Lake Street Cuts Cardlytics, Inc. (CDLX) Price Target to $1.25 Amid Reset Expectations

Laiba Immad

Tue, May 19, 2026 at 7:09 AM EDT 2 min read

We recently compiled a list of the 10 Best Penny Stocks Under $1 According to Hedge Funds. Cardlytics, Inc. (NASDAQ:CDLX) is among the best penny stocks.

TheFly reported on May 8 that Lake Street reduced its price target on CDLX to $1.25 from $1.50 while reiterating a Hold rating, citing a reset in expectations following the company’s first-quarter guidance and ongoing uncertainty tied to recent business changes.

Cardlytics, Inc. (NASDAQ:CDLX) reported its first-quarter 2026 results on May 7 for the period ended March 31, 2026. Revenue totaled $34.3 million, down 39% from $56.4 million a year earlier. Billings reached $58.1 million, a 37% decline from $92.1 million. Adjusted contribution came in at $19.7 million, down 28% year over year from $27.3 million. The company recorded a net loss of $4.5 million, or $0.08 per diluted share, improving from a $13.3 million loss, or $0.26 per share.

The corporation’s adjusted EBITDA was slightly positive at $0.2 million versus a negative $4.1 million last year. Adjusted net loss narrowed to $6.2 million, or $0.11 per share, compared with $10.3 million, or $0.20. Operating cash outflow was $5.6 million versus $6.7 million, while free cash flow was negative $7.9 million compared to negative $10.8 million. Monthly qualified users declined 8% to 197.0 million, and ACPU fell to $0.10 from $0.13. Usage metrics showed continued pressure across the platform’s audience and monetization levels during the quarter, with an overall trend

Cardlytics, Inc. (NASDAQ:CDLX) is a commerce media company that partners with banks to run rewards programs and deliver targeted ads using first-party card transaction data, along with purchase analytics.

While we acknowledge the potential of CDLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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