Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 144

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 144
---
50,028 52,708 47,469 Adjusted Net Loss per share, diluted$(0.07)$(0.15)$(0.42)$(0.40)

Free Cash Flow

The following is a reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP measure, for each of the periods indicated:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,in thousands2025202420252024Net cash provided by (used in) operating activities$1,761 $1,388 $(3,720)$(11,803)Plus:Acquisition of property and equipment(14)(507)(455)(1,439)Capitalized software development costs(4,450)(4,750)(12,770)(13,423)Free Cash Flow$(2,703)$(3,869)$(16,945)$(26,665)

Reduction of Force

On October 1, 2025, we committed to a plan to reduce our workforce by approximately 90 full-time employees, representing approximately 24% of our workforce (the “Plan”). The Plan is intended to optimize our cost structure and is part of a broader cost-reduction initiative that also includes measures beyond full-time employee reductions.

We estimate that we will incur non-recurring charges of approximately $2.3 million in connection with the workforce reduction under the Plan, consisting of severance payments and related costs. We expect that the majority of the restructuring charges will be incurred in the fourth quarter ending December 31, 2025 and that the implementation of the workforce reduction, including cash payments, will be substantially complete by December 31, 2025.

34

Components of Results of Operations

Revenue

We sell our Cardlytics platform solution by entering into agreements directly with marketers or their marketing agencies, generally through the execution of insertion orders. The insertion orders state the terms of the arrangement, the negotiated fee, payment terms and the fixed period of time of the campaign. We generally invoice marketers monthly based on the qualifying purchases of our partners' customers as reported by our partners during the month or based on the engagement of our partners' customers with our offers during the month. We report our Revenue net of Consumer Incentives and gross of Partner Share and other third-party costs. The Bridg platform generates Revenue through the sale of subscriptions to our cloud-based customer-data platform and the delivery of professional services, such as implementation, onboarding and technical support in connection with each