Core Insights - Ibotta's CEO, Bryan Leach, is recognized for his transition from the legal industry to entrepreneurship, focusing on evolving the promotions industry [2]. Group 1 - Ronald Josey, MD and Co-Head of Tech & Communications at Citi, introduces the session and highlights the significance of Ibotta in the Internet sector [1]. - The discussion aims to explore insights from Bryan Leach regarding the evolution of the promotions industry [2].

Ibotta (IBTA) 2025 Conference September 04, 2025 10:50 AM ET Speaker0Thanks for doingSpeaker1this. It's nice to see you.Speaker0I always look forward to your to your your smiling visage on the on the calls. You're a good support, Ron.Speaker1That's you know, there's there's a lot going on, so I'm glad you're here.Speaker0There's a lot. There's a lot to talk about. Where am I looking for the broadcast?Speaker1Is there a broadcast? No. It's just It's just audio. Oh, it's just audio.Speaker0Just audio. Great. ...

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims against Ibotta, Inc. officers and directors for possible breaches of fiduciary duties owed to the company [1] Group 1: Legal Investigation - The investigation focuses on Ibotta, Inc. shareholders who purchased shares around the April 18, 2024 IPO and still hold them [2] - A federal securities fraud class action complaint alleges that Ibotta's Registration Statement contained false or misleading statements, particularly regarding the risks associated with its contract with The Kroger Co. [2] - The complaint highlights that the Kroger contract was at-will, allowing termination without notice, which was not adequately disclosed to investors [2] Group 2: Shareholder Rights - Shareholders are encouraged to learn more about their legal rights and may be eligible for corporate reforms, return of funds, and court-approved incentive awards at no cost [3] - Johnson Fistel, PLLP is a recognized law firm representing investors in shareholder derivative and securities class action lawsuits [3]

Core Insights - Ibotta, Inc. (NYSE: IBTA) has shown a decline in business performance, indicating a shift from its previous high-growth status [1] Company Overview - Ibotta was previously recognized as a fast-growing company but recent earnings results suggest a downturn in its business trajectory [1] Investment Focus - The Cash Flow Club emphasizes investing in businesses with strong cash generation and significant durability, suggesting that timing is crucial for maximizing rewards [1]

分组1 - Ibotta reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.18 per share, compared to a loss of $1.32 per share a year ago, representing an earnings surprise of -55.56% [1] - The company posted revenues of $86.03 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.09%, and down from $87.93 million year-over-year [2] - Ibotta shares have lost about 49.5% since the beginning of the year, while the S&P 500 has gained 9.6% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $101.8 million, and $0.96 on revenues of $384.7 million for the current fiscal year [7] - The Zacks Industry Rank for Technology Services is currently in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - The company reported revenue of $86 million for Q2 2025, a decline of 2% year over year, and adjusted EBITDA of $17.9 million, representing an adjusted EBITDA margin of 21% [27][30] - Revenue was below the guidance range provided in the previous quarter, with adjusted EBITDA in the lower half of the range [6][25] - The company is guiding for Q3 revenue in the range of $79 million to $84 million, representing a 17% decline at the midpoint [32] Business Line Performance - Redemption revenue was $73.2 million, down 1% year over year, with third-party publisher redemption revenue increasing by 17% to $48.6 million, while DTC redemption revenue decreased by 24% to $24.7 million [27][30] - Total redeemers reached 17.3 million, up 27% year over year, indicating strong demand on the network [28] - Redemption revenue per redemption was $0.91, down 1% year over year, primarily due to a shift towards third-party redemptions [29] Market Performance - The company has seen growth in third-party redeemers, driven by partnerships with Instacart and DoorDash [28] - The company is working to increase awareness and adoption of digital manufacturer offers among in-store shoppers, particularly with Walmart [23][57] Company Strategy and Industry Competition - The company is undergoing a transformation to capture a larger share of the CPG marketing spend, moving towards a performance marketing model [7][9] - The strategy includes improving measurement and automation of promotions, which is expected to enhance client engagement and drive revenue growth [8][24] - The company