Ibotta NYSE: IBTA reported first-quarter results ahead of its prior guidance and said it still expects to return to year-over-year revenue growth in the third quarter of fiscal 2026, as the digital promotions company points to improving offer supply, growing third-party publisher activity and new partnerships with Uber and Giant Eagle.
Founder and Chief Executive Bryan Leach said first-quarter revenue and adjusted EBITDA both came in above the top end of the guidance range provided on the company’s prior earnings call. He said Ibotta continues to expect sequential improvement in year-over-year revenue trends, with overall revenue growth returning in the third quarter.
“The improved trajectory of our business is mostly the result of our sales team's success in deepening and broadening the supply of offers available to us,” Leach said. He added that Ibotta’s core promotions product is showing “strong market fit,” while its newer LiveLift offering continues to receive positive early feedback.
Revenue Declines Narrow as Redeemers Grow
Chief Financial Officer Matt Puckett said first-quarter revenue was $82.5 million, down 2% from a year earlier. Redemption revenue was $73 million, down about $400,000, or 1%, year over year. Puckett said both redemption revenue and ad and other revenue trends improved compared with the fourth quarter.
Third-party publisher redemption revenue rose 12% to $54 million, accelerating from 8% growth in the prior quarter. Direct-to-consumer redemption revenue fell 25% to $19 million, which Puckett said was similar to the fourth-quarter result and reflected the continued shift of redemption activity to third-party publishers.
Ad and other revenue totaled $9.5 million, representing 11% of total revenue and down 15% from a year earlier. Puckett said that decline was primarily due to pressure on ad revenue tied to lower direct-to-consumer redeemers, partially offset by growth in data revenue.
Ibotta reported 19.7 million total redeemers in the quarter, up 15% year over year. Total redemptions were 88 million, up 6%, driven by 15% redemption growth on third-party publishers. Puckett said this marked a more measurable return to year-over-year growth in redemptions for the first time since the first quarter of 2025, after being roughly flat in the fourth quarter.
Adjusted EBITDA Tops Outlook
Puckett said adjusted EBITDA was $8.7 million, representing an 11% adjusted EBITDA margin. Non-GAAP net income was $6 million, and non-GAAP diluted net income per share was $0.24. Non-GAAP net income excluded $16.7 million in stock-based compensation and included a $0.3 million adjustment for income taxes.
Non-GAAP cost of revenue increased $2 million from a year earlier, largely due to higher technology-related costs and a more modest increase in publisher costs. Non-GAAP gross margin was 78%, down about 300 basis points from a year earlier.
Non-GAAP operating expenses rose 5% year over year and equaled 71% of revenue. Sales and marketing expenses increased 17%, driven by higher sales labor, third-party lift studies and business-to-business marketing expenses. Research and development expenses decreased 21%, which Puckett attributed mainly to higher capitalization of software development costs and a higher allocation of labor expense to cost of revenue.
Ibotta ended the quarter with $164.6 million in cash and cash equivalents. The company spent about $45 million to repurchase approximately 1.9 million shares at an average price of $22.92. As of quarter-end, it had $90.3 million remaining under its share repurchase authorization. Free cash flow was $23.3 million, up 56% year over year.
LiveLift Adoption Remains Early
Leach said LiveLift remains in the early stages and that Ibotta continues to limit access to clients willing to spend a certain amount and run campaigns for a certain duration. As a result, he said LiveLift’s revenue contribution remains modest, and the company is not forecasting a significant ramp until it loosens eligibility requirements.
Leach said re-up rates among clients that completed a LiveLift campaign remain consistent with the approximately 80% level discussed in prior quarters. Repeat users represented about 60% of LiveLift campaigns in the quarter, with the balance coming from first-time users running pilots. Average LiveLift campaign size remains meaningfully larger than for the core product, he said.
Leach outlined several initiatives aimed at scaling LiveLift, including building a programmatic API layer, refining the models that power the product and advancing what he called “AI enablement.” He said broader availability will require greater automation and continued model training through repeated experiments.
“We are building a novel capability in this industry,” Leach said. “That necessitates a disciplined, phased approach to scaling.”
Uber and Giant Eagle Join Publisher Network
Ibotta highlighted two new publisher partnerships. In March, the company announced that Uber would join the Ibotta Performance Network, bringing Ibotta’s digital promotions to the Uber, Uber Eats and Postmates apps later this year. On the call, Leach said Giant Eagle is also joining the network through a multi-year exclusive partnership.
Leach said the Uber partnership positions Ibotta to reach consumers during “high-intent commerce moments” and strengthens its position in e-commerce delivery. He said Giant Eagle’s addition enhances Ibotta’s presence in the traditional grocery channel and validates the company’s model.
Puckett said Ibotta expects an immaterial revenue impact from Uber and Giant Eagle in the second quarter during testing and piloting, followed by a small benefit in the second half of the year as the partnerships ramp. He said offer supply will govern the near-term revenue impact of the expanded demand side of the network.
Guidance Calls for Sequential Improvement
For the second quarter, Ibotta expects revenue of $82 million to $86 million, representing a 2% year-over-year decline at the midpoint and a 2% sequential increase from the first quarter. The company expects adjusted EBITDA of $9 million to $12 million, or about a 12.5% margin at the midpoint.
Puckett said that at the midpoint of the second-quarter revenue outlook, Ibotta expects redemption revenue to return to growth for the first time since the first quarter of 2025. He also confirmed the company’s expectation for total revenue to return to year-over-year growth in the third quarter in the low single-digit range.
During the question-and-answer session, Puckett said the third-quarter outlook does not assume a step change in LiveLift adoption or a major contribution from new publishers. Instead, he said it reflects continued execution with clients and publisher partners.
Leach also addressed the macroeconomic environment, saying clients are focused on value as consumers seek savings on non-discretionary purchases. He said that dynamic supports demand for Ibotta’s offerings from both consumer packaged goods brands and publisher partners.
About Ibotta NYSE: IBTA
Ibotta NYSE: IBTA is a Denver‐based mobile commerce platform that connects consumers, retailers and brands through a unified cash-back rewards experience. Users access the Ibotta mobile app or browser extension to unlock rebates on everyday purchases, redeemable on groceries, retail goods, travel bookings and digital services. The platform integrates with major supermarket chains, big‐box retailers and online merchants, enabling shoppers to earn automatic cash-back both in physical stores and across e-commerce channels.
Founded in 2012 by co‐founder and CEO Bryan Leach, Ibotta has evolved from a simple rebate app into a comprehensive performance marketing partner for consumer goods companies.
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