Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 217

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 217
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31,694 $(9,077)(29)%% of Revenue12 %12 %13 %16 %

Stock-based compensation expense decreased by $1.6 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by higher forfeitures due to a reduction in headcount as a result of the 

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reduction in force that occurred during 2025 partially offset by a benefit received during the three months ended September 30, 2024 associated with forfeitures resulting from the departure of an executive.

Stock-based compensation expense decreased by $9.1 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by higher forfeitures due to a reduction in headcount as a result of the reduction in force as well as the departure of executives during the nine months ended September 30, 2025.

Reduction in Force

During the nine months ended September 30, 2025, we implemented certain cost savings measures and incurred one-time costs of approximately $1.5 million in connection with these measures. 

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.

Acquisition, integration and divestiture costs

During the nine months ended September 30, 2024, we realized an expense of $0.1 million primarily due to the changes in the estimated brokerage fees and transaction bonuses and accounting for all true-ups and credits related to the acquisition of Bridg.

Change in contingent consideration

 Three Months Ended September 30,ChangeNine Months Ended September 30,Changein thousands20252024$%20252024$%Change in contingent consideration$— $100 $(100)(100)$102