CDLX — Cardlytics, Inc.

Summary of Cardlytics (CDLX) Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Fiscal Year 2025:

  • Total Billings: $385 million (down 13.3% YoY)
  • Revenue: $233 million (down 16.2% YoY)
  • Adjusted EBITDA: $10.1 million (up $7.5 million YoY)

• Q4 2025:

  • Total Billings: $94.1 million (down 19% YoY)
  • Revenue: $56.1 million (down 24.2% YoY)
  • U.S. Revenue (excluding Bridg): $40.1 million (down 33.5% YoY)
  • U.K. Revenue: $10.8 million (up 35.1% YoY)
  • Adjusted Contribution: $31.7 million (down 22.1% YoY)
  • Adjusted EBITDA: $8.5 million (up $2.1 million YoY)
  • Operating Cash Flow: Positive $13 million
  • Free Cash Flow: Positive $10.5 million

2. Strategic Updates and Business Highlights:

• Cardlytics has successfully reset its operations to achieve self-sustainability, focusing on deepening collaborations with bank partners and integrating new publishers.
• The company is investing in technology to enhance its platform, including migrating to a unified data and AI platform on Databricks, which has improved efficiency and reduced costs.
• New partnerships in the sports category (Philadelphia Flyers, Boston Celtics) and financial services (ATM.com) have been established, although these are not expected to materially impact 2026 finances.
• The company ended its relationship with Bank of America due to misalignment on program structure and future objectives, which is expected to create near-term supply pressures but is viewed as a long-term strategic decision.

3. Forward Guidance and Outlook:

• Q1 2026 Guidance:
  • Expected Billings: $57.5 million to $63.5 million (down 41% to 35% YoY)
  • Expected Revenue: $35 million to $40 million
  • Expected Adjusted Contribution: $20 million to $23 million
  • Expected Adjusted EBITDA: Negative $7.5 million to Negative $3.5 million
• The company anticipates sequential growth in the U.K. and plans to optimize its platform to recover from the impact of the Bank of America loss and content restrictions.

4. Bad News, Challenges, or Points of Concern:

• The departure of Bank of America is a significant headwind, expected to impact Q1 2026 billings and overall supply.
• Revenue declines in the U.S. were attributed to lower billings and pricing adjustments, particularly affecting the subscription services sector.
• Content restrictions from bank partners are creating additional challenges, leading to pressures in certain advertising sectors, particularly travel and entertainment.
• The company is navigating a transition period as it adjusts to recent strategic changes and aims to stabilize its operations.

5. Notable Q&A Insights:

• The majority of the Q1 billing decline is attributed to the loss of Bank of America, with some impact from content restrictions.
• The company is optimistic about returning to sequential growth, leveraging its new partnerships and improved technology.
• There are expectations for operational efficiency improvements and a potential return to positive adjusted EBITDA as early as Q2 2026.
• The Bridg business is being sold to PAR Technology, which is expected to strengthen Cardlytics' balance sheet and operational focus.
• The company is currently deprioritizing SKU-level targeting due to the exit of the Bridg platform, but it remains a potential future capability.

Overall, Cardlytics is in a transitional phase, focusing on strategic partnerships and technological advancements while addressing significant challenges from recent changes in its partner landscape.