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Investing.com -- Ibotta, Inc. (NYSE:IBTA), the operator of North America’s largest item-level digital promotions network, saw its shares plunge 16% in after-hours trading Wednesday after reporting third-quarter earnings that fell well short of analyst expectations and issuing disappointing guidance.
The company posted adjusted earnings per share of $0.56 for the third quarter, significantly below the analyst estimate of $0.77. Revenue came in at $83.3 million, representing a 16% YoY decline. The company’s fourth-quarter revenue guidance of $80-85 million also disappointed investors, with the midpoint falling below the consensus estimate of $84.3 million.
"We made significant strides in recent months to further strengthen our performance marketing platform," said Ibotta CEO and founder Bryan Leach, highlighting recent strategic partnerships and new product launches.
Despite the revenue decline, Ibotta reported 19% YoY growth in quarterly redeemers on its Ibotta Performance Network, reaching 18.2 million compared to 15.3 million in the same period last year. The company attributed this growth primarily to the launch of Instacart during the fourth quarter of 2024 and the expansion of offers to a majority of DoorDash customers in the second quarter of 2025.
The company generated net income of $1.5 million, representing just 2% of revenue, and adjusted EBITDA of $16.6 million, with a 20% margin. This marked a significant decline from the adjusted EBITDA of $36.5 million and 37% margin in the third quarter of 2024.
Third-party publisher redemptions declined 6% YoY to 62.1 million, while direct-to-consumer redemptions fell more sharply, dropping 34% to 20.8 million.
During the quarter, Ibotta repurchased 1.4 million shares for a total of $38.7 million at an average price of $26.73 per share and generated free cash flow of $10.6 million.
For the fourth quarter of 2025, Ibotta expects adjusted EBITDA of $9-12 million, representing a margin of 13% at the midpoint.
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