Cardlytics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $32.9 million, a 30% decrease year-over-year compared to $47.0 million in Q3 2025.
• Billings were $57.2 million, a 32% decrease year-over-year compared to $84.1 million in Q3 2025.
• Adjusted Contribution was $19.4 million, a 24% decrease year-over-year compared to $25.6 million in Q3 2025.
• Net Loss was $(8.9) million, a significant improvement from $(72.7) million in Q3 2025.
• Adjusted EBITDA was $0.4 million, a decrease from $3.3 million in Q3 2025.
• Net Loss per share from continuing operations was $(1.26) on a GAAP basis, compared to $(13.14) in Q3 2025.
• Adjusted Net Loss per share was $(1.03), compared to $(0.58) in Q3 2025.
• Net cash used in operating activities was $(5.9) million, compared to $1.8 million provided in Q3 2025.
• Free Cash Flow was $(1.6) million, an improvement from $(2.7) million in Q3 2025.
• Cash and cash equivalents were $29.9 million as of September 30, 2026, down from $48.7 million as of December 31, 2025.
• Total liabilities were $251.5 million as of September 30, 2026, compared to $292.1 million as of December 31, 2025.
• Convertible senior notes, net, were $169.7 million as of September 30, 2026.
• Lines of credit were $25.0 million as of September 30, 2026, down from $40.1 million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 Billings are expected to be between $63.0 million and $69.0 million, representing a 29% to 22% decrease year-over-year.
• Q4 2026 Revenue is expected to be between $35.0 million and $39.0 million, representing a 31% to 23% decrease year-over-year.
• Q4 2026 Adjusted Contribution is expected to be between $20.0 million and $23.0 million, representing a 26% to 15% decrease year-over-year.
• Q4 2026 Adjusted EBITDA is expected to be between $(1.0) million and $2.0 million.
• Management expects sequential growth in the fourth quarter as the company works toward self-sustainability.

Business Segments and Product Lines:

• Cardlytics monthly qualified users (MQUs) were 186.6 million, a 19% decrease year-over-year compared to 230.3 million in Q3 2025.
• Cardlytics adjusted contribution per user (ACPU) was $0.10, down from $0.11 in Q3 2025.
• The company is building supply by adding new CRP partners and continuing to grow its advertising base.
• The company operates a purchase intelligence platform transforming transaction data into targeted offers in the U.S. and U.K.

Market and Competitive Landscape:

• The company has visibility into approximately 50% of card-based transactions in the U.S. and U.K.
• The business relies on a limited number of financial institution partners, including JPMorgan Chase Bank, National Association and Wells Fargo Bank, National Association.

Risks and Challenges:

• Quarterly operating results have fluctuated and may continue to vary.
• Risks include dependence on the Cardlytics purchase intelligence platform and specific financial institution partners.
• Risks include the ability to maintain relationships with Chase and Wells Fargo.
• Risks include the amount and timing of marketer budgets affected by economic conditions.
• Risks include the ability to generate sufficient revenue to offset contractual commitments to financial institution partners.
• Risks include the competitive market and the ability to compete with current or future competitors.
• Risks include adapting to changing market conditions, consumer habits, and negotiating fee arrangements.
• Risks include unfavorable global economic conditions, inflationary pressure, and trade protection measures.

Management Commentary and Tone:

• CEO Amit Gupta stated that third-quarter results came in below expectations but expressed encouragement regarding progress toward priorities.
• CFO David Evans noted the company is running a leaner business with lower costs and a higher contribution margin.

Other Key Points:

• On March 24, 2026, the company completed the Bridg Sale, receiving 1,810,222 shares of PAR's common stock as consideration.
• The results of the Bridg business are presented as discontinued operations.
• The company ceased depreciating and amortizing long-lived assets for the Bridg business as of the held-for-sale date in Q1 2026.
• Legal indemnification payments of $6.4 million were included in the Free Cash Flow calculation for the nine months ended September 30, 2026.
• The company holds $110.3 million in goodwill as of September 30, 2026.
• Capitalized software development costs were $15.3 million as of September 30, 2026.