CDLX

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Chief Legal Officer - Chris Cheng Chief Executive Officer - Amit Gupta Chief Financial Officer - David Evans Operator: Hello, everyone. Thank you for joining us, and welcome to the Q2 2026 Cardlytics, Inc. Earnings Conference Call. [Operator Instructions] I will now hand the call over to Chris Cheng, Chief Legal Officer. Chris, please go ahead. Chris Cheng: Good evening, and welcome to the Cardlytics Second Quarter 2026 Financial Results call. Before we begin, let me remind everyone that today's discussion will contain forward-looking statements based on our current assumptions, expectations and beliefs, including expectations around our future financial performance and results, including for the third quarter of 2026, our capital structure and operational and product initiatives. For a discussion on the specific risk factors that could cause our actual results to differ materially from today's discussion, please refer to the Risk Factors section of our 10-Q for the quarter ending June 30, 2026, which has been filed with the SEC. Also during our call, we will discuss non-GAAP measures of our performance. GAAP financial reconciliations and supplemental financial information are provided in the press release issued today, which you can find on the Investor Relations section of the Cardlytics website. Today's call is available via webcast, and a replay will also be available on our website. On the call today, we have CEO, Amit Gupta; and CFO, David Evans. Following their prepared remarks, we'll open it up for your questions. With that, I'll hand the call over to Amit. Amit Gupta: Good evening, and thank you for joining us. The second quarter showed clear progress against our strategic priorities. The investments we made earlier this year in our people, advertiser business and tech platform are starting to deliver. We remain focused on the same priorities we've talked about all year, deepening our bank partnerships and expanding our publisher network, driving incremental revenue for advertisers through our purchase intelligence and continuing to invest in our tech platform that differentiates us. As we've stated in the past, 2026 has been and is a year of execution. The biggest takeaway from Q2 is that we are beginning to see the results of the reset. Our advertiser growth is accelerating, churn is improving materially and supply has stabilized. Starting with our network and supply. Rewards programs across the industry are shifting toward merchant-funded, locally relevant models, and we are at the center of that shift. We are partnering with industry leaders to define how this evolves industry-wide, particularly as AI adoption accelerates. The shift is happening across the industry. At their Investor Day this year, one of the country's largest card issuers said they are shifting more towards merchant-funded offers than expensive points-based rewards. The reason is simple: consumers want offers that are more relevant and personalized. On CRP, market interest remains strong, and our pilot partners already live on our platform are giving us positive feedback. The proposition is resonating. Our focus now is executing well for those early partners while we continue conversations to bring new ones onto the platform. We continue to grow with our existing bank partners, and we're in active discussions with new ones. Several long-standing FI partners, along with some newer ones, have asked us to expand our card-linked offers program to additional portfolios, a direct result of the value we are driving for their cardholders and the top-of-wallet behavior it creates. One of our major bank partners recently agreed to temporarily reduce their FI share as a show of good partnership to accelerate co-development and innovation in their program. We've seen this play out in concrete outcomes this quarter. In one recent bank-funded program, we tested extra rewards for cardholders who made 2 redemptions in a month with an even higher reward for 3. As a result of this program, we saw total redemptions go up 105%. First-time redeemers were up 113% and merchant-funded redemption spend increased 78%. This shows the Cardlytics flywheel delivering for all 3 sides of our business: consumers, bank partners and advertising merchants. We are also continuing to grow our local third-party offers. They are now live across 4 major banks and drive nearly 5,000 redemptions a day. They get strong engagement because they are highly relevant to consumers locally and billings are up 20% since the start of the year. We expect to lean into these even more in the second half. In the U.K., Cardlytics expanded our role in providing offers for Monzo, one of the fastest-growing banks in the U.K. Starting July 2026, Cardlytics now powers more card-linked offers for Monzo's U.K. customers, delivering personalized spend-based cashback rewards directly within the Monzo app. The partnership expands Cardlytics U.K. reach by building on its extensive network of agencies and partners, giving brands direct access to Monzo's highly engaged, digitally native customer base. The partnership reflects growing demand among leading U.K. financial institutions for data-driven, frictionless rewards solutions. Across our FI and CRP conversations, we're hearing the same themes consistently from market leaders. The strength of our tech platform, the scale of our merchant network and the size of value we can deliver to their consumers sets us apart. Turning to our advertiser base. Q2 advertiser base demonstrated growth both quarter-over-quarter and year-over-year. Active advertisers grew 18% quarter-over-quarter and billings grew 11% alongside it. New logo volume was the strongest signal, up 59% quarter-over-quarter. Total new business billings for this group grew 17% year-over-year. And our largest new logo this quarter was more than 100% higher than our largest new logo a year ago. Growing advertisers, those increasing their billings with us, grew 42%. Churn improved across the board, down 50% by advertiser count and 88% by dollar impact. That growth comes down to 2 things: measurement and scaling, proving results quickly with new advertisers and making it easy for them to scale immediately. One large national restaurant brand piloted with us in Q2 and has already re-signed to the max potential. A home services brand piloted with a single location and before the pilot even wrapped, expanded to 7 others and is now also at our maximum tier across their full portfolio. In the U.K., billings are up 10% year-over-year, and we saw a great example this quarter of what our purchase intelligence can do for our advertisers. Some of our restaurant clients thought their sales were slowing because the whole category was shrinking. Our data showed that wasn't the case. The category was flat and their customers were still eating out but increasingly ordering through third-party delivery services. We got ahead of the trend and proactively adjusted look-back periods to reflect shifting market dynamics, capturing customers during their normal dormancy windows before spend moved out of the category. This ensured we sustained advertiser investment even in a category under real budget and margin pressure. We are seeing the same pattern here in the U.S. Quick service spend grew 3.3% year-over-year, but almost all of that was menu inflation. Real demand was flat. It's not just this quarter, QSR's share of restaurant spend has been shrinking year-over-year since 2024, while delivery keeps picking up the difference, up more than 18% this quarter alone. People aren't ordering less quick service food that spend is just shifting to delivery. One QSR brand saw this play out directly. They knew their purchase frequency trailed key competitors and assumed they were losing customers out of the category. Our data showed those customers hadn't left, they migrated to other brands, mirroring that same