Ibotta Q4 Revenue Drops 10% to $88.5M, Adjusted EBITDA Hits $13.7M
Ibotta’s Q4 revenue fell 10% year-over-year to $88.5 million while adjusted EBITDA reached $13.7 million, 31% above the midpoint of prior guidance. Third-party publisher redemption revenue rose 8% to $56.4 million as total redeemers grew 19% to 20.4 million, despite a 26% drop in direct-to-consumer redemption revenue.
1. Q4 Financial Performance
Ibotta reported Q4 revenue of $88.5 million, down 10% year-over-year, and delivered adjusted EBITDA of $13.7 million, representing a 15% margin. Management noted revenue and adjusted EBITDA were 7% and 31% above the midpoint of prior guidance ranges.
2. Redemption Revenue and User Metrics
Third-party publisher redemption revenue increased 8% to $56.4 million, while direct-to-consumer redemption revenue declined 26% to $22.2 million as redemption activity shifted toward publishers. Total redeemers rose 19% to 20.4 million, but redemptions per redeemer fell 16% to 4.6 and redemption revenue per redemption decreased 5% to $0.83.
3. Margin Pressure and Costs
Non-GAAP gross margin narrowed by 570 basis points to 79% due to higher publisher and technology costs, and operating expenses rose to 65% of revenue. The company repurchased $55 million of shares and ended the quarter with $186.6 million cash and no debt.
4. Guidance for Q1 and Investment Plans
For Q1 2026, Ibotta forecasts revenue of $78 million to $82 million and adjusted EBITDA of $6 million to $8 million, implying a mid-single-digit margin. Management plans continued investment in third-party measurement, product enhancements, and Live Lift capabilities to drive future growth.