is focused on building relationships with higher-level decision-makers within key clients to facilitate larger investments [9][40] Management Commentary on Operating Environment and Future Outlook - Management acknowledged short-term headwinds related to the transformation and the need for clients to find budgets for new pilots [10][14] - The macroeconomic environment is challenging, with some larger clients pausing promotional spending due to economic uncertainties [66] - Management remains optimistic about the long-term trajectory, citing positive reactions to new capabilities and ongoing discussions with clients [21][24] Other Important Information - The company ended the quarter with $250.5 million in cash and cash equivalents and repurchased approximately 1.4 million shares at an average price of $46.59 [31] - The company is investing heavily in R&D to enhance its technology and product offerings [71] Q&A Session Summary Question: Can you elaborate on the rollout of CPID and the results from the third-party data provider? - Management explained that the third-party data provider has shown statistically significant lifts in sales, indicating that Ibotta's conservative estimates may be understated [39] Question: What are the key pieces of strategy that need to be executed as you move into 2026? - Management identified three areas: consolidating sales execution benefits, broadening the go-to-market approach, and resolving product and tool challenges [46][48] Question: How is the supply side reacting to the current environment? - Management noted that some larger clients are taking a cautious approach to promotional spending due to economic conditions, but they are working to demonstrate the value of their platform [66][68] Question: What is the expected timeline for automated incrementality measurement? - Management indicated that while internal measurement tools are advanced, third-party measurement automation will take time to fully implement, with hopes to scale by 2026 [95][96]

Part I: [Financial Information](index=5&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) This section presents unaudited financial statements and management's analysis of financial condition and operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed financial statements for the quarterly period ended June 30, 2025. It includes the balance sheets, statements of operations, statements of stockholders' equity, and statements of cash flows, along with accompanying notes that provide detailed explanations of the company's accounting policies and financial data [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and stockholders' equity Condensed Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$600,778** | **$678,429** | | Cash and cash equivalents | $250,549 | $349,282 | | Accounts receivable, net | $208,976 | $220,883 | | **Total Liabilities** | **$246,650** | **$221,146** | | User redemption liability | $70,922 | $74,006 | | **Total Stockholders' Equity** | **$354,128** | **$457,283** | - Total assets decreased primarily due to a reduction in cash and cash equivalents, while total stockholders' equity declined significantly, driven by a large increase in treasury stock from **$31.3 million** to **$172.9 million** due to share repurchases[16](index=16&type=chunk) [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) This section presents the company's financial performance, including revenue, expenses, and net income or loss Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$86,029** | **$87,926** | **$170,603** | **$170,253** | | Gross Profit | $68,104 | $75,643 | $135,586 | $147,455 | | Income (Loss) from Operations | $1,238 | $(21,657) | $(1,565) | $(5,752) | | **Net Income (Loss)** | **$2,490** | **$(33,966)** | **$3,045** | **$(24,669)** | | Diluted EPS | $0.08 | $(1.32) | $0.10 | $(1.41) | - The company shifted from a significant net loss in Q2 and H1 2024 to a net income in the same periods of 2025, despite relatively flat revenue. This was primarily driven by a substantial reduction in operating expenses, particularly in Sales and Marketing[18](index=18&type=chunk) [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) This section details cash flows from operating, investing, and financing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,715 | $54,386 | | Net cash used in investing activities | $(11,968) | $(4,789) | | Net cash (used in) provided by financing activities | $(132,830) | $205,670 | | **Net change in cash** | **$(99,083)** | **$255,267** | - Financing activities resulted in a significant cash outflow of **$132.8 million** in H1 2025, mainly due to **$140.2 million** in treasury stock purchases. This contrasts sharply with H1 2024, which saw a **$205.7 million** cash inflow