category-wide shift. That insight moved their strategy from broad acquisition to retention and reengagement. And purchase frequency among those reengaged customers came in stronger than across their broader base. That's the value we deliver, not just what's happening, but the action that drives growth. Our everyday spend data shows resilience in gas and convenience, up 11.1% year-over-year even as discretionary dining growth flattens. That same purchase intelligence extends beyond category level trends into the broader economy. Our data shows that the U.S. consumer spend growth rebounded to 3.6% year-over-year in June, up from 2.3% in May. Contrary to popular opinion, lower spend households are driving this recent growth. We often see shifts like these before they show up in broader economic data, and sophisticated advertisers take advantage of these broader trends as they plan their marketing efforts with us. Now on to our technology platform. Last year, we invested in cleaning up our tech debt and building an AI-forward tech stack. Now that these investments are behind us, we are now operating more efficiently and moving faster. We are also continuing to put AI to work across the platform. We recently launched new AI capabilities that automatically pull industry and brand-level spending insights from our purchase data. Leading advertisers are using these insights to benchmark their performance and understand broader consumer trends, utilizing them in marketing decisions and beyond. We launched an AI-driven campaign publishing engine that automates core setup and configuration workflows within our advertiser platform. Operating with human-in-the-loop oversight, this capability significantly reduces time to market for advertiser campaigns while driving long-term operating efficiencies across our sales and ad operations teams. In the U.S., we're building ad campaigns in about half the time we were a year ago, while still hitting our internal targets 99.4% of the time. We are also building new capabilities that let banks personalize rewards for their own customer segments. Banks can tell us through our APIs which customers they consider high tier or at risk of churning, and our platform can make personalized decisions on reward values, offer ranking and bank-funded offers tailored specifically to those groups. We expect to begin testing this with one of our bank partners soon. We're developing token-based solutions that make our market-leading offers protocol embeddable across different partner experiences. This will allow us to extend our reach and meet more consumers wherever they are. Now looking forward, Q2 showed that our plan is working, and our core business is getting stronger. As we move into Q3, our focus is on solidifying that foundation. We want to continue building supply, growing our advertiser base, improving retention and scaling the capabilities we've invested in across our platform. We expect Q3 to be another quarter of execution and strengthening the core business while we continue laying the foundation for renewed growth. We are starting to see early benefits of the hard work done earlier this year to reset the company while being fully aware of the challenges that come with being a small public company. Our focus remains on disciplined, urgent execution against our strategic priorities. Before I turn it over to David, I want to welcome Chris Cheng to Cardlytics. Chris joined us earlier this week as our Chief Legal Officer and brings more than 20 years of legal experience from some of the leading technology companies. Chris, we are excited to have you on the team, and thank you for jumping right in and helping lead us through the call tonight. David, over to you. David Evans: Thank you, Amit. As we talked about on our last earnings call, our core focus and strategic plan we set up at the beginning of the year was to level set around sequential growth and self-sustainability. We are pleased to announce that we were within our guide for billings, revenue and adjusted contribution, and exceeded the high end of our guide for adjusted EBITDA. This performance was driven by continued advertiser growth that's building a healthier revenue base while also demonstrating a keen eye to cost containment in the quarter. Turning to Q2 results. For awareness, all comparisons to prior year will be presented excluding Bridg, which we divested in Q1 of this year. Bridg-specific results can be found in the 10-Q. Also, the comments will be year-over-year comparisons to the second quarter of 2025, unless stated otherwise. In Q2, our billings were $65.5 million, a 34% decrease year-over-year. We will continue to see tough comps year-over-year until Q1 2027 when we anniversary the previously discussed changes in our bank partner relationships. Over the course of the year, we have seen supply stabilize and our advertiser base increase. Q2 revenue was $36.9 million, a 36% decrease year-over-year. As Amit mentioned, our U.K. business remains a standout performer, with Q2 revenue increasing over 10% year-over-year. Q2 adjusted contribution was $21.3 million, a 32% decrease year-over-year. We materially increased our adjusted contribution as a percentage of revenue to 57.7% from 54% in the prior year. Q2 adjusted EBITDA was positive $1.7 million compared to $3 million in the second quarter of 2025. Q2 adjusted operating expenses were $19.6 million, a decrease of 31% from prior year. This was largely due to reduction in force actions taken in the second half of 2025 and optimization of our cloud infrastructure. Q2 operating cash flow was negative $8.6 million compared to $1.2 million in the prior year. Free cash flow was negative $10.7 million compared to negative $3.4 million year-over-year. From a liquidity perspective and on the balance sheet, we ended Q2 with $28 million in cash and cash equivalents, and approximately $20 million available on our credit facility. Our continued laser focus on free cash flow and where we are making investments to support our near- and medium-term efforts to continue to grow our business in a self-sustainable manner remains our clear priority. We see free cash flow trending in the right direction and converging closer to adjusted EBITDA going forward. Our MQUs for the quarter were $185 million, down from $224 million a year ago due to the previously discussed changes in our bank partner relationships. Now turning to our outlook for Q3 2026. For Q3, we expect billings between $61 million and $67 million. Revenue between $34 million and $39 million. Adjusted contribution between $20 million and $23 million. And adjusted EBITDA between 0 and positive $3 million. Our guidance represents comparable performance in Q3 versus Q2, as our business solidifies and matures around the investments made earlier this year. This is largely consistent with our historical quarterly trends when adjusted for unusual events. We are laser-focused on executing against our core competencies to drive growth in 2026. I'll now turn it back to Amit for closing remarks. Amit Gupta: To wrap up, our second quarter results reflect the execution we committed to at the start of the year. We are focused on the fundamentals and market feedback confirms the importance of the Cardlytics platform in delivering value to consumers, bank partners and advertisers. A big thank you to our Cardlytics team for their extraordinary commitment, and to our bank partners and advertisers for their continued collaboration and trust. I'll now turn it over to the operator to begin Q&A. Operator: [Operator Instructions] Your first question comes from the line of Jason Kreyer with Craig-Hallum Capital Group. Thomas Emmel: This is Thomas on for Jason. Maybe first, Amit, can you give some color on what you're seeing in the broader consumer landscape and consumer utilization of offers? Amit Gupta: Yes, Jason (sic) [ Thomas ], thank you for the question. Overall, we see the consumer -- the