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Nov 5, 2026, 4:02 PM ETCommunication Services

Cardlytics — Third Quarter 2026 Earnings Summary

CDLXCARDLYTICS INC
Source

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, an 88% improvement compared to $(72.7) million in Q3 2025.
  • Adjusted EBITDA was $0.4 million, an 88% decrease year-over-year compared to $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) on a non-GAAP basis, 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.
  • Adjusted Contribution as a percentage of Billings was 33.9% in Q3 2026, up from 30.4% in Q3 2025.
  • Adjusted Contribution as a percentage of Revenue was 59.0% in Q3 2026, up from 54.4% in Q3 2025.

Guidance and Future Outlook

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

Business Segments and Product Lines

  • Monthly Qualified Users (MQUs) were 186.6 million, a 19% decrease year-over-year compared to 230.3 million in Q3 2025.
  • Adjusted Contribution per User (ACPU) was $0.10, compared to $0.11 in Q3 2025.
  • The company is adding new Cardlytics Reward Partners (CRP) to build supply.
  • The company continues to grow its advertising base.

Market and Competitive Landscape

  • Cardlytics has visibility into approximately 50% of card-based transactions in the U.S. and U.K.
  • The company operates a purchase intelligence platform delivering personalized offers through banking and commerce platforms in the U.S. and U.K.

Risks and Challenges

  • The company faces risks related to unfavorable global economic conditions, including inflationary pressure and trade protection measures.
  • Quarterly operating results have fluctuated and may continue to vary.
  • There is substantial dependence on the Cardlytics purchase intelligence platform.
  • The company relies heavily on financial institution partners, specifically JPMorgan Chase and Wells Fargo, and faces risks in maintaining these relationships.
  • Risks include the ability to attract new partners, maintain relationships with bank processors, and adapt to changing consumer habits.
  • Marketer budgets are subject to budget cycles, economic conditions, and other factors.

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 business is running leaner with lower costs and higher contribution margins.
  • Management emphasized the strategic focus on building supply and growing the advertising base.

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 Bridg business results are presented as discontinued operations for all periods presented.
  • The company ceased depreciating and amortizing long-lived assets for the Bridg business as of the held-for-sale date in Q1 2026.
  • 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.
  • Stock-based compensation expense for continuing operations was $1.6 million in Q3 2026, down from $6.4 million in Q3 2025.
  • The company reported a gain on divestiture of $13.9 million for the nine months ended September 30, 2026.
Cardlytics — Third Quarter 2026 Earnings Summary