v3.26.3
User Redemption Liability Extinguishment
 9 Months Ended
Sep. 30, 2026
Disaggregation of Revenue [Abstract]  
User Redemption Liability Extinguishment 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 September 30,Nine months ended September 30,
2026202520262025
Revenue$1,890 $1,850 $5,724 $6,497 
Cost of revenue36 34 111 111 
Sales and marketing367 276 1,022 910 
Total breakage$2,293 $2,160 $6,857 $7,518 
The user redemption liability was $61.6 million and $65.5 million as of September 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 September 30,Nine months ended September 30,
2026202520262025
Redemption revenue$88,544 $72,081 $241,758 $218,688 
Ad & other revenue9,281 11,179 27,455 35,175 
Total revenue$97,825 $83,260 $269,213 $253,863 
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 $2.4 million and $2.9 million as of September 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 September 30,Nine months ended September 30,
2026202520262025
Revenue recognized$250 $618 $2,488 $4,133