Cardlytics (CDLX) investor relations material

Executive summary

• Q1 2026 performance exceeded midpoint guidance across all key metrics, despite year-over-year declines due to the exit of a major FI partner.

• Strategic focus on expanding bank partnerships, advertiser growth, and technology investment, with a transition to execution and self-sustainability.

• The Bridg business was divested in March 2026, resulting in a $14.5M gain and a shift to core platform focus.

• U.K. business delivered over 21% year-over-year revenue growth, with strong advertiser sentiment.

• Net loss improved to $4.5M from $13.3M in Q1 2025, reflecting cost reductions and the Bridg divestiture.

Financial highlights

• Q1 2026 revenue was $34.3M, down 39% year-over-year; billings were $58.1M, down 37%; total revenue with Bridg was $38.5M.

• Adjusted Contribution was $19.7M, down 28% year-over-year; margin reached a record 60.6%.

• Adjusted EBITDA was $0.2M, up from -$4.1M last year; free cash flow improved to -$7.9M from -$10.8M.

• Ended Q1 with $35.7M in cash and cash equivalents, with $26.1M in unused borrowing capacity.

• Net loss improved to $(4.5)M ($(0.08) per diluted share) from $(13.3)M ($(0.26) per share) year-over-year.

Outlook and guidance

• Q2 2026 guidance: billings $61M–$67M, revenue $35M–$40M, adjusted contribution $20M–$23M, adjusted EBITDA -$2.7M to +$1.3M.

• Guidance implies sequential growth of 10% in billings, 9% in revenue, and 9% in adjusted contribution.

• Year-over-year declines expected to continue in Q2, with billings down 38–32% and revenue down 40–31%.

• Commitment to delivering sequential growth and operational efficiency for the remainder of 2026.

• Management expects near-term billings to remain below prior-year levels due to the loss of a major FI partner and ongoing restrictions from other partners.