Ibotta Reports Third Quarter 2025 Financial Results

Ibotta Reports Third Quarter 2025 Financial Results Revenue declined by 16% year-over-year to $83.3 million Generated net income of $1.5 million, representing net income as a percent of revenue of 2%, and adjusted EBITDA of $16.6 million, representing a 20% adjusted EBITDA margin Generated cash from operating activities of $21.8 million and free cash flow of $10.6 million Announced a strategic partnership with Circana to bring third-party sales lift measurement to digital promotions Subsequent to quarter-end, announced the launch of LiveLift™, an enhanced solution that helps CPG brands measure and optimize their campaigns while live DENVER, November 12, 2025 (Business Wire) -- Ibotta, Inc. (NYSE: IBTA), which operates the largest item-level digital promotions network in North America, today announced financial results for the third quarter ended September 30, 2025. “We made significant strides in recent months to further strengthen our performance marketing platform,” said Ibotta CEO and founder, Bryan Leach. “Recent milestones include a strategic partnership with Circana to bring trusted third-party sales lift measurement to digital promotions and the launch of LiveLift™ for CPG brands. The LiveLift solution improves a brand’s ability to measure and optimize campaigns while they are live, enhancing our previous approach to measuring sales lift during a campaign. A growing number of clients are piloting LiveLift, which we believe is the first step in fundamentally shifting how promotions are perceived and ultimately allowing us to capture a larger percentage of CPG marketing spend.” Third Quarter 2025 Financial Highlights: •Total revenue of $83.3 million, a year-over-year decline of 16%. •Total redemption revenue of $72.1 million, a decrease of 15% year-over-year. •During the quarter, the IPN had 18.2 million redeemers, compared to 15.3 million redeemers in the third quarter of 2024, an increase of 19% year-over-year. The primary driver of year-over-year growth was the launch of Instacart during the fourth quarter of 2024 and the launch of offers to a majority of DoorDash customers in the second quarter of 2025. •Third-party publisher redemptions of 62.1 million, compared to 65.8 million in the third quarter of 2024, a decline of 6% year-over-year. •Generated net income of $1.5 million, representing net income as a percent of revenue of 2%, and adjusted net income of $16.3 million, representing adjusted net income as a percent of revenue of 20%. •Delivered adjusted EBITDA of $16.6 million, representing an adjusted EBITDA margin of 20%. •Generated cash from operating activities of $21.8 million and free cash flow of $10.6 million. •Repurchased 1.4 million shares for a total of $38.7 million at an average price per share of $26.73, exclusive of broker commissions and excise tax. The following table summarizes the Company’s financial results for the three and nine months ended September 30, 2025 and 2024: Three months ended September 30, % Change Nine months ended September 30, % Change 2025 2024 2025 2024 (in thousands, except per share figures and percentages) GAAP Results Redemption revenue $ 72,081 $ 84,485 (15) % $ 218,688 $ 226,425 (3) % Revenue 83,260 98,621 (16) % 253,863 268,874 (6) % Net income 1,533 17,239 (91) % 4,578 (7,430) 162 % Net income per share, diluted 0.05 0.51 (90) % 0.15 (0.34) 144 % Net income as a percent of revenue 2 % 17 % 2 % (3) % Non-GAAP Results Adjusted EBITDA $ 16,611 $ 36,519 (55) % $ 49,166 $ 84,452 (42) % Adjusted EBITDA margin 20 % 37 % 19 % 31 % Adjusted net income $ 16,345 $ 31,409 (48) % $ 43,346 $ 66,666 (35) % Adjusted net income per share, diluted 0.56 0.94 (40) % 1.40 2.71 (48) % The following table summarizes the Company’s revenue related performance metrics for the three and nine months ended September 30, 2025 and 2024: Three months ended September 30, Nine months ended September 30, 2025 2024 % Change 2025 2024 % Change (in thousands, except per redeemer figures, per redemption figures, and percentages) Performance Metrics Redemptions: Direct-to-consumer redemptions 20,793 31,571 (34) % 64,354 87,819 (27) % Third-party publisher redemptions 62,055 65,795 (6) % 181,818 161,728 12 % Total redemptions 82,848 97,366 (15) % 246,172 249,547 (1) % Redeemers: Direct-to-consumer redeemers 1,638 1,909 (14) % 1,629 1,879 (13) % Third-party publisher redeemers 16,527 13,378 24 % 15,901 11,946 33 % Total redeemers 18,165 15,287 19 % 17,530 13,825 27 % Redemptions per redeemer: Direct-to-consumer redemptions per redeemer 12.7 16.5 (23) % 39.5 46.7 (15) % Third-party publisher redemptions per redeemer 3.8 4.9 (24) % 11.4 13.5 (16) % Total redemptions per redeemer 4.6 6.4 (28) % 14.0 18.0 (22) % Redemption revenue per redemption: Direct-to-consumer redemption revenue per redemption $ 1.10 $ 1.05 4 % $ 1.13 $ 1.12 1 % Third-party publisher redemption revenue per redemption $ 0.79 $ 0.78 2 % $ 0.80 $ 0.79 1 % Total redemption revenue per redemption $ 0.87 $ 0.87 — % $ 0.89 $ 0.91 (2) % Note that certain figures shown