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]