Ibotta Shares Sink on Disappointing Q4 Outlook

Ibotta shares plunged more than 20% after the cash-back rewards platform issued weaker-than-expected fourth-quarter revenue guidance of $80M to $85M. Analysts surveyed by LSEG were expecting around $84M, placing the midpoint of Ibotta’s forecast below consensus.

Despite the soft outlook, the company delivered a strong performance for the most recent quarter, beating both earnings and revenue expectations.

Key Highlights

Q4 revenue guidance: $80M–$85M (vs. $84M expected).
Stock reaction: Shares fell more than 20% on the update.
Quarterly performance: Earnings and revenue came in ahead of expectations, showing underlying operational strength.
Investors focused on the weaker forward outlook, overshadowing the quarterly beat.

Why It Matters

Slower expected growth raises concerns about consumer spending trends and advertiser budgets.
The sharp market reaction suggests investors were banking on stronger guidance after the quarterly beat.
The company still shows strong near-term execution but faces pressure heading into Q4.