Cardlytics, Inc. (CDLX): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of Cardlytics, Inc. (CDLX) right now, trying to make sense of their pivot to a commerce media platform, especially with those known headwinds from their biggest bank partner late in 2025. Honestly, the core value is still compelling: they sit on first-party purchase data from roughly half of U.S. card transactions, turning 230.3 million Monthly Qualified Users into measurable sales lift for advertisers, all while offering financial institutions a non-interest revenue stream. To be fair, the recent operational restructuring, targeting $26 million in annualized savings, shows they are actively managing costs as they navigate toward their Q4 revenue guidance midpoint of about $55.1 million; let's break down exactly how this nine-block model works now.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Key Partnerships

You're looking at the core of Cardlytics, Inc.'s (CDLX) value capture, which is entirely dependent on the strength and breadth of its external relationships. These partnerships are the pipes that move data, offers, and ultimately, advertiser dollars.

Large Financial Institutions (FIs) and neobanks for card-linked offer (CLO) distribution.

The foundation of the Cardlytics platform rests on deep integration with major card issuers. As of late 2025, the network has expanded its reach significantly, now boasting visibility into approximately half of all card-based transactions in the U.S. and a quarter in the U.K. This access translates to a view into more than $5.8 trillion in annual consumer spend. You saw the network effect in action with the addition of a large financial institution partner in Q1 2025, which helped push Monthly Qualified Users (MQUs) to 214.9 million, a 12% increase year-over-year for that quarter. By Q3 2025, MQUs had grown to 230.3 million, marking a 21% increase year-over-year. A concrete example of a long-term commitment from a major FI is the Fourth Amendment with JPMorgan Chase (NYSE:JPM) Bank, National Association, which extends that Master Agreement until November 18, 2028.

Key FI/Neobank Partnership Metrics (as of Q3 2025):

The company also launched with a neobank partner in Q1 2025, diversifying the consumer demographics reached through the platform.

Non-FI publishers like OpenTable for the Cardlytics Rewards Platform (CRP) expansion.

The Cardlytics Rewards Platform (CRP) is the strategic push to move beyond the traditional bank channel. Cardlytics announced its first non-financial institution partner agreement with a leading digital sports platform in Q1 2025. More recently, CEO Amit Gupta confirmed new CRP partnerships, specifically naming OpenTable, with plans to integrate with OpenTable's large user base as part of its loyalty program revamp. While this is strategically vital for supply diversification, the expected financial impact for the 2025 fiscal year is minimal, with significant contributions anticipated starting in 2026.

• CRP Partner Additions (Announced Q3 2025): OpenTable and three U.S. partners.
• Strategic Goal: Boost engagement and loyalty outside the core FI network.
• Expected Material Financial Impact: Not in 2025, focused on 2026.

National and regional advertisers/merchants for offer funding.

Advertisers fund the offers, which is reflected in the company's billings. Despite macroeconomic caution, most advertisers stuck with Cardlytics even after supply changes with the largest FI partner. Wins include pilots with a large athletic apparel brand and a global hotel brand, plus the return of a global coffee chain and a discount grocer. Billings for Q1 2025 were $97.6 million, growing to $104 million in Q2 2025. The guidance for Q3 2025 billings was between $87 million and $95 million, representing a year-over-year decrease of 15% to 22%. Consumer incentives, which are the cost of the offers, were $35.7 million in Q1 2025 and flat year-over-year at $40.8 million in Q2 2025.

Leading digital sports platform as an early CRP partner.

This specific partnership was the first non-FI deal announced under the CRP framework in Q1 2025. This move signals the intent to broaden the publisher base to platforms with highly engaged, specific user sets, moving beyond the general banking audience. The success of category-level offers in other campaigns showed that 73% of consumers who redeemed one offer also redeemed another, suggesting high engagement potential with these new CRP partners. This partner is part of the strategic diversification effort to mitigate reliance on the largest FI partner's content availability.

Finance: review Q4 2025 guidance against Q3 actuals by next Tuesday.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Key Activities

Operating the core card-linked offer (CLO) network and platform involves managing the infrastructure that connects advertisers, financial institutions (FIs), and consumers. For the third quarter ended September 30, 2025, Cardlytics, Inc. reported Monthly Qualified Users (MQUs) of 230.3 million, which was an increase of 21% year-over-year compared to 190.2 million in the third quarter of 2024.

