Ibotta Reports Third Quarter 2025 Financial Results
DENVER--( 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:
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:
Financial Guidance:
Fourth quarter 2025 outlook summary:
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
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
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
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