U.S. consumer spend getting stronger, especially over the slight slump in the quarter during the month of May. So we -- strengthening happening there. In QSR, I think as we mentioned in the prepared remarks, while the demand is flat, but there are increases in the QSR sector due to menu inflation, we see uptick in gas and multi-line retail. And then discretionary spending is up in pockets in certain segments of the U.S. consumer base and certain segments in the U.K. consumer base. Thomas Emmel: Great. Maybe one for David. Can you talk about where you're at with the cost structure? You've done some work rightsizing the organization, now you've got Bridg removed, and you are delivering sequential growth. Just trying to gain some perspective on where things are like from a headcount perspective and where OpEx goes from here. David Evans: Absolutely. So as I've mentioned in the past, a lot of the investments that Amit mentioned in the beginning of the year, we see that now being level set and kind of flowing through the model, if you will. We don't anticipate any additional OpEx or cap dev in the business going forward. We'll have needs occasionally from time to time in and around headcount, but I would expect on a more, kind of, broader base to kind of see headcount, kind of, staying the same, if that helps answer your question. Operator: Our next question comes from the line of [ Sam Nach ] with Lake Street Capital Markets. Unknown Analyst: Congrats on the quarter. I just had a question about -- it sounds like the overall 2026 plan is quarter-over-quarter sequential growth. But Q3 billings guidance, which is $64 million, it's below Q2 at [ $65.5 million ]. Could you give color on [indiscernible] that is and if it's travel, hospitality pushout or has the pipeline [indiscernible] or just some general color around... David Evans: Sure. You're cutting in and out there, Sam. I don't know if that was on my end or your end. Can you hear me okay? Unknown Analyst: I can. David Evans: Okay. Good. Yes, it's a fair question. A couple of things that I would say there. And Amit, obviously, feel free to jump in. We will and are guiding to some sequential growth on the EBITDA side but hear you on the Q3 piece, and that is and continues to be kind of a focus for us. We do see growth throughout the rest of the year, and that is an important thing to make sure that we keep in mind. And we make the comment earlier around a lot of this is really consistent with what we've seen in prior years with regards to the relationship between Q2 and Q3. So there's not a whole lot of concern per se. We touched a little bit on new business. We've seen new business really taking off in a nice way. And just as we sit here at this point in time in the quarter, that's kind of where we land from a guide perspective, but I'm also very optimistic that we're seeing a lot of goodness out there that gives us confidence in seeing growth throughout the rest of this year, regardless of, kind of, how we think about Q3, if that helps answer your question. But it's a fair point and question. Amit Gupta: Yes. And I think, Sam, that's a good point. The trajectory, if you think about the overall arc for the year, we wanted to make sure that the business is on a strong footing, and we feel very good about the business is strong. And I think as we've mentioned previously, as David just mentioned as well, as we go into Q3, not only is it historically aligned with how we've performed before, but it also solidifies our base of investments that we've made before and they start to come to fruition. And the most important part is it helps us lay the groundwork for future growth, and that's what we're excited about. And we're seeing that both on the bank partner supply side and on the advertiser side as well. Operator: We have reached the end of the Q&A session. I will now turn the call back to Amit Gupta for closing remarks. Amit Gupta: Thank you for the questions today. And I just want to convey a huge thanks again to our stellar Cardlytics team, our amazing bank partners and advertisers that really put a lot of trust to help grow their businesses with us and really make the Cardlytics flywheel work for everyone, especially for the everyday consumer across U.S. and U.K. So we're excited about that, and we're looking forward to the rest of the year that we're laying a foundation for growth over time. So thank you again. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Cardlytics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cardlytics wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cardlytics (CDLX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterized Q2 as the beginning of a 'results phase' following a strategic reset, noting that advertiser growth is accelerating while churn has improved materially. Performance was driven by a 59% quarter-over-quarter increase in new logo volume, with the largest new logo being 100% larger than the top acquisition from the prior year. Operational efficiency improved through the resolution of legacy tech debt and the implementation of an AI-forward stack, which has reduced campaign build times by approximately 50%. The company is benefiting from a macro shift where major card issuers are moving away from expensive points-based rewards toward merchant-funded, personalized offer models. U.K. revenue grew 10% year-over-year, supported by an expanded partnership with Monzo and proactive use of purchase intelligence to capture shifting consumer delivery habits. A major bank partner temporarily reduced their revenue share to accelerate co-development, signaling strong alignment on long-term innovation over short-term bank fees. Q3 guidance assumes performance comparable to Q2 as the business matures around recent investments, with a focus on solidifying the foundation to drive growth in 2026. Management expects free cash flow to trend toward convergence with adjusted EBITDA as the company prioritizes self-sustainability and disciplined capital allocation. Strategic initiatives for the second half include leaning into local third-party offers, which have seen billings increase 20% since the start of the year. The company plans to test new API capabilities that allow banks to personalize reward values and rankings for specific high-tier or at-risk customer segments. Year-over-year comparisons are expected to remain challenging until Q1 2027, when the company anniversaries structural changes in bank partner relationships. The divestiture of Bridg in Q1 2026 significantly impacts year-over-year comparisons; all current growth metrics exclude Bridg's historical contributions. Adjusted operating expenses decreased 31% year-over-year, primarily due to previous workforce reductions and the optimization of cloud infrastructure costs. Management highlighted a divergence in consumer spend, noting that while QSR demand is flat, delivery spend increased more than 18% this quarter. Liquidity remains a focus with $28 million in cash and $20 million available on the credit facility to support near-term operational needs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management observed U.S. consumer spend rebounding to 3.6% growth in June, driven surprisingly by lower-spend households. Noted that while QSR sectors show top-line growth, it is almost entirely driven by menu inflation rather than increased transaction volume. CFO David Evans stated the company does not anticipate additional OpEx or capital development increases beyond current levels. Headcount is expected to remain stable as the company has finished 'level setting' the investments made at the start of the year. Management clarified that while Q3 billings guidance is slightly below Q2 levels, this aligns with historical seasonal trends and does not signal a pipeline slowdown. Emphasized that they expect sequential growth on the EBITDA side and remain optimistic about the 'goodness' seen in new business acquisition.

