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Ibotta, Inc. Class A
(NYSE:IBTA)
Select Model
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Rating:70Outperform
Price Target:
$54.00
▲(45.71% Upside)
Action:Upgraded
Date:10/16/26
IBTA scores 70 primarily due to solid financial quality supported by strong gross margins, positive free cash flow, and low current leverage, reinforced by a constructive earnings call highlighting a return to growth and improving FCF conversion expectations. The main offsets are earnings volatility (including a small TTM loss), slowing/negative FCF momentum, overbought technical conditions, and weak earnings-based valuation signaled by a negative P/E.
Positive Factors
Third-Party Revenue Growth
Rapid growth in third-party redemption revenue shows that Ibotta is expanding monetization beyond its direct-to-consumer channel. Greater publisher distribution can broaden advertiser reach, improve network utilization, and support more durable platform scale over the coming quarters.
Negative Factors
DTC and Advertising Declines
The sharp contraction in direct-to-consumer and advertising revenue indicates that important monetization channels remain under pressure. Continued weakness could reduce revenue diversification, limit operating leverage, and make growth increasingly dependent on third-party redemption expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Third-Party Revenue Growth
Rapid growth in third-party redemption revenue shows that Ibotta is expanding monetization beyond its direct-to-consumer channel. Greater publisher distribution can broaden advertiser reach, improve network utilization, and support more durable platform scale over the coming quarters.
Read all positive factors
Ibotta, Inc. Class A (IBTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend Yield0.05%
Average Volume (3M)242.42K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth-6.65%
EPS Growth-114.73%
CountryUS
Employees800
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.46
Shares Outstanding20,148,602
10 Day Avg. Volume295,830
30 Day Avg. Volume242,418
Financial Highlights & Ratios
PEG Ratio-1.83
Price to Book (P/B)2.24
Price to Sales (P/S)1.88
P/FCF Ratio8.60
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue1.96
Enterprise Value/Gross Profit2.52
Enterprise Value/Ebitda120.77
Forecast
1Y Price Target
$37.00Price Target Upside-0.16% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.66
Revenue Forecast (FY)$353.35M
Ibotta, Inc. Class A Business Overview & Revenue Model
Company Description
Ibotta, Inc. operates as a technology firm specializing in digital promotions. Its core offering, the Ibotta Performance Network (IPN), enables consumer packaged goods (CPG) brands to distribute digital offers directly to consumers. Through this I...
How the Company Makes Money
Ibotta primarily makes money by charging brands (and, in some cases, retailers) for performance-based promotional and advertising services delivered through its platform. A major revenue stream is fees paid by consumer packaged goods (CPG) compani...
Ibotta, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
Overall the call was positive: the company returned to year-over-year revenue growth ahead of plan, delivered strong redemption revenue and redeemer growth (notably +27% third-party redemption revenue and +21% redeemers), showed improving unit metrics for third-party publishers, validated measurement through an independent Circana study, added major publisher partnerships (7-Eleven, Uber, Giant Eagle), and maintained profitability and cash generation (adjusted EBITDA $16.5M). Headwinds include continued declines in direct-to-consumer and ad revenue (down 24% and 32% respectively), some margin and expense pressure as the company invests in transformation, and near-term seasonality/timing risks for Q3. On balance the material operational progress, network expansion, and return to growth outweigh the challenges.Positive Updates
Return to Year-over-Year Revenue Growth
Total revenue of $88.9M, up 3% year-over-year; company returned to Y/Y revenue growth a quarter ahead of expectations.
Negative Updates
Direct-to-Consumer Revenue Decline
Direct-to-consumer redemption revenue declined 24% year-over-year to $18.7M, reflecting shift of activity to third-party publishers and pressure on D2C monetization.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Year-over-Year Revenue Growth
Total revenue of $88.9M, up 3% year-over-year; company returned to Y/Y revenue growth a quarter ahead of expectations.
