Cardlytics, Inc. Q1 FY2026 earnings call

2026 is a year of execution. Strategic priorities: expanding reach by deepening collaborations with bank partners and integrating new publishers, driving incremental revenue growth for advertisers via advanced capabilities, and investing in technology platform. Network and supply: supply has stabilized, existing FI partners engaging in co-developing growth opportunities, e.g., onboarding new cardholder portfolios with a large FI partner, expanding incentive programs with FI partners. Advertiser base: new enterprise advertisers value measurement, network reach, etc., UK business outstanding, US travel and hospitality sectors face budget pressure due to macro events. Technology platform: engineering efforts improving speed and efficiency, e.g., release of Insights Agent, improved campaign data sync infrastructure, standardized technology platform.

Q1 revenue was $34.3 million, a 39% decrease year over year. Total revenue inclusive of bridge results was $38.5 million. UK business Q1 revenue surged over 21% year over year. Q1 adjusted contribution was $19.7 million, a 28% decrease year over year. Total Q1 adjusted contribution inclusive of bridge results was $23.3 million. Adjusted contribution as a percentage of revenue reached 60.6%, the highest on record. Q1 adjusted EBITDA was positive $0.2 million, compared to negative $4.1 million in Q1 2025. Total Q1 adjusted EBITDA inclusive of bridge results was negative $2.2 million. Billings in Q1 were $58.1 million, a 37% decrease year over year. Total billings inclusive of bridge results was $62.3 million. MQUs for the quarter were $197 million. ACPU for the quarter was $0.10, down 21.3% year over year.

For Q2 2026, expect billings between $61 million and $67 million, revenue between $35 million and $40 million, adjusted contribution between $20 million and $23 million, and adjusted EBITDA between negative $2.7 million and positive $1.3 million. Guidance represents quarterly sequential growth of 10%, 9%, and 9% for billings, revenue, and adjusted contribution respectively. Committed to delivering sequential growth for the remainder of 2026.

Refer to the risk factor section of our 10Q for the quarter ending March 31st, 2026, which has been filed with the SEC. Specific risk factors could cause actual results to differ materially from today's discussion.

Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow up. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you're muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. There are no questions at this time. I will now turn the call back to Amit for closing remarks. Ed, I'm not sure if Amit's coming through, but I can jump in here for closing remarks. I would reiterate for all of our listeners that, as we said at the beginning, we are executing against the plan that we set forth at the beginning of the year, which is to operate through 2026, showing sequential growth, as well as being able to show and perform with self-sustainability. Amit, if you are back on, you want to have any other closing remarks or otherwise we can conclude the call. But Amit, I'll turn it to you if you can hear us. This concludes today's call. Thank you for attending. You may now disconnect.