Ibotta (IBTA) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue and Adjusted EBITDA exceeded guidance, despite a 10% year-over-year revenue decline, with improved sales execution, core product enhancements, and Live Lift expansion.

• Full-year 2025 revenue was $342.4M, down 7% year-over-year; Adjusted EBITDA was $62.9M (18% margin), down 44% year-over-year.

• Outperformance was driven by improved sales leadership, restructured sales organization, and a more consultative, verticalized client approach.

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

• Significant investments in product innovation, including the launch of LiveLift™ and strategic partnerships with Circana, NCSolutions, and ABCS Insights.

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 guidance is $78M–$82M, a 5% year-over-year decline at midpoint; Adjusted EBITDA guidance is $6M–$8M (9% margin at midpoint).

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

• Redemption revenue expected to drive improvement; ad and other revenues to remain under pressure.

• 2026 cost of revenue and non-GAAP operating expenses to rise due to investments in transformation and full staffing.

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