Company: IBTA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025593
Chunk: 140

Company: Ibotta, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 140
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 changes, we make a cumulative adjustment.During the three months ended March 31, 2025, the Company recorded an income tax benefit of $0.1 million, resulting in an effective tax rate of (15.0)%. The effective tax rate differs from the U.S. federal statutory rate primarily due to the impact of nondeductible items, including certain executive compensation costs, stock based compensation, and the tax expense related to uncertain tax positions; partially offset by the benefit of research and development tax credits. During the three months ended March 31, 2024 the Company recorded an income tax provision of $3.1 million, resulting in an effective tax rate of 25.0%. The effective tax rate differs from the U.S. federal statutory rate primarily due to the effects stock-based compensation and the impact of U.S. research and development credits.

The Internal Revenue Service (IRS) commenced an examination of our consolidated U.S. income tax return for 2021 in the second quarter of 2024. During the first quarter of 2025, the IRS completed this examination with no changes to the reported tax. However, the IRS has the ability to adjust the research and development credit claimed and net operating loss generated in 2021 when these carryforward tax attributes are utilized in future tax years. 

12. Net Income Per Share

The rights of the holders of the Company’s Class A common stock and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, 

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

basic and diluted net income per share are the same for Class A common stock and Class B common stock.Basic and diluted net income per share is calculated as follows (in thousands, except share and per share amounts):Three months ended March 31,20252024Numerator:Net income$555 $9,297 Denominator:Weighted average shares of common stock outstanding, basic30,779,4309,310,928Plus: dilutive effect of stock options2,168,6331,799,915Plus: dilutive effect of RSUs255,456—Plus: dilutive effect of redeemable convertible preferred stock—17,245,954Plus: dilutive effect of ESPP15,298—Weighted average common shares outstanding, diluted33,218,81728,356,797Net income per share, basic$0.02 $