Operator: Good afternoon, and welcome to Ibotta's Q2 2026 Earnings Conference Call. With us today are Bryan Leach, Founder and CEO; and Matt Puckett, CFO. Today's press release and this call contain forward-looking statements. Forward-looking statements include statements about our future operating results, our guidance for Q3 2026, our ability to grow our revenue, our ability to grow supply and demand on our network, factors contributing to our potential revenue growth, our key initiatives, our partnerships and the capabilities of our offerings and technology, all of which are subject to inherent risks, uncertainties and changes. These statements reflect our current expectations and are based on the information currently available to us, and our actual results could differ materially. For more information, please refer to the risk factors in our recent SEC filings. In addition, our discussion today will include references to certain supplemental non-GAAP financial measures and should be considered in addition to and not as a substitute for our GAAP results. Reconciliations to the most comparable GAAP measures are available in our earnings press release, our 10-Q to be filed this week and our Q2 2026 earnings presentation which are all available on our Investor Relations website at investors.ibotta.com. Unless otherwise noted, revenue and adjusted EBITDA comparisons to prior periods are provided on a year-over-year basis. With that, I'll turn it over to Bryan.

Bryan Leach: Thank you, and good afternoon, everyone. I'm pleased to report that in the second quarter, Ibotta delivered top and bottom line financial results that exceeded the high end of our guidance range. And importantly, we've returned to year-over-year revenue growth, a full quarter ahead of our expectations. This positive development was driven primarily by a steady improvement in our advertiser offer supply which continues to benefit from growth in both our core product and our newer capabilities like LiveLift. Our top line acceleration was led by our redemption