The financial output from this core activity showed pressure, with Q3 2025 Billings (a non-GAAP metric) at $89.2 million, a decrease of 20% year-over-year from $112.0 million in Q3 2024. Correspondingly, GAAP Revenue for Q3 2025 was $52.0 million, down 22% from $67.1 million in the prior year period. Despite the top-line contraction, the company achieved a record Adjusted Contribution Margin as a percentage of revenue of 57.7%, an increase of 3.5 points year-over-year, driven by a more favorable partner mix.

Data and identity resolution services via Bridg are a key component, though this segment faced headwinds. In Q3 2025, Bridg revenue declined by 15%, which was attributed to a lost major account in prior quarters. Still, management expressed optimism about growing Bridg revenue throughout 2025 via new advertisers and product enhancements.

Developing new platform features is essential for increasing advertiser spend and consumer engagement. Advanced capabilities are being adopted by leading advertisers, with features like merchant location-level data and multi-tier offers now representing nearly 10% of advertiser budgets. Furthermore, category-level offers demonstrated strong consumer adoption, with 73% of consumers who redeemed one category-level offer also redeeming another. The UK business showed strength, with revenue growing by 22% year-over-year in Q3 2025.

A significant operational activity in late 2025 was workforce reduction and operational cost restructuring. Cardlytics, Inc. reduced its workforce by approximately 30%, impacting about 120 full-time employees and contractors. This initiative, combined with reductions to third-party spend, real estate, and operations, is projected to deliver annualized cash savings of at least $26 million. This followed prior reductions of $16 million in May and $8 million in January, for a cumulative expected savings of $50 million. For the fourth quarter of 2025, the company guided operating expenses to be at or below $28 million, excluding stock-based compensation and severance.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Key Resources

You're looking at the core assets Cardlytics, Inc. relies on to execute its commerce media strategy. The foundation is definitely the proprietary access to consumer spending behavior. This includes first-party purchase data representing visibility into approximately half of all card-based transactions in the U.S.

The scale of the active user base is a critical resource, showing the reach you can offer advertisers. As of the third quarter of 2025, Cardlytics, Inc. reported a network of 230.3 million Monthly Qualified Users (MQUs). This represented a 21% increase year-over-year compared to 190.2 million MQUs in Q3 2024.

Here's a quick look at some other key Q3 2025 operational metrics that underscore the scale of the platform:

The proprietary technology stack is another non-physical, but essential, resource. This includes the core commerce media platform technology, which encompasses the Cardlytics platform and the Bridg platform. The Bridg platform specifically offers identity resolution capabilities to help convert anonymous shoppers into known, reachable customers.

• First-party purchase data covering approximately half of U.S. card transactions.
• Network of 230.3 million Monthly Qualified Users (MQUs) as of Q3 2025.
• Proprietary commerce media platform technology, including the Bridg platform.

Finally, the balance sheet provides immediate operational flexibility. Cardlytics, Inc. held cash and cash equivalents of $44 million at the end of Q3 2025.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Value Propositions

For Advertisers: Measurable omnichannel sales lift and high Return on Ad Spend (ROAS).

Cardlytics, Inc. strengthens advertiser demand by signing new engagements with brands on performance-based pricing. The platform aims to deliver measurable impact by moving beyond generic targeting to drive real engagement and incremental sales. Advertisers see value in the platform's ability to connect with nearly 225 million consumers in the U.S. and U.K..

For FIs/Publishers: Enhanced customer loyalty and a new, non-interest revenue stream.

Financial Institutions (FIs) and publishers enhance platform engagement by powering card-linked rewards on everyday purchases. The focus on a high-margin FI mix is driving better economics for partners. The U.K. business demonstrated strong growth, with revenue increasing 22% year-over-year in Q3 2025.

• Adjusted Contribution Margin (Q3 2025): Hit a record 57.7% of revenue.
• Monthly Qualified Users (MQUs) (Q3 2025): Increased 21% year-over-year to 230.3 million.
• U.K. Revenue Growth (Q3 2025): 22% year-over-year.

