Ibotta, Inc. (NYSE: IBTA) announced its second-quarter 2025 financial results, revealing a mixed performance. The company experienced a modest 2% year-over-year decrease in total revenue, reaching $86 million. Redemption revenue also saw a slight dip, falling 1% to $73.2 million.
Despite the revenue decline, Ibotta reported a net income of $2.5 million, representing a 3% net income margin. Adjusted EBITDA reached $17.9 million, indicating a 21% margin. The company generated robust cash flow from operating activities, totaling $25.9 million, and free cash flow of $18.9 million.
Bryan Leach, Ibotta‘s CEO and founder, commented on the company’s strategic direction. He highlighted efforts to position Ibotta as a key player in performance marketing within the consumer packaged goods (CPG) industry. Leach emphasized a shift in how promotions are measured and purchased, aiming for a model resembling other digital media. This, he explained, would help Ibotta capture a larger share of the CPG marketing market. He also announced the appointment of Matt Puckett as the new Chief Financial Officer.
The second quarter saw an increase in the number of redeemers on the Ibotta Performance Network (IPN), rising 27% year-over-year to 17.3 million. This growth was attributed to factors including the launch of Instacart and DoorDash partnerships, and organic growth among existing publishers. Third-party publisher redemptions also increased by 12%, reaching 58.6 million.
Ibotta repurchased 1.4 million shares during the quarter for a total of $67.5 million.
Looking ahead, the company provided its outlook for the third quarter of 2025. Ibotta projected revenue in the range of $79 million to $84 million, a year-over-year decrease of 17% at the midpoint. Adjusted EBITDA is expected to be between $9.5 million and $13.5 million, representing a 14% margin at the midpoint. The company clarified that its adjusted EBITDA guidance excludes certain non-GAAP items.
The company’s financial statements included several non-GAAP financial measures, which were reconciled to their nearest GAAP equivalents. These non-GAAP measures, including adjusted EBITDA and adjusted net income, were presented to provide investors with additional insights into the company’s operational performance.
Ibotta operates the largest item-level digital promotions network in North America, connecting CPG brands with over 200 million consumers through its IPN. The company’s platform allows marketers to track sales directly resulting from their campaigns, offering a performance-based approach to advertising.
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