v3.26.1
Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue User Redemption Liability Extinguishment
The Company reflects a user redemption liability in the condensed balance sheets associated with the undistributed earnings of consumers on Ibotta’s D2C properties. A portion of these undistributed earnings is never expected to be cashed out by consumers due to inactivity and will therefore be recognized as breakage by the Company.
Consumers’ accounts that have no activity for six months are considered inactive and charged a $3.99 per month maintenance fee until the balance is reduced to zero or new activity ensues. Balances associated with accounts that are deactivated for violation of the Company’s terms of use are also recognized as breakage. The Company estimates breakage at the time of the redemption and reduces the user redemption liability accordingly. Breakage estimates are made based on historical breakage patterns, and the preparation of estimates includes judgments of the applicability of historical patterns to current and future periods. Breakage is recorded in revenue related to funded rewards, as an offset to sales and marketing expense related to self-funded rewards, and as an offset to cost of revenue related to gift card purchases and sponsored rewards earned from watching an advertising video.
The Company’s breakage is recorded as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2026202520262025
Revenue$2,008 $2,309 $3,834 $4,647 
Cost of revenue39 40 75 77 
Sales and marketing359 323 655 634 
Total breakage$2,406 $2,672 $4,564 $5,358 
The user redemption liability was $62.0 million and $65.5 million as of June 30, 2026, and December 31, 2025, respectively.
Revenue
Disaggregation of Revenue
The Company’s disaggregated revenue by type of service is as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2026202520262025
Redemption revenue$80,198 $73,208 $153,214 $146,607 
Ad & other revenue8,707 12,821 18,174 23,996 
Total revenue$88,905 $86,029 $171,388 $170,603 
Deferred Revenue
Deferred revenue, a contract liability, consists of fees and rewards collected from clients that will be applied to future campaigns. Deferred revenue is expected to be recognized as consumers redeem offers over the term of the campaigns, net of the reward, which generally occurs within 12 months. Deferred revenue was $2.6 million and $2.9 million as of June 30, 2026, and December 31, 2025, respectively.
Revenue recognized from deferred revenue at the beginning of the year is as follows (in thousands):
Three months ended June 30,Six months ended June 30,
2026202520262025
Revenue recognized$466 $670 $2,238 $3,515