Investment Thesis
Cardlytics exhibits severe financial distress with negative stockholders' equity of -$4.0M, persistent operating losses (-$8.3M), and negative free cash flow (-$5.7M), indicating fundamental business model failure. High debt burden of $204.2M with zero interest coverage ability creates acute refinancing and solvency risk.
Strengths
- Current ratio of 2.17x provides near-term liquidity cushion despite negative equity
- Revenue growing at 9.9% YoY indicates some residual market demand
- $35.7M cash balance offers limited runway for turnaround initiatives
Risks
- Negative stockholders' equity of -$4.0M represents technical insolvency with liabilities exceeding assets
- Negative operating cash flow of -$5.6M and FCF of -$5.7M show core business cannot fund operations
- Interest coverage of -8.8x demonstrates inability to service $204.2M debt from operations; refinancing risk is acute
- Operating margin of -24.1% and net margin of -13.1% with no clear profitability trajectory
- Negative ROA of -1.7% confirms asset base is not generating returns
Key Metrics to Watch
- Quarterly operating cash flow trend and achievement of positive cash generation
- Monthly cash burn rate relative to $35.7M runway; debt covenant compliance status
- Path to operating profitability and timeline to positive operating income
- Debt refinancing negotiations and potential equity dilution or restructuring
Financial Metrics
Revenue
34.3M
Net Income
-4.5M
EPS (Diluted)
$-1.95
Free Cash Flow
-5.7M
Total Assets
263.9M
Cash
35.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-24.1%
Net Margin
-13.1%
ROE
N/A
ROA
-1.7%
FCF Margin
-16.5%
Balance Sheet & Liquidity
Current Ratio
2.17x
Quick Ratio
2.17x
Debt/Equity
N/A
Debt/Assets
101.5%
Interest Coverage
-8.80x
Long-term Debt
204.2M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T09:31:44.745747 |
Data as of: 2026-03-31 |
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