Cardlytics (CDLX) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $63.2M, down 9% year-over-year; billings fell 5.7% to $104.0M, with net loss widening to $9.3M.

• Adjusted EBITDA improved to $2.7M from a loss of $2.3M in Q2 2024, surpassing guidance.

• Monthly qualified users rose 19% year-over-year to 224.5M, but adjusted contribution per user declined to $0.14.

• The company remains dependent on a few large FI partners, with Bank of America issuing a non-renewal notice effective July 31, 2025.

• Significant content restrictions by the largest FI partner starting July 1st are expected to impact supply and billings.

Financial highlights

• Q2 2025 billings were $104M, down 5.7% year-over-year; revenue was $63.2M, down 9.2%; net loss was $9.3M.

• Adjusted EBITDA was $2.7M, up $5M year-over-year; adjusted contribution margin reached 57.1%, a record high.

• Gross margin improved to 46.3% in Q2 2025 from 41.2% in Q2 2024.

• Operating cash flow was $1.2M; free cash flow was -$3.4M, improved $7.4M sequentially.

• Ended Q2 with $46.7M in cash; working capital was $21.3M.

Outlook and guidance

• Q3 2025 billings expected at $87M–$95M, revenue at $52.2M–$58.2M, adjusted EBITDA between -$2.3M and +$2.7M.

• Billings guidance implies a 15%–22% year-over-year decrease, mainly due to FI partner restrictions.

• Adjusted contribution forecasted at $30.3M–$34.3M, down 17%–6% year-over-year.

• Operating expenses to remain at or below $33M per quarter, excluding stock-based compensation.

• The company believes it has sufficient liquidity for at least the next 12 months but may require additional capital for long-term growth.