated from the offers presented to consumers. This performance-based model aligns the company's interests with those of its clients, as it is compensated when consumers engage with offers and make purchases. 2) Partnerships with Financial Institutions: The company has formed strategic partnerships with various banks and credit unions, which serve as distribution channels for its marketing solutions. These partnerships allow Cardlytics to access a large consumer base and enhance the effectiveness of its advertising campaigns. 3) Data Insights: Cardlytics also monetizes its extensive purchase data by providing insights and analytics to advertisers about consumer behavior and trends, which helps them optimize their marketing strategies. Overall, the combination of performance-based fees, strategic partnerships, and data-driven insights contributes significantly to Cardlytics' revenue generation.

Cardlytics Financial Statement Overview

Summary

Cardlytics is facing considerable financial challenges with declining revenues and persistent losses. High leverage and negative equity returns highlight the financial risk. Despite some improvements in operating cash flow, the company needs to address profitability issues and manage its debt more effectively to improve its financial health.

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	266.20M	278.30M	309.20M	298.54M	267.12M	186.89M
Gross Profit	116.32M	120.89M	130.38M	112.63M	103.34M	63.27M
EBITDA	-146.64M	-152.53M	-99.00M	-418.98M	-89.91M	-39.51M
Net Income	-183.34M	-189.30M	-134.70M	-465.26M	-128.56M	-58.47M
Balance Sheet
Total Assets	361.13M	392.71M	574.14M	691.24M	1.26B	422.54M
Cash, Cash Equivalents and Short-Term Investments	46.74M	65.59M	91.83M	121.91M	233.47M	293.24M
Total Debt	220.41M	221.65M	266.11M	235.26M	197.23M	188.12M
Total Liabilities	302.43M	322.72M	439.35M	479.63M	573.10M	265.35M
Stockholders Equity	58.71M	69.99M	134.80M	211.60M	690.70M	157.19M
Cash Flow
Free Cash Flow	-10.81M	-28.12M	-12.58M	-67.39M	-51.09M	-17.71M
Operating Cash Flow	-1.12M	-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	-5.68M	1.44M	-20.03M	-39.99M	486.00M	206.43M

Cardlytics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.07
• 50DMA: Positive
• 100DMA: Positive
• 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 2.07 is below the 20-day moving average (MA) of 2.12, above the 50-day MA of 1.74, and above the 200-day MA of 2.03, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 57.50 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
IAS	―	$1.69B	30.50	5.52%	―	14.39%	1946.11%
CRTO	―	$1.09B	8.75	12.79%	―	-0.40%	36.44%
ZD	―	$1.39B	23.41	3.56%	―	5.94%	-8.89%
QNST	―	$819.19M	181.89	2.04%	―	78.27%	―
EEX	―	$922.55M	116.79	1.98%	1.26%	9.96%	―
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CDLX	―	$105.94M	-0.55	-136.44%	―	-12.84%	5.09%

Cardlytics Corporate Events

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.

Cardlytics, Inc. Balances Growth and Challenges in Earnings Call

Cardlytics, Inc. Navigates Opportunities and Challenges in Latest Earnings Call

Cardlytics Reports Q2 2025 Financial Results

Cardlytics, Inc. is a commerce media platform that leverages first-party purchase data to enhance commerce experiences for advertisers and publishers, primarily in the financial sector, with operations in the U.S. and U.K. In its latest earnings report for the second quarter of 2025, Cardlytics reported a revenue of $63.2 million, marking a 9% decrease from the same period last year. Despite the decline in revenue, the company saw an improvement in adjusted EBITDA, which rose to $2.7 million from a negative $2.3 million in the previous year. The company also reported a net loss of $9.3 million, which widened from the $4.3 million loss in the second quarter of 2024. However, Cardlytics saw a 19% increase in monthly qualified users, reaching 224.5 million, indicating a growing user base. Looking ahead, Cardlytics remains focused on strategic shifts aimed at long-term growth, with expectations for continued challenges in the third quarter but a commitment to leveraging its unique network capabilities for future profitability.