above may not recalculate due to rounding. Third Quarter 2025 Business Highlights: •19% year-over-year growth in quarterly redeemers on the Ibotta Performance Network. •Matt Puckett joined our executive leadership team as CFO. •Completed the re-organization of our Sales team, migrating from a territory-based model to an industry-based model, promoting three sales leaders to vertical sales leads, and hiring two external sales leaders with backgrounds in performance media. •Announced a strategic partnership with Circana to bring third-party sales lift measurement to digital promotions. Circana lift studies for Ibotta campaigns are expected to begin to roll out in late 2025 and be available to all brands in 2026. •Subsequent to quarter-end, announced the launch of LiveLift, an enhanced solution that helps CPG brands measure and optimize their campaigns while live. Financial Guidance: Fourth quarter 2025 outlook summary: •Revenue of $80 - $85 million, a year-over-year decrease of 16% at the midpoint. •Adjusted EBITDA of $9 - $12 million, representing a margin of 13% at the midpoint. Guidance for adjusted EBITDA is earnings before interest income, net, provision for income taxes, and depreciation and amortization, and excludes stock-based compensation, restructuring charges, and other (income) expense, net. We have not reconciled adjusted EBITDA to GAAP net income for our guidance because we do not provide guidance on GAAP net income and would not be able to present the various reconciling cash and non-cash items between the GAAP and non-GAAP financial measures since certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted, including share-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items could have a significant impact on the Company's GAAP net income. Use of Non-GAAP Financial Information Included within this press release are the non-GAAP financial measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income as a percent of revenue, adjusted diluted net income per share and free cash flow that supplement the condensed financial statements of the Company prepared under generally accepted accounting principles (GAAP). The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents. Adjusted EBITDA is earnings before interest income, net, provision for income taxes, and depreciation and amortization, and excludes stock-based compensation, change in fair value of derivative, loss on debt extinguishment, restructuring charges, and other (income) expense, net. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percent of revenue. Adjusted net income excludes stock-based compensation, loss on debt extinguishment, change in fair value of derivative, restructuring charges, and the related income tax effects. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments). Adjusted diluted net income per share is calculated as adjusted net income divided by diluted weighted average common shares outstanding. Free cash flow is defined as cash provided by operating activities, less additions to property and equipment and capitalization of software development costs. The Company's management believes that these non-GAAP measures can assist investors in evaluating the Company's operational trends, financial performance, and cash-generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures versus their nearest GAAP equivalents. The Company’s definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. These non-GAAP measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, but are included solely for informational and comparative purposes. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. In light of these limitations, management also reviews the specific items that are excluded from our non-GAAP measures, as well as trends in these items. Third Quarter 2025 Financial Results Webcast and Conference Call Details When: Wednesday, November 12, 2025 at 2:30 p.m. MT/ 4:30 p.m. ET Webcast: ir.ibotta.com Key Business Terms and Notes Ibotta Performance Network (IPN): An AI-enabled technology platform that allows CPG brands to deliver digital promotions to consumers via a network of publishers, in a coordinated fashion and on a fee-per-sale basis. Redeemers: A consumer who has redeemed at least one digital offer within the time period specified. If a consumer were to redeem on more than one publisher during that period, they would be counted as multiple redeemers. Year-to-date redeemers are calculated as the average of current year quarter-to-date redeemers. Redemptions: A verified purchase of an item qualifying for an offer by a client on the IPN. Redemption Revenue: The Company’s customers promote their products and services to consumers through cash back offers on the IPN. The Company earns a fee per redemption which is recognized in the period in which the redemption occurred. The Company may also charge fees to set up a redemption campaign which are deferred and recognized over the average duration of historical redemption campaigns. About Ibotta ("I bought a...") Ibotta (NYSE: IBTA) is a leading provider of digital promotions for CPG brands, reaching over 200 million consumers through a network of publishers called the Ibotta Performance Network (IPN). The IPN allows marketers to influence what people buy, and where and how often they shop – all while paying only when their campaigns directly result in a sale. American shoppers have earned over $2.6 billion through the IPN since 2012. The largest tech IPO in history to come out of Colorado, Ibotta is headquartered in Denver, and is continually listed as a top place to work by The Denver Post and Inc. Magazine. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements relating to expectations concerning matters that are not historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, statements by our CEO and Founder about our ability to transition our product and go-to-market, the impact of our new products, like LiveLift, the timing and availability of Circana lift studies for Ibotta campaigns, and the Company’s financial guidance, such as revenue and adjusted EBITDA. When words such as “believe,” “expect,” “anticipate,” “will”, “outlook” or similar expressions are used, the Company is making forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give readers any assurance that such expectations will prove correct. These forward-looking statements involve risks, uncertainties and assumptions, including those related to the Company’s relatively limited operating history, which makes it difficult to evaluate the Company’s business and prospects, the demands and expectations of clients and the ability to attract and retain clients. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company. These and other factors are disclosed in the Company’s reports filed from time to time with the Securities and Exchange Commission, available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof, except as required by law. Ibotta, Inc. CONDENSED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Revenue $ 83,260 $ 98,621 $ 253,863 $ 268,874 Cost of revenue(1) 17,142 12,172 52,159 34,970 Gross profit 66,118 86,449 201,704 233,904 Operating expenses(1): Sales and marketing(2) 26,629 27,761 85,296 105,908 Research and development 14,022 16,285 46,836 47,452 General and administrative 22,465 20,631 66,115 62,493 Depreciation and amortization 636 1,065 2,656 3,096 Total operating expenses 63,752 65,742 200,903 218,949 Income from operations 2,366 20,707 801 14,955 Interest income, net 2,510 4,436 8,831 5,303 Loss on debt extinguishment — — — (9,630) Other income (expense), net 376 (16) (29) (3,132) Income before provision for income taxes 5,252 25,127 9,603 7,496 Provision for income taxes (3,719) (7,888) (5,025) (14,926) Net income (loss) $ 1,533 $ 17,239 $ 4,578 $ (7,430) Net income (loss) per share: Basic $ 0.05 $ 0.56 $ 0.16 $ (0.34) Diluted $ 0.05 $ 0.51 $ 0.15 $ (0.34) Weighted average common shares outstanding: Basic 27,995,708 30,663,263 29,074,842 21,909,949 Diluted 29,376,837 33,567,489 30,999,527 21,909,949 (1)Amounts include stock-based compensation expense as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Cost of revenue $ 622 $ 476 $ 1,904 $ 999 Sales and marketing(2) 4,133 4,347 14,135 34,777 Research and development 2,381 2,447 8,028 7,036 General and administrative 5,486 6,405 15,949 20,525 Total stock-based compensation expense $ 12,622 $ 13,675 $ 40,016 $ 63,337 (2)Stock-based compensation expense included in sales and marketing includes common stock warrant expense of $2.3 million and $2.2 million recognized during the three months ended September 30, 2025 and 2024, respectively, and $6.6 million and $27.1 million recognized during the nine months ended September 30, 2025 and 2024, respectively. Ibotta, Inc. CONDENSED BALANCE SHEETS (In thousands) September 30, December 31, 2025 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 223,296 $ 349,282 Restricted cash 58 408 Accounts receivable, net 212,822 220,883 Prepaid expenses and other current assets 19,284 11,168 Total current assets 455,460 581,741 Property and equipment, net 19,578 1,951 Capitalized software development costs, net 22,364 16,201 Equity investment 4,531 4,531 Deferred tax assets, net 56,498 73,211 Operating lease assets 10,041 — Other long-term assets 962 794 Total assets $ 569,434 $ 678,429 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 15,311 $ 7,160 Due to third-party publishers 98,701 93,982 Deferred revenue 4,690 4,964 User redemption liability 69,555 74,006 Accrued expenses 16,724 17,965 Other current liabilities 1,545 6,088 Total current liabilities 206,526 204,165 Long-term liabilities: Operating lease liabilities, long-term 25,342 — Unrecognized tax benefits, long-term 7,957 16,981 Total liabilities 239,825 221,146 Stockholders’ equity: Preferred stock — — Class A common stock — — Class B common stock — — Additional paid-in capital 677,505 629,050 Treasury stock (212,028) (31,321) Accumulated deficit (135,868) (140,446) Total stockholders' equity 329,609 457,283 Total liabilities and stockholders' equity $ 569,434 $ 678,429 Ibotta, Inc. