Greetings, and welcome to Ibotta, Inc. third Quarter 2025 Financial Results. As a reminder, this event is being recorded. I would now like to pass the call over to the management team. Please go ahead.

Good afternoon, and welcome to Ibotta, Inc.'s Q3 2025 Earnings Conference Call. With us today are Bryan Leach, Founder and CEO, and Matt Puckett, CFO. Today's press release and this call may contain forward-looking statements. Forward-looking statements include statements about our future operating results, our guidance for Q4 2025, our ability to grow our revenue, factors contributing to our potential revenue growth, and the capabilities of our offerings and technology. All of which are subject to inherent risks, uncertainties, and changes. These statements reflect our current expectations and are based on the information currently available to us, and our actual results could differ materially. For more information, please refer to the risk factors in our recent SEC filings. In addition, our discussion today will include references to certain supplemental non-GAAP financial measures. And should be considered in addition to and not as a substitute for our GAAP results. Reconciliations to the most comparable GAAP measures are available in today's earnings press release and our 10-Q, which are available on our Investor Relations website at investors.ibotta.com. Also, during the call today, we will be referring to the slide deck posted on our website. Unless otherwise noted, revenue and adjusted EBITDA comparisons to prior periods are provided on a year-over-year basis. With that, I'll turn it over to Bryan.

Good afternoon, everyone. Thank you for joining our discussion of third quarter results. We are pleased to report revenue in the upper half of the guidance range we provided on our second quarter earnings call, while delivering adjusted EBITDA well above the top end of the range. We are also guiding to fourth quarter results that are broadly consistent with our prior expectations. In fact, when combining our third quarter results with our fourth quarter outlook, our total second half performance is right in the range we would have expected mid-year, both for revenue and adjusted EBITDA. So the business is unfolding about as we anticipated. We have continued to make progress transforming our company into a full-service performance marketing platform for the CPG industry. Our product and engineering teams have been working hard to enhance our capabilities in preparation for greater automation and scale in 2026. At the same time, our recently reorganized and upgraded sales team has improved our infrastructure systems and processes, in order to support a stronger and more consistent go-to-market organization. We expect this will result in better service and greater continuity for our clients, which we believe will be rewarded over time. Within the last six weeks, we have made two major announcements that demonstrate our thought leadership within the industry. First, on September 30, we announced a major strategic partnership with Surcana, a leading provider of media measurement services. This will allow our clients to receive independent lift studies from a trusted third party just as they can for other forms of digital media. Second, on November 3, we announced the launch of LiveLift, our latest groundbreaking innovation designed to help brands drive incremental sales at scale in a cost-effective way. LiveLift represents an improvement over our previous approach to measuring sales lift…

Thank you, Bryan, and good afternoon, everyone. I am happy to be with you today for my first Ibotta, Inc. quarterly earnings call. I was excited to join Ibotta, Inc. at such a transformative moment in the company, with the opportunity to impact the direction and trajectory of the business alongside Bryan and the leadership team, and the chance to work with great people. I have found all of that, and I could not be more enthused to be here. Now let's jump into the results. In summary, we delivered revenue and adjusted EBITDA that were respectively 244% above the midpoint of the guidance range we provided on our second quarter earnings call. Looking further into our revenue results in the quarter, revenue was $83.3 million, a decline of 16% year over year. Within that, redemption revenue was $72.1 million, down 15% year over year, a reflection of the difficult comparisons after a very strong third quarter last year, the previously mentioned lagged impact of some execution challenges, and the continued noisy macro, particularly in the CPG space. Third-party publisher redemption revenue was $49.3 million, down 4% year over year, while direct-to-consumer redemption revenue was $22.8 million, down 31% year over year, as we have continued to see more redemption activity shift to our third-party publishers. Add another revenues, which now represent 13% of our revenue, $11.2 million, down 21% year over year due to continued pressure on direct-to-consumer redeemers. Turning to the key performance metrics supporting revenue, total redeemers were $18.2 million in the quarter, up 19% year over year. We saw healthy growth in third-party redeemers across the IPN versus last year, highlighting the continued strength of the demand side of our network. Growth was driven by the launch of Instacart during 2024 and the launch of offers…

Thanks to everyone for joining us on this call. A special thank you to our investors who believe in the new paradigm we are introducing and whose patience we are working hard to reward. With that, operator, let's please open up the call for Q&A.

For today's Q&A session, we will be utilizing the raise hand feature. If you would like to ask a question, click on the raise hand button at the bottom of the screen. Once prompted, please unmute yourself and begin with your question. We ask that you please limit to one question and one follow-up. We will now pause a moment to assemble the queue. Thank you. Our first question comes from Ron Josey with Citi. Ron, your line is open. Feel free to unmute and ask your question.

