Cardlytics Posts $32.9 Million in Third-Quarter Revenue, Down 30% Year Over Year
Key Facts
Cardlytics reported revenue of $32.9 million for the third quarter ended September 30 on November 5, 2026, down 30% from $47.0 million in the same period of 2025, according to its results statement filed with the U.S. Securities and Exchange Commission. Results fell short of management's expectations, Chief Executive Amit Gupta said, as average monthly eligible users declined to 186.6 million from 230.3 million a year earlier, a decrease of 19%. Gupta said the company is working to add new partners to its CRP program and expand its advertiser base. The figures put contraction in the user base and revenue at the center of the company's results, alongside improvement in some contribution-margin measures. The company forecast sequential growth in the fourth quarter, after revenue declined year over year in the third quarter.
Billings, a non-GAAP measure, fell to $57.2 million from $84.1 million a year earlier, a decline of 32%. Adjusted contribution also fell, to $19.4 million from $25.6 million in the third quarter of 2025, down 24%. By contrast, adjusted contribution as a percentage of revenue rose to 59.0% from 54.4% year over year. The three measures show divergent trends within the quarter: declines in revenue, billings and adjusted contribution, offset by an increase in contribution as a share of revenue. Adjusted earnings before interest, taxes, depreciation and amortization were $0.4 million, compared with $3.3 million in the year-earlier period.
The company posted a net loss of $8.9 million in the third quarter, compared with a loss of $72.7 million in the same period of 2025. The year-earlier period's loss included a $58.843 million impairment of goodwill and intangible assets, according to the company's quarterly filing. The net-loss comparison between the two periods was therefore affected by the large impairment charge recorded a year earlier. On a per-share basis, GAAP net loss from continuing operations was $1.26, compared with $13.14 in the third quarter of 2025. Adjusted loss per share, however, widened to $1.03 from $0.58 in the year-earlier period, according to the results statement.
Cash flow data showed $5.9 million used in operating activities in the third quarter, compared with an inflow of $1.8 million in the same quarter of 2025. Free cash flow, meanwhile, was negative $1.6 million, compared with negative $2.7 million a year earlier. Commenting on performance, Gupta said, "Third-quarter results fell short of expectations." He added that the company was working to bring new partners into CRP and expand its advertiser base. Chief Financial Officer David Evans said the company is operating with a lower-cost structure, a leaner business and a higher contribution margin, while expecting sequential revenue growth in the fourth quarter.
Cardlytics expects fourth-quarter 2026 revenue of $35 million to $39 million and billings of $63 million to $69 million. It also set a range of $20 million to $23 million for adjusted contribution and forecast adjusted earnings before interest, taxes, depreciation and amortization ranging from a loss of $1 million to a profit of $2 million. The outlook represents a sequential increase in revenue from the third quarter's $32.9 million, without changing the fact that the reported quarter recorded a year-over-year decline. Evans said, "We expect sequential growth in the fourth quarter as we work toward self-sustainability." The company had scheduled its results announcement and investor call for November 5, 2026, at 5:00 p.m. Eastern time.
The third-quarter results followed a decline in second-quarter 2026 revenue to $36.9 million from $58.0 million in the same period of 2025, a year-over-year decrease of 36%. The third-quarter revenue decline was therefore less severe than the drop recorded in the previous quarter, though revenue continued to fall, reaching $32.9 million. Eligible-user and billings data provide additional context for business performance during the quarter, as those measures also declined year over year. At the same time, adjusted contribution as a share of revenue rose, while adjusted loss per share widened. The fourth-quarter guidance puts the sequential growth path announced by management against the results of the coming period.