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: $13 million; Free Cash Flow: $10.5 million
  • Cash and Cash Equivalents: $48.7 million at quarter-end

2. Strategic Updates and Business Highlights:

• The company has successfully reset its operations for self-sustainability, focusing on expanding partnerships with financial institutions (FIs) and enhancing its technology platform.
• Cardlytics has launched new partnerships with sports teams (Philadelphia Flyers, Boston Celtics) and financial services (ATM.com), although these are not expected to materially impact 2026 revenues.
• The company is seeing strong traction in the grocery and convenience sectors, with significant increases in advertiser spending.
• A strategic decision was made to conclude the partnership with Bank of America due to misalignment on program structure and future direction, which is expected to create near-term supply pressures but is seen as beneficial for long-term tech improvements.

3. Forward Guidance and Outlook:

• For Q1 2026, Cardlytics expects:
  • Billings: $57.5 million to $63.5 million (down 41% to 35% YoY)
  • Revenue: $35 million to $40 million
  • Adjusted Contribution: $20 million to $23 million
  • Adjusted EBITDA: Negative $7.5 million to Negative $3.5 million
• The company anticipates continued growth in the U.K. and plans to leverage new FI partnerships to drive sequential growth in the U.S.

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

• The loss of Bank of America is a significant headwind, contributing to expected declines in billings and revenue for Q1 2026.
• Content restrictions from other FIs are also impacting revenue, particularly in the subscription services sector, which has seen a decline.
• Overall, total billings and revenue metrics are declining year-over-year, raising concerns about growth sustainability.
• The company is navigating challenges related to supply constraints and pricing adjustments that have affected margins.

5. Notable Q&A Insights:

• Management confirmed that the majority of the Q1 guidance decline is due to the loss of Bank of America, with some impact from content restrictions.
• There is optimism about returning to sequential growth, with expectations of improved performance in the latter half of 2026.
• The Bridg transaction is expected to strengthen the balance sheet and reduce operational expenses, contributing positively to future cash flow.
• The company is focusing on enhancing its omnichannel capabilities, particularly in grocery and consumer staples, which are showing strong growth despite challenges in other sectors.

Overall, while Cardlytics is facing significant challenges, particularly from the loss of a major partner and content restrictions, it is also making strategic moves to enhance its technology and partnerships, which could position it for recovery and growth in the future.