For Consumers: Personalized, relevant cash back rewards embedded in their banking app.

Consumers receive personalized, relevant cash back offers directly within their banking application, creating a more rewarding shopping experience. Cardlytics leverages its network to deliver highly targeted and relevant cash back offers. Data suggests that loyalty influences spending significantly.

• Consumer Incentives Paid (Q3 2025): $37.2 million, a 17.2% reduction from the prior year.
• Consumer Willingness to Share Data: 53% of consumers are willing to share personal information for personalization.
• Loyal Customer Share of Wallet: The loyal segment shows more than 3x higher share of wallet than the not loyal segment.

Identity resolution capabilities to convert anonymous shoppers to known customers (Bridg).

The identity resolution platform, Bridg, converts transactions into knowable customers, growing addressable audiences by 2-3x for B2C brands. While the Bridg segment faced headwinds, with revenue declining 15% year-over-year in Q3 2025 due to a lost major account, it showed growth in Q1 2025.

• Bridg Revenue Growth (Q1 2025): Increased by 1.6%, driven by new client wins.
• Bridg Revenue Change (Q3 2025): Declined 15% year-over-year.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Customer Relationships

You're looking at how Cardlytics, Inc. manages its crucial connections with the financial institutions, advertisers, and publishers that form its ecosystem. The relationship management here is all about scale and precision, making sure the right offer hits the right consumer at the exact moment they are ready to spend.

The core of the automated relationship is the delivery mechanism itself. Cardlytics, Inc. maintains a secure view into approximately half of all card-based transactions in the U.S. and about a quarter in the U.K.. This scale is powered by collaborations with over 1,500 financial institutions globally. The platform is designed to deliver personalized offers directly through these digital banking channels, which is the automated side of the relationship. To give you a sense of the audience size they are engaging, by Q2 2025, Monthly Qualified Users (MQUs) stood at 224.5 million, growing to 230.3 million by Q3 2025.

Here's a quick look at the scale of the consumer base they are managing relationships with:

• Monthly Qualified Users (MQUs) as of Q3 2025: 230.3 million
• U.S. Transaction Visibility: Approximately half of all card-based transactions
• Annual Consumer Spend Visibility: More than $5.8 trillion
• Financial Institution Partners: Over 1,500 globally

For the top-tier advertisers and publisher partners, the relationship moves away from pure automation toward dedicated, high-touch account management. This is where the strategic advisory comes in, often involving negotiating contracts for commercial structure, offer placements, and product adoption across both existing bank relationships and the newer Cardlytics Rewards Platform (CRP) partners. The expansion of the CRP, which includes non-financial institution partners like a leading digital sports platform launched in Q1 2025, requires this dedicated focus to ensure seamless execution. Furthermore, in the U.K. market, Cardlytics, Inc. signed over 20 new logos in Q2 2025, which would certainly fall under this dedicated management structure.

The structure of how advertisers pay is a key part of this relationship, showing a clear move toward performance alignment. The company has been pushing a shift to engagement-based pricing, which ties payment more directly to consumer action rather than just impressions or placements. As of Q1 2025, the target was that 74% of advertisers were on this model [cite: provided outline data]. To be fair, for brands newly joining the platform, the adoption rate for engagement-based pricing was even higher, with 96% of new brands opting for it in Q1 2025. This pricing structure is designed to help advertisers measure the true sales impact of their campaigns.

The nature of these relationships is also reflected in specific engagement metrics. For instance, a category-level offers initiative in Q3 2025 grew consumer engagement by approximately 15%. This success shows that when the automated delivery is paired with strategic partner input, the relationship drives measurable results.

You can see the focus is clearly on scaling the automated delivery while ensuring the most strategic partners get the dedicated attention needed to negotiate and grow the platform's reach, especially with the new CRP structure.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Channels

You're looking at the distribution and access points Cardlytics, Inc. uses to connect its commerce media platform with consumers, advertisers, and financial partners as of late 2025. The channels are a mix of established digital banking integrations and newer platform expansions.

The core channel remains the integration with Financial Institution (FI) mobile and online banking platforms. Despite headwinds from the largest FI partner blocking advertiser content, Cardlytics reported Monthly Qualified Users (MQUs) of 230.3 million in the third quarter of 2025, representing a 21% year-over-year increase. This growth was driven by the continued ramp-up of new FI partners. One specific FI partner is expected to soon add its debit and SMB portfolios to the program, signaling channel deepening.

