Ibotta 2025 Q3 Earnings Sharp Revenue Drop and Net Income Decline by 91.1%

Ibotta (IBTA) reported mixed third-quarter results, with revenue beating estimates but net income and EPS declining sharply. The company guided Q4 revenue to $80–85 million, a 16% year-over-year decline at the midpoint, reflecting ongoing macroeconomic headwinds and cautious client spending.

Revenue

Redemption revenue led the total revenue of $83.26 million, accounting for $72.08 million, while ad and other revenue added $11.18 million. This marked a 15.6% year-over-year decline, driven by reduced redemption activity and shifting client priorities.

Earnings/Net Income

Ibotta’s EPS plummeted 91.1% to $0.05, and net income fell to $1.53 million from $17.24 million in 2024 Q3. The sharp decline in EPS and net income underscores the challenges faced by Ibotta in maintaining profitability amid declining revenue.

Price Action

Following the earnings report, Ibotta’s stock experienced a 7.27% increase in the latest trading day but faced a 5.85% decline over the subsequent week. The month-to-date, the stock has tumbled by 14.43%, reflecting mixed investor sentiment and uncertainty about the company’s future performance.

CEO Commentary

CEO Bryan Leach emphasized progress in transforming Ibotta into a full-service performance marketing platform for CPG brands. He highlighted the launch of LiveLift, a real-time campaign measurement tool, and partnerships with Circana for third-party lift studies. Leach noted positive client feedback on these innovations and confidence in scaling adoption despite macroeconomic challenges.

Guidance

For Q4 2025, Ibotta expects revenue of $80–85 million (16% year-over-year decline at the midpoint) and adjusted EBITDA of $9–12 million (13% margin at the midpoint). Management acknowledged that LiveLift adoption will take time to drive top-line growth, with 2026 expected to show improved seasonal patterns.

Additional News

1. Strategic Partnerships: Ibotta announced a major collaboration with Circana for independent lift studies, enhancing its measurement credibility for CPG clients.

2. LiveLift Launch: The company rolled out LiveLift, a new solution to measure incremental sales during campaigns, with 83% of pilot clients re-upping for further investments.

3. Share Repurchases: Ibotta repurchased $38.7 million in shares at an average price of $26.73, signaling confidence in its long-term value despite near-term challenges.

Key Risks and Outlook

Management highlighted macroeconomic pressures, including low consumer sentiment and disrupted SNAP benefits, as ongoing challenges. While LiveLift and third-party measurement tools aim to rebuild client trust, execution risks remain as clients test and integrate these solutions. The company remains focused on long-term growth through automation, partnerships, and operational efficiency.