Shares of Ibotta Inc (NYSE: IBTA) plummeted 18.21% in after-hours trading on Wednesday following the release of the company's disappointing third-quarter financial results and weak fourth-quarter guidance. The digital promotions network operator reported a significant year-over-year decline in revenue and profitability, raising concerns among investors about the company's growth trajectory.

For the third quarter ended September 30, 2025, Ibotta reported total revenue of $83.3 million, representing a 16% decrease compared to the same period last year. The company's redemption revenue, a key metric, fell 15% year-over-year to $72.1 million. Despite an increase in the number of redeemers on the Ibotta Performance Network, the average number of redemptions per redeemer declined, impacting overall revenue and indicating challenges in user engagement.

Ibotta's profitability also took a significant hit, with the adjusted EBITDA margin contracting to 20% from 37% in the same quarter last year. While the company managed to beat analyst expectations with adjusted earnings per share of $0.56, compared to the consensus estimate of $0.00, investors seemed more focused on the deteriorating financial performance. Adding to the concerns, Ibotta's guidance for the fourth quarter disappointed, projecting revenue between $80-$85 million, representing a year-over-year decrease of 16% at the midpoint, and an adjusted EBITDA margin of just 13% at the midpoint. These factors combined to trigger the sharp sell-off in Ibotta's stock during after-hours trading.