Ibotta, Inc. reported a decline in financial performance for the third quarter of 2025, with total revenue of $83.3 million, down 16% from $98.6 million in the same period last year. The company's net income also fell to $1.5 million, compared to $17.2 million in Q3 2024. For the nine months ending September 30, 2025, revenue totaled $253.9 million, a decrease of 6% from $268.9 million in the prior year, while net income for the same period was $4.6 million, a significant improvement from a net loss of $7.4 million in 2024.
The decrease in revenue was attributed to a decline in both redemption and advertising revenue. Redemption revenue dropped by 15% to $72.1 million, primarily due to a reduction in the quantity and quality of offers available to consumers. Advertising revenue also fell by 21% to $11.2 million, reflecting reduced client spending on digital ad products. The company’s cost of revenue increased by 41% to $17.1 million, driven by the addition of new third-party publishers, which contributed to a gross profit of $66.1 million, down from $86.4 million a year earlier.
Ibotta's operational metrics showed a mixed performance. The total number of redemptions decreased to 82.8 million in Q3 2025 from 97.4 million in Q3 2024, while the number of redeemers increased to 18.2 million from 15.3 million in the same period. The average redemptions per redeemer fell to 4.6 from 6.4, indicating a decline in consumer engagement. The company also reported a significant increase in its employee headcount, reflecting ongoing investments in technology and marketing.
Strategically, Ibotta has been focusing on expanding its partnerships, including new collaborations with Instacart and DoorDash, which were launched in early 2025. The company continues to invest in its technology platform and has initiated a share repurchase program, authorizing up to $300 million in stock buybacks. As of September 30, 2025, Ibotta had $223.3 million in cash and cash equivalents, along with $99 million available under its credit facility, providing a solid liquidity position to support its growth initiatives.
Looking ahead, Ibotta anticipates challenges due to macroeconomic conditions, including inflation and consumer spending patterns, which may impact promotional budgets and client spending. The company remains focused on enhancing its platform capabilities and expanding its market share while managing costs effectively. Ibotta's management expressed optimism about future growth, contingent on the successful execution of its strategic initiatives and the overall economic environment.
About Ibotta, Inc.
Ibotta, Inc. operates a digital platform that delivers targeted promotions and cash-back rewards to consumers through a network of retailers, brands, and publishers. Its AI-enabled technology tracks purchase data, optimizes offer distribution, and measures campaign performance. Serving primarily CPG brands and retailers, Ibotta's business model is success-based, focusing on increasing consumer engagement, offer redemptions, and data-driven marketing solutions.
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