Cardlytics, Inc.CDLX
Cardlytics, Inc. Segments Disclosure
SEGMENTS
As of December 31, 2025, we have three operating segments: the Cardlytics platform in the U.S. and U.K. and the Bridg platform, as determined by the information that our Chief Executive Officer, who we consider our chief operating decision-maker ("CODM"), uses to make strategic goals and operating decisions. Our Cardlytics platform operating segments in the U.S. and U.K. represent our proprietary advertising channels and are aggregated into one reportable segment given their similar economic characteristics, nature of service, types of customers and method of distribution. Our CODM allocates resources to, and evaluates the performance of, our operating segments based on Adjusted Contribution. Our CODM uses Adjusted Contribution extensively to measure the efficiency of our advertising platform, make decisions to manage advertising campaigns and evaluate our operational performance. We view Adjusted Contribution as an important operating measure of our financial results. We believe that Adjusted Contribution provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and Board of Directors. Our CODM does not review assets by operating segment for the purposes of evaluating performance or allocating resources.
Revenue can be directly attributable to each segment. With the exception of deferred implementation costs, Partner Share and other third-party costs is also directly attributable to each segment. The accounting policies of each of our reportable segments are the same as those described in the summary of significant accounting policies. Refer to Note 6—Revenue for further information.
The following table provides information regarding our reportable segments (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cardlytics platform | |||||||||||||||||
| Revenue | $ | 212,326 | $ | 255,615 | $ | 285,425 | |||||||||||
| Minus: Adjusted Partner Share | 97,278 | 122,370 | 144,502 | ||||||||||||||
Minus: Other third-party costs(1) | 3,816 | 4,171 | 5,405 | ||||||||||||||
| Adjusted Contribution | $ | 111,232 | $ | 129,074 | $ | 135,518 | |||||||||||
| Bridg platform | |||||||||||||||||
| Revenue | $ | 20,947 | $ | 22,683 | $ | 23,779 | |||||||||||
| Minus: Adjusted Partner Share | — | — | — | ||||||||||||||
Minus: Other third-party costs(1) | 1,855 | 1,220 | 671 | ||||||||||||||
| Adjusted Contribution | $ | 19,092 | $ | 21,463 | $ | 23,108 | |||||||||||
(1)Other third-party costs above primarily represents media and data costs that we incur to support the Cardlytics and Bridg platform.
Adjusted Contribution
Adjusted Contribution measures the degree by which revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our partners. Adjusted Contribution demonstrates how incremental Revenue on our platforms generates incremental amounts to support our sales and marketing, research and development, general and administrative and other investments. Adjusted Contribution is calculated by taking our total Revenue less our Partner Share and other third-party costs. Adjusted Contribution does not take into account all costs associated with generating Revenue from advertising campaigns, including sales and marketing expenses, research and development expenses, general and administrative expenses and other expenses, which we do not take into consideration when making decisions on how to manage our advertising campaigns. Management views Adjusted Contribution as the most relevant metric to measure the financial performance as it reflects the dollars we keep after all of our partners are paid.
The following table presents a reconciliation of loss before income taxes presented in accordance with GAAP to Adjusted Contribution (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Adjusted Contribution | $ | 130,324 | $ | 150,537 | $ | 158,626 | |||||||||||
| Minus: | |||||||||||||||||
| Delivery costs | 25,711 | 29,643 | 28,248 | ||||||||||||||
| Sales and marketing expense | 39,478 | 52,649 | 57,425 | ||||||||||||||
| Research and development expense | 39,765 | 49,607 | 51,352 | ||||||||||||||
| General and administrative expense | 47,267 | 56,482 | 58,810 | ||||||||||||||
| Change in contingent consideration | 102 | 210 | 1,246 | ||||||||||||||
| Impairment of goodwill and intangible assets | 58,843 | 131,595 | 70,518 | ||||||||||||||
| Acquisition, integration and divestiture costs/(benefits) | 561 | 161 | (6,313) | ||||||||||||||
| (Gain)/loss on divestiture | (4,831) | — | 6,550 | ||||||||||||||
| Depreciation and amortization expense | 25,244 | 25,689 | 26,460 | ||||||||||||||
Total non-operating (income) expense(1) | 1,672 | (6,195) | (968) | ||||||||||||||
| Loss before income taxes | $ | (103,488) | $ | (189,304) | $ | (134,702) | |||||||||||
(1)Non-operating (income) expense includes interest income, interest expense and foreign currency loss.
As a percentage of our total consolidated revenues, revenues from external customers in the United States for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 were 87%, 92% and 94%, respectively. Revenues from external customers are attributed to individual countries based on the location of the customer arrangements. Our results of operations and our financial condition are not significantly reliant upon any single customer.
The following tables provide geographical information (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenue: | |||||||||||||||||
| United States | $ | 202,974 | $ | 254,081 | $ | 291,420 | |||||||||||
| United Kingdom | 30,299 | 24,217 | 17,784 | ||||||||||||||
| Total | $ | 233,273 | $ | 278,298 | $ | 309,204 | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Property and equipment: | |||||||||||
| United States | $ | 1,966 | $ | 2,530 | |||||||
| United Kingdom | 59 | 66 | |||||||||
| Total | $ | 2,025 | $ | 2,596 | |||||||
Capital expenditures within the United Kingdom were $0.1 million, $0.1 million and $0.2 million during 2025, 2024 and 2023, respectively.
Concentrations of Risk
Cash and Cash Equivalents
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. A majority of our cash and cash equivalents are held in treasury obligation funds and money market accounts at financial institutions with high credit facility. Our remaining cash and cash equivalents are held in fully FDIC-insured demand deposit accounts that distribute funds, and credit risk, over a vast number of financial institutions.
Marketers
As of December 31, 2025, we define a marketer as a customer who has a distinct contractual relationship with us, rather than aggregating by parent company. We believe this is a more accurate representation for how marketing budgets are managed at our customer level. This methodology change in our aggregation impacts how we calculate our revenue and accounts receivable concentration and we changed the prior year presentation to be in conformity.
Our Revenue and accounts receivable are diversified among a large number of marketers segregated by both geography and industry. During the years ended December 31, 2025, 2024 and 2023, our top five marketers accounted for 20%, 16% and 15% of our Revenue, respectively, with no marketer accounting for over 10% during each period. As of December 31, 2025 and 2024, our top five marketers accounted for 30% and 17% of our accounts receivable, respectively, with no individual marketer representing over 10% as of the end of each period.
FI Partners
Our business is substantially dependent on a limited number of FI partners. We require participation from our FI partners in the Cardlytics platform and access to their purchase data in order to offer our solutions to marketers and their agencies. We must have FI partners with a sufficient number of customers and levels of customer engagement to ensure that we have robust purchase data and marketing space to support a broad array of incentive programs for marketers. Our agreements with a substantial majority of our FI partners have terms of three to seven years but are generally terminable by the FI partner on 90 days or less prior notice. If an FI partner terminates its agreement with us, we would lose that FI as a source of purchase data and online banking customers.
During the year ended December 31, 2025, our top three FI partners combined to account for over 80% of the total Partner Share we paid to all partners. During the years ended 2024 and 2023, our top three FI partners combined to account for over 85% in each year. During 2025, no FI partner represented over 50% and each represented over 15% of Partner Share. During 2024 and 2023, the top FI partner represented over 50% and the second and third largest FI partners each represented over 10% of Partner ShareHistorical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Mar 5, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.