Cardlytics (CDLX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 8.4% year-over-year to $61.9 million, with billings down 7.3% to $97.6 million, but results exceeded or met guidance across all metrics despite macroeconomic volatility and cautious advertiser budgets.

• Net loss narrowed to $13.3 million from $24.3 million year-over-year, with adjusted net loss at $11.1 million and adjusted EBITDA at negative $4.4 million.

• Monthly qualified users (MQUs) grew 12% year-over-year to 214.9 million, driven by organic growth and a new U.S. FI partner, but adjusted contribution per user fell to $0.13 from $0.17.

• Bank of America issued a non-renewal notice, with agreements expiring July 31, 2025, and possible extension to January 2026; uninterrupted service is expected through early 2026 with no material financial impact anticipated.

• Strategic focus remains on expanding supply, strengthening demand, optimizing the network, growing Bridg, and disciplined cost management.

Financial highlights

• Adjusted contribution was $32.4 million, down 12.5% year-over-year; adjusted EBITDA was negative $4.4 million, a decline of $4.6 million year-over-year.

• Free cash flow was negative $10.8 million, an $11.6 million improvement from prior year; net cash used in operating activities was $(6.7) million, a significant improvement from $(17.6) million year-over-year.

• Gross profit was $25.2 million with a gross margin of 41%.

• Ended Q1 with $52 million in cash and $60 million in unused credit, totaling $87 million in liquidity.

• Weighted-average diluted shares increased to 51.9 million from 43.2 million year-over-year.

Outlook and guidance

• Q2 2025 billings expected between $100–$108 million (down 9% to 2% year-over-year), revenue $61–$67 million, adjusted contribution $32.5–$36.5 million, and adjusted EBITDA between negative $4 and positive $1 million.

• Billings guidance implies a 2–9% year-over-year decrease, reflecting ongoing advertiser caution; revenue-to-billings margin expected in the low 60% range.

• Adjusted contribution margin to improve sequentially to mid-50% range; operating expenses to remain below $35 million per quarter.

• Annualized savings of $16 million from a 15% workforce reduction; free cash flow expected to improve sequentially.

• Sufficient liquidity to meet all obligations.