The Cardlytics Rewards Platform (CRP) serves as the channel for non-FI publisher integrations, designed to diversify reach beyond traditional banks. Cardlytics introduced its first non-financial institution partner agreement with a leading digital sports platform under the CRP in Q1 2025. As of Q3 2025, new CRP partnerships include three U.S. partners and OpenTable. Management noted that no material 2025 financial impact is expected from CRP partnerships, with focus on 2026 for significant contributions.

The Direct sales team focuses on onboarding advertisers and publishers across both channels. Management confirmed that most advertisers decided to stick with Cardlytics despite supply changes from the largest FI partner. Sales wins in the recent period include pilots with a large athletic apparel brand and a global hotel brand, alongside the return of a global coffee chain and discount grocer.

Bridg identity resolution solution provides a channel for deeper retail client engagement using SKU-level insights. Cardlytics acquired Bridg for approximately $350 million in cash at closing, with potential earnout payments up to an aggregate of $100 million to $300 million. The Bridg platform connects to 90% of point-of-sale systems in the United States.

Here are some key operational and financial metrics relevant to channel performance as of Q3 2025:

The platform's reach is significant, with visibility into approximately half of all card-based transactions in the U.S. and a quarter in the U.K.. Separately, the Cardlytics network was recognized for having access to nearly 225 million consumers and a view into more than $5.8 trillion in annual consumer spend.

The company is focused on strengthening engagement through specific campaign types:

• Double Days initiative grew consumer engagement by approximately 15%.
• 73% of consumers who redeemed a category-level offer also redeemed another offer.

Operational restructuring has also impacted the channel delivery structure:

• Workforce reduction of 30% announced.
• Expected annualized cash savings of $26 million from cost controls.
• Adjusted operating expenses (excluding stock-based compensation) were $26.8 million in Q3.

Finance: draft Q4 2025 capital allocation plan by next Tuesday.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Customer Segments

You're looking at the core groups Cardlytics, Inc. (CDLX) serves as of its Q3 2025 reporting period. This is a multi-sided platform, so the customer segments are distinct groups that rely on the network for value exchange.

• Large Financial Institutions and neobanks (supply partners). These institutions provide the anonymized purchase data that powers the platform. Cardlytics, Inc. launched with a large financial institution partner and a neobank partner during Q1 2025, both contributing to network expansion.
• National and regional advertisers across various sectors (demand partners). These partners use the purchase intelligence to target, engage, and measure relevant shoppers at scale. Cardlytics, Inc. has visibility into approximately $5.8 trillion in annual consumer spend, which informs these advertisers.
• Non-FI digital publishers and loyalty program operators (CRP partners). This segment is served through the Cardlytics Rewards Platform (CRP). Cardlytics, Inc. introduced its first non-financial institution partner agreement with a leading digital sports platform under the CRP in Q1 2025.
• Consumers who are cardholders (230.3 million MQUs). This is the base that receives the personalized cash back offers. Cardlytics monthly qualified users (MQUs) reached 230.3 million in Q3 2025, an increase of 21% year-over-year from 190.2 million in Q3 2024.

The platform's reach is substantial, covering approximately half of all card-based transactions in the U.S. and a quarter in the U.K. The monetization of this massive user base is a key focus, as the Adjusted Contribution Per User (ACPU) was $0.11 in Q3 2025.

The platform relies on these distinct groups to function; for instance, the 230.3 million MQUs are the recipients of offers driven by advertiser spend, which in turn generates the $30.0 million in Adjusted Contribution for Cardlytics, Inc. in the quarter. The growth in MQUs to 230.3 million contrasts with the Q3 2025 GAAP Revenue of $52.0 million, showing the ongoing challenge of scaling monetization.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Cardlytics, Inc. (CDLX) engine as of late 2025, and it's clear the focus is on cost discipline following significant operational shifts.

