GICS Sector : Communication Services
Cardlytics, Inc.operates an advertising platform in the United States and the United Kingdom.It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing.
Cardlytics reported a total billings of $89.2 million in Q3 2025, a 20.3% decrease year-over-year, with revenue coming in at $52.0 million, down 22.4%. The revenue to billings margin was 1.6 points lower than the prior year, while adjusted contribution margin expanded to 57.7%. Adjusted EBITDA was positive $3.2 million, an increase of $5.0 million. The company's EPS was -$0.07, beating estimates of -$0.10333. The improved adjusted EBITDA and EPS demonstrate the company's efforts to drive profitability despite the challenges faced.
Publication Date: Nov -18
The company's largest FI partner's decision to block Cardlytics' content impacted approximately 1/3 of its total billings. However, Cardlytics mitigated the drop by shifting content to other banks and increasing engagement with those banks' customers. The company also made progress in its Cardlytics Rewards Platform (CRP), signing three new CRP partners, including OpenTable. Additionally, Cardlytics' U.K. business continued to show strength, with 22% revenue growth year-over-year.
For Q4 2025, Cardlytics expects billings between $86 million and $96 million, with revenue between $51.1 million and $59.1 million. The company also expects adjusted EBITDA between $0.9 million and $7.9 million. Management is focused on replacing lost supply through new partnerships, shifting volume to the rest of the network, and increasing engagement with existing partners. As per Alexis DeSieno, "We've fully reset our cost base to reflect our new top line reality while investing in consumer engagement and supply diversification."
With a P/S Ratio of 0.26 and EV/EBITDA of -1.65, the market seems to have factored in the challenges faced by Cardlytics. Analysts estimate next year's revenue growth at -3.0%. While the near-term outlook is challenging, Cardlytics' efforts to diversify its supply and strengthen consumer engagement are expected to drive long-term growth. The company's ability to achieve positive adjusted EBITDA in 2025 and 2026 will be crucial in determining its valuation.
All You Need to Know About Cardlytics (CDLX) Rating Upgrade to Buy
Nov -10
Cardlytics, Inc. (CDLX) Q3 2025 Earnings Call Transcript
Nov -06
Cardlytics Announces Third Quarter 2025 Financial Results
Nov -05
Cardlytics Announces Timing of Its Third Quarter 2025 Earnings Release
Oct -22
Cardlytics Announces Workforce Reductions As Part Of Organizational Realignment and Cost Savings Initiative
Oct -02
Cardlytics Repays 2020 Convertible Senior Notes Due 2025
Sep -15
Cardlytics Named “Best Digital Ad Network” in 2025 MarTech Breakthrough Awards Program
Aug -14
Cardlytics (CDLX) Q2 Users Jump 19%
Aug -07
Cardlytics Platform's 7.5% growth driven by increasing adoption of digital banking, rising demand for data-driven marketing, and expansion into new markets. Additionally, the platform's ability to provide insights into consumer spending habits, enabling banks to offer targeted rewards and promotions, contributes to its growth.
Bridg Platform's 8.5% growth is driven by increasing adoption of card-linked offers, expansion into new markets, and strategic partnerships. Additionally, the platform's ability to provide personalized offers and rewards to customers, resulting in higher engagement and loyalty, contributes to its growth. Furthermore, the rise of digital payments and the need for banks and merchants to enhance customer experience also fuels Bridg's growth.
A purchase-based data platform that provides insights and targeting capabilities to financial institutions and marketers
A data-driven audience targeting solution that enables marketers to reach high-value customers
A self-service platform that allows marketers to create and execute targeted campaigns
A loyalty platform that helps financial institutions to create and manage loyalty programs
A data analytics solution that provides insights and analysis of customer spending habits
Cardlytics, Inc. operates in a niche market, providing purchase-based data and insights to financial institutions. The threat of substitutes is low due to the company's unique value proposition and the high barriers to entry in the market.
Cardlytics, Inc. has a diverse customer base, including large financial institutions and smaller banks. While customers have some bargaining power, the company's unique data and insights provide a level of stickiness, reducing the bargaining power of customers.
Cardlytics, Inc. has a strong negotiating position with its suppliers, including banks and financial institutions, due to its unique value proposition and the high demand for its services.
While there are some barriers to entry in the market, including the need for significant data and analytical capabilities, new entrants could potentially disrupt the market. However, Cardlytics, Inc.'s strong brand and customer relationships provide a level of protection.
The market for purchase-based data and insights is highly competitive, with several established players competing for market share. Cardlytics, Inc. must continue to innovate and differentiate its offerings to maintain its market position.
| Value | |
|---|---|
| Debt Weight | 65.83% |
| Debt Cost | 3.95% |
| Equity Weight | 34.17% |
| Equity Cost | 11.47% |
| WACC | 6.52% |
| Leverage | 192.67% |
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