Perfect. Thanks for taking the question. Bryan, I wanted to understand LiveLift a little bit more. Very helpful to see all of the insights and early results, but talk to us about the timeline. I think I heard the sales team that's now fully staffed will start to fully sell it in the first quarter. And then, yeah, I think you also talked about some time that goes from trial or setting up to trial to when budgets are all results and then budgets allocated. So would love your thoughts on just how you think the year progresses here. Would the timeline, what could cause the timeline to be accelerated, I guess, is question one. And then just a quick follow-up on macro. Matt, you mentioned some of the CPG sort of headwinds here. Love your thoughts on what you're seeing currently. Thank you.

Thanks, Ron. Appreciate the question. So I'll take your first question regarding LiveLift progress timeline. Kind of puts and takes on what to expect in the coming year. So we are very pleased with the progress that we have seen so far. As you know, we said in the last call we would be hoping to be on track to have about 20 LiveLift pilots take place before the end of the year, and we are on track to do that. To put that in perspective, we have more LiveLift pilots happening right now than in the first, second, and third quarter combined. We've also seen that of the subset of those that have finished the program, gone through the evaluative process, 83% have already re-upped with campaign investments after the pilot, and the remaining program, we just haven't heard yet. So very encouraged both by the velocity of these pilots and also by the quality as evidenced by the hard data. As far as part of the drivers of the timeline, for one, we've expanded the aperture of people that are able to are trained to sell this in. So what was a much more controlled process with a select few clients, we've now gone out to the great majority of our enterprise-level clients. And that's happened just in the last few weeks, as I mentioned. That's going to mean that we can have many more simultaneous conversations about the solution than we've had in the past. In terms of what the timeline is, you're talking about outreach, then you're pitching them on the benefits of this new solution, then you're setting up the parameters of the pilot, running the pilot. That generally takes, you know, a couple of months at a minimum. And then you have a time…

Yeah. And, Ron, relative to your question about the macro and the comments that I made there, I don't think we're breaking any news here. I mean, it's been noisy. And in fact, maybe it's even more noisy right now here in Q4 when you consider tariffs or continue to impact particularly for us at the ad revenue space, but generally speaking, tariffs are impacting. You know, consumer sentiment is quite low, I guess, maybe even historically low. Now we're dealing with the disruption of SNAP benefits. You know, so just generally a lot of macroeconomic uncertainty. And clients, our clients are taking, generally a wait-and-see approach and that filters to us as well. That's really the point we're making.

Thank you, Bryan. Thank you, Matt.

Our next question comes from Nitin Bansal at Bank of America. Your line is open. Please unmute and ask your question.

Thank you for taking my question. So AI is increasingly becoming a core driver of performance outcomes. Can you elaborate on how you are integrating AI within the platform? What tangible improvements have you seen so far? And looking forward to 2026, where should we expect, like, the highest AI benefit for your platform? Thank you.

Thanks, Nitin.

Yeah. So I think, you know, there are a couple of different places and ways in which we're incorporating AI, particularly machine learning when I say AI. You know? So one of the most important is in how we use AI to model the pre-campaign as well as the in-flight projections of how many incremental sales and what the cost per incremental dollar will be for a given campaign. That's powerful. That gives us the ability to crunch a large amount of data and kind of come up with a set of recommended parameters for that offer that we think are more likely to achieve the goal that our clients tell us that they have. From the outset. That's something that we will continue to refine and iterate on over time, and that will, you know, AI will be an important part, not just of projections, but ultimately of optimization, recommendation, etcetera. That's kind of in the core product itself. As you think about the processes we use internally to configure and launch offers, we use AI across a variety of solutions to make that more efficient. So to use one example, we recently launched our first agentic solution in-house which is reducing the time we spend on setting up campaigns by finding the appropriate UPCs, uniform product codes, that need to be included in each campaign, and that's reduced that setup time by approximately 50%. So those are some examples of how our processes and our product itself are going to benefit from AI going forward.

Thank you.

Our last question comes from Andrew Boone. Andrew, your line is open. Please unmute and ask your question.

Thanks for taking the question. Bryan, I wanted to go back to one of the themes you talked about on the call in terms of just making things easier. You just speak to the roadmap and what that entails, and what gets you most excited about just reducing friction across the platform?

