Ibotta (NYSE:IBTA) reported third-quarter results above its guidance range, with revenue rising 17% year over year to $97.8 million and adjusted EBITDA increasing 43% to $23.8 million. Management attributed the performance to stronger advertiser offer supply, seasonal back-to-school programs, growth in its publisher network and increased consumer demand for savings.
Founder and CEO Bryan Leach said the company’s core redemption business continued to improve after a period of declines. Redemption revenue rose 23% to $88.5 million in the quarter, while third-party publisher redemption revenue increased 43% to $70.7 million. Total redemptions reached 116.4 million, up 40% from a year earlier.
Redeemer Growth and Offer Supply
Ibotta recorded an all-time high of 23.6 million redeemers during the quarter, up 30% year over year and 13% sequentially. The company added 2.7 million redeemers from the second quarter, its largest sequential gain since the fourth quarter of 2023, according to Leach.
Third-party publisher redeemers rose 34%, primarily reflecting organic growth at existing partners, CFO Matt Puckett said. Newer publisher launches, including Uber in the second quarter and Giant Eagle during the third quarter, also contributed to growth.
Redemptions per redeemer increased 8% to 4.9, marking the first year-over-year increase in that measure since the advent of the Ibotta Performance Network, management said. Third-party redemptions per redeemer climbed 17%, while direct-to-consumer redemptions per redeemer rose 4%.
“Offer supply is growing faster than redeemer demand, even as that demand accelerates,” Leach said. He cited improved sales execution, enhanced measurement capabilities, LiveLift campaigns and the company’s seasonal-event approach as drivers of offer supply.
Revenue per redemption was $0.76, down 13% from a year earlier. Puckett said the decline reflected redemption mix, strategic pricing actions and growth in food and beverage offers for lower-priced products. He said the company’s pricing decisions are designed to increase redemptions and total redemption revenue, noting that Ibotta has no meaningful variable cost per redemption.
LiveLift, Client Spending and Publisher Expansion
Management highlighted LiveLift, Ibotta’s campaign measurement and optimization offering, as an area of continued progress. Leach said the product enables clients to project incremental sales, measure results statistically and adjust campaigns while they remain active.
He pointed to a Danone pilot in which Oikos and Activia adjusted offer values during a campaign. According to Ibotta, the brands achieved a cost per incremental dollar that was more than 30% more efficient over the following 10 days, moved more than 1.5 million incremental units and generated more than $3 of incremental return for every dollar invested. Circana independently measured the results, Leach said.
LiveLift revenue grew both year over year and sequentially, though the company did not disclose the amount. Leach said Ibotta is continuing to refine its models and expects LiveLift to support a new generation of products planned for rollout in 2027.
The company also reported progress in expanding client relationships. In the third quarter, client contacts per meeting rose 44% year over year, while penetration of brands per enterprise account increased 7%. Leach said one large food manufacturer returned to Ibotta’s top-five-client list after investing more than 10 times as much during the quarter as it had during all of 2025.
On the publisher side, Giant Eagle went live on the Ibotta Performance Network during the quarter. Leach said Giant Eagle customers gained access to nearly three times as many coupons as before. 7-Eleven launched across its 7-Eleven and Speedway apps in October, with 7NOW expected to follow. Festival Foods also launched Ibotta digital offers during the fourth quarter.
Margins, Cash Flow and Capital Returns
Ibotta’s non-GAAP gross margin was 80.7%, up about 60 basis points from a year earlier and 140 basis points sequentially. Non-GAAP operating expenses rose 15% but declined as a percentage of revenue to 60.2%.
The company posted non-GAAP net income of $16 million, or $0.62 per diluted share. It ended the quarter with $149.9 million in cash and cash equivalents and generated $16.8 million in free cash flow during the quarter. Year-to-date free cash flow totaled $48.1 million, up 9% year over year.
During the quarter, Ibotta repurchased approximately 400,000 shares for $14.4 million at an average price of $36.39 per share. As of Sept. 30, $52.9 million remained under its share repurchase authorization.
Fourth-Quarter and 2027 Outlook
For the fourth quarter, Ibotta expects revenue of $94 million to $98 million, representing approximately 8% year-over-year growth at the midpoint. The company forecast adjusted EBITDA of $15 million to $17 million, or an adjusted EBITDA margin of about 17% at the midpoint.
Puckett said the outlook reflects a more difficult comparison than the third quarter, when redemption revenue faced its lowest comparison point of 2025. He also said the company is maintaining a conservative planning posture for the holiday season after strong back-to-school results.
Looking to 2027, Ibotta projected at least mid-single-digit revenue growth, with relatively faster growth in core redemption revenue. Puckett described the forecast as preliminary and said the company is not yet assuming a significant impact from product enhancements still under development.
Leach said Ibotta sees its measurement tools, publisher reach and deeper role in clients’ planning processes as supporting more durable demand. “We have meaningfully increased the offer supply available on our network and demonstrated improved go-to-market execution,” Puckett said.
About Ibotta (NYSE:IBTA)
Ibotta, Inc is a technology company that operates a digital promotions and rewards platform. Through its Ibotta app and website, consumers can earn cash back and other rewards by purchasing eligible products from participating retailers. The company’s offerings are designed to help brands and retailers deliver targeted promotions, measure consumer engagement and encourage purchases.
Ibotta also provides its technology to retailers, publishers and other business partners through the Ibotta Performance Network.