Company delivers strong second quarter results: ATLANTA, August 05, 2026--(BUSINESS WIRE)--Cardlytics, Inc. (NASDAQ: CDLX), a purchase intelligence platform, today announced financial results for the second quarter ended June 30, 2026. "The second quarter shows that our execution is translating directly into results. We were within our guidance across all key metrics, with margins improving every single month of the quarter," said Amit Gupta, CEO of Cardlytics. "We added new advertiser relationships and deepened our partnerships with existing financial institutions this quarter, reinforcing that purchase intelligence remains our core competitive advantage. We have a clear and focused path to build long-term value for our shareholders." "We continue to execute against our game plan for sequential growth and self-sustainability," said David Evans, CFO of Cardlytics. "Our second quarter results were strong which shows our plan is working." Second Quarter 2026 Financial Results Revenue was $36.9 million, a decrease of 36% year-over-year compared to $58.0 million in the second quarter of 2025. Billings, a non-GAAP metric, was $65.5 million, a decrease of 34% year-over-year compared to $98.8 million in the second quarter of 2025. Adjusted Contribution, a non-GAAP metric, was $21.3 million, a decrease of 32% year-over-year compared to $31.3 million in the second quarter of 2025. Net Loss was $(14.9) million in the second quarter of 2026, compared to $(9.3) million in the second quarter of 2025. Adjusted EBITDA, a non-GAAP metric, was $1.7 million compared to $3.0 million in the second quarter of 2025. Net Loss per share from continuing operations was $(1.50) per share, on a GAAP basis, compared to $(1.15) per share, in the prior year period. Adjusted Net Loss per share, on a Non-GAAP basis, was $(0.81) per share compared to $(0.60) per share in the prior year period. Net cash (used in) provided by operating activities was $(8.6) million, compared to $1.2 million in the second quarter of 2025. Free Cash Flow, a non-GAAP metric, was $(10.7) million, compared to $(3.4) million in the second quarter of 2025. Key Metrics Cardlytics monthly qualified users ("MQUs") were 185.4 million, a decrease of 17% year-over-year, compared to 224.5 million in the second quarter of 2025. Cardlytics adjusted contribution per user ("ACPU") was $0.11 compared to $0.14 in the second quarter of 2025. Definitions of MQUs and ACPU are included below under the caption "Other Performance Metrics." Third Quarter 2026 Financial Expectations Cardlytics anticipates Billings, Revenue, Adjusted Contribution and Adjusted EBITDA to be in the following ranges (in millions, except for percentage change rates): Earnings Teleconference Information Cardlytics will discuss its second quarter 2026 financial results during a live audio webcast today, August 5, 2026, at 5:00 PM ET / 2:00 PM PT. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website. About Cardlytics Cardlytics (NASDAQ: CDLX) operates a purchase intelligence platform that transforms transaction data into targeted, personalized offers and rewards for consumer brands, delivered through banking and commerce platform in the United States and United Kingdom. We offer a range of solutions to help advertisers and publishers grow and strengthen customer loyalty. With visibility into approximately 50% of card-based transactions in the U.S. and U.K., Cardlytics enables advertisers to engage consumers at scale and drive incremental sales through our industry-leading card-linked offer network. Publisher partners can enhance their platforms with relevant and personalized offers that improve the shopping experience for their customers. Learn more at www.cardlytics.com or follow us on LinkedIn. Cautionary Language Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements related to building long-term value for shareholders and our financial guidance for the third quarter of 2026. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: risks related to unfavorable conditions, including, but not limited to, inflationary pressure or the imposition of tariffs and other trade protection measures, in the global economy and the industries that we serve; our quarterly operating results have fluctuated and may continue to vary from period to period; our ability to sustain our revenue growth and billings; risks related to our substantial dependence on our Cardlytics purchase intelligence platform; risks related to our substantial dependence on JPMorgan Chase Bank, National Association ("Chase"), Wells Fargo Bank, National Association ("Wells Fargo") and a limited number of other financial institution ("FI") partners; risks related to our ability to maintain relationships with Chase and Wells Fargo; the amount and timing of budgets by marketers, which are affected by budget cycles, economic conditions and other factors; our ability to generate sufficient revenue to offset contractual commitments to FI partners; our ability to attract new partners, including FI partners, and maintain relationships with bank processors and digital banking providers; risks related to our competitive market, including our ability to compete successfully with our current or future competitors; our ability to maintain relationships with marketers; our ability to adapt to changing market conditions, including our ability to adapt to changes in consumer habits, negotiate fee arrangements with new and existing partners and retailers, and develop and launch new services and features; and other risks detailed in the "Risk Factors" section of our Form 10-Q filed with the Securities and Exchange Commission on August 5, 2026 and in subsequent periodic reports that we file with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Divestitures and Presentation On March 24, 2026 (the "Closing Date"), we completed the Bridg Sale. Pursuant to the Purchase Agreement, on the Closing Date, PAR delivered to us 1,810,222 shares of PAR’s common stock as consideration for the Bridg Sale. The results of Bridg business are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Operations for all periods presented. The assets and liabilities of Bridg business have been reflected as assets and liabilities of discontinued operations in the accompanying Condensed Consolidated Balance Sheets for all prior periods presented. The Company ceased depreciating and amortizing its long-lived assets for the Bridg business which primarily included acquired intangibles assets, capitalized software, and right-of-use assets as of the held for sale date, during the three months ended March 31, 2026. Our consolidated statements of cash flows includes cash flows from discontinued operations for all periods presented. Non-GAAP Measures and Other Performance Metrics To supplement the financial measures presented in our press release and related conference call or webcast in accordance with generally accepted accounting principles in the United States ("GAAP"), we also present the following non-GAAP measures of financial performance in this press release: Billings, Adjusted Contribution, Adjusted EBITDA, Adjusted Net Loss, Adjusted Net Loss per share and Free Cash Flow, as well as certain other performance metrics, such as MQUs and ACPU. A "non-GAAP financial measure" refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. We have presented Billings, Adjusted Contribution, Adjusted EBITDA, Adjusted Net Loss, Adjusted Net Loss per share and Free Cash Flow as non-GAAP financial measures in this press release. Billings represents the gross amount billed to customers and marketers for services in order to generate revenue. Cardlytics purchase intelligence platform Billings is recognized gross of both Consumer Incentives and Partner Share. GAAP Revenue is recognized net of Consumer Incentives and gross of Partner Share. Adjusted Contribution measures the degree by which Revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our partners. Adjusted Contribution demonstrates how incremental Revenue on our platforms generates incremental amounts to support our sales and marketing, research and development, general and administrative and other investments. Adjusted Contribution is calculated by taking our total Revenue less our Partner Share and other third-party costs. Adjusted Contribution does not take into account all costs associated with generating Revenue from advertising campaigns, including sales and marketing expenses, research and development expenses, general and administrative expenses and other expenses, which we do not take into consideration when making decisions on how to manage our advertising campaigns. Management views Adjusted Contribution as the most relevant metric to measure the financial performance as it reflects the dollars we keep after all of our partners are paid. Adjusted EBITDA represents our Net Loss before interest expense, net; depreciation and amortization; stock-based compensation expense continuing operations; separation costs and reduction in force; foreign currency (gain) loss; loss on investment; loss (gain) on divestiture; change in contingent consideration and loss (income) from discontinued operations and, in applicable periods, certain other income and expense items, such as impairment of goodwill and intangible assets; income tax benefit; gain on debt extinguishment; and deferred implementation costs. Adjusted Net Loss represents our Net Loss from continuing operations before stock-based compensation expense continuing operations; foreign currency loss (gain); separation costs and reduction in force; loss on investment; gain on divestiture; change in contingent consideration; and, in applicable periods, certain other income and expense items, such as impairment of goodwill, gain on debt extinguishment and intangible assets, and income tax benefit. We define Adjusted Net Loss per share as Adjusted Net Loss divided by our weighted-average common shares outstanding, diluted. We define Free Cash Flow as net cash (used in) provided by operating activities, plus acquisition of property and equipment and capitalized software development costs and, in applicable periods, acquisition of patents, and legal indemnification payments. We believe free cash flow is useful to measure the funds generated in a given period that are available for distribution or to sustain the business. We believe this supplemental information enhances stockholders' ability to evaluate our performance. We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. We define MQUs as targetable customers that have made a transaction using their account with an FI Partner in a given month, excluding pilot supply during the ramp up period, and whose transaction data was shared with Cardlytics. We then calculate a monthly average of these MQUs for the periods presented. We believe that the number of MQUs is an indicator of the Cardlytics purchase intelligence platform's ability to drive engagement and is reflective of the consumer base and insights that we offer to marketers. We define ACPU as the Cardlytics purchase intelligence platform Adjusted Contribution generated in the applicable period, divided by Cardlytics average MQUs in the applicable period. We believe that Adjusted Contribution is the most relevant metric as it reflects the value Cardlytics keeps after subtracting out rewards, Partner Share and other third-party costs. We believe that ACPU measures the Cardlytics purchase intelligence platform's efficiency in converting marketer budgets into the value generated by customer engagement. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805323513/en/ Contacts Public Relations:[email protected] Investor Relations:[email protected]

As you might know, Cardlytics, Inc. (NASDAQ:CDLX) just kicked off its latest quarterly results with some very strong numbers. Results overall were solid, with revenues arriving 3.5% better than analyst forecasts at US$38m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.08 per share, were 3.5% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cardlytics after the latest results. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Taking into account the latest results, the five analysts covering Cardlytics provided consensus estimates of US$154.8m revenue in 2026, which would reflect a stressful 27% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 59% to US$0.79. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$162.9m and losses of US$1.11 per share in 2026. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a very promising decrease in losses per share in particular. Check out our latest analysis for Cardlytics There was no major change to the US$1.08average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Cardlytics at US$1.50 per share, while the most bearish prices it at US$0.80. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 34% annualised decline to the end of 2026. That is a notable change from historical growth of 0.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Cardlytics is expected to lag the wider industry. The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at US$1.08, with the latest estimates not enough to have an impact on their price targets. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Cardlytics going out to 2027, and you can see them free on our platform here.. We don't want to rain on the parade too much, but we did also find 5 warning signs for Cardlytics (1 is significant!) that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Amit Gupta Chief Financial Officer — David Evans Operator Amit Gupta: Good evening, and thank you for joining us. As I mentioned on our last call, 2026 is a year of execution for us. Our performance in Q1 reinforces our confidence that we can operate efficiently with a lower cost basis and still deliver on our stated business objectives. Our strategic priorities remain consistent. First, expanding our reach by deepening collaborations with bank partners and integrating new publishers into our network; second, driving incremental revenue growth for our advertisers by leveraging our advanced algorithmic and geo-centric capabilities; and third, continuing to invest in our technology platform to further differentiate our offering and improve operational efficiency. We are also benefiting from the addition of experienced go-to-market and FI-facing leaders who are helping us elevate our performance across several key areas. Let me start with our network and supply. After a prolonged period, we are pleased to report that our supply has stabilized and many of our existing FI partners are actively engaging with us to co-develop growth opportunities. For example, building on strong program performance and positive customer response, we will onboard new cardholder portfolios with one of our larger FI partners later this year. This momentum reflects the strength of our advertising content, the quality of our platform and the collaboration between our FI partners and our internal teams. Additionally, we are partnering with banks to better market and enhance reward amounts being paid out to their customers. In the case of one of our newer neobanks, the Double Days program continues to be a lever for increased consumer engagement and drove 0.25 million new activators during the event. We are expanding similar incentive programs with other FI partners. These engagement-focused programs tend to be adopted first by our newer banks, shifting more volume to these banks and leading to a more favorable revenue margin overall. Our push to meet new customers where they are continues. We continue to see interest in the Cardlytics Rewards Platform or CRP, from partners across multiple industries. We currently have three live CRP partners. And while still early, we