Ibotta (IBTA) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue and Adjusted EBITDA exceeded guidance, despite a 10% year-over-year revenue decline; full-year 2025 revenue was $342.4M, down 7% year-over-year.

• Outperformance was driven by improved sales execution, a strengthened core product, and expansion of Live Lift capabilities, with significant investments in product innovation and strategic partnerships (Circana, ABCS Insights).

• DoorDash and Instacart integrations drove redeemer growth, with total redeemers up 24% year-over-year.

• The company is guiding to Q1 2026 results above previous expectations, reflecting continued momentum.

• Strategic focus includes moving CPG clients toward outcomes-driven, AI-enabled resource allocation and away from traditional annual planning.

Financial highlights

• Q4 2025 revenue was $88.5M, down 10% year-over-year; full-year revenue was $342.4M, down 7%.

• Q4 Adjusted EBITDA was $13.7M (15% margin); full-year Adjusted EBITDA was $62.9M (18% margin).

• Q4 net loss was $1.0M; full-year net income was $3.6M.

• Q4 free cash flow was $16.6M; full-year free cash flow was $61.0M.

• Ended Q4 with $186.6M in cash and cash equivalents.

Outlook and guidance

• Q1 2026 revenue expected between $78M–$82M, a 5% year-over-year decline at midpoint.

• Q1 2026 Adjusted EBITDA expected between $6M–$8M (9% margin at midpoint).

• Sequential low single-digit revenue growth anticipated in Q2, with slight year-over-year growth in Q3.

• Free cash flow for 2026 expected to be approximately 65% of Adjusted EBITDA.

• Ad and other revenues expected to remain under pressure, while redemption revenue should drive improvement.