Company: IBTA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001538379-25-000010
Chunk: 90

Company: Ibotta, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 90
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 fee until the balance is reduced to zero or new activity ensues. Balances associated with accounts that are deactivated for violation of the Company’s terms of use are also recognized as breakage. The Company estimates breakage at the time of the user redemption and reduces the user redemption liability accordingly. Breakage estimates are made based on historical breakage patterns, and the preparation of estimates includes judgments of the applicability of historical patterns to current and future periods. Breakage is recorded in revenue related to funded awards, as an offset to sales and marketing expense related to self-funded awards, and as an offset to cost of revenue related to gift card purchases and sponsored user awards earned from 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