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ATLANTA, GA - Cardlytics, Inc. (NASDAQ:CDLX), a data-driven marketing company with annual revenue of $278.3 million, announced on Monday that its existing agreements with Bank of America will not be renewed upon their expiration on July 31, 2025. According to InvestingPro data, the company currently operates with a market capitalization of $78.78 million and faces significant operational challenges. The termination includes a General Services Agreement and related Statement of Work, which have been in place since July 7, 2022, and a subsequent Statement of Work Change Order dated May 24, 2024.
The non-renewal notice was received by Cardlytics on April 22, 2025. Despite the termination, Bank of America has requested that Cardlytics continue its services for an additional 180 days beyond the expiration date, extending through January 27, 2026. Discussions are ongoing between the two parties regarding a potential new arrangement that would allow Cardlytics to publish offers on Bank of America’s digital channels through alternative means.
Cardlytics believes the non-renewal will not materially impact its financial results during or after the extension period, citing the possibility of continuing to deliver offers to Bank of America’s customers and the growth of supply from the company’s new and existing financial institution partners.
In a separate event, Cardlytics amended its loan and security agreement on April 16, 2025, extending the maturity date to April 15, 2028. This amendment to the loan facility, originally dated September 30, 2024, did not involve any new borrowing, and the company maintains $60.0 million of unused available borrowings. InvestingPro data shows the company carries a total debt of $221.65 million, though it maintains a current ratio of 1.19, indicating adequate liquidity to meet short-term obligations.
The company’s forward-looking statements indicate ongoing discussions with Bank of America and the belief that the non-renewal of the agreements will not adversely affect Cardlytics’ financial standing. These statements, however, are subject to risks and uncertainties, and there is no guarantee that the expected outcomes will be realized. Recent financial metrics from InvestingPro show the company reported negative EBITDA of -$37.84 million in the last twelve months, and analysts do not anticipate profitability this year. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, covering this and 1,400+ other US equities.
The information provided in this article is based on a press release statement from Cardlytics filed with the Securities and Exchange Commission.
In other recent news, Cardlytics reported its fourth-quarter financial results, which showed a 16% year-over-year decline in revenue, totaling $74 million. Despite this drop, the company exceeded its revenue forecast of $64.29 million, reflecting better-than-expected performance in pipeline wins and operational improvements. Analysts from Evercore ISI, Craig-Hallum, and BofA Securities have all adjusted their price targets for Cardlytics, with Evercore and Craig-Hallum reducing it to $3.00 and BofA to $2.50, while maintaining their respective ratings. These adjustments follow Cardlytics’ earnings report, which showed positive developments in operational expense management and new client acquisitions, despite a challenging advertising environment.
The company’s fourth-quarter results also included a positive adjusted EBITDA of $2.5 million for the full year, highlighting effective cost management. Cardlytics has focused on strategic initiatives like micro-targeting and data engineering, which are aimed at unlocking new consumer packaged goods budgets. However, challenges such as a 12% year-over-year billing decline and macroeconomic uncertainties continue to impact the company’s recovery trajectory. Analysts have noted the company’s efforts to address past issues and attract new business, but they remain cautious about immediate improvements. Cardlytics projects first-quarter 2025 billings between $91.5 million and $94.5 million, expecting this period to mark a low point before sequential growth throughout the year.
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