Cardlytics, Inc. Update: Stock Split and Nasdaq Listing Status

This report explains the latest news regarding Cardlytics, Inc. in plain English. If you have seen headlines about the company and aren’t sure what they mean for your wallet or your watchlist, here is the breakdown.

1. What is happening?

Nasdaq sent Cardlytics a notice because its stock price closed below $1.00 for 30 business days in a row. To stay listed on the Nasdaq Global Market, the company will perform a 1-for-10 reverse stock split on June 5, 2026.

2. What is a reverse stock split?

It is a purely mathematical adjustment. By combining 10 old shares into 1 new share, the company increases the price of each share by 10 times.

Think of it like trading a $10 bill for two $5 bills—you have the same amount of money, just in a different format. You will own fewer shares, but each share will be worth more. Your total investment value remains the same at the moment the split happens.

3. Why is the company doing this?

Cardlytics is taking this step to avoid being removed from the Nasdaq exchange. Stocks trading under $1.00 are often labeled "penny stocks," and many large investment firms have internal rules that prevent them from buying these stocks. By raising the share price, Cardlytics is trying to regain eligibility for institutional investment and maintain its presence on a major exchange.

4. What happens to fractional shares?

The company will not issue fractional shares. If your holdings don't divide perfectly by 10, you will receive a cash payment for the remaining fraction. This payment is based on the average closing price of the stock over the five trading days leading up to the split.

5. How does this affect you?

• If you are a long-term investor: Your ownership percentage in the company does not change. The split is a technical fix, not a change to the company’s business model or its bank partnerships.
• If you are a trader: Be aware that the market can be volatile around these events. Sometimes, the market interprets a reverse split as a sign of underlying financial struggle, which can lead to short-term price swings.

6. What should you look for next?

A reverse split fixes a listing rule, but it does not fix the company's profitability. To decide whether to hold or invest further, look past the stock price and focus on the business fundamentals:

• Earnings Reports: Is the company growing its advertiser base? Are they moving toward profitability?
• Business Health: Are they successfully managing the costs associated with their advertising platform?
• Management Strategy: Does the company have a clear plan to improve the financial performance that caused the stock price to drop in the first place?

The bottom line: Don't panic-sell based on the split itself—it’s just math. Instead, use this as a reminder to check the company’s latest quarterly reports to see if the business is heading in the right direction.

Disclaimer: I am an AI, not a financial advisor. This summary is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.