Ibotta, Inc. (IBTA) reported fourth‑quarter 2025 revenue of $88.5 million, a 10% year‑over‑year decline, and adjusted EBITDA of $13.7 million, down 51% from the same period last year. Full‑year 2025 revenue fell 7% to $342.4 million, while adjusted EBITDA for the year was $62.9 million, a 44% decrease from $112.2 million in 2024. Net income for the year was $3.6 million, a 95% drop from $68.7 million in 2024. The company’s quarterly EPS of $0.29 (non‑GAAP) fell short of the analyst estimate of $0.99, a miss of 70.7%.
The revenue decline was driven by a 5% drop in redemption revenue, which fell to $78.5 million, and a 4% decline in total revenue. The shift from a direct‑to‑consumer model to a third‑party publisher‑based model has altered the economics of Ibotta’s business, reducing gross‑profit margins from 85% to 80% year‑over‑year and increasing cost of revenue as publisher‑related and technology expenses rise. Operating expenses as a percentage of revenue also expanded, reflecting ongoing investments in product development and marketing. These cost pressures contributed to the 51% year‑over‑year decline in quarterly adjusted EBITDA and the 44% decline in full‑year adjusted EBITDA.
Management highlighted that the company beat its own revenue and adjusted EBITDA guidance for the quarter, reporting figures 7% and 31% above the midpoint of the guidance range set in the third‑quarter earnings call. The company also raised its Q1 2026 revenue guidance to $78 million–$82 million, a 5% year‑over‑year decline at the midpoint, and maintained an adjusted EBITDA guidance of $7 million at the midpoint, signaling confidence in its ability to sustain profitability despite near‑term margin compression.
"2025 was a year of significant investment and transformation for Ibotta." "We made meaningful improvements to our core product and launched LiveLift™, an enhanced set of capabilities that we believe points to the future of promotions in the CPG industry." "We announced strategic partnerships with Circana and ABCS Insights to provide third‑party sales lift measurement to digital promotions, added DoorDash to the Ibotta Performance Network, and enhanced our Executive team through the addition of Matt Puckett as Chief Financial Officer and Chris Riedy as Chief Revenue Officer." "We are pleased to report fourth quarter revenue and adjusted EBITDA that are both above the top end of the guidance range we provided on our third quarter earnings call. This represents an improvement in year‑over‑year revenue trends when compared to the third quarter." "We delivered revenue and adjusted EBITDA that were respectively, 7% and 31% above the midpoint of the guidance range we provided on our third quarter earnings call." "We currently expect revenue in the range of $78 million to $82 million, representing a 5% year‑over‑year decline at the midpoint."
Investors reacted positively to the earnings release, focusing on the revenue beat against analyst expectations and the stronger‑than‑anticipated Q1 2026 revenue guidance. The market’s response reflected confidence in Ibotta’s strategic transformation, including the launch of LiveLift and new third‑party partnerships, while acknowledging the ongoing margin compression and revenue decline.
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