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Cardlytics
(NASDAQ:CDLX)
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Rating:45Neutral
Price Target:
$4.00
▼(-3.15% Downside)
Action:Reiterated
Date:08/06/26
CDLX scores low primarily due to deteriorated financial fundamentals—declining TTM revenue, materially weaker margins, continued losses, negative equity, and ongoing free-cash-flow burn. Technicals also remain unfavorable with the stock below key longer-term moving averages and negative MACD. Offsetting this, the latest earnings call shows meaningful cost and efficiency progress with positive adjusted EBITDA and guidance suggesting stabilization, but persistent YoY declines and negative cash flow keep the overall score constrained.
Positive Factors
Advertiser growth and retention
Expansion in active advertisers and new-logo activity indicates improving commercial traction, while sharply lower churn supports better retention and campaign renewals. Together, these trends can strengthen recurring demand and make the platform more valuable to marketers over the next several quarters.
Negative Factors
Persistent revenue and billings contraction
The scale and persistence of top-line contraction indicate that Cardlytics has not yet restored growth after changes in bank partner relationships. Continued revenue pressure can limit operating leverage, weaken advertiser reach, and make margin improvement harder to sustain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Advertiser growth and retention
Expansion in active advertisers and new-logo activity indicates improving commercial traction, while sharply lower churn supports better retention and campaign renewals. Together, these trends can strengthen recurring demand and make the platform more valuable to marketers over the next several quarters.
Read all positive factors
Cardlytics (CDLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.32M
Dividend YieldN/A
Average Volume (3M)39.70K
Price to Earnings (P/E)―
Beta (1Y)2.49
Revenue Growth-32.63%
EPS Growth42.21%
CountryUS
Employees275
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-18.58
Shares Outstanding5,888,716
10 Day Avg. Volume26,252
30 Day Avg. Volume39,695
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)-9.39
Price to Sales (P/S)0.26
P/FCF Ratio-9.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.00Price Target Upside21.07% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-6.06
Revenue Forecast (FY)$148.65M
Cardlytics Business Overview & Revenue Model
Company Description
Cardlytics, Inc. provides an advertising platform, operating in both the United States and the United Kingdom. Among its key offerings is the Cardlytics platform, a proprietary advertising channel integrated directly into banks' digital environmen...
How the Company Makes Money
Cardlytics primarily makes money by selling advertising and marketing programs to merchants (and their agencies) that are delivered to consumers through participating financial institutions’ digital banking channels. The company’s platform uses tr...
Cardlytics Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call mixed strong operational and product progress—advertiser expansion, large improvements in churn, meaningful AI-driven efficiency gains, and U.K. momentum—against sizable year-over-year declines in billings and revenue, negative operating and free cash flow, and reduced MQUs driven by prior partner changes. Management emphasized execution, cost discipline, and a path toward self-sustainability, while Q3 guidance is cautious but consistent with stabilization.Positive Updates
Advertiser Base Expansion and Strong New Business
Active advertisers grew 18% quarter-over-quarter and billings grew 11% quarter-over-quarter. New logo volume was up 59% quarter-over-quarter, with new business billings for that cohort up 17% year-over-year; the largest new logo this quarter was more than 100% larger than the largest new logo a year ago.
Negative Updates
Significant Year-over-Year Top-Line Declines
Q2 billings were $65.5 million, down 34% year-over-year, and Q2 revenue was $36.9 million, down 36% year-over-year, reflecting ongoing tough comps related to prior bank partner relationship changes.
Read all updates
Q2-2026 Updates
Positive
Negative
Advertiser Base Expansion and Strong New Business
Active advertisers grew 18% quarter-over-quarter and billings grew 11% quarter-over-quarter. New logo volume was up 59% quarter-over-quarter, with new business billings for that cohort up 17% year-over-year; the largest new logo this quarter was more than 100% larger than the largest new logo a year ago.
Read all positive updates
Company Guidance
Cardlytics guided Q3 2026 billings of $61–67M, revenue of $34–39M, adjusted contribution of $20–23M and adjusted EBITDA of $0–$3M, saying this represents comparable performance to Q2 as the business solidifies; management also noted they were within their guide for billings, revenue and adjusted contribution for Q2 and exceeded the high end of adjusted EBITDA guidance. For context, Q2 results were: billings $65.5M, revenue $36.9M, adjusted contribution $21.3M (57.7% of revenue vs. 54% a year ago), adjusted EBITDA $1.7M, adjusted operating expenses $19.6M (down 31% YoY), operating cash flow negative $8.6M, free cash flow negative $10.7M, cash $28M with ~$20M available on the credit facility, and MQUs of $185M (down from $224M YoY); management expects free cash flow to trend toward adjusted EBITDA, no material incremental OpEx/capex, headcount broadly steady, and noted tough year‑over‑year comps through Q1 2027.Cardlytics Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.33M | 233.27M | 278.30M | 309.20M | 298.54M | 267.12M |
| Gross Profit | 85.95M | 105.08M | 120.89M | 130.38M | 112.63M | 103.34M |
| EBITDA | -70.56M | -65.45M | -152.53M | -99.00M | -420.41M | -88.21M |
| Net Income | -100.28M | -103.49M | -189.30M | -134.70M | -465.26M | -128.56M |
Balance Sheet | ||||||
| Total Assets | 234.78M | 285.64M | 392.71M | 574.14M | 691.24M | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 28.04M | 48.72M | 65.59M | 91.83M | 121.91M | 233.47M |
| Total Debt | 189.89M | 215.31M | 221.65M | 266.11M | 235.26M | 197.23M |
| Total Liabilities | 250.79M | 292.15M | 322.72M | 439.35M | 479.63M | 573.10M |
| Stockholders Equity | -16.00M | -6.51M | 69.99M | 134.80M | 211.60M | 690.70M |
Cash Flow | ||||||
| Free Cash Flow | -3.96M | -6.49M | -28.12M | -12.58M | -67.39M | -51.09M |
| Operating Cash Flow | 532.00K | 9.29M | -8.82M | -185.00K | -53.90M | -38.52M |
| Investing Cash Flow | 11.88M | -15.30M | -18.75M | -10.06M | -15.76M | -506.69M |
| Financing Cash Flow | -31.13M | -11.12M | 1.44M | -20.03M | -39.99M | 486.00M |
Cardlytics Technical Analysis
Negative
4.13
Price Trends
4.07
Negative
5.60
Negative
7.95
Negative
Market Momentum
-0.12
Positive
34.62
Neutral
3.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDLX, the sentiment is Negative. The current price of 4.13 is above the 20-day moving average (MA) of 4.04, above the 50-day MA of 4.07, and below the 200-day MA of 7.95, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 34.62 is Neutral, neither overbought nor oversold. The STOCH value of 3.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDLX.
Cardlytics Risk Analysis
Cardlytics disclosed 57 risk factors in its most recent earnings report. Cardlytics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cardlytics Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.07B | 12.74 | 27.66% | ― | 18.29% | 1634.10% | |
80 Outperform | $863.34M | 8.78 | 9.20% | ― | -4.24% | -20.11% | |
65 Neutral | $1.91B | 3.15 | 34.27% | 2.03% | -8.46% | -157.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
45 Neutral | $21.32M | -0.20 | 1284.85% | ― | -32.63% | 42.21% |
* Communication Services Sector Average
CDLX
Cardlytics
3.74
-6.06
-61.84%
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55.73
17.46
45.62%
QNST
Quinstreet
18.08
1.90
11.74%
CRTO
Criteo SA
17.74
-5.39
-23.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.