0001666071-26-000010
SEC filingCardlytics, Inc. reported a net loss of $103.5 million on revenue of $233.3 million for fiscal year 2025, representing a 16.2% decrease in revenue from $278.3 million in 2024. The operating loss was $101.8 million, an improvement from the $195.5 million operating loss in 2024. The company generated positive operating cash flow of $9.3 million, a significant improvement from the $8.8 million cash used in operations in 2024. Key factors impacting results included a $58.8 million impairment of goodwill and intangible assets, a $4.8 million gain on divestiture of the Dosh business, and continued investment in research and development ($39.8 million) and sales and marketing ($39.5 million). The company ended the year with $48.7 million in cash and cash equivalents and total debt of $208.9 million, including $168.9 million in convertible senior notes.
Cardlytics reported fiscal year 2025 revenue of $233.3 million, a 16.2% decrease from $278.3 million in 2024. The net loss improved to $103.5 million from $189.3 million in the prior year, representing a 45.3% reduction in losses. Operating loss was $101.8 million compared to $195.5 million in 2024. The company generated positive operating cash flow of $9.3 million, a significant turnaround from the $8.8 million cash used in operations during 2024. Key non-cash items included a $58.8 million impairment of goodwill and intangible assets and a $4.8 million gain on divestiture of the Dosh business. The company ended the year with $48.7 million in cash and cash equivalents and total assets of $285.6 million.
Revenue declined across both business segments. The Cardlytics platform generated $212.3 million in revenue, down 16.9% from $255.6 million in 2024, representing approximately 91% of total revenue. This segment operates through two pricing models: served-based pricing ($79.1 million) and engagement-based pricing ($129.3 million). The Bridg platform contributed $20.9 million in revenue, down 7.7% from $22.7 million in 2024. Geographically, 87% of revenue came from the United States ($203.0 million) and 13% from the United Kingdom ($30.3 million). The company noted that its top five marketers accounted for 20% of revenue, with no single marketer representing over 10%.
Gross margin improved to 55.9% from 54.1% in 2024, driven by reduced Partner Share and other third-party costs which decreased to $102.9 million from $127.8 million. Operating expenses totaled $232.3 million, including $39.5 million in sales and marketing, $39.8 million in research and development, and $47.3 million in general and administrative expenses. The operating margin was -43.6%, an improvement from -70.3% in 2024. The company recorded a $58.8 million impairment of goodwill and intangible assets, primarily related to the Cardlytics platform in the U.S. reporting unit. Stock-based compensation expense was $28.1 million, down from $40.4 million in 2024.
Operating activities generated $9.3 million in cash, a significant improvement from the $8.8 million cash used in operations during 2024. Investing activities used $15.3 million primarily for capitalized software development costs ($15.3 million). Financing activities used $11.1 million, including $62.0 million in debt principal payments offset by $56.0 million in debt proceeds. The company ended with $48.7 million in cash and cash equivalents, down from $65.6 million at the end of 2024. Total debt was $208.9 million, consisting of $168.9 million in convertible senior notes and $40.1 million under a line of credit. Total liabilities were $292.1 million with stockholders' deficit of $6.5 million.
The company has entered into a definitive agreement to sell substantially all assets related to its Bridg platform to an affiliate of PAR Technology Corporation, with the transaction pending customary closing conditions. Following this sale, revenue will be solely derived from the Cardlytics platform. The company remains substantially dependent on Chase, Wells Fargo, and a limited number of other financial institution partners, with the top three FI partners accounting for over 80% of Partner Share payments. Management noted challenges including macroeconomic uncertainty, inflationary pressure, and potential reductions in marketing spending by customers. The company had 275 full-time employees as of December 31, 2025, with operations in the U.S., U.K., and Taiwan.