from the company's IPO[30](index=30&type=chunk) [Notes to the Condensed Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements%20%28Unaudited%29) This section provides detailed explanations of accounting policies, significant transactions, and financial data - The company's primary revenue source is fees from CPG brands when consumers redeem digital promotions through the Ibotta Performance Network (IPN)[34](index=34&type=chunk) - In April 2024, upon the IPO, the company's convertible notes automatically converted to Class A common stock, resulting in a **$9.6 million** loss on debt extinguishment[65](index=65&type=chunk) - A securities class action complaint was filed against the company on April 17, 2025, alleging false and misleading statements in the IPO registration statement. The company intends to defend the case vigorously[128](index=128&type=chunk)[130](index=130&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance and condition, focusing on key operational metrics, results of operations for the three and six months ended June 30, 2025 compared to 2024, and liquidity and capital resources. The analysis highlights a strategic shift with growth in third-party publisher revenue offsetting a decline in direct-to-consumer (D2C) revenue, and a significant use of cash for share repurchases [Financial and Operational Highlights](index=28&type=section&id=Financial%20and%20Operational%20Highlights) This section details Financial and Operational Highlights Key Metrics Comparison (in thousands, except per-unit data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Redemptions | 80,484 | 80,715 | 163,324 | 152,181 | | Redeemers | 17,336 | 13,702 | 17,213 | 13,095 | | Redemptions per redeemer | 4.6 | 5.9 | 9.5 | 11.6 | | Revenue | $86,029 | $87,926 | $170,603 | $170,253 | | Net Income (Loss) | $2,490 | $(33,966) | $3,045 | $(24,669) | | Adjusted EBITDA | $17,882 | $25,274 | $32,555 | $47,933 | - While total redeemers grew significantly year-over-year, redemptions per redeemer declined, indicating lower engagement per user. Adjusted EBITDA also saw a notable decrease in both the three and six-month periods[137](index=137&type=chunk) [Performance Metrics](index=29&type=section&id=Performance%20Metrics) This section details Performance Metrics - The company's growth is driven by its third-party publisher network, which saw redeemers increase from **11.9 million** to **15.7 million** in Q2 YoY[142](index=142&type=chunk)[152](index=152&type=chunk) - Conversely, the direct-to-consumer (D2C) segment experienced a decline, with D2C redeemers falling from **1.8 million** to **1.6 million** in Q2 YoY, attributed to the quantity and quality of available offers[142](index=142&type=chunk)[151](index=151&type=chunk) - Growth in third-party publisher redemptions was primarily driven by the launch of new partners, including Family Dollar, Instacart, and DoorDash[147](index=147&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section details Results of Operations Revenue Breakdown - Q2 2025 vs Q2 2024 (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total D2C Revenue | $37,441 | $46,275 | $(8,834) | (19)% | | Total Third-Party Publishers Revenue | $48,588 | $41,651 | $6,937 | 17% | | **Total Revenue** | **$86,029** | **$87,926** | **$(1,897)** | **(2)%** | - Sales and marketing expenses for Q2 2025 decreased by **$21.2 million** (42%) compared to Q2 2024, mainly due to a **$21.9 million** reduction in stock-based compensation expense, a significant portion of which was related to the Walmart Warrant[189](index=189&type=chunk) - Cost of revenue increased by **$5.6 million** (46%) in Q2 2025 compared to Q2 2024, primarily due to the addition of new third-party publishers[188](index=188&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section details Liquidity and Capital Resources - As of June 30, 2025, principal sources of liquidity were **$250.5 million** in cash and cash equivalents and **$99.0 million** available under a revolving credit facility[208](index=208&type=chunk) - The Board of Directors has authorized a Share Repurchase Program of up to **$300 million**. During the six months ended June 30, 2025, the company repurchased **$141.6 million** of its Class A common stock[214](index=214&type=chunk)[216](index=216&type=chunk) - The company has non-cancelable purchase obligations of **$148.2 million** and operating lease obligations of **$37.5 million** as of June 30, 2025[223](index=223&type=chunk)[224](index=224&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies its primary market risks as interest rate risk and inflation risk. Interest rate risk pertains to fluctuations on its cash holdings and potential future debt. Inflation risk could increase operating costs. Management states