Cardlytics (CDLX) Q2 2026 Earnings Report

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.

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.