Financial & Operational Highlights 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 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 quarter6 Q2 2025 Operational & Business Highlights 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 include8: - 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 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 predicted9 Consolidated Financial Statements 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 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 expenses21 Condensed Balance Sheets 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 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 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 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 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 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) basis1518 - Key terms defined1617: - 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
Ibotta, Inc.(IBTA) - 2025 Q2 - Quarterly Results