[Management View]
Cardlytics reported a challenging Q3 2025, with total billings of $89.2 million, down 20.3% YoY, primarily due to content restrictions from its largest FI partner. Revenue was $52 million, a 22.4% decline. Despite these setbacks, the company emphasized successful advertiser retention, new business signings, and significant operational restructuring, including a 30% workforce reduction aimed at saving $26 million annually.

[Outlook]
For Q4 2025, Cardlytics projects billings between $86 million and $96 million, revenue between $51.1 million and $59.1 million, and adjusted EBITDA between $900,000 and $7.9 million. The company plans to focus on expanding its Cardlytics Rewards Platform and UK market, with new partnerships expected to drive growth in 2026.

[Financial Performance]
- Total Billings: $89.2 million, down 20.3% YoY
- Revenue: $52 million, down 22.4% YoY
- Consumer Incentives: $37.2 million, down 17.2% YoY
- US Revenue (excluding Bridge): Down 28% YoY
- UK Revenue: Up 22% YoY
- Bridge Revenue: Down 15% YoY
- Adjusted Contribution: $30 million, down 17.5% YoY, margin at 57.7%
- Adjusted EBITDA: $3.2 million, up $5 million YoY
- Operating Expenses (excl. SBC): $26.8 million, down $11.4 million YoY
- Free Cash Flow: Negative $2.7 million, improved by $1.2 million YoY
- Cash and Equivalents: $44 million

[Q&A Highlights]
Question 1: Can you help me understand the billing margins commentary, especially the decrease in Q3 and the improvement in October?
Answer: The decrease in Q3 was primarily due to an abrupt change in supply from our largest FI partner in July. By the end of the quarter, we normalized our ability to deliver. The October run rate is higher, and we expect it to continue. The adjusted contribution margin was the highest we've seen, around 58%, due to better economics from newer partners.

Question 2: Regarding the guidance, what are the factors that could lead to the higher end versus the lower end of adjusted EBITDA?
Answer: The range in adjusted EBITDA is primarily due to the top line and margin fluctuations. Adjusted OpEx is expected to be between $27 million and $28 million. The rest of the range comes from the top line and margin variations.

[Sentiment Analysis]
Analysts expressed concerns about the revenue decline and content restrictions but were reassured by management's strategic initiatives and operational restructuring. The tone was cautiously optimistic, focusing on the potential for future growth and improved margins.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------------|------------------|------------------|------------------|
| Total Billings | $89.2 million | $112 million | -20.3% |
| Revenue | $52 million | $67 million | -22.4% |
| Consumer Incentives | $37.2 million | $45 million | -17.2% |
| US Revenue (excl. Bridge) | $30 million | $41.7 million | -28% |
| UK Revenue | $22 million | $18 million | +22% |
| Bridge Revenue | $15 million | $17.6 million | -15% |
| Adjusted Contribution | $30 million | $36.4 million | -17.5% |
| Adjusted EBITDA | $3.2 million | -$1.8 million | +$5 million |
| Operating Expenses (excl. SBC)| $26.8 million | $38.2 million | -$11.4 million |
| Free Cash Flow | -$2.7 million | -$3.9 million | +$1.2 million |
| Cash and Equivalents | $44 million | $45.2 million | -$1.2 million |

[Risks and Concerns]
- Content restrictions from the largest FI partner significantly impacting billings and revenue.
- Potential operational challenges and morale issues due to the 30% workforce reduction.
- Ongoing revenue pressure anticipated in Q4 2025.

[Final Takeaway]
Cardlytics faced a challenging Q3 2025 with significant revenue declines due to content restrictions from its largest FI partner. However, the company is taking decisive steps to mitigate these impacts through operational restructuring, strategic partnerships, and expansion into new markets. While short-term revenue pressure is expected to continue, the focus on improving margins and driving future growth provides a cautiously optimistic outlook for investors.