Summary of Cardlytics, Inc. Q2 2026 Earnings Call

1Key Financial Results and Metrics:

Billings: $65.5 million, down 34% year-over-year.

Revenue: $36.9 million, a 36% decrease year-over-year.

Adjusted Contribution: $21.3 million, down 32% year-over-year, but increased as a percentage of revenue to 57.7% from 54%.

Adjusted EBITDA: Positive $1.7 million, compared to $3 million in Q2 2025.

Operating Cash Flow: Negative $8.6 million, compared to positive $1.2 million in the prior year.

Free Cash Flow: Negative $10.7 million, worsening from negative $3.4 million year-over-year.

Cash Position: Ended Q2 with $28 million in cash and equivalents, plus $20 million available on credit facility.

Monthly Active Users (MAUs): 185 million, down from 224 million year-over-year.

2Strategic Updates and Business Highlights:

Advertiser Growth: Active advertisers increased by 18% quarter-over-quarter; new logo volume surged 59%.

Churn Improvement: Advertiser churn decreased by 50% by count and 88% by dollar impact.

Local Offers Expansion: Local third-party offers now live across four major banks, driving nearly 5,000 redemptions daily.

U.K. Market: Revenue increased over 10% year-over-year, with expanded offerings for Monzo, a fast-growing bank.

Technology Investments: Continued focus on AI capabilities, improving operational efficiency and campaign setup times.

3Forward Guidance and Outlook:

Q3 2026 Guidance: Expected billings between $61 million and $67 million; revenue between $34 million and $39 million; adjusted contribution between $20 million and $23 million; adjusted EBITDA between $0 and $3 million.

The guidance reflects a solidifying business foundation and aims for sequential growth, consistent with historical trends.

4Bad News, Challenges, or Points of Concern:

Revenue Decline: Significant year-over-year declines in billings and revenue due to tough comparisons and changes in bank partner relationships.

Operating Cash Flow: Negative cash flow indicates ongoing financial strain.

Market Dynamics: Shifts in consumer spending patterns, particularly in the quick-service restaurant sector, may pose challenges as spending migrates to delivery services.

Competitive Pressures: The need to adapt to evolving consumer preferences and competitive offerings in the rewards space.

5Notable Q&A Insights:

Consumer Landscape: Amit Gupta noted a rebound in U.S. consumer spending, particularly in gas and convenience sectors, despite flat demand in quick-service restaurants.

Cost Structure: David Evans indicated no anticipated increases in operating expenses or capital development, with a stable headcount expected.

Q3 Billings Guidance: Some analysts expressed concern over the Q3 guidance being lower than Q2, but management reassured that growth is expected throughout the year, aligning with historical trends. This summary encapsulates the key points from Cardlytics' Q2 2026 earnings call, highlighting both the progress made and the challenges faced as the company navigates a competitive landscape.