Thanks, Andrew. Yeah. Look. We've talked about some of the execution opportunities that we've had over the last calls. In going out and talking to our clients and our partners, we've heard consistent feedback. It is not as easy as it needs to be to work with you. That might be a matter of we haven't had continuity in the sales rep. Somebody who understands our business and is working hard, you know, to anticipate opportunities. To use your solutions to benefit our business. It might be something as mundane as, you know, we have a difficult time with the billing or the invoicing aspect of working with you. You need to clean that up. You need to make that easier. But it's also just a matter of creating a set of tools and solutions that are really easy to kind of speak their language. Right? So instead of speaking to them about metrics that ultimately aren't what they're accountable for, like, for instance, clips, or even the pacing of their campaign, to be able to speak directly in terms of incremental sales, directly in terms of market share gain that we think we can deliver, and, you know, compare our costs directly to their profit margin. That makes it much easier for them to go to their internal teams, their finance teams, and get approval. Then there's also just the process of selling. So for our sellers to be able to execute before, during, and after the campaign, means we have to be able to automatically and accurately generate these campaign projections very quickly. So if you have a really exciting sales meeting, it's easy to come back to people and say, Here's what we're proposing. Here's what we think it will deliver. These are the ranges we think we'll be in. We're doing that today, but that process needs to become more automated, less manual. And that'll help our sellers. Same thing during the campaign. Being able to provide that readout, be able to provide it ever more frequently over time. More accurately. The more data we have to feed these models, the more accurate they'll become. And then turning around standardized reporting after the campaign in a way that's very turnkey and doesn't require us to pull in a number of different client analytics resources. Those are all things that I think sellers here at Ibotta, Inc. are incredibly excited to see. These are all investments that we think are going to delight our clients and improve our overall go-to-market motion.

Thanks. And then, Matt, I wanted to ask about 2026. As we think about some of the new merchants that you guys have added and lapping those ads in 2026, how should we be thinking about third-party redeemer count in a go-forward basis in terms of next year? Thank you.

Yeah. I think, you know, we certainly are not going to get real specific about 2026 from a guide standpoint. But, you know, I think we have we aren't factoring in any increases in publishers from a networking standpoint. So I think you could assume that that's going to be relatively stable across time. The things I think is really important to remember, though, that we're really driving the business through a significant transformation. And at the same time, we're recovering from big execution challenges that's plagued us over the last few quarters. And a large-scale sales reorganization. So while we're not guiding for 2026 today, really across the P&L or certainly not any of the inputs to that, we did think it was important to provide some shaping. So that's what we did in the prepared remarks around expecting more normalized seasonality, leading from Q1 through the balance of the year, but really importantly understanding that from Q4 to Q1, Q4 2025 to Q1 2026, we'd expect to see as much as a low double-digit decline in revenue.

Yeah. I'll just add that, you know, redeemer growth is ultimately a function of improving the offer content on our network. And so we're working very hard to do that so that we can both increase the overall number of redeemers and the redemption per redeemer. On third-party publishers to your question, and on D2C. I think both of those factors are very important, and we're starting to see the LiveLift solution increasing investment, and increasing the breadth and quality of the brands that are on the network, you know, even as some of these are still small dollar numbers. So for example, recently, one of our partners, just as recently as last week, said on their earnings call that they were piloting Ibotta, Inc., that they were using performance marketing and incentives, that they had seen promising early results in driving new users and incremental sales across key snack brands and soon formula. That's just one client that's gone public in the last week. You know, we're continuing to see clients contemplate putting in more mainstream brands versus just innovation brands. And so we think that's ultimately going to hit a higher percentage of the basket and increase overall redeemers, to your question.

Thank you.

Our next question comes from Stefanos Chris at Needham and Company. Your line is open. Please unmute and ask your question.

Hi. This is Steph calling in for Bernie McTernan. Thanks for taking our questions. Kind of maybe a different way to phrase the last question, but could you just talk about the contribution from Instacart and DoorDash in the quarter and maybe how to think about that going into next year? And then you said the majority of DoorDash customers are using Ibotta, Inc. How does that get to all DoorDash customers? Thank you.

Yeah. Thanks, Steph. Appreciate it. Say hi to Bernie McTernan for me. We are pleased with the momentum of our partnerships with both Instacart and DoorDash. You know, we've made progress there this year in terms of improving the functionality at DoorDash. They were taking a cautious approach growing, to make sure that there's no impact on their core, you know, user experience. And I think, you know, they've satisfied themselves to a great extent that this point, you know, to the extent it's not truly 100%. It's a very small holdout at this point. Not worried about functionality, but and that's just to keep an eye on any long-term unintended consequences of having this content. But we are pleased with how those performed. We've also added beer, wine, and spirits in the jurisdictions where that has been possible, the 13 or so states where that has been possible. In those environments. And so, you know, we continue to grow both those channels. You heard that we've grown redeemers year over year. You know, substantially, and those have been a big part of how we've achieved that.

Got it. Makes sense. Thank you.

As a reminder, if you would like to ask a question, click on the raise hand button at the bottom of the screen. Thank you. That concludes the Q&A section of the call. I would now like to turn the call back to management for closing remarks.

Thanks very much to all of you for your questions. We are excited about where the business is heading in 2026, and we look forward to giving you a further report early next year.

Thank you for joining today's session. The call has concluded. You may now disconnect.