Ibotta 2025 Q2 Earnings Profitable Turnaround with 107.3% Net Income Surge

Ibotta reported its 2025 Q2 earnings on August 13, 2025, showcasing a return to profitability after a significant net loss in the prior year. The results included a substantial improvement in net income and EPS, despite a modest revenue decline.

Ibotta’s Q2 2025 earnings demonstrated a strong turnaround with a net income surge of 107.3% year-over-year and a return to positive earnings per share, though revenue declined slightly. The company issued revenue guidance below previous performance levels, reflecting ongoing transformational challenges.

Revenue
Ibotta’s total revenue for Q2 2025 stood at $86.03 million, a 2.2% decrease from $87.93 million in the same period in 2024. Redemption revenue accounted for the lion’s share at $73.21 million, with ad and other revenue contributing an additional $12.82 million. The decline was attributed to administrative delays with clients and internal reorganization impacts.

Earnings/Net Income
Ibotta returned to profitability with an EPS of $0.09 in Q2 2025, a dramatic turnaround from a $1.32 loss per share in Q2 2024. The company reported a net income of $2.49 million in the latest quarter, representing a remarkable 107.3% improvement from a $33.97 million net loss in the prior year. This represents a strong earnings rebound for the company.

Price Action
The stock price of Ibotta edged up 1.68% during the latest trading day but faced downward pressure in the broader time frame, dropping 6.31% during the most recent full trading week and tumbling 9.10% month-to-date.

Post Earnings Price Action Review
A strategy of buying Ibotta shares after a quarterly revenue increase and holding for 30 days has historically underperformed, delivering a -53.92% return over the past three years compared to a 25.22% benchmark return. The strategy’s negative Sharpe ratio of -0.66 and a maximum drawdown of 0.00% highlight its poor risk-adjusted performance.

CEO Commentary
CEO Bryan W. Leach acknowledged the Q2 results fell below guidance due to short-term challenges related to the company’s transformation. He emphasized the strategic shift to position Ibotta as a performance marketing leader in the CPG sector. Despite disruptions from sales reorganization and administrative delays, Leach expressed optimism due to strong client engagement, six new pilots, and improved collaboration with key partners like Walmart.

Guidance
Interim CFO Valarie L. Sheppard guided to Q3 2025 revenue of $79 million to $84 million and adjusted EBITDA of $9.5 million to $13.5 million. These figures reflect year-over-year declines linked to transformational challenges, including delayed client campaigns and internal reorganization. Operating expenses are expected to rise sequentially in Q4 due to sales investments and seasonal marketing, while cash taxes remain expected to be minimal for the year.

Additional News
Nigeria’s telecom regulator called for public support in protecting telecom infrastructure as service disruptions pose risks to national security and the economy. Bitcoin hit a record high above $124,000 amid favorable U.S. legislation and rising equities. The Federal Government announced a seven-year moratorium on new federal universities and colleges, citing under-utilization of existing institutions. The Independent National Electoral Commission deployed 7,726 BVAS machines across 12 states ahead of by-elections on August 16, 2025.