Ibotta Q2 Earnings Call Highlights

Ibotta returned to year-over-year growth earlier than expected: Q2 revenue rose 3% to $88.9 million, redemption revenue increased 10% to $80.2 million, and adjusted EBITDA reached $16.5 million, or an 18.6% margin. Growth was driven by stronger advertiser offer supply, broader publisher relationships and improved sales execution. Third-party channels and publisher expansion strengthened demand: Third-party redemption revenue jumped 27% and total redeemers grew 21% to 20.9 million. Ibotta also added 7-Eleven to its Performance Network, with coverage spanning more than 11,500 U.S. locations and a rollout expected in the second half of 2026. Ibotta expects continued growth despite near-term seasonality: The company guided for Q3 revenue of $86 million to $90 million and adjusted EBITDA of $12 million to $14 million, while raising its full-year free-cash-flow conversion expectation to approximately 70% of adjusted EBITDA. Management expects modest sequential growth in Q4 and to exit 2026 with mid-single-digit year-over-year revenue growth. Ibotta reported second-quarter revenue growth that exceeded its guidance range, marking the company’s first year-over-year increase in total revenue since the first quarter of 2025. Management attributed the improvement to stronger advertiser offer supply, expanded publisher relationships and changes to its sales organization. Revenue for the second quarter was $88.9 million, up 3% from a year earlier. Redemption revenue increased 10% to $80.2 million, while adjusted EBITDA reached $16.5 million, representing an 18.6% margin. CFO Matt Puckett said revenue and adjusted EBITDA came in 6% and 58%, respectively, above the midpoint of the company’s prior guidance. Redemption activity and advertiser supply improve Founder and CEO Bryan Leach said the company’s return to growth occurred a quarter earlier than expected, driven primarily by a steady improvement in advertiser offer supply. Ibotta’s third-party redemption revenue rose 27% year over year to $61.5 million, while direct-to-consumer redemption revenue fell 24% to $18.7 million as activity continued to shift toward third-party publisher platforms. Total redeemers increased 21% year over year to 20.9 million. Total redemptions grew 14% to 91.4 million. Redemptions per redeemer declined 6% to 4.4, which Puckett said reflected the growing mix of third-party redeemers, who tend to redeem offers less frequently than direct-to-consumer users. However, third-party redemptions per redeemer rose 2% to 3.8, marking the first year-over-year increase in that metric since the third quarter of 2024. Leach said the result indicated offer supply was increasing at a pace sufficient to exceed growth in third-party demand. Management credited its verticalized sales structure and broader revenue organization, introduced beginning in the third quarter of last year, with improving client engagement. Leach said sales teams have spent more time with clients, expanded their relationships across client organizations and used a more consultative sales approach. “The recovery we’re seeing is distributed broadly across our clients,” Leach said, adding that the majority of enterprise accounts that declined in 2025 returned to year-over-year growth during the second quarter. LiveLift, seasonal campaigns support growth Ibotta said its LiveLift product continued to generate revenue growth both sequentially and year over year. The offering is designed to help consumer packaged goods brands measure and optimize incremental sales from promotions. Leach cited one household-products client whose net revenue with Ibotta rose 75% year over year in the first half of 2026 after the client ex...