Ibotta Returns to Growth as Third-Party Partnerships Expand
The rewards platform reported total revenue of $88.9 million for the second quarter.
Ibotta (IBTA), the digital rewards platform, reported a return to revenue growth in the second quarter. The result followed a period of contraction in the first quarter, marking a shift in the company's recent trajectory.
Total revenue rose 3% year-over-year to $88.9 million. This followed a 2% year-over-year decline in the first quarter, when revenue stood at $82.5 million.
Growth was driven primarily by redemption revenue, which rose 10% year-over-year to $80.2 million. This represented the fastest growth pace for the metric since the third quarter of 2023 and a recovery from a 1% year-over-year decline in the first quarter.
Third-party publisher redemption revenue grew 27% year-over-year to $61.5 million. The company saw a corresponding 27% increase in third-party publisher redemptions, which reached 74.4 million compared to 58.6 million in the prior-year period. Total redeemers increased 21% year-over-year to 20.9 million.
Direct-to-consumer redemptions declined 22% year-over-year to 17.1 million from 21.9 million. Total redemption revenue per redemption also fell 4% year-over-year to $0.88.
Adjusted EBITDA margin was 18.6% for the quarter, down from 20.8% in the second quarter of 2024. The margin improved sequentially from 11% in the first quarter.
Ibotta projects third-quarter revenue between $86 million and $90 million, representing a 6% increase at the midpoint. Adjusted EBITDA for the period is projected at $12 million to $14 million, or a 14.8% margin at the midpoint.
The company expanded its partner network during the quarter, launching offers for Uber customers and establishing an exclusive partnership with 7-Eleven, Inc., including the 7NOW and Speedway apps, across more than 11,500 locations.
Ibotta repurchased 0.7 million shares for $23.0 million in the second quarter. This was a decrease in both volume and spend from the first quarter, when the company repurchased 1.9 million shares for $44.7 million.