Read all positive updates
Company Guidance
Ibotta guided Q3 revenue of $86M–$90M (≈6% YoY growth at the midpoint) and adjusted EBITDA of $12M–$14M (≈15% margin at the midpoint), noting a slight quarter‑over‑quarter revenue decline at the midpoint due to seasonal timing but a modest sequential increase into Q4 and an expected exit to 2026 with mid‑single‑digit YoY growth; management also expects modest sequential increases in non‑GAAP cost of revenue and operating expenses in H2 and now sees full‑year free cash flow at ~70% of adjusted EBITDA (vs. prior ~65%). For context, Q2 results — which informed the outlook — included revenue of $88.9M (up 3% YoY), redemption revenue $80.2M (up 10%), third‑party redemption revenue $61.5M (up 27%), DTC redemption revenue $18.7M (down 24%), ad & other $8.7M (down 32%, 10% of revenue), total redeemers 20.9M (up 21%), redemptions per redeemer 4.4 (down 6%) with third‑party redemptions per redeemer 3.8 (up 2%), redemption revenue per redemption $0.88 (down 4%), total redemptions 91.4M (up 14%), non‑GAAP gross margin 79.3% (≈‑60 bps YoY, +170 bps seq), adjusted EBITDA $16.5M (18.6% margin), free cash flow $8.1M in Q2 and $31.3M YTD (‑7% YoY), cash $148.2M, Q2 buybacks ~$23M (≈700k shares at $32.33 avg), 25.8M fully diluted shares outstanding and $67.3M remaining repurchase authorization.Ibotta, Inc. Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 343.17M | 342.39M | 367.25M | 320.04M | 210.70M |
| Gross Profit | 266.94M | 267.42M | 317.13M | 272.38M | 161.48M |
| EBITDA | 5.57M | 18.17M | 32.58M | 57.60M | -42.97M |
| Net Income | -11.02M | 3.58M | 68.74M | 38.12M | -54.86M |
Balance Sheet | |||||
| Total Assets | 485.40M | 525.91M | 678.43M | 319.79M | 195.08M |
| Cash, Cash Equivalents and Short-Term Investments | 148.17M | 186.61M | 349.28M | 62.59M | 45.50M |
| Total Debt | 25.13M | 25.50M | 0.00 | 64.45M | 61.05M |
| Total Liabilities | 243.83M | 238.26M | 221.15M | 291.86M | 229.87M |
| Stockholders Equity | 241.57M | 287.65M | 457.28M | 27.93M | -34.79M |
Cash Flow | |||||
| Free Cash Flow | 66.23M | 74.98M | 105.72M | 14.49M | -64.76M |
| Operating Cash Flow | 93.19M | 95.27M | 115.92M | 22.72M | -56.50M |
| Investing Cash Flow | -34.60M | -34.30M | -10.20M | 19.67M | -35.68M |
| Financing Cash Flow | -161.03M | -224.05M | 181.38M | 2.38M | 74.05M |
Ibotta, Inc. Class A Technical Analysis
Positive
37.06
Price Trends
40.61
Positive
36.17
Positive
31.93
Positive
Market Momentum
2.31
Negative
73.52
Negative
80.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBTA, the sentiment is Positive. The current price of 37.06 is below the 20-day moving average (MA) of 43.25, below the 50-day MA of 40.61, and above the 200-day MA of 31.93, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 73.52 is Negative, neither overbought nor oversold. The STOCH value of 80.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBTA.
Ibotta, Inc. Class A Risk Analysis
Ibotta, Inc. Class A disclosed 75 risk factors in its most recent earnings report. Ibotta, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
Ibotta, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $783.19M | 12.94 | 18.41% | ― | 20.55% | ― | |
72 Outperform | $894.41M | 31.61 | 11.42% | ― | 21.99% | 271.66% | |
70 Outperform | $1.12B | -105.70 | -3.98% | 0.05% | -6.65% | -114.73% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.19B | -46.08 | -14.77% | ― | 19.24% | 60.41% | |
45 Neutral | $22.03M | -0.19 | -1180.76% | 0.32% | -42.93% | -17.25% | |
43 Neutral | $6.85M | -1.38 | -43.78% | ― | -46.61% | 7.26% |
* Technology Sector Average
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Ibotta, Inc. Class A Corporate Events
Executive/Board Changes
Ibotta announces board changes and new audit committee director
Neutral
Sep 24, 2026
On September 22, 2026, Ibotta, Inc. appointed marketing executive Tony Weisman as a Class I director, with his initial term running through the 2028 annual meeting of shareholders, and named him to the company’s Audit Committee. The company ...
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.