that neither of these risks has had a material effect on the business to date - The company is exposed to interest rate risk on its **$250.6 million** in cash, cash equivalents, and restricted cash, and on its floating-rate credit line, which had no outstanding balance as of June 30, 2025[231](index=231&type=chunk)[232](index=232&type=chunk) - Management does not believe that inflation has had a material effect on the business, but acknowledges that significant inflationary pressures on costs could harm the business if they cannot be offset[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and interim CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2025. There were no material changes to the company's internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[234](index=234&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[235](index=235&type=chunk) Part II: [Other Information](index=47&type=section&id=Part%20II%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity transactions, and other disclosures [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company reports it is a defendant in a consolidated putative securities class action lawsuit filed in April and May 2025. The complaints allege violations of the Securities Act and Exchange Act related to materially false and misleading statements in the company's IPO registration statement and subsequent public statements. The company intends to defend the case vigorously but cannot estimate a range of potential loss - Two putative securities class action complaints were filed against the company, its officers, directors, and IPO underwriters in April and May 2025, which have since been consolidated[239](index=239&type=chunk) - The lawsuits allege materially false and misleading statements in the IPO registration statement regarding risks, data measurement tools, the D2C platform, and client budgets. The company intends to defend itself vigorously[239](index=239&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks that could adversely affect the company's business, financial condition, and stock price. Key risks highlighted include a history of net losses, dependence on key publishers (like Walmart) and CPG brands, potential failure to sustain revenue growth, intense competition, macroeconomic pressures, and risks associated with the dual-class stock structure which concentrates voting power with the CEO - The company has a history of net losses and an accumulated deficit of **$137.4 million** as of June 30, 2025, with an expectation of increasing future expenses[244](index=244&type=chunk) - A substantial portion of the company's white-label redemptions originate from its relationship with Walmart. The termination or non-renewal of the Walmart Program Agreement could materially and adversely affect the business[252](index=252&type=chunk) - The dual-class stock structure concentrates approximately **71.4%** of the voting power with Founder and CEO Bryan Leach as of June 30, 2025, allowing him to control stockholder decisions[422](index=422&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=98&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Securities) This section provides details on the company's repurchases of its Class A common stock during the second quarter of 2025. The repurchases were made under a board-authorized Share Repurchase Program, which was increased to a total of $300 million Share Repurchase Activity - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,043,146 | $45.77 | | May 2025 | 345,227 | $48.56 | | June 2025 | 60,000 | $49.44 | | **Total** | **1,448,373** | **N/A** | - The total authorization under the Share Repurchase Program was increased to **$300 million** after the board approved an additional **$100 million** in both March and June 2025[455](index=455&type=chunk) [Item 5. Other Information](index=98&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by certain executive officers during the quarter. CEO Bryan Leach and Chief People Officer Marisa Daspit both established such plans in May 2025 to facilitate the sale of company stock - On May 19, 2025, CEO Bryan Leach and his family trusts adopted a Rule 10b5-1 trading plan for the sale of up to **281,532** shares of Class A common stock, plus additional shares related to vested RSUs[459](index=459&type=chunk) - On May 29, 2025, Chief People Officer Marisa Daspit adopted a Rule 10b5-1 trading plan for the sale of up to **51,625** shares of Class A common stock[461](index=461&type=chunk) [Other Items (Defaults, Mine Safety, Exhibits)](index=98&type=section&id=Other%20Items) This section covers standard reporting items including defaults, mine safety disclosures, and filed exhibits - The company reported no defaults upon senior securities and had no mine safety disclosures to report for the period[457](index=457&type=chunk)[458](index=458&type=chunk)

