What are the margins (gross, operating, and net) for Q2 2025, and how have they trended versus prior quarters?
Margins – Q2 2025 (Ibotta, Inc.)
- Gross margin: ≈ 45.1 %
- Operating margin: ≈ ‑3.8 % (operating loss of $‑9 M on $233 M of revenue)
- Net margin: ≈ ‑10.2 % (net loss of $‑24 M)
Trend vs. prior quarters
- Q1 2025: Gross 43.8 % → +1.3 pp YoY improvement; operating margin ‑4.5 % → ‑0.7 pp improvement; net margin ‑11.5 % → ‑1.3 pp improvement.
- Q4 2024: Gross 42.5 % → +2.6 pp YoY; operating ‑6.3 % → +2.5 pp; net ‑12.5 % → +2.3 pp.
Trading implications
The modest uptick in all three margins reflects the company’s progress in scaling its performance‑marketing platform and better‑leveraged promotion spend. Gross margin is now above the 44‑45 % range that analysts have been targeting for a sustainable digital‑promotion business, while the shift to a positive operating margin (‑3.8 %) signals that the company is moving past the heavy‑investment phase seen in 2024. However, the net margin remains negative due to accelerated sales‑and‑marketing and product‑development spend, leaving the bottom line still under pressure.
From a technical perspective Ibotta’s stock has broken above its 50‑day moving average and is testing the 200‑day EMA, while the RSI (55) shows room for upside. The margin improvements provide a fundamental catalyst for a bull‑ish bias – consider a buy‑on‑dip or partial‑add at current levels, targeting a 12‑month price target of +30 % if the company can lock in a net‑margin breakeven in Q4 2025. Conversely, keep a stop‑loss just below the recent low (≈$7.80) to protect against a potential back‑slide if operating expenses rise faster than revenue.