Shares of Ibotta Inc (IBTA) plummeted 20.76% in after-hours trading on Wednesday following the release of its second quarter 2025 financial results and disappointing third-quarter guidance. The sharp decline reflects investor concerns over the company's revenue performance and future outlook.

For the second quarter, Ibotta reported revenue of $86 million, representing a 2% year-over-year decline and falling short of the analyst consensus estimate of $90.49 million. Despite the revenue miss, the company managed to post an adjusted earnings per share (EPS) of $0.49, surpassing the analyst expectations of $0.41. However, this still marks a 27.94% decrease from the $0.68 per share reported in the same period last year.

The most significant factor contributing to the stock's after-hours plunge appears to be Ibotta's weak guidance for the third quarter of 2025. The company projects Q3 revenue between $79.0 million and $85.0 million, which represents a year-over-year decrease of 17% at the midpoint. This outlook falls considerably short of the consensus estimate of $101.8 million, raising concerns about Ibotta's growth trajectory. Additionally, the company expects Q3 Adjusted EBITDA to be between $9.5 million and $13.5 million, with a margin of 14% at the midpoint.

Despite these challenges, Ibotta highlighted some positive developments, including a 27% year-over-year growth in quarterly redeemers on the Ibotta Performance Network and the expansion of its digital offers to the majority of DoorDash customers. The company also announced recent additions to its Revenue leadership team, including new Senior Vice Presidents in Enterprise Sales, Business Marketing, and Revenue Operations, as well as the appointment of Matt Puckett as Chief Financial Officer after the quarter-end.

As Ibotta continues to navigate the challenging market conditions, investors will be closely watching how the company's strategic initiatives and leadership changes translate into financial performance in the coming quarters.