Financial Performance - Ibotta's Q2 2025 revenue was $86 million, which is 8% lower than the guidance midpoint of $89.5 million[15] - Adjusted EBITDA for Q2 2025 was $17.9 million, 4% lower than the guidance midpoint of $19.5 million[15] - Total revenue decreased by 2% year-over-year from $87.9 million in Q2 2024 to $86 million in Q2 2025[18] - Adjusted EBITDA declined by 8%, with the margin decreasing from 29% in Q2 2024 to 21% in Q2 2025[18] - Ibotta projects revenue between $79 million and $84 million for Q3 2025, a 17% year-over-year decline at the midpoint[48] - Adjusted EBITDA for Q3 2025 is projected to be between $9.5 million and $13.5 million, with a 14% margin at the midpoint[48] Revenue Breakdown and Key Drivers - Redemption revenue constitutes 85% of Ibotta's total revenue in Q2 2025[22] - Ad & other revenue makes up the remaining portion of Ibotta's revenue[23] - Redemption revenue decreased by 1% year-over-year[33] - Direct-to-consumer (D2C) redemption revenue decreased by 24% year-over-year[41] - Third-party publisher (3PP) redemption revenue increased by 17% year-over-year[37]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Ibotta's Q2 2025 featured a 2% revenue decline, a net income turnaround, and robust IPN redeemer growth driven by third-party publishers [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Q2 2025 saw a 2% revenue decrease, a shift to $2.5 million net income, and a 29% Adjusted EBITDA decline, alongside significant share repurchases Q2 2025 Key Financial Metrics (YoY) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $86.0M | $87.9M | (2)% | | **Redemption Revenue** | $73.2M | $74.0M | (1)% | | **Net Income (Loss)** | $2.5M | ($34.0M) | 107% | | **Adjusted EBITDA** | $17.9M | $25.3M | (29)% | | **Adjusted EBITDA Margin** | 21% | 29% | - | | **Free Cash Flow** | $18.9M | $32.7M | (42)% | - The company repurchased **1.4 million shares** for a total of **$67.5 million** at an average price of **$46.59 per share** during the quarter[6](index=6&type=chunk) [Q2 2025 Operational & Business Highlights](index=1&type=section&id=Q2%202025%20Operational%20%26%20Business%20Highlights) IPN total redeemers grew 27% to 17.3 million, driven by third-party publishers, while direct-to-consumer redeemers declined, alongside DoorDash expansion Q2 2025 Key Performance Metrics (YoY) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Redeemers** | 17.3M | 13.7M | 27% | | - Direct-to-consumer | 1.6M | 1.8M | (11)% | | - Third-party publisher | 15.7M | 11.9M | 32% | | **Total Redemptions** | 80.5M | 80.7M | 0% | | - Direct-to-consumer | 21.9M | 28.6M | (23)% | | - Third-party publisher | 58.6M | 52.1M | 12% | - Key business developments in Q2 2025 include[8](index=8&type=chunk): - Ibotta digital offers became available to the majority of DoorDash customers - Strengthened the revenue leadership team with new hires for SVP of Enterprise Sales and SVP of Business Marketing - Implemented a sales re-organization to support the transition to performance marketing [Financial Guidance](index=4&type=section&id=Financial%20Guidance) Ibotta projects Q3 2025 revenue between $79.0 million and $84.0 million, a 17% YoY decrease at midpoint, with Adjusted EBITDA of $9.5 million to $13.5 million Third Quarter 2025 Outlook | Metric | Guidance Range | Midpoint YoY Change | | :--- | :--- | :--- | | **Revenue** | $79.0M - $84.0M | (17)% | | **Adjusted EBITDA** | $9.5M - $13.5M | - | | **Adjusted EBITDA Margin** | ~14% (at midpoint) | - | - Ibotta has not reconciled its Adjusted EBITDA guidance to GAAP net income because certain items, such as share-based compensation, are uncertain and cannot be reasonably predicted[9](index=9&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents Ibotta's unaudited condensed financial statements, including Statements of Operations, Balance Sheets, and Cash Flows, for Q2 2025 and year-to-date [Condensed Statements of Operations](index=8&type=section&id=Condensed%20Statements%20of%20Operations) Q2 2025 saw $86.0 million revenue, $68.1 million gross profit, and a shift to $1.2 million operating income, driven by reduced operating expenses Q2 2025 Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $86,029 | $87,926 | (2.2)% | | **Gross Profit** | $68,104 | $75,643 | (10.0)% | | **Total Operating Expenses** | $66,866 | $97,300 | (31.3)% | | **Income (Loss) from Operations** | $1,238 | ($21,657) | 105.7% | | **Net Income (Loss)** | $2,490 | ($33,966) | 107.3% | - Stock-based compensation expense decreased significantly to **$13.6 million** in Q2 2025 from **$44.8 million** in Q2 2024, contributing to lower operating expenses[21](index=21&type=chunk) [Condensed