Cardlytics (CDLX) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $52.0 million, down 22% year-over-year, with billings of $89.2 million, down 20.3%, mainly due to a major FI partner's content block and lower sales to existing marketers.

• Net loss improved to $(72.7) million from $(145.2) million in Q3 2024, driven by lower impairment charges and cost reductions, including a 30% workforce reduction for $26 million in annualized savings.

• Strategic focus on diversifying supply, growing advertiser demand, expanding CRP partners, and enhancing platform capabilities through new partnerships and product innovations.

• Bank of America issued a non-renewal notice, impacting future revenue, while a key agreement with JPMorgan Chase was extended to 2028.

• Management emphasized a strategic reset and disciplined execution to return to growth, with confidence in long-term prospects.

Financial highlights

• Q3 2025 billings were $89.2 million (down 20.3% year-over-year); revenue was $52.0 million (down 22.4%); adjusted contribution was $30.0 million (down 17.5%).

• Adjusted EBITDA was $3.2 million, up $5.0 million year-over-year; net loss per share was $(1.36), improved from $(2.90) in Q3 2024.

• Operating cash flow was $1.8 million; free cash flow was negative $2.7 million, an improvement from prior year.

• Ended Q3 with $44 million in cash and cash equivalents, with $12.4 million in unused borrowing capacity.

• Gross margin for Q3 2025 was 47%, up from 43% in Q3 2024.

Outlook and guidance

• Q4 2025 billings expected between $86–$96 million, revenue $51.1–$59.1 million, adjusted EBITDA $(5.5) million to $7.9 million.

• Billings guidance implies a 17–26% year-over-year decrease, mainly due to further content restrictions.

• Adjusted contribution margin expected in the mid to high 50% range; operating expenses to be at or below $28 million, down 19% year-over-year.

• Management expects sufficient liquidity for at least 12 months but may need additional capital for long-term growth.

• Positive adjusted EBITDA expected for Q4 and full year 2025.