ATLANTA--(BUSINESS WIRE)--Cardlytics Inc. (NASDAQ: CDLX) today announced the appointment of David Evans as its new Chief Financial Officer, effective January 12, 2026. Evans is returning to Cardlytics, having previously held several executive roles including Chief Financial Officer and Chief Administrative Officer. As the returning Chief Financial Officer, Evans will oversee Cardlytics' finance, accounting, and investor relations functions as the company continues to execute against its longer-. ...

Core Viewpoint - Cardlytics (CDLX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in a company's earnings potential, which is strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Cardlytics Earnings Outlook - The recent upgrade for Cardlytics suggests an improvement in its underlying business, which is expected to drive the stock price higher as investors recognize this trend [5][10]. - For the fiscal year ending December 2025, Cardlytics is projected to earn -$0.07 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 63.2% over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7][9]. - Cardlytics' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

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Financial Data and Key Metrics Changes - In Q3 2025, total billings were $89.2 million, representing a 20.3% decrease year-over-year due to content restrictions impacting budget sizes [18] - Revenue decreased by 22.4% to $52.0 million, driven by the decrease in billings [19] - Adjusted contribution was $30.0 million, down 17.5% from the prior year, but the margin as a percentage of revenue increased to 57.7%, up 3.5 percentage points [20] - Adjusted EBITDA was positive at $3.2 million, an increase of $5.0 million year-over-year [20] - Operating cash flow was positive at $1.8 million, while free cash flow was negative at $2.7 million, showing an improvement of $1.2 million from the prior year [21] Business Line Data and Key Metrics Changes - U.S. revenue, excluding Bridge, decreased by 28% due to lower billings stemming from content restrictions [19] - Bridge revenue decreased by 15% due to the loss of a major account in previous quarters [20] - The U.K. business showed strength with a 22% revenue growth year-over-year, driven by higher billings and increased supply [11][19] Market Data and Key Metrics Changes - The company experienced a significant increase in billings from new merchants, including a large athletic apparel brand [20] - The number of MQUs (Monthly Active Users) increased by 21% to 230.3 million, driven by the full ramp of new FI partners [21] - APU (Average Price per User) was $0.11, down 31% year-over-year due to content restrictions [21] Company Strategy and Development Direction - The company plans to solidify its foundation and grow its commerce media platform in 2026, focusing on expanding its CRP partner cohort and strengthening existing FI partnerships [17] - The strategy includes unlocking increased advertiser budgets by delivering differentiated products such as omnichannel performance [17] - The company aims to replace lost supply through new partnerships and increase engagement with existing partners [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from the largest FI partner blocking advertiser content but noted that they were able to mitigate a significant portion of the drop due to the larger network [4][6] - The outlook for Q4 includes expected billings between $86 million and $96 million, with a negative year-over-year decrease of 26% to 17% [22] - Management expressed confidence in returning to growth and achieving profitability once current headwinds are navigated [27] Other Important Information - The company fully paid off $46 million in convertible notes and reduced its workforce by 30% to ensure long-term financial health, expecting annualized cash savings of $26 million [16][17] - The company is focusing on strategic pricing decisions to drive incremental spend from advertisers while remaining competitive in the market [25] Q&A Session Summary Question: Billing margins commentary - Management explained that the decrease in billing margins in Q3 was primarily due to supply changes from the largest FI partner, but margins improved by the end of the quarter and are expected to continue improving [30][31] Question: Guidance on adjusted EBITDA range - Management clarified that the larger range in adjusted EBITDA compared to adjusted contribution is due to top-line performance and margin fluctuations, with operating expenses expected to be stable [32][33]