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Nine months ended September 30, 2025 2024 Operating activities Net income (loss) $ 4,578 $ (7,430) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 5,853 6,160 Impairment of capitalized software development costs 256 437 Stock-based compensation expense 33,462 36,253 Common stock warrant expense 6,554 27,084 Credit loss expense 1,916 1,217 Loss on extinguishment of debt — 9,630 Amortization of debt discount and issuance costs 114 1,036 Change in fair value of convertible notes derivative liability — 3,085 Other 14 36 Changes in assets and liabilities: Accounts receivable 6,145 (2,561) Other current and long-term assets (1,723) (977) Accounts payable 1,468 188 Due to third-party publishers 4,719 23,182 Accrued expenses (3,034) (5,926) Deferred revenue (274) 2,128 User redemption liability (4,451) (4,499) Other current and long-term liabilities 11,872 4,887 Net cash provided by operating activities 67,469 93,930 Investing activities Additions to property and equipment (12,768) (655) Additions to capitalized software development costs (10,360) (7,001) Net cash used in investing activities (23,128) (7,656) Financing activities Proceeds from exercise of stock options 8,312 7,649 Debt issuance costs (2) — Proceeds from initial public offering, net — 206,692 Deferred offering costs — (5,972) Purchase of treasury stock (178,180) (15,611) Taxes paid related to net share settlement of equity awards (2,843) (246) Proceeds from employee stock purchase plan 2,036 — Other financing activities — (103) Net cash (used in) provided by financing activities (170,677) 192,409 Net change in cash, cash equivalents, and restricted cash (126,336) 278,683 Cash, cash equivalents, and restricted cash, beginning of period 349,690 62,591 Cash, cash equivalents, and restricted cash, end of period $ 223,354 $ 341,274 The following table disaggregates the Company’s direct-to-consumer and third-party publishers revenue by redemption and ad & other revenue: Supplemental Revenue Detail Three months ended September 30, % Change Nine months ended September 30, % Change 2025 2024 2025 2024 (in thousands, except percentages) Direct-to-consumer revenue Redemption revenue $ 22,811 $ 33,144 (31) % $ 72,635 $ 98,426 (26) % Ad & other revenue 11,179 14,136 (21) % 35,175 42,449 (17) % Total direct-to-consumer revenue 33,990 47,280 (28) % 107,810 140,875 (23) % Third-party publishers revenue Redemption revenue 49,270 51,341 (4) % 146,053 127,999 14 % Ad & other revenue — — — % — — — % Total third-party publishers revenue 49,270 51,341 (4) % 146,053 127,999 14 % Total Redemption revenue 72,081 84,485 (15) % 218,688 226,425 (3) % Ad & other revenue 11,179 14,136 (21) % 35,175 42,449 (17) % Total revenue $ 83,260 $ 98,621 (16) % $ 253,863 $ 268,874 (6) % Non-GAAP Financial Metrics (In thousands, except shares, per share amounts, and percentages) The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release: Reconciliation of Adjusted EBITDA Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Net income (loss) $ 1,533 $ 17,239 $ 4,578 $ (7,430) Add (deduct): Interest income, net (2,510) (4,436) (8,831) (5,303) Depreciation and amortization 1,243 2,137 5,853 6,160 Stock-based compensation 12,622 13,675 40,016 63,337 Change in fair value of derivative — — — 3,085 Loss on debt extinguishment — — — 9,630 Restructuring charges 380 — 2,496 — Provision for income taxes 3,719 7,888 5,025 14,926 Other (income) expense, net (376) 16 29 47 Adjusted EBITDA $ 16,611 $ 36,519 $ 49,166 $ 84,452 Revenue $ 83,260 $ 98,621 $ 253,863 $ 268,874 Net income as a percent of revenue 2 % 17 % 2 % (3) % Adjusted EBITDA margin 20 % 37 % 19 % 31 % Reconciliation of Adjusted Net Income Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Net income (loss) $ 1,533 $ 17,239 $ 4,578 $ (7,430) Stock-based compensation 12,622 13,675 40,016 63,337 Change in fair value of derivative — — — 3,085 Loss on debt extinguishment — — — 9,630 Restructuring charges 380 — 2,496 — Adjustment for income taxes 1,810 495 (3,744) (1,956) Adjusted net income $ 16,345 $ 31,409 $ 43,346 $ 66,666 Revenue $ 83,260 $ 98,621 $ 253,863 $ 268,874 Adjusted net income as a percent of revenue 20 % 32 % 17 % 25 % Weighted average common shares outstanding, diluted 29,376,837 33,567,489 30,999,527 21,909,949 Net income (loss) per share, diluted $ 0.05 $ 0.51 $ 0.15 $ (0.34) Adjusted weighted average common shares outstanding, diluted 29,376,837 33,567,489 30,999,527 24,598,956 Adjusted net income per share, diluted $ 0.56 $ 0.94 $ 1.40 $ 2.71 Non-GAAP Financial Metrics (In thousands, except shares, per share amounts, and percentages) Reconciliation of Free Cash Flow Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 21,754 $ 39,544 $ 67,469 $ 93,930 Additions to property and equipment (7,248) (302) (12,768) (655) Additions to capitalized software development costs (3,912) (2,565) (10,360) (7,001) Free cash flow $ 10,594 $ 36,677 $ 44,341 $ 86,274 Contact Corporate Communications Hilary O’Byrne, hilary.obyrne@ibotta.com Investor Relations Shalin Patel, shalin.patel@ibotta.com