Company: IBTA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025593
Chunk: 86

Company: Ibotta, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 86
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 the condensed balance sheets associated with the undistributed earnings of consumers on Ibotta’s D2C properties. A portion of these undistributed earnings is never expected to be cashed out by consumers due to inactivity and will therefore be recognized as breakage by the Company. Consumers’ accounts that have no activity for six months are considered inactive and charged a $3.99 per month maintenance 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 March 31,20252024Revenue$2,338 $3,923 Cost of revenue37 61 Sales and marketing311 539 Total breakage$2,686 $4,523 The user redemption liability was $72.5 million and $74.0 million as of March 31, 2025 and December 31, 2024, respectively. 

4. Accrued Expenses

Accrued expenses consist of the following (in thousands):March 31, 2025December 31, 2024Accrued employee expenses$8,952 $14,365 Other accrued expenses6,181 3,600 Total accrued expenses$15,133 $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 $2.8 million during the three months ended March 31, 2024, of which, $0.8 million was related to the amortization of the debt discount and issuance costs. Interest expense during the three months ended March 31, 2025 was immaterial. Convertible NotesPrior to the Company’s initial public offering (IPO) in April 2024, the Company had convertible unsecured subordinated promissory notes (