Financial Performance - Cardlytics reported a revenue of $52.031 million for the three months ended September 30, 2025, a decrease of 22.4% compared to $67.057 million for the same period in 2024[133]. - The total billings for Cardlytics were $89.193 million for the three months ended September 30, 2025, a decline of 20.4% from $111.958 million in the prior year[133]. - Revenue for the three months ended September 30, 2025, was $52.0 million, down from $67.1 million in 2024, representing a decrease of $15.0 million (22.3%)[146]. - Revenue for the nine months ended September 30, 2025, was $177.178 million, down $27.123 million (13%) from $204.301 million in the same period of 2024[169]. - The Cardlytics platform generated revenue of $46.9 million for the three months ended September 30, 2025, down from $61.1 million in 2024[146]. User Metrics - The number of Cardlytics Monthly Qualified Users (MQUs) increased by 40.1 million, reaching 230.329 million for the three months ended September 30, 2025, representing a 21% growth year-over-year[130]. Losses and Adjusted Metrics - The net loss for Cardlytics was $72.673 million for the three months ended September 30, 2025, compared to a net loss of $145.182 million for the same period in 2024[133]. - Adjusted EBITDA for Cardlytics was $3.204 million for the three months ended September 30, 2025, compared to an adjusted EBITDA loss of $1.816 million in the same period of 2024[133]. - Adjusted Net Loss for the three months ended September 30, 2025, was $(3.8) million, compared to $(7.5) million in the same period of 2024[149]. Cost Management - The company plans to reduce its workforce by approximately 90 full-time employees, representing about 24% of its workforce, as part of a broader cost-reduction initiative[151]. - The estimated non-recurring charges related to the workforce reduction are approximately $2.3 million, expected to be incurred primarily in Q4 2025[152]. - Sales and marketing expense for the three months ended September 30, 2025, decreased by $5.298 million (40%) to $7.865 million compared to $13.163 million in 2024[175]. - General and administrative expense decreased by $1.2 million during the three months ended September 30, 2025, compared to the same period in 2024, with a 10% decrease in total G&A expense[179]. Impairments and Charges - The company recorded an impairment of goodwill and intangible assets of $58.843 million for the three months ended September 30, 2025, consistent with the same amount in 2024[167]. - The company recognized a $58.8 million impairment to goodwill and intangible assets during the three months ended September 30, 2025, compared to a $131.6 million impairment in the same period in 2024[190]. Cash Flow and Financing - Free Cash Flow for Cardlytics was negative $2.703 million for the three months ended September 30, 2025, an improvement from negative $3.869 million in the same period of 2024[133]. - As of September 30, 2025, the company had cash and cash equivalents of $43.96 million, down from $65.59 million at the end of 2024, and working capital decreased to $17.01 million from $29.03 million[198]. - The company issued $172.5 million principal amount of 4.25% Convertible Senior Notes due in 2029, with net proceeds of $166.8 million used to repurchase a portion of the 2020 Convertible Senior Notes[209]. Market and Operational Outlook - The company expects Billings to decrease in the near term due to restrictions from its largest FI partner affecting marketing budgets for select advertisers[145]. - Future capital requirements will depend on growth rate, R&D spending, M&A efforts, and market acceptance of solutions, with expectations of additional operating losses in the near term[203].

Revenue and Billings - Revenue for Q3 2025 was $52.0 million, a decrease of 22% year-over-year from $67.1 million in Q3 2024[5] - Billings for Q3 2025 were $89.2 million, down 20% year-over-year compared to $112.0 million in Q3 2024[5] - Revenue for Q3 2025 was $52,031,000, a decrease of 22.4% compared to $67,057,000 in Q3 2024[22] - Billings for Q3 2025 were $89,193,000, down from $111,958,000 in Q3 2024, a decline of 20.4%[27] - Forecasted revenue for Q4 2025 is projected to be between $51.1 million and $59.1 million[37] - Total billings for Q4 2025 are expected to range from $86.0 million to $96.0 million, including consumer incentives of $26.9 million to $44.9 million[37] Net Loss and Financial Performance - Net Loss for Q3 2025 was $(72.7) million, or $(1.36) per diluted share, compared to a Net Loss of $(145.2) million, or $(2.90) per diluted share in Q3 2024[5] - Net loss for Q3 2025 was $72,673,000, compared to a net loss of $145,182,000 in Q3 2024, indicating an improvement of 50.0%[22] - Net loss for Q3 2025 was $(72.673) million, compared to a net loss of $(145.182) million in Q3 2024, showing an improvement of approximately 50%[30] Adjusted Metrics - Adjusted Contribution for Q3 2025 was $30.0 million, a decrease of 17% year-over-year from $36.4 million in Q3 2024[5] - Adjusted EBITDA for Q3 2025 was $3.2 million, compared to $(1.8) million in Q3 2024[5] - Adjusted EBITDA for Q3 2025 was $3.204 million, a significant recovery from an adjusted EBITDA of $(1.816) million in Q3 2024[30] - Adjusted Contribution for Q4 2025 is expected to be between $29.0 - $35.0 million, a year-over-year decline of 29% to 14%[8] Cash Flow and Expenses - Free Cash Flow for Q3 2025 was $(2.7) million, an improvement from $(3.9) million in Q3 2024[5] - Free cash flow for Q3 2025 was $(2.703) million, an improvement from $(3.869) million in Q3 2024[35] - The company reported stock-based compensation expense of $6,422,000 for Q3 2025, compared to $8,065,000 in Q3 2024, a decrease of 20.4%[24] - Stock-based compensation expense for Q3 2025 was $6.422 million, down from $8.065 million in Q3 2024[33] Assets and Liabilities - Cash and cash equivalents decreased to $43,961,000 as of September 30, 2025, from $65,594,000 at the end of 2024, a decline of 32.9%[25] - Total assets as of September 30, 2025, were $292,807,000, down from $392,711,000 at the end of 2024, a decrease of 25.5%[21] - Total liabilities decreased to $297,511,000 as of September 30, 2025, from $322,718,000 at the end of 2024, a reduction of 7.8%[21] - Stockholders' equity showed a deficit of $4,704,000 as of September 30, 2025, compared to a positive equity of $69,993,000 at the end of 2024[21] User Metrics - Cardlytics monthly qualified users (MQUs) reached 230.3 million, an increase of 21% year-over-year from 190.2 million in Q3 2024[5] Impairment and Costs - The company incurred impairment of goodwill and intangible assets amounting to $58,843,000 in Q3 2025, consistent with the previous year's figure of $131,595,000[22] - Impairment of goodwill and intangible assets for Q3 2025 was $58.843 million, consistent with the impairment recorded in Q3 2024[33] - Total costs and expenses for Q3 2025 were $120,885,000, down from $215,603,000 in Q3 2024, reflecting a reduction of 44.0%[22] Gross Profit - Gross profit for Q3 2025 was $24.300 million, down from $28.552 million in Q3 2024, reflecting a decrease of about 14.5%[28] Share Metrics - The weighted-average number of diluted shares outstanding increased to 53.493 million in Q3 2025 from 50.028 million in Q3 2024[33]

