Cardlytics, Inc.

Q2 billings were $65.5 million, down 34% year over year. Revenue was $36.9 million, down 36% year over year. Adjusted contribution was $21.3 million, down 32% year over year, and adjusted contribution margin increased to 57.7% from 54% in the prior year. Adjusted EBITDA was positive $1.7 million versus $3 million in Q2 2025. Adjusted operating expenses were $19.6 million, down 31% year over year. Operating cash flow was negative $8.6 million versus positive $1.2 million a year ago, and free cash flow was negative $10.7 million versus negative $3.4 million. Cash and cash equivalents ended at $28 million, with approximately $20 million available on the credit facility. MQUs were $185 million, down from $224 million a year ago. For Q3 2026, guidance is billings of $61 million to $67 million, revenue of $34 million to $39 million, adjusted contribution of $20 million to $23 million, and adjusted EBITDA of 0 to positive $3 million.

Amit Gupta framed Q2 as evidence that the company’s “reset” is starting to work, citing accelerating advertiser growth, materially improved churn, and stabilized supply. He emphasized continued investment in bank partnerships, the publisher network, purchase-intelligence-driven advertiser value, and an AI-forward platform. His tone was constructive and confident, with repeated references to Q3 as a quarter to solidify the base and lay the groundwork for future growth.

David Evans said the company was within guidance for billings, revenue, and adjusted contribution, and above the high end of guidance for adjusted EBITDA. He highlighted Q2 adjusted operating expenses of $19.6 million, down 31% year over year, driven mainly by reductions in force and cloud optimization, and noted $28 million in cash plus about $20 million available on the credit facility. He also said free cash flow is trending in the right direction and expected to converge closer to adjusted EBITDA over time, while stating there are no anticipated additional OpEx or capex investments going forward beyond occasional headcount needs.

Analysts asked why Q3 billings guidance is below Q2 despite the company’s full-year sequential growth framing. Management said the guide reflects normal historical Q2-to-Q3 seasonality, continues to show growth in EBITDA, and they remain confident in growth for the rest of the year. Another question focused on cost structure after rightsizing and Bridg’s removal; management replied that the business is now leveled out, does not anticipate additional OpEx or capex, and expects headcount to generally stay flat.