Ibotta, Inc. Class A (IBTA) AI Stock Analysis

• Market Cap: $475.16M
• Dividend Yield: N/A
• Average Volume (3M): 402.71K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.24
• Revenue Growth: -4.42%
• EPS Growth: 603.17%
• Country: US
• Employees: 886
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 23,445,381
• 10 Day Avg. Volume: 639,185
• 30 Day Avg. Volume: 402,709
• PEG Ratio: 0.18
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 4.28
• P/FCF Ratio: 14.85
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: 20.24
• 1Y Price Target: $28.00
• Price Target Upside: 25.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.1
• Revenue Forecast (FY): $337.44M

• Rating: 66 Neutral
• Price Target: $26.00 ▲(16.70% Upside)

Ibotta, Inc. receives a score of 66, reflecting strong valuation and financial stability, but tempered by weak technical indicators and revenue challenges. The company's strategic initiatives and partnerships offer potential for future growth, but current macroeconomic conditions and declining revenue present significant risks.

Positive Factors

Strategic Partnerships

The partnership with Surcana enhances Ibotta's ability to measure sales lift, potentially increasing client trust and engagement, which can drive long-term revenue growth.

AI and Automation Advancements

AI and automation improve operational efficiency and campaign effectiveness, positioning Ibotta for sustained competitive advantage and cost management.

Client Engagement

Increased client engagement through strategic partnerships indicates strong market position and potential for continued revenue growth.

Negative Factors

Revenue Decline

A significant revenue decline suggests challenges in maintaining market share and could impact long-term financial health if not addressed.

Macro-Economic Challenges

Macroeconomic challenges like low consumer sentiment can hinder growth prospects and affect Ibotta's ability to attract and retain clients.

Increased Costs

Rising costs and declining margins may pressure profitability, necessitating efficiency improvements to sustain long-term financial performance.

Ibotta, Inc. Class A Business Overview & Revenue Model

Company Description

Ibotta, Inc. operates as a technology company that offers Ibotta Performance Network (IPN) that allows consumer packaged goods brands to deliver digital promotions to consumers. It offers promotional services to publishers, retailers, and advertisers through the IPN. The company was formerly known as Zing Enterprises, Inc. and changed its name to Ibotta, Inc. in 2012. The company was incorporated in 2011 and is based in Denver, Colorado.

How the Company Makes Money

Ibotta generates revenue through partnerships with retailers and brands that pay for promotional placements on its platform. When users redeem offers, Ibotta receives a commission from these partners, effectively functioning as a marketing channel to drive sales. Key revenue streams include cash-back offers, sponsored promotions, and affiliate partnerships. Additionally, Ibotta may leverage user data analytics to provide insights to brands, further enhancing its revenue potential.

Ibotta, Inc. Class A Financial Statement Overview

Summary

Ibotta, Inc. exhibits strong revenue growth and high profitability margins, with a robust balance sheet. However, declining EBIT and EBITDA margins indicate potential operational inefficiencies that may need addressing.

Income Statement

Ibotta, Inc. shows strong revenue growth with a 14.74% increase from 2023 to 2024. The gross profit margin is healthy at 86.36% for 2024, indicating efficient cost management. Net profit margin improved significantly to 18.72%, reflecting enhanced profitability. However, EBIT margin declined to 7.60%, and EBITDA margin to 9.81%, suggesting increased operational costs or reduced operational efficiency.

Balance Sheet

The balance sheet is robust with zero total debt and a strong equity base, resulting in a debt-to-equity ratio of 0.00. The equity ratio is a substantial 67.40%, indicating strong financial stability. Return on equity (ROE) is high at 15.03%, highlighting effective use of equity. The significant increase in stockholders' equity from 2023 to 2024 is a positive sign.

Cash Flow

Operating cash flow increased significantly, leading to a strong operating cash flow to net income ratio of 1.69. Free cash flow also improved to $105.72 million, with a favorable free cash flow to net income ratio of 1.54. The company demonstrates effective cash flow management, although the capital expenditure remains substantial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	352.24M	367.25M	320.04M	210.70M
Gross Profit	284.30M	317.13M	272.38M	161.48M
EBITDA	30.65M	32.58M	62.66M	-33.99M
Net Income	80.75M	68.74M	38.12M	-54.86M
Balance Sheet
Total Assets	569.43M	678.43M	319.79M	195.08M
Cash, Cash Equivalents and Short-Term Investments	223.30M	349.28M	62.59M	45.50M
Total Debt	25.34M	1.55M	67.75M	65.98M
Total Liabilities	239.82M	221.15M	291.86M	229.87M
Stockholders Equity	329.61M	457.28M	27.93M	-34.79M
Cash Flow
Free Cash Flow	70.77M	105.72M	14.49M	-64.76M
Operating Cash Flow	89.46M	115.92M	22.72M	-56.50M
Investing Cash Flow	-25.67M	-10.20M	19.67M	-35.68M
Financing Cash Flow	-181.70M	181.38M	2.38M	74.05M

Ibotta, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBTA, the sentiment is Negative. The current price of 22.28 is below the 20-day moving average (MA) of 28.39, below the 50-day MA of 29.16, and below the 200-day MA of 39.00, indicating a bearish trend. The MACD of -2.16 indicates Positive momentum. The RSI at 32.25 is Neutral, neither overbought nor oversold. The STOCH value of 2.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBTA.

Ibotta, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBTA	66 Neutral	$475.16M	9.21	22.82%	―	-4.42%	603.17%
DSP	64 Neutral	$631.83M	383.33	4.45%	―	22.97%	49.49%
OPFI	62 Neutral	$797.13M	―	9.19%	―	9.63%	-112.71%
SMRT	62 Neutral	$274.34M	―	-25.48%	―	-24.30%	-181.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$577.29M	―	-26.69%	―	13.09%	32.34%
BMBL	47 Neutral	$374.29M	―	-25.34%	―	-7.43%	61.36%

Ibotta, Inc. Class A Corporate Events

Ibotta’s Earnings Call: Challenges and Strategic Growth

Ibotta’s recent earnings call highlighted a mixed sentiment, reflecting both challenges and opportunities. While the company faced a notable revenue decline and macroeconomic hurdles affecting client spending, strategic initiatives such as successful partnerships and innovative product launches were positively received. The integration of AI and strong client engagement further underscore potential long-term benefits.

Ibotta, Inc. Reports Q3 2025 Financial Results

Ibotta, Inc., a leading provider of digital promotions for consumer packaged goods (CPG) brands, operates the largest item-level digital promotions network in North America, enabling brands to reach over 200 million consumers through its Ibotta Performance Network (IPN).

Ibotta’s Earnings Call: Strategic Moves Amid Challenges

Despite Ibotta’s strategic transformations and promising client feedback, the company’s recent earnings call highlighted financial underperformance and ongoing disruptions overshadowing positive developments. The macroeconomic environment further compounds these issues, creating a challenging landscape for Ibotta’s growth ambitions.