The single largest cash outflow tied directly to revenue generation is the outlay for consumer incentives and partner share. For the third quarter of 2025, consumer incentives alone hit $\mathbf{\$37.2 \text{ million}}$. Honestly, that number is substantial, representing a $\mathbf{17.2\%}$ decrease compared to the prior year, which tracks with the $\mathbf{22.4\%}$ year-over-year revenue decline to $\mathbf{\$52.0 \text{ million}}$ in the same period. The goal here is to ensure the spend on incentives drives enough incremental value to keep the Adjusted Contribution margin healthy, which it did, hitting a record $\mathbf{57.7\%}$ in Q3 2025, up $\mathbf{3.5}$ percentage points year-over-year, thanks to a better mix of financial institution partners.

Here's a quick look at how the key cost-related metrics stacked up in Q3 2025:

Technology and platform development expenses fall under the broader umbrella of operating expenses. Management has been aggressively managing these costs as part of a strategic reset. The company is focused on engineering foundations and integration with industry-standard measurement models, but the specific breakdown of R&D versus SG&A within the reported operating expenses isn't explicitly detailed in the public commentary.

The most visible action taken to overhaul the cost structure was the $\mathbf{30\%}$ workforce cut, announced in early October 2025, which impacted about 120 employees and contractors. This difficult decision was explicitly designed to optimize the cost structure and align resources with critical priorities. The projected outcome of this reduction, along with other spend cuts targeting third-party spend and real estate, is an annualized cash savings of at least $\mathbf{\$26 \text{ million}}$.

This cost-cutting drive is reflected directly in the reported operating expense line. Total adjusted operating expenses, excluding stock-based compensation and the expected severance charges, were $\mathbf{\$26.8 \text{ million}}$ in Q3 2025. That figure represents an $\mathbf{\$11.4 \text{ million}}$ reduction year-over-year, driven by the staff cuts and optimization of cloud infrastructure. The company expects this leaner cost base to continue, guiding Q4 2025 operating expenses to be at or below $\mathbf{\$28 \text{ million}}$ (excluding SBC/severance).

You should keep an eye on these cost components as the company moves forward:

• Consumer incentives remain the largest variable cost tied to revenue.
• The $\mathbf{30\%}$ workforce reduction is expected to deliver $\mathbf{\$26 \text{ million}}$ in annualized savings.
• Severance costs of $\mathbf{\$2.3 \text{ million}}$ were largely recognized in the fourth quarter of 2025.
• The $\mathbf{\$26.8 \text{ million}}$ adjusted operating expense base in Q3 2025 is the new benchmark for ongoing operational efficiency.

Finance: draft the 13-week cash view incorporating the Q4 operating expense guidance by Friday.

Cardlytics, Inc. (CDLX) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Cardlytics, Inc., which is how they turn transaction data into marketing dollars. The primary mechanism is taking a cut from the total spend that advertisers place through the platform, which they call billings. For the third quarter of 2025, Cardlytics, Inc. reported revenue of $52.0 million.

To give you the full picture on that revenue capture, here's how the top-line billings translated into the recognized revenue for Q3 2025. Remember, revenue is what Cardlytics, Inc. keeps after subtracting consumer incentives and the financial institution partner's share.

This relationship shows the platform's margin structure. The Adjusted Contribution margin, which reflects the value Cardlytics, Inc. keeps after subtracting rewards and Partner Share, hit a record 57.7% of revenue in Q3 2025, which is up 3.5 points year-over-year, driven by a more favorable mix of newer financial institution partners.

The shift in how new deals are structured is a key strategic move to align with performance media. You see this in the adoption rate for engagement-based pricing on the platform. For new business onboarded, the uptake is significant:

• 96% of new brands opted for engagement-based pricing.
• Adoption in the UK market reached 79% of advertisers.

Also critical is the revenue derived from the Bridg identity resolution and data services, which provides SKU-level insights. While the overall platform faced headwinds, the Bridg segment showed specific pressure; its revenue declined 15% in Q3 2025 due to a lost major account from prior quarters. Still, management noted continued interest and a healthy pipeline for Bridg's identity resolution solution.

Looking ahead, the near-term expectation for the top line suggests a slight sequential increase from the Q3 result, though still below prior year levels due to ongoing supply restrictions from the largest financial institution partner. The midpoint of the Q4 2025 Revenue guidance is approximately $55.1 million, based on the expected range of $51.1 million to $59.1 million.