Cardlytics | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 34.32 M

Revenue: As of FY2026 Q1, the actual value is USD 34.32 M, missing the estimate of USD 37.1 M.

EPS: As of FY2026 Q1, the actual value is USD -0.08, beating the estimate of USD -0.37.

EBIT: As of FY2026 Q1, the actual value is USD -5.741 M.

Segment Revenue

• Cardlytics platform Revenue was $34,319 thousand for the three months ended March 31, 2026, compared to $56,435 thousand for the three months ended March 31, 2025.
• United States Revenue was $27,634 thousand for the three months ended March 31, 2026, compared to $50,926 thousand for the three months ended March 31, 2025.
• United Kingdom Revenue was $6,685 thousand for the three months ended March 31, 2026, compared to $5,509 thousand for the three months ended March 31, 2025.
• Bridg business (discontinued operations) Revenue was $4,175 thousand for the three months ended March 31, 2026, compared to $5,463 thousand for the three months ended March 31, 2025.

Operational Metrics

• Net Loss was -$4,480 thousand for the three months ended March 31, 2026, compared to -$13,282 thousand for the three months ended March 31, 2025.
• Gross Profit was $17,141 thousand for the three months ended March 31, 2026, compared to $21,544 thousand for the three months ended March 31, 2025.
• Operating Loss was -$8,274 thousand for the three months ended March 31, 2026, compared to -$11,115 thousand for the three months ended March 31, 2025.
• Partner Share and other third-party costs decreased by $14,507 thousand (-50%) to $14,597 thousand for the three months ended March 31, 2026, from $29,104 thousand for the three months ended March 31, 2025.
• Delivery costs decreased by $3,205 thousand (-55%) to $2,581 thousand for the three months ended March 31, 2026, from $5,786 thousand for the three months ended March 31, 2025.
• Sales and marketing expense decreased by $3,621 thousand (-35%) to $6,761 thousand for the three months ended March 31, 2026, from $10,382 thousand for the three months ended March 31, 2025.
• Research and development expense decreased by $3,848 thousand (-37%) to $6,430 thousand for the three months ended March 31, 2026, from $10,278 thousand for the three months ended March 31, 2025.
• General and administrative expense decreased by $4,662 thousand (-36%) to $8,281 thousand for the three months ended March 31, 2026, from $12,943 thousand for the three months ended March 31, 2025.
• Depreciation and amortization expense decreased by $404 thousand (-9%) to $3,943 thousand for the three months ended March 31, 2026, from $4,347 thousand for the three months ended March 31, 2025.
• Interest expense, net was -$2,533 thousand for the three months ended March 31, 2026, compared to -$1,830 thousand for the three months ended March 31, 2025.
• Foreign currency (loss) gain was a -$1,706 thousand loss for the three months ended March 31, 2026, compared to a $2,627 thousand gain for the three months ended March 31, 2025.

Cash Flow

• Net cash used in operating activities was -$5,642 thousand for the three months ended March 31, 2026, compared to -$6,706 thousand for the three months ended March 31, 2025.
• Free Cash Flow was -$7,946 thousand for the three months ended March 31, 2026, compared to -$10,809 thousand for the three months ended March 31, 2025.

Unique Metrics

• Cardlytics Monthly Qualified Users (MQUs) were 197,011 thousand for the three months ended March 31, 2026, an 8% decrease from 214,891 thousand for the three months ended March 31, 2025.
• Cardlytics Adjusted Contribution per User (ACPU) was $0.10 for the three months ended March 31, 2026, a 23% decrease from $0.13 for the three months ended March 31, 2025.
• Billings were $58,146 thousand for the three months ended March 31, 2026, a 37% decrease from $92,115 thousand for the three months ended March 31, 2025.
• Adjusted Contribution was $19,722 thousand for the three months ended March 31, 2026, compared to $27,331 thousand for the three months ended March 31, 2025.
• Adjusted EBITDA was $230 thousand for the three months ended March 31, 2026, compared to -$4,119 thousand for the three months ended March 31, 2025.
• Adjusted Net Loss was -$6,246 thousand for the three months ended March 31, 2026, compared to -$10,296 thousand for the three months ended March 31, 2025.

Future Outlook and Strategy

Cardlytics, Inc. anticipates a decrease in near-term Billings year-over-year, primarily due to a major FI partner restricting certain marketer offers. The company plans to mitigate this by shifting these marketers to alternative channels with its other FI partners. While delivery costs are expected to rise in absolute dollars due to cloud migration, they are projected to decline as a percentage of Revenue over time, similar to research and development and general and administrative expenses.