Financial Performance - Revenue for Q3 2025 was $83.26 million, a decrease of 15.5% compared to $98.62 million in Q3 2024[18] - Gross profit for Q3 2025 was $66.12 million, down 23.4% from $86.45 million in Q3 2024[18] - Net income for Q3 2025 was $1.53 million, a significant decline from $17.24 million in Q3 2024[18] - Operating expenses for Q3 2025 were $63.75 million, slightly lower than $65.74 million in Q3 2024, indicating a reduction of 3.0%[18] - The company reported a basic net income per share of $0.05 for Q3 2025, down from $0.56 in Q3 2024[18] - Adjusted EBITDA for the three months ended September 30, 2025, was $16.6 million, down 54.5% from $36.5 million in the same period of 2024, with an adjusted EBITDA margin of 20%[134] - Net income for the three months ended September 30, 2025, was $1.5 million, a significant decrease from $17.2 million in the same period of 2024, resulting in a net income margin of 2%[134] - Total revenue for the three months ended September 30, 2025, was $83.26 million, a decrease of 15.6% compared to $98.62 million for the same period in 2024[100] Assets and Liabilities - Total current assets decreased to $455.46 million as of September 30, 2025, down 21.6% from $581.74 million at the end of 2024[16] - Total liabilities increased to $239.83 million as of September 30, 2025, compared to $221.15 million at the end of 2024, reflecting a rise of 8.5%[16] - Cash and cash equivalents decreased to $223.30 million as of September 30, 2025, down 36.1% from $349.28 million at the end of 2024[16] - Total stockholders' equity decreased to $329.61 million as of September 30, 2025, down 28.0% from $457.28 million at the end of 2024[16] - The company had $223.3 million in cash and cash equivalents and $99.0 million available under a revolving line of credit as of September 30, 2025[211] Revenue Breakdown - Redemption revenue for the nine months ended September 30, 2025, was $218.69 million, down from $226.43 million in 2024, reflecting a decline of 3.3%[100] - Total redemption revenue decreased by $12,404,000 or 15% during the three months ended September 30, 2025, compared to the same period in 2024, due to a decrease in the quantity and quality of offers available[186] - Direct-to-consumer revenue decreased by $33,065,000 or 23% during the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a $25,791,000 decrease in redemption revenue[198] Expenses - Total stock-based compensation expense for the nine months ended September 30, 2025, was $40.02 million, down from $63.34 million in 2024, a decrease of 36.8%[103] - General and administrative expenses increased by $3.6 million, or 6%, to $62.5 million for the nine months ended September 30, 2025, compared to $66.1 million in 2024, largely due to higher professional fees and facilities costs[203] - Research and development expenses decreased by $0.6 million, or 1%, to $46.8 million for the nine months ended September 30, 2025, compared to $47.5 million in 2024, due to lower personnel-related costs and software licensing costs[202] Cash Flow and Investments - Operating cash flow for the nine months ended September 30, 2025, was $67,469,000, down from $93,930,000 in the prior year[28] - The company incurred a net cash used in investing activities of $23,128,000 for the nine months ended September 30, 2025, compared to $7,656,000 in 2024[28] - The company has future minimum purchase commitments totaling $157.0 million as of September 30, 2025, with significant obligations extending into 2029[126] Stock and Shareholder Information - The Company repurchased 1,448,325 shares of Class A common stock for $39.1 million during the three months ended September 30, 2025[97] - As of September 30, 2025, $89.9 million remains available for repurchase under the Share Repurchase Program, which has a total authorization of $300 million[99] - Proceeds from the exercise of stock options amounted to $8,312,000 for the nine months ended September 30, 2025, compared to $7,649,000 in 2024[28] Legal and Regulatory Matters - The company is involved in ongoing legal proceedings, including a consolidated securities class action complaint filed against it and certain officers, which may have a material impact on its financial position[127] - The company expects to lose its emerging growth company status on December 31, 2025[37] Future Outlook - The company believes existing liquidity and cash flows will be sufficient to meet projected operating and capital requirements for at least the next 12 months[212] - Future cash requirements will depend on growth pace, R&D spending, and market acceptance of the platform, which may necessitate seeking additional financing[213]
Ibotta, Inc.(IBTA) - 2025 Q3 - Quarterly Report