Can anything shut down the Gold rally?
ATLANTA - Cardlytics Inc. (NASDAQ:CDLX), a commerce media platform with a market capitalization of $126 million and trailing twelve-month revenue of $266 million, announced Thursday it has reduced its workforce by approximately 120 employees and contractors, representing about 30% of its total staff, as part of an enterprise-wide cost savings initiative.
The commerce media platform expects to incur $2.3 million in severance and related expenses, with most costs recognized in the fourth quarter of 2025. The company projects the initiative will deliver annualized cash savings of at least $26 million. According to InvestingPro data, Cardlytics operates with a significant debt burden and has not been profitable over the last twelve months, with revenue declining by about 13%.
"This was a very difficult decision, but one that is necessary to protect the long-term stability of our business," said Amit Gupta, Chief Executive Officer of Cardlytics. "We believe this reduction will enable us to focus on the areas of our business that matter most to our partners and advertisers."
The cost-cutting measures include actions across employees, third-party spend, real estate, and operations. Despite the restructuring, Cardlytics reaffirmed its commitment to achieving positive adjusted EBITDA for the full year 2025 and 2026.
Cardlytics operates a commerce media platform that utilizes first-party purchase data from its publisher network. The company has visibility into approximately half of all card-based transactions in the U.S. and a quarter in the U.K., according to the press release statement.
The Atlanta-based firm’s stock is listed on the Nasdaq exchange under the ticker CDLX. Despite challenging fundamentals, the stock has shown strong momentum with a nearly 30% return over the past six months. InvestingPro offers comprehensive analysis with 12 additional key insights about Cardlytics, available in the detailed Pro Research Report.
In other recent news, Cardlytics Inc. reported its second-quarter 2025 earnings, surpassing earnings per share (EPS) expectations with a figure of -$0.13 compared to the anticipated -$0.39. However, the company experienced a revenue shortfall, posting $63.2 million against a forecast of $64.06 million. In another development, Cardlytics fully repaid $46.1 million in convertible senior notes, leaving it with $172.5 million in outstanding notes due in 2029 and $50 million drawn on its line of credit. The company maintains $92.7 million in cash and cash equivalents and is compliant with financial covenants related to its credit line.
Additionally, Citron Research recently gave Cardlytics a positive mention, describing it as a potential "fallen angel" poised for higher trading. Citron emphasized Cardlytics’ integration with major financial institutions like American Express and Chase as a significant strength. The mention of American Express’s recent Platinum card refresh was highlighted as evidence of Cardlytics’ potential. These recent developments could influence investor perspectives on Cardlytics.
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