Cardlytics, Inc. (CDLX) Q3 2025 Earnings Call Transcript
Total Billings $89.2 million, a 20.3% decrease year-over-year. The decrease was due to content restrictions impacting the size of the budgets that could be sold as a result of fewer consumers to whom offers could be served.
Consumer Incentives $37.2 million, down 17.2% year-over-year. The decline was attributed to the same content restrictions affecting billings.
Revenue $52.0 million, a 22.4% decrease year-over-year. This was driven by a decrease in billings and a 1.6-point lower revenue-to-billings margin, partially due to strategic investments in certain advertisers and temporary overcorrections from supply changes.
Adjusted Contribution $30.0 million, down 17.5% year-over-year. However, the margin as a percentage of revenue increased to 57.7%, up 3.5 points, due to a more favorable partner mix.
Adjusted EBITDA Positive $3.2 million, an increase of $5.0 million year-over-year. This improvement was driven by reduced operating expenses and optimization of cloud infrastructure.
Operating Cash Flow Positive $1.8 million. This was an improvement from the prior year, attributed to a lower expense base.
Free Cash Flow Negative $2.7 million, an improvement of $1.2 million year-over-year, primarily due to lower expenses.
U.S. Revenue (excluding Bridg) Decreased 28% year-over-year due to lower billings stemming from content restrictions and pricing investments.
U.K. Revenue Increased 22% year-over-year, driven by higher billings and increased supply. Growth was seen across top clients and new merchants.
Bridg Revenue Decreased 15% year-over-year due to the loss of a major account in previous quarters.
MQUs (Monthly Qualified Users) 230.3 million, an increase of 21% year-over-year. Excluding new FI partners, MQUs increased 3%.
ACPU (Average Consumer Per User) $0.11, down 31% year-over-year, attributed to content restrictions and the ramping of new FI partners.
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PAR Technology to Acquire Bridg for $27.5 Million
- Acquisition Overview: PAR Technology has agreed to acquire the identity resolution and shopper intelligence platform Bridg from Cardlytics for $27.5 million, with a maximum total purchase price of $30 million, indicating the company's strategic expansion into smart data.
- Payment Method: The transaction will be paid in shares of PAR Technology common stock, reflecting the company's confidence in its stock value while potentially impacting its shareholder structure and market performance.
- Liability Assumption: PAR Technology will assume certain liabilities associated with the acquired assets, which may affect the company's financial status in the short term but is expected to enhance resource integration and market competitiveness in the long run.
- Expected Closing Timeline: The transaction is anticipated to close in the first quarter of 2026, subject to customary closing conditions, providing PAR Technology with a window to optimize integration plans and ensure a smooth transition.
PAR Technology Acquires Bridg to Accelerate Data Innovation
- Acquisition Overview: PAR Technology has agreed to acquire Bridg for $27.5 million, with a maximum total purchase price of $30 million, expected to close in Q1 2026, enhancing PAR's capabilities in consumer data and loyalty management.
- Identity Resolution Platform Benefits: Bridg's platform will enable PAR to convert anonymous transactions into identifiable customer profiles, significantly improving customer engagement accuracy and providing a competitive edge in the retail and foodservice sectors.
- Market Impact and Strategic Significance: By integrating loyalty and non-loyalty transaction data, PAR will achieve comprehensive customer visibility, facilitating personalized marketing and closed-loop attribution models that enhance brand responsiveness in the market.
- CEO Outlook: PAR CEO Savneet Singh stated that this acquisition will propel the company towards delivering the industry's most complete platform, aiming to redefine customer interactions through seamless data connectivity and drive stronger profitable growth in an increasingly competitive marketplace.
