Company: IBTA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-051720
Chunk: 172

Company: Ibotta, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 172
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 Redemption revenue218,688 226,425 (7,737)(3)%Ad & other revenue35,175 42,449 (7,274)(17)%$253,863 $268,874 $(15,011)(6)%

Total redemption revenue decreased $7.7 million, or 3%, during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, due to a $25.8 million decrease in revenue from the Ibotta D2C properties, partially offset by an $18.1 million increase in revenue from third-party publishers. The decrease in total redemption revenue was driven primarily by a decrease in the quantity and quality of offers available to each redeemer.

Ad & other revenue decreased $7.3 million, or 17%, during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, driven primarily by reduced client spend on D2C ad products.

Cost of Revenue

Nine months ended September 30,Change20252024$%(in thousands, except percentages)Cost of revenue$52,159 $34,970 $17,189 49 %

Cost of revenue increased $17.2 million, or 49%, during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, due primarily to the addition of new publishers.

41

Sales and marketing

Nine months ended September 30,Change20252024$%(in thousands, except percentages)Sales and marketing$85,296 $105,908 $(20,612)(19)%

Sales and marketing decreased $20.6 million, or 19%, during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, due to decreases of $20.5 million in stock-based compensation expense related primarily to the Walmart Warrant for additional shares granted upon the closing of the IPO under the warrant’s anti-dilution provision, $1.9 million in media spend, $1.2 million in self-funded user awards, and $0.7 million in B2B marketing. These decreases were partially offset by an increase of $3.4 million in personnel-related costs. The decreases in media spend, self-funded user awards and B2B marketing resulted from a shift in marketing strategy. The increase