Company: IBTA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-051720
Chunk: 141

Company: Ibotta, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 141
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 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 September 30,Nine months ended September 30,2025202420252024Revenue$1,850 $3,258 $6,497 $10,888 Cost of revenue34 46 111 161 Sales and marketing276 394 910 1,411 Total breakage$2,160 $3,698 $7,518 $12,460 The user redemption liability was $69.6 million and $74.0 million as of September 30, 2025 and December 31, 2024, respectively. 

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

4. Accrued Expenses

Accrued expenses consist of the following (in thousands):September 30, 2025December 31, 2024Accrued employee expenses$10,897 $14,365 Other accrued expenses5,827 3,600 Total accrued expenses$16,724 $17,965 

5. Long-Term Debt

Interest expense during the three and nine months ended September 30, 2025, and during the three months ended September 30, 2024, was immaterial. Interest expense during the nine months ended September 30, 2024 was $3.6 million, of which, $1.0 million was related to the amortization of the debt discount and issuance costs.Convertible NotesPrior to the Company’s initial public offering (IPO) in April 2024, the Company had convertible unsecured subordinated promissory notes (notes or convertible notes