Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 111

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 111
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 in the U.S. (the "U.S. Cardlytics Platform"), the Cardlytics platform in the U.K. and the Bridg platform. There is no goodwill recorded within the Cardlytics platform in the U.K or the Bridg platform.The carrying amounts of goodwill as of September 30, 2025 were as follows (in thousands):U.S. Cardlytics PlatformConsolidatedBalance as of December 31, 2024$159,429 $159,429 Impairment charge(49,124)(49,124)Balance as of September 30, 2025$110,305 $110,305 We have assessed the triggering events criteria along with related conditions and developments as of September 30, 2025, and we have concluded that we had a triggering event as a result of a sustained decline in our stock price during the three months ended September 30, 2025. We have, therefore, performed a quantitative impairment test as of September 30, 2025, and determined that the carrying value of the Cardlytics platform exceeded its fair value. As such, we recognized a goodwill impairment of $49.1 million for the Cardlytics platform during the three months ended September 30, 2025. The method of determining fair values of the reporting units as of September 30, 2025 was the discounted cash flow method under the income approach, and to a lesser extent the market approach. The most significant assumptions utilized in the determination of the estimated fair of the Cardlytics platform in the U.S. are the discount rate and forecasts of future revenues and cash flows. We prepared cash flow projections based on estimates of revenue growth rates and earnings growth rates for each reporting unit, taking into consideration the historical performance and the current macroeconomic, industry, and market conditions. The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. Our discount rate may be impacted by adverse changes in the macroeconomic environment and volatility in the equity and debt markets.Acquired Intangible AssetsWe evaluate the recoverability of our finite-lived intangible assets and other long-lived assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. Prior to the quantitative goodwill impairment test, we evaluated the recoverability of these long-lived assets for our asset groups. The evaluation