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Cardlytics Inc (CDLX)
NASDAQ:CDLX
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Cardlytics (CDLX) AI Stock Analysis

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CDLX

Cardlytics

(NASDAQ:CDLX)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
$4.00
▲(10.50% Upside)
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 & New Business
A rising advertiser base and sharply higher new-logo volume indicate the platform is regaining commercial traction and diversifying revenue sources. Large new logos and quarter-over-quarter billings growth support a structurally larger sales pipeline and reduce single-client concentration risk over the medium term.
Negative Factors
Material YoY Revenue & Billings Declines
Steep year-over-year declines in billings and revenue reflect lost distribution and demand headwinds tied to prior partner changes. Persistent top-line contraction reduces scale, pressures unit economics, and limits the firm's ability to invest in product and sales while the company works through difficult comparables into 2027.
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Positive Factors
Negative Factors
Advertiser Growth & New Business
A rising advertiser base and sharply higher new-logo volume indicate the platform is regaining commercial traction and diversifying revenue sources. Large new logos and quarter-over-quarter billings growth support a structurally larger sales pipeline and reduce single-client concentration risk over the medium term.
Read all positive factors

Cardlytics (CDLX) vs. SPDR S&P 500 ETF (SPY)

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
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
Weak fundamentals dominate: TTM revenue declined ~12.8%, gross margin compressed sharply (~28% TTM vs. ~45% in 2025), and profitability remains negative (EBIT/EBITDA/net income). The balance sheet is stressed with negative equity and sizeable debt (~$190M) versus assets (~$235M), raising refinancing/liquidity risk. Cash flow is also inconsistent with TTM operating cash flow slightly negative and free cash flow more negative, indicating ongoing cash burn.
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
28
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue179.33M233.27M278.30M309.20M298.54M267.12M
Gross Profit85.95M105.08M120.89M130.38M112.63M103.34M
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 Assets234.78M285.64M392.71M574.14M691.24M1.26B
Cash, Cash Equivalents and Short-Term Investments28.04M48.72M65.59M91.83M121.91M233.47M
Total Debt189.89M215.31M221.65M266.11M235.26M197.23M
Total Liabilities250.79M292.15M322.72M439.35M479.63M573.10M
Stockholders Equity-16.00M-6.51M69.99M134.80M211.60M690.70M
Cash Flow
Free Cash Flow-3.96M-6.49M-28.12M-12.58M-67.39M-51.09M
Operating Cash Flow532.00K9.29M-8.82M-185.00K-53.90M-38.52M
Investing Cash Flow11.88M-15.30M-18.75M-10.06M-15.76M-506.69M
Financing Cash Flow-31.13M-11.12M1.44M-20.03M-39.99M486.00M

Cardlytics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.62
Price Trends
50DMA
4.49
Negative
100DMA
6.56
Negative
200DMA
8.95
Negative
Market Momentum
MACD
-0.16
Negative
RSI
53.04
Neutral
STOCH
70.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDLX, the sentiment is Neutral. The current price of 3.62 is below the 20-day moving average (MA) of 3.90, below the 50-day MA of 4.49, and below the 200-day MA of 8.95, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.19B14.4527.66%18.29%1634.10%
70
Outperform
$892.25M9.419.20%-4.24%-20.11%
65
Neutral
$1.92B3.1334.27%-8.46%-157.54%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
45
Neutral
$25.09M-0.23-870.86%-32.63%42.21%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CDLX
Cardlytics
4.23
-7.87
-65.04%
ZD
Ziff Davis
55.38
18.98
52.14%
QNST
Quinstreet
20.50
5.76
39.08%
CRTO
Criteo SA
19.00
-4.75
-20.00%

Cardlytics Corporate Events

Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
Cardlytics Announces Reverse Stock Split Amid Nasdaq Deficiency
Negative
Jun 3, 2026
On June 3, 2026, Cardlytics received notice from Nasdaq that its common stock had closed below the $1.00 minimum bid price for 30 consecutive business days, triggering a deficiency under Nasdaq’s continued listing rules. The company has unti...
Executive/Board ChangesShareholder MeetingsStock Split
Cardlytics Shareholders Approve Reverse Split and Board Slate
Neutral
May 20, 2026
At its annual meeting held on May 20, 2026, Cardlytics, Inc. reported that 63.54% of outstanding shares were represented, and shareholders elected three board nominees—Amit Gupta, Jack Klinck and Shrishti Gupta—as Class II directors to...
Executive/Board Changes
Cardlytics Announces Planned Resignation of Chief Legal Officer
Neutral
May 12, 2026
On May 10, 2026, Cardlytics, Inc. announced that Chief Legal and Privacy Officer Nick Lynton intends to resign, effective upon the appointment of his successor or by the close of business on July 3, 2026, whichever comes first. The move introduces...
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.Date of analysis: Aug 06, 2026