Company: IBTA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025593
Chunk: 97

Company: Ibotta, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 97
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 a discounted price per share through payroll deductions over consecutive offering periods that are approximately six months in length. Each offering period has a single purchase period of the same duration. The offering periods will generally start on the first trading day on or after May 15 and November 15 each year and end on the first trading day on or after the following November 15 and May 15, respectively. The per share purchase price is equal to 85% of the lesser of the fair market value of a share of the Company’s Class A common stock on (i) the first trading date of the offering period or (ii) the last trading day of the offering period.Stock-based compensation expense recognized during the three months ended March 31, 2025 and unrecognized as of March 31, 2025 related to the ESPP were immaterial.

11. Income Taxes

Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate 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