Ibotta Inc. Reports Third‑Quarter Losses, Issues Uncertain Guidance
Ibotta Inc. (NYSE: IBTA), a provider of e‑commerce software solutions and the largest item‑level digital promotions network in North America, announced its financial results for the quarter ended September 30, 2025, on November 12, 2025. The company posted a net loss of $1.1 million versus a $1.8 million profit in the same period a year earlier, and its earnings per share (EPS) fell to $-0.21 from $0.56 in Q3 2024.
Key Financial Highlights
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Revenue | $80 million (est.) | $98.6 million | -18% |
| Net Income | -$1.1 million | +$1.8 million | -100% |
| EPS | -$0.21 | +$0.56 | -100% |
| Market Cap | $882.9 million | — | — |
The revenue estimate of $80 million to $85 million was confirmed by the company’s management during a earnings call held on November 12. The guidance was downgraded in response to lower-than‑expected sales growth and higher operating costs, particularly in marketing and technology development.
Drivers of the Decline
- Reduced Promotional Spend – The company noted a slowdown in consumer spending on digital promotions, partially driven by macro‑economic headwinds and increased competition in the coupon‑platform space.
- Higher Operating Expenses – Costs related to platform development, data analytics, and sales‑force expansion rose, offsetting revenue gains from new partnership initiatives.
- LiveLift Adoption – While the launch of LiveLift, a real‑time campaign optimization tool, was highlighted as a strategic milestone, its early‑stage adoption has yet to translate into measurable revenue.
Analyst Reaction
Goldman Sachs, among other analysts, lowered its price target for Ibotta to $23, citing the “muted outlook” for the company’s growth prospects. The consensus analyst estimate for Q3 earnings was $0.04 per share, a figure well above the company’s reported loss.
Market Response
Following the earnings announcement, Ibotta shares fell sharply, trading at $32.73 on the NYSE at 11:00 p.m. UTC, down from a 52‑week high of $76.99 and a low of $22.50. The decline reflects investor concern over the company’s ability to reverse its recent profitability erosion and achieve sustainable revenue growth.
Outlook
Ibotta’s management reiterated its commitment to strengthening its performance‑marketing platform through strategic partnerships, including a deal with Circana to deliver third‑party sales‑lift measurement. The company also plans to accelerate the rollout of LiveLift across its partner ecosystem. However, the company cautions that market conditions may continue to pressure demand for digital promotions in the short term.
