Company: IBTA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001538379-25-000010
Chunk: 141

Company: Ibotta, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 141
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 watching an advertising video.The Company’s breakage is recorded as follows (in thousands):Three months ended June 30,Six months ended June 30,2025202420252024Revenue$2,309 $3,707 $4,647 $7,630 Cost of revenue40 54 77 115 Sales and marketing323 478 634 1,017 Total breakage$2,672 $4,239 $5,358 $8,762 The user redemption liability was $70.9 million and $74.0 million as of June 30, 2025 and December 31, 2024, respectively. 

4. Accrued Expenses

Accrued expenses consist of the following (in thousands):June 30, 2025December 31, 2024Accrued employee expenses$11,384 $14,365 Other accrued expenses6,447 3,600 Total accrued expenses$17,831 $17,965 

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Table of ContentsIbotta, Inc.Notes to Condensed Financial Statements(unaudited)

5. Long-Term Debt

The Company recorded interest expense of $0.7 million during the three months ended June 30, 2024, of which, $0.2 million was related to the amortization of the debt discount and issuance costs. The Company recorded interest expense of $3.5 million during the six months ended June 30, 2024, of which, $1.0 million was related to the amortization of the debt discount and issuance costs. Interest expense during the three and six months ended June 30, 2025 was immaterial. Convertible NotesPrior to the Company’s initial public offering (IPO) in April 2024, the Company had convertible unsecured subordinated promissory notes (notes or convertible notes) that included certain conversion provisions that qualified as embedded derivatives under ASC 815, Derivatives and Hedging. The qualifying features were collectively bifurcated from the debt host and recorded as a derivative liability in the condensed balance sheets with the offset recorded as a discount to the notes. The derivative liability was accounted for on a fair market value basis. Changes in fair value were recognized in other expense, net, in the condensed statements of operations. The debt discount was amortized to interest expense over the contractual term of the debt using the straight-line method which approximates the effective interest method