Cardlytics Q2 2025: Unraveling Contradictions in Content Restrictions, Revenue Impact, and Pricing Strategies

Content restrictions and impact on MQUs, advertiser behavior and revenue impact, FI partner content restrictions, operational expense and expense management, and adoption of engagement-based pricing are the key contradictions discussed in Cardlytics's latest 2025Q2 earnings call.



Billings and Revenue Performance:
- Cardlytics reported total billings of $104 million in Q2, a 5.7% decrease year-over-year, while revenue decreased 9.2% to $63.2 million.
- The decline was due to a decrease in billings, pressures on advertiser performance, and content restrictions imposed by their largest FI partner.

U.K. Business Growth:
- The U.K. business saw 29% revenue growth, driven by higher billings and increased supply.
- Growth was fueled by strong performance in categories like everyday spend, subscription services, and retail, with over 20 new logos signed.

Supply and Demand Dynamics:
- There was an increase in MQUs to 224.5 million, up 19% year-over-year, due to the ramp-up of new FI partners.
- However, ACPU expanded by 10% quarter-over-quarter, indicating a decline in revenue conversion from MQUs, possibly due to supply and content restrictions.

Q3 Outlook and Strategic Adjustments:
- Q3 billings guidance is between $87 million and $95 million, reflecting a negative 15% to negative 22% year-over-year decrease.
- This is primarily due to content restrictions from a major FI partner. Cardlytics is adapting by focusing on diversifying supply and optimizing demand to mitigate the impact.