Cardlytics, Inc. (NASDAQ: CDLX) reported a loss in earnings for the fourth quarter of 2025, with an earnings per share (EPS) of $-0.15 compared to expectations of $-0.135. The announcement, made during a conference call on March 4, 2026, highlighted the company’s ongoing strategic adjustments aimed at achieving long-term sustainability.
During the call, Chief Legal and Privacy Officer Nick Lynton opened the session, reminding participants that forward-looking statements would be made. He emphasized the importance of understanding the risks associated with these projections, particularly in relation to operations and financial performance moving into 2026. Following his remarks, CEO Amit Gupta addressed shareholders, noting significant changes in the company’s operational structure throughout the past year.
Strategic Realignment and Future Focus
Gupta stated that 2025 was a year of “reset” for Cardlytics, emphasizing a commitment to self-sustainability and operational efficiency. He outlined three strategic priorities: enhancing partnerships with financial institutions, driving revenue growth through advanced algorithms, and investing in technology for better differentiation in the market. The company has welcomed new talent, including CFO David Evans, to support these initiatives.
“Looking ahead, 2026 is a year of execution for us,” Gupta remarked, expressing confidence in the team and the platform’s relevance in a competitive landscape. The company conducted a thorough review of its financial institution relationships, leading to an expansion of partnerships in both the U.S. and the U.K. However, Gupta confirmed the decision to end the relationship with Bank of America, citing misalignment in the program’s structure and long-term objectives.
Despite the challenges posed by the departure of Bank of America, Cardlytics is seeing positive developments. New collaborations with the Philadelphia Flyers and Boston Celtics are part of an effort to extend reach beyond traditional banking partnerships. The company reported a notable increase in participation in its promotional programs, with a recent initiative resulting in a twofold increase in redeemers on days with double rewards.
Financial Performance and Market Challenges
In terms of financial performance, Cardlytics’ total billings for the fiscal year 2025 reached $385 million, reflecting a decrease of 13.3% year-over-year. Revenue dropped by 16.2% to $233 million, while the adjusted EBITDA rose to $10.1 million, a significant increase of $7.5 million compared to the previous year.
During Q4, total billings stood at $94.1 million, down 19% from the previous year. Revenue for the quarter was $56.1 million, marking a decrease of 24.2%. Notably, U.S. revenue, excluding Bridg, fell by 33.5% to $40.1 million. In contrast, the U.K. segment showed resilience, with revenue surging by 35.1% year-over-year to $10.8 million.
Evans highlighted the company’s disciplined approach to managing expenses, which contributed to positive adjusted EBITDA for the third consecutive year. Operating expenses, excluding stock-based compensation, were reduced to $23.2 million, a year-over-year decline of $11.1 million. The focus on operational efficiency is expected to continue, particularly with anticipated cost savings following the Bridg transaction.
Looking ahead, Cardlytics projects Q1 2026 billings in the range of $57.5 million to $63.5 million, with revenue expected between $35 million and $40 million. The guidance reflects the impact of recent changes, including the departure of Bank of America and content restrictions from other financial partners.
In closing, Gupta reiterated the strength and determination of the Cardlytics team during challenging times. He expressed optimism about the company’s trajectory, asserting that the right focus and technological advancements will enable Cardlytics to deliver robust results for its shareholders in 2026 and beyond. The call concluded with a question-and-answer session, allowing analysts to seek further clarity on the company’s future plans and financial outlook.