Balance Sheets](index=9&type=section&id=Condensed%20Balance%20Sheets) As of June 30, 2025, Ibotta's cash and equivalents decreased to $250.5 million, with total assets at $600.8 million and stockholders' equity at $354.1 million Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $250,549 | $349,282 | | **Total current assets** | $482,647 | $581,741 | | **Total assets** | $600,778 | $678,429 | | **Total current liabilities** | $204,033 | $204,165 | | **Total liabilities** | $246,650 | $221,146 | | **Total stockholders' equity** | $354,128 | $457,283 | [Condensed Statements of Cash Flows](index=10&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow was $45.7 million, with significant cash usage in financing activities, primarily for treasury stock purchases Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $45,715 | $54,386 | | **Net cash used in investing activities** | ($11,968) | ($4,789) | | **Net cash (used in) provided by financing activities** | ($132,830) | $205,670 | | **Net change in cash** | ($99,083) | $255,267 | [Supplemental Financial Information](index=11&type=section&id=Supplemental%20Financial%20Information) This section provides detailed revenue breakdowns by channel and reconciliations of GAAP to non-GAAP financial measures, highlighting a strategic shift towards third-party publishers [Supplemental Revenue Detail](index=11&type=section&id=Supplemental%20Revenue%20Detail) Q2 2025 saw third-party publisher revenue grow 17% to $48.6 million, offsetting a 19% decline in direct-to-consumer revenue, indicating a strategic shift Q2 Revenue by Channel (in thousands, YoY) | Revenue Source | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Direct-to-consumer** | $37,441 | $46,275 | (19)% | | **Third-party publishers** | $48,588 | $41,651 | 17% | | **Total Revenue** | $86,029 | $87,926 | (2)% | [Reconciliation of Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP net income to non-GAAP metrics, showing Q2 2025 Adjusted EBITDA of $17.9 million and Adjusted Net Income of $14.9 million Q2 Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income (loss)** | $2,490 | ($33,966) | | Stock-based compensation | $13,642 | $44,817 | | Other adjustments | $1,745 | $14,623 | | **Adjusted EBITDA** | $17,882 | $25,274 | Q2 Reconciliation of Adjusted Net Income (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income (loss)** | $2,490 | ($33,966) | | Stock-based compensation & other adjustments | $14,199 | $55,832 | | Adjustment for income taxes | ($1,797) | ($2,007) | | **Adjusted net income** | $14,892 | $19,859 | Q2 Reconciliation of Free Cash Flow (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $25,855 | $35,020 | | Additions to property & capitalized software | ($7,000) | ($2,322) | | **Free cash flow** | $18,855 | $32,698 | [About Ibotta & Key Definitions](index=6&type=section&id=About%20Ibotta%20%26%20Key%20Definitions) Ibotta operates the AI-powered Ibotta Performance Network (IPN) for CPG digital promotions, defining key terms like Redeemers, Redemptions, and Redemption Revenue - Ibotta's business is centered on its **Ibotta Performance Network (IPN)**, an AI-enabled platform for CPG brands to deliver digital promotions on a pay-for-performance (fee-per-sale) basis[15](index=15&type=chunk)[18](index=18&type=chunk) - Key terms defined[16](index=16&type=chunk)[17](index=17&type=chunk): - **Redeemers:** A consumer who has redeemed at least one digital offer in a period - **Redemptions:** A verified purchase of an item qualifying for an offer - **Redemption Revenue:** The fee earned per redemption

Core Viewpoint - A class action securities lawsuit has been filed against Ibotta, Inc. due to alleged securities fraud related to its initial public offering on April 18, 2024 [1][2]. Group 1: Lawsuit Details - The lawsuit aims to recover losses for investors who purchased Ibotta securities and were negatively impacted by the alleged fraud [2]. - The complaint alleges that Ibotta failed to disclose the risks associated with its contract with The Kroger Co., specifically that the contract was at-will, allowing Kroger to terminate it without notice [3]. - Ibotta provided detailed information about its contract with Walmart but did not mention the at-will nature of the Kroger contract, misleading investors about the stability of its client relationships [3]. Group 2: Next Steps for Investors - Investors who suffered losses in Ibotta have until June 16, 2025, to request to be appointed as lead plaintiff in the lawsuit [4]. - Participation in the lawsuit does not require any out-of-pocket costs for class members, and they may be entitled to compensation [4]. Group 3: Law Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [5]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [5].