Ibotta Q2 Revenue Falls Short
Ibotta(NYSE:IBTA) reported second quarter 2025 earnings on August 13, 2025, with revenue of $86 million, a 2% year-over-year decline, and adjusted EBITDA of $17.9 million. Management cited a 48% shortfall at the midpoint of prior guidance and issued third quarter guidance below expectations due to ongoing business model transformation. This summary highlights key executional setbacks, transformation progress, and evolving client engagement, with a focus on long-term investor implications. (Note: All quarters refer to fiscal periods ending June 30, 2025, unless otherwise specified.)
Revenue for the quarter fell below the prior guidance range, and management now forecasts a 17% year-over-year revenue decline at the midpoint for the third quarter. The primary driver was the failure to reactivate two initial pilot partners for the new Cost Per Incremental Dollar (CPID) performance marketing model, with neither expected to participate in the upcoming quarter. Additionally, a reorganization of the enterprise sales team created further near-term disruption, impacting continuity across top accounts.
This combination of a significant revenue miss and weak forward guidance amplifies transition risk, increasing earnings volatility for shareholders and extending the timeline for sustainable growth reacceleration.
Source Fool.com
