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Ibotta, Inc. Class A (IBTA)
NYSE:IBTA
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Ibotta, Inc. Class A
(NYSE:IBTA)
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Rating:66Neutral
Price Target:
$26.00
▲(15.71% 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 (IBTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$580.30M
Dividend YieldN/A
Average Volume (3M)351.47K
Price to Earnings (P/E)9.3
Beta (1Y)1.26
Revenue Growth-4.42%
EPS Growth603.17%
CountryUS
Employees886
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.05
Shares Outstanding23,445,381
10 Day Avg. Volume260,902
30 Day Avg. Volume351,471
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)3.43
Price to Sales (P/S)4.28
P/FCF Ratio14.85
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue1.76
Enterprise Value/Gross Profit2.18
Enterprise Value/Ebitda20.24
Forecast
1Y Price Target
$28.00Price Target Upside24.61% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.42
Revenue Forecast (FY)$322.85M
Ibotta, Inc. Class A Business Overview & Revenue Model
Company DescriptionIbotta, 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 MoneyIbotta 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 Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
While Ibotta faced a significant revenue decline and macroeconomic challenges impacting client spending, the company's strategic initiatives, including successful partnerships and innovative product launches, received positive feedback and set the stage for future growth. The integration of AI and strong client engagement further underscore potential long-term benefits.Q3-2025 Updates
Positive Updates
Strategic Partnerships and Innovations
Ibotta announced a strategic partnership with Surcana for independent lift studies, and launched LiveLift, enhancing measurement of sales lift. Initial feedback has been positive.
LiveLift Pilot Success
More LiveLift pilots in the second half of the year than in the first three quarters combined. 83% of completed pilots resulted in re-investment from clients.
Revenue Performance
Revenue exceeded the upper half of the guidance range, with adjusted EBITDA well above expectations, despite a challenging macro environment.
Strong Client Engagement
Total redeemers increased by 19% year over year, driven by partnerships with Instacart and DoorDash.
AI and Automation Advancements
Implementation of AI and machine learning for campaign projections and optimizations, improving efficiency in campaign setup processes.
Negative Updates
Revenue Decline
Revenue declined 16% year over year, with redemption revenue down 15% and direct-to-consumer redemption revenue down 31%.
Macro-Economic Challenges
Depressed organic sales growth in CPG sector, low consumer sentiment, and disruptions like SNAP benefits and tariffs impacted client spending.
Increased Costs
Non-GAAP gross margin dropped by 800 basis points year over year due to increased publisher-related costs, with non-GAAP operating expenses being 61% of revenue.
Company Guidance
During the third quarter 2025 earnings call, Ibotta, Inc. provided guidance for the fourth quarter of 2025, indicating expectations for revenue between $80 million and $85 million, which represents a 16% decline at the midpoint compared to the previous year. The company also anticipates adjusted EBITDA for Q4 to be in the range of $9 million to $12 million, resulting in an approximately 13% adjusted EBITDA margin at the midpoint. The call highlighted the progress in their transformation into a performance marketing platform, emphasizing the rollout of LiveLift, a new solution for measuring incremental sales. The management team noted that while they have made strides in improving their offerings and sales infrastructure, challenges persist due to macroeconomic factors such as low consumer sentiment and disruptions in the SNAP program. Despite these headwinds, they are optimistic about their strategic initiatives, including AI integration and third-party partnerships like Surcana, which are expected to bolster their performance and client engagement moving into 2026.Ibotta, Inc. Class A Financial Statement Overview
Summary
Ibotta, Inc. demonstrates strong profitability and effective equity management, with significant improvements in net profit margins and return on equity. However, challenges remain in revenue growth and cash flow generation, which have seen declines in the most recent period. The company's low leverage and improved equity position provide a stable financial foundation, but attention to revenue growth and cash flow sustainability is needed for continued success.Income Statement
Ibotta, Inc. shows strong profitability with a high gross profit margin of 80.89% TTM, although it has decreased from the previous year. The net profit margin improved significantly to 25.04% TTM, indicating enhanced cost management. However, the revenue growth rate is negative at -4.18% TTM, reflecting a decline in sales compared to the previous year. The EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.Balance Sheet
The company maintains a low debt-to-equity ratio of 0.08 TTM, indicating low financial leverage and a strong equity position. The return on equity is robust at 22.87% TTM, showcasing effective use of shareholder funds. However, the equity ratio is moderate, suggesting a balanced asset structure. The improvement in equity from negative in 2022 to positive in 2025 is a positive sign of financial recovery.Cash Flow
Operating cash flow is healthy, but the free cash flow growth rate is negative at -23.86% TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.43 TTM, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is strong at 0.79 TTM, reflecting good cash profitability despite the recent decline in free cash flow.| 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 | 0.00 | 64.45M | 61.05M |
| 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
Neutral
22.47
Price Trends
24.19
Negative
26.54
Negative
34.47
Negative
Market Momentum
-0.47
Negative
47.00
Neutral
26.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBTA, the sentiment is Neutral. The current price of 22.47 is above the 20-day moving average (MA) of 22.15, below the 50-day MA of 24.19, and below the 200-day MA of 34.47, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 26.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBTA.
Ibotta, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $872.26M | -13.09 | 9.19% | ― | 9.63% | -112.71% | |
66 Neutral | $580.30M | 9.29 | 22.82% | ― | -4.42% | 603.17% | |
65 Neutral | $708.00M | 435.61 | 4.45% | ― | 22.97% | 49.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $600.38M | ― | -26.69% | ― | 13.09% | 32.34% | |
51 Neutral | $336.78M | -4.98 | -25.48% | ― | -24.30% | -181.62% | |
51 Neutral | $400.22M | ― | -25.34% | ― | -7.43% | 61.36% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.