are seeing month-over-month supply growth. We are also in discussions with larger partners about implementing CRP, and we'll share more as we make progress. Turning to our advertiser base. In Q1, we received a strong signal from our cohort of new enterprise advertisers that they valued our measurement, network reach and technology forward platform capabilities over our competitors. Our focus on new business is translating into meaningful year-on-year pipeline growth, and we expect it to be impactful in our U.S. business throughout the year. In Q1, we saw strong performance from the telecom, gas, and convenience verticals. One of the fastest-growing discount grocers following a successful Q1 campaign and strong iROAS performance is renewing in Q2 and is on track to become a top 10 advertiser for us this year. Several leading advertisers in our channel prefer the quality of our analytics and the reach of our network and have decided to consolidate CLO spend with Cardlytics despite the supply constraints. This has been a recurring narrative amongst our clients and reinforces the value that our multi-FI network can provide. To augment our measurement capabilities, we are adding new measurement partners to our network to support advertisers with their preferred measurement model of choice. At the same time, we continue to invest in offer performance and ad ranking. Optimization experiments in Q1 are driving higher activation and redemption rates, and we're seeing double-digit growth in redeemers across banks with stable supply. Feedback from advertisers continues to reinforce that we outperform other alternatives. Our U.K. business continues to deliver outstanding results with Q1 revenue surging over 21% year-over-year. This momentum highlights our omnichannel strength, particularly with the restaurant and retail sectors. We are proud to have served all of the U.K.'s largest grocers on our platform during the quarter. In the U.K., advertiser sentiment remains strong as we diversify our footprint. This allows partners to rely on Cardlytics as a single destination for high-quality relevant content for their card members. Turning back to the U.S. Due to macro events, we are seeing some budget pressure in the travel and hospitality sectors with approvals being delayed or pushed into future quarters. Overall, with supply stabilizing and execution improving, we believe we are well positioned for sequential growth. Turning to our technology platform. The work we did in 2025, particularly in data and AI is now delivering measurable impact. Our engineering efforts are improving both speed and efficiency across the platform. For example, our newly released Insights agent delivers weekly unique advertiser reports synthesizing macroeconomic data, industry trends and Cardlytics-specific insights. Our new campaign data sync infrastructure, starting with impact.com enables our sales team to share performance data with measurement partners for advertiser accounts in minutes rather than days. We standardized on a unified agentic development environment with common AI skills and MCP servers, giving our engineers AI-assisted tooling across the full development life cycle. We are now tracking development productivity metrics to measure adoption and scale these games. Now looking forward, with the Bridg transaction successfully closed, we are now fully aligned around our core platform with improved financial flexibility and the ability to move faster. Our focus remains on disciplined urgent execution against our strategic priorities. I'll now turn it over to David to discuss the financials. David Evans: Thank you, Amit. As we talked about on our last earnings call, our core focus and strategic plan we set up for 2026 is quarterly sequential growth and self-sustainability. We are pleased to announce Q1 numbers that are above the midpoint of the guide across all metrics, including for the Q1 Bridg results. Our Q2 guide further represents and supports quarterly sequential growth. We have also taken another step towards self-sustainability since acquiring and quickly selling the PAR shares we received in consideration for the divestiture of the Bridg business, further improving our state of liquidity and balance sheet. Turning to Q1 results. For awareness, I will speak first to results and year-over-year comparisons from continued operations, which exclude Bridg results, followed by Q1 numbers that are inclusive of the Bridg operations, given these totals were included in our Q1 guidance. Bridg specific results can be found in the 10-Q and the earnings release. Also, the comments will be year-over-year comparisons to the first quarter of 2025, unless stated otherwise. In Q1, our billings were $58.1 million, a 37% decrease year-over-year. Total billings, inclusive of Bridg Results was $62.3 million. Despite the departure of Bank of America in January, we were able to retain the vast majority of our clients and are seeing results of our focus on driving new business to the platform. Q1 revenue was $34.3 million, a 39% decrease year-over-year. Total revenue, inclusive of Bridg results was $38.5 million. As Amit mentioned, our U.K. business remains a standout performer with Q1 revenue increasing over 21% year-over-year. Q1 adjusted contribution was $19.7 million, a 28% decrease year-over-year. Total Q1 adjusted contribution, inclusive of Bridg results was $23.3 million. Despite year-over-year decline, we continue to expand our revenue margin or adjusted contribution as a percentage of revenue to 60.6%, our highest on record. However, we do expect this to come down in future quarters due to the divestiture of Bridg. Q1 adjusted EBITDA was positive $0.2 million compared to negative $4.1 million in the first quarter of 2025. Total Q1 adjusted EBITDA, inclusive of Bridg results was negative $2.2 million. This improvement in adjusted EBITDA underscores our ability to execute towards our goals with a lower expense base. Q1 adjusted operating expenses was $19.5 million, a decrease of 38% from prior year. Total Q1 adjusted operating expenses, inclusive of Bridg was $25.5 million. This was largely due to reduction in force actions taken in 2025 and optimization of our cloud infrastructure. Q1 operating cash flow was negative $5.6 million compared to negative $6.7 million in the prior year. Free cash flow was negative $7.9 million compared to negative $10.8 million year-over-year, an improvement of $2.9 million. On the balance sheet, we ended Q1 with $35.7 million in cash and cash equivalents. Subsequent to the quarter closing, we liquidated all the PAR shares we received in connection with the Bridg sale. We used the proceeds to reduce the amount owed under our credit facility and improve our cash position. Our MQUs for the quarter were $197 million, accounting for the loss of Bank of America in January. ACPU for the quarter was $0.10, down 21.3% year-over-year. Now turning to our outlook for Q2 2026. All comparisons to prior year and prior quarters will exclude Bridg. For Q2, we expect billings between $61 million and $67 million, revenue between $35 million and $40 million, adjusted contribution between $20 million and $23 million and adjusted EBITDA between negative $2.7 million and positive $1.3 million. Our guidance represents quarterly sequential growth of 10%, 9% and 9% for billings, revenue and adjusted contribution, respectively, and excluding Bridg numbers in Q1 for comparison purposes. We continue to be committed to delivering sequential growth for the remainder of 2026. Our adjusted EBITDA guide further represents our belief in our ability to execute at a lower expense base, and we remain committed to driving operational efficiencies. We are laser-focused on executing against our core competencies to drive sequential growth in 2026. I will now turn it back to Amit for closing remarks. Amit Gupta: We're moving forward with a stronger foundation to operate the leading purchase intelligence platform. Our team is heads down executing on our strategic priorities to deliver value for our advertisers, partners, shareholders and end consumers. I'll now turn it over to the operator to begin Q&A. Operator: [Operator Instructions] There are no questions at this time. I will now turn the call back to Amit for closing remarks. David Evans: I'm not sure if Amit is coming through, but I can jump in here for closing remarks. I would reiterate for all of our listeners that as we stated at the beginning, we are executing against the plan that we set forth at the beginning of the year, which is to operate through 2026 showing sequential growth as well as being able to show and perform with self-sustainability. Amit, if you are back on, you want to have any other closing remarks or otherwise, we can conclude the call. But Amit, I'll turn it to you if you can hear us. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Cardlytics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cardlytics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 8, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cardlytics (CDLX) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes 2026 as a year of execution, focusing on a lower cost basis while maintaining core business objectives following the Bridg divestiture. Supply has stabilized after a prolonged period of volatility, with existing FI partners actively co-developing growth opportunities and onboarding new cardholder portfolios. The U.K. business remains a primary growth engine, with revenue surging over 21% year-over-year driven by omnichannel strength in the restaurant and retail sectors. Advertiser retention remains high despite the departure of Bank of America in January, with several enterprise clients consolidating spend on Cardlytics due to superior analytics and reach. Operational efficiency is being driven by AI-assisted engineering tools and a unified development environment, which management claims is improving speed and productivity. Revenue margin reached a record 60.6% in Q1, attributed to engagement-focused programs at newer banks that drive more favorable volume mix. Macroeconomic headwinds are impacting the travel and hospitality sectors, leading to delayed budget approvals or shifts into future quarters. The 2026 strategic plan is centered on achieving quarterly sequential growth and reaching self-sustainability through disciplined expense management. Q2 2026 guidance assumes sequential growth of approximately 9% to 10% across billings, revenue, and adjusted contribution when excluding Bridg from the baseline. Management expects revenue margins to decrease in future quarters as a direct result of the Bridg divestiture. New cardholder portfolios from a large FI partner are scheduled to be onboarded later this year, which is expected to bolster supply reach. The company is in active discussions with larger potential partners regarding the implementation of the Cardlytics Rewards Platform (CRP) to expand its network. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The divestiture of the Bridg business has closed, allowing the company to align fully around its core platform and improve financial flexibility. Liquidity was significantly improved post-quarter by liquidating all PAR shares received from the Bridg sale to pay down the credit facility. Adjusted operating expenses decreased 38% year-over-year, primarily due to 2025 reduction-in-force actions and cloud infrastructure optimization. The loss of Bank of America in January resulted in a decrease in Monthly Qualifying Users (MQUs) to 197 million.

Company delivers strong first quarter results: Revenues from continuing operations $34.3 million; additional $4.2 million from Bridg discontinued operations Billings from continuing operations of $58.1 million; additional $4.2 million from Bridg discontinued operations Adjusted Contribution from continuing operations of $19.7 million; additional $3.6 million from Bridg discontinued operations Successfully completed the divestiture of Bridg on March 24, 2026 Subsequently liquidated PAR shares, further bolstering the balance sheet ATLANTA, May 07, 2026--(BUSINESS WIRE)--Cardlytics, Inc. (NASDAQ: CDLX), a commerce media platform, today announced financial results for the first quarter ended March 31, 2026. "The first quarter of 2026 marks a definitive shift from stabilization to execution. By exceeding the midpoint of our guidance range across all key metrics, we have demonstrated that our leaner, more disciplined operating model is delivering real results," said Amit Gupta, CEO of Cardlytics. "While we navigated the anticipated shift in our banking mix, our ability to drive high-intent commerce for our advertisers remains our core competitive advantage. We have a clear and focused path to drive long-term value for our shareholders." "We continue to execute against our game plan for achieving sequential growth and self sustainability throughout 2026," said David Evans, CFO of Cardlytics. First Quarter 2026 Financial Results Revenue was $34.3 million, a decrease of 39% year-over-year compared to $56.4 million in the first quarter of 2025. Billings, a non-GAAP metric, was $58.1 million, a decrease of 37% year-over-year compared to $92.1 million in the first quarter of 2025. Adjusted Contribution, a non-GAAP metric, was $19.7 million, a decrease of 28% year-over-year compared to $27.3 million in the first quarter of 2025. Net Loss was $(4.5) million, or $(0.08) per diluted share, based on 54.9 million fully diluted weighted-average common shares, compared to a Net Loss of $(13.3) million, or $(0.26) per diluted share, based on 51.9 million fully diluted weighted-average common shares in the first quarter of 2025. Adjusted EBITDA, a non-GAAP metric, was $0.2 million compared to $(4.1) million in the first quarter of 2025. Adjusted Net Loss was $(6.2) million, or $(0.11) per diluted share, based on 54.9 million fully diluted weighted-average common shares, compared to Adjusted Net Loss of $(10.3) million, or $(0.20) per diluted share, based on 51.9 million fully diluted weighted-average common shares in the first quarter of 2025. Net cash used by operating activities was $(5.6) million, compared to $(6.7) million in the first quarter of 2025. Free Cash Flow, a non-GAAP metric, was $(7.9) million, compared to $(10.8) million in the first quarter of 2025. Key Metrics Cardlytics monthly qualified users ("MQUs") were 197.0 million, a decrease of 8% year-over-year, compared to 214.9 million in the first quarter of 2025. Cardlytics adjusted contribution per user ("ACPU") was $0.10 compared to $0.13 in the first quarter of 2025. Definitions of MQUs and ACPU are included below under the caption "Other Performance Metrics." Second Quarter 2026 Financial Expectations Cardlytics anticipates Billings, Revenue, Adjusted Contribution and Adjusted EBITDA to be in the following ranges (in millions, except for percentage change rates): Earnings Teleconference Information Cardlytics will discuss its first quarter 2026 financial results during a live audio webcast today, May 7, 2026, at 5:00 PM ET / 2:00 PM PT. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website. About Cardlytics Cardlytics (NASDAQ: CDLX) is a commerce media platform, powered by our publishers’ first-party purchase data, that makes commerce smarter and more rewarding for everyone. We offer a range of solutions to help advertisers and publishers grow and strengthen customer loyalty. With visibility into approximately half of all card-based transactions in the U.S. and a quarter in the U.K., Cardlytics enables advertisers to engage consumers at scale and drive incremental sales through our industry-leading card-linked offer network. Publisher partners can enhance their platforms with relevant and personalized offers that improve the shopping experience for their customers. Learn more at www.cardlytics.com or follow us on LinkedIn. Cautionary Language Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements related to driving long-term value for shareholders and our financial guidance for the second quarter of 2026. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: risks related to unfavorable conditions, including, but not limited to, inflationary pressure or the imposition of tariffs and other trade protection measures, in the global economy and the industries that we serve; our quarterly operating results have fluctuated and may continue to vary from period to period; our ability to sustain our revenue growth and billings; risks related to our substantial dependence on our Cardlytics platform; risks related to our substantial dependence on JPMorgan Chase Bank, National Association ("Chase"), Wells Fargo Bank, National Association ("Wells Fargo") and a limited number of other financial institution ("FI") partners; risks related to our ability to maintain relationships with Chase and Wells Fargo; the amount and timing of budgets by marketers, which are affected by budget cycles, economic conditions and other factors; our ability to generate sufficient revenue to offset contractual commitments to FI partners; our ability to attract new partners, including FI partners, and maintain relationships with bank processors and digital banking providers; risks related to our competitive market, including our ability to compete successfully with our current or future competitors; our ability to maintain relationships with marketers; our ability to adapt to changing market conditions, including our ability to adapt to changes in consumer habits, negotiate fee arrangements with new and existing partners and retailers, and develop and launch new services and features; and other risks detailed in the "Risk Factors" section of our Form 10-Q filed with the Securities and Exchange Commission on May 7, 2026 and in subsequent periodic reports that we file with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Divestitures and Presentation On March 24, 2026 (the "Closing Date"), we completed the Bridg Sale. Pursuant to the Purchase Agreement, on the Closing Date, PAR delivered to us 1,810,222 shares of PAR’s common stock as consideration for the Bridg Sale. The results of Bridg business are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Operations for all periods presented. The assets and liabilities of Bridg business have been reflected as assets and liabilities of discontinued operations in the accompanying Condensed Consolidated Balance Sheets for all prior periods presented. The Company ceased depreciating and amortizing its long-lived assets for the Bridg business which primarily included acquired intangibles assets, capitalized software, and right-of-use assets as of the held for sale date, during the three months ended March 31, 2026. Our consolidated statements of cash flows includes cash flows from discontinued operations for all periods presented. Non-GAAP Measures and Other Performance Metrics To supplement the financial measures presented in our press release and related conference call or webcast in accordance with generally accepted accounting principles in the United States ("GAAP"), we also present the following non-GAAP measures of financial performance in this press release: Billings, Adjusted Contribution, Adjusted EBITDA, Adjusted Net Loss, Adjusted Net Loss per share and Free Cash Flow, as well as certain other performance metrics, such as MQUs and ACPU. A "non-GAAP financial measure" refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. We have presented Billings, Adjusted Contribution, Adjusted EBITDA, Adjusted Net Loss and Adjusted Net Loss per share as non-GAAP financial measures in this press release. Billings represents the gross amount billed to customers and marketers for services in order to generate revenue. Cardlytics platform Billings is recognized gross of both Consumer Incentives and Partner Share. Cardlytics platform GAAP Revenue is recognized net of Consumer Incentives and gross of Partner Share. Bridg platform Billings is the same as Bridg platform GAAP Revenue. Adjusted Contribution measures the degree by which Revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our partners. Adjusted Contribution demonstrates how incremental Revenue on our platforms generates incremental amounts to support our sales and marketing, research and development, general and administrative and other investments. Adjusted Contribution is calculated by taking our total Revenue less our Partner Share and other third-party costs. Adjusted Contribution does not take into account all costs associated with generating Revenue from advertising campaigns, including sales and marketing expenses, research and development expenses, general and administrative expenses and other expenses, which we do not take into consideration when making decisions on how to manage our advertising campaigns. Management views Adjusted Contribution as the most relevant metric to measure the financial performance as it reflects the dollars we keep after all of our partners are paid. Adjusted EBITDA represents our Net Loss before interest expense, net; depreciation and amortization; stock-based compensation expense continuing operations; foreign currency loss (gain); loss on investment; change in contingent consideration and Income (loss) from discontinued operations and, in applicable periods, certain other income and expense items, such as impairment of goodwill and intangible assets; income tax benefit; gain on debt extinguishment; reduction in force and deferred implementation costs. Adjusted Net Loss as our Net Loss before stock-based compensation expense continuing operations; foreign currency loss (gain); loss on investment; gain on divestiture; change in contingent consideration; and, in applicable periods, certain other income and expense items, such as impairment of goodwill, gain on debt extinguishment and intangible assets, reduction in force and income tax benefit. We define Adjusted Net Loss per share as Adjusted Net Loss divided by our weighted-average common shares outstanding, diluted. We define Free Cash Flow as net cash used in operating activities, plus acquisition of property and equipment and capitalized software development costs and, in applicable periods, acquisition of patents. We believe free cash flow is useful to measure the funds generated in a given period that are available for distribution or to sustain the business. We believe this supplemental information enhances stockholders' ability to evaluate our performance. We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. We define MQUs as targetable customers that have made a transaction using their account with an FI Partner or non-FI Partner in a given month, excluding pilot supply during the ramp up period, and whose transaction data was shared with Cardlytics. We then calculate a monthly average of these MQUs for the periods presented. We believe that the number of MQUs is an indicator of the Cardlytics platform's ability to drive engagement and is reflective of the consumer base and insights that we offer to marketers. We define ACPU as the Cardlytics platform Adjusted Contribution generated in the applicable period, divided by Cardlytics average MQUs in the applicable period. We believe that Adjusted Contribution is the most relevant metric as it reflects the value Cardlytics keeps after subtracting out rewards, Partner Share and other third-party costs. We believe that ACPU measures the Cardlytics platform's efficiency in converting marketer budgets into the value generated by customer engagement. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507732145/en/ Contacts Public Relations: [email protected] Investor Relations: [email protected]