Shares of Ibotta Inc (NYSE: IBTA) plunged 15.98% in after-hours trading on Wednesday following the release of the company's disappointing third-quarter financial results. The digital promotions network operator reported a significant year-over-year decline in revenue and profitability, raising concerns among investors about the company's growth trajectory.
For the third quarter ended September 30, 2025, Ibotta reported total revenue of $83.3 million, representing a 16% decrease compared to the same period last year. The company's redemption revenue, a key metric, fell 15% year-over-year to $72.1 million. Despite an increase in the number of redeemers on the Ibotta Performance Network, the average number of redemptions per redeemer declined, impacting overall revenue.
Ibotta's profitability also took a hit, with adjusted net income falling to $16.3 million from $31.4 million in the prior-year quarter. Adjusted earnings per share came in at $0.56, down from $0.94 a year ago. While this figure beat analyst estimates, the sharp decline in profitability appears to have spooked investors. The company's adjusted EBITDA margin contracted significantly, dropping to 20% from 37% in the same quarter last year.
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