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.

• Adjusted EBITDA for Q4 2025 was $13.7M (15% margin), a 51% decline year-over-year; full-year Adjusted EBITDA was $62.9M (18% margin), down 44%.

• Outperformance was driven by improved sales execution, a strengthened core product, Live Lift expansion, and strategic partnerships with Circana and ABCS Insights.

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

• The company is guiding to Q1 2026 results above previous expectations, reflecting continued momentum and a strategic focus on outcomes-driven, AI-enabled resource allocation.

Financial highlights

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

• Redemption revenue made up 89% of Q4 revenue, with 64% from third-party publishers and 25% from direct-to-consumer.

• Ad and other revenues were $10M in Q4, down 38% year-over-year, now 11% of total revenue.

• Q4 Adjusted EBITDA was $13.7M (15% margin); adjusted net income was $8.1M; adjusted diluted EPS was $0.29.

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

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

• Expects improvement in redemption revenue, while ad and other revenues remain under pressure.

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