Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 174

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 174
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 required to apply the ASU retrospectively to all periods presented. During the year ended December 31, 2024, we adopted this standard and added additional disclosure in our Segment Footnote. Refer to Note 11 - Segments for further information.

3.     GOODWILL AND INTANGIBLES

GoodwillGoodwill is tested annually for impairment, unless certain triggering events require an interim impairment analysis, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant entity-specific events and changes. These considerations are evaluated holistically to assess whether it is more likely than not that a reporting unit's carrying value exceeds its fair value. Our reporting units consist of the Cardlytics platform 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