Group 1 - Cardlytics, Inc. (NASDAQ: CDLX) is positioned to track nearly $6 trillion in bank transaction data, aiming to monetize these transactions through targeted advertising [1] - The company's approach creates a win-win-win solution for banks, their customers, and advertisers [1] Group 2 - The individual investor focuses on undercovered companies, with a watchlist of up to 100 companies, primarily in technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of personal capital investment experience and seeks to identify asymmetric investment opportunities for market-beating returns [1]

Core Insights - Cardlytics Inc. has announced a cost savings initiative to optimize its cost structure and align resources with critical business priorities [1] Company Actions - The company has reduced its workforce by approximately 120 full-time employees and contractors, which represents about 30% of its total workforce [1] - Cardlytics expects to incur $2.3 million in severance and related expenses due to this workforce reduction [1]

Core Viewpoint - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - AGM Group Holdings Inc. (AGMH) increased by 185% to $6.36 [3] - AlphaVest Acquisition Corp (ATMV) rose by 77% to $26.80 [3] - Brera Holdings PLC (BREA) saw a 20% increase to $30.00 [3] - Asset Entities Inc. (ASST) gained 18% to $4.54 [3] - 22nd Century Group, Inc. (XXII) also increased by 18% to $2.08 [3] - Millennium Group International Holdings Limited (MGIH) rose by 16% to $2.84 [3] - Robo.ai Inc. (AIIO) increased by 11% to $2.17 [3] - Butterfly Network, Inc. (BFLY) saw a 10% rise to $2.10 [3] - GrafTech International Ltd. (EAF) increased by 9% to $13.91 [3] - Cardlytics, Inc. (CDLX) rose by 8% to $2.99 [3] Premarket Losers - ECD Automotive Design, Inc. (ECDA) decreased by 14% to $3.70 [4] - Champions Oncology, Inc. (CSBR) fell by 8% to $6.11 [4] - Beam Global (BEEM) saw an 8% decline to $2.79 [4] - Fathom Holdings Inc. (FTHM) decreased by 8% to $2.19 [4] - Ventyx Biosciences, Inc. (VTYX) fell by 7% to $2.20 [4] - SciSparc Ltd. (SPRC) decreased by 6% to $4.35 [4] - Lightwave Logic, Inc. (LWLG) fell by 6% to $3.45 [4] - Jasper Therapeutics, Inc. (JSPR) decreased by 6% to $2.43 [4] - StableX Technologies, Inc. (SBLX) fell by 5% to $5.67 [4] - Galecto, Inc. (GLTO) decreased by 5% to $2.70 [4]

Core Insights - Cardlytics reported a quarterly loss of $0.13 per share, better than the Zacks Consensus Estimate of a loss of $0.16, and an improvement from a loss of $0.15 per share a year ago, resulting in an earnings surprise of +18.75% [1] - The company generated revenues of $63.25 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.86% and down from $69.64 million year-over-year [2] - Cardlytics shares have declined approximately 50.4% year-to-date, contrasting with the S&P 500's gain of 7.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $70.3 million, and for the current fiscal year, it is -$0.46 on revenues of $275.2 million [7] - The estimate revisions trend for Cardlytics was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which Cardlytics belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting that companies in the top half tend to outperform those in the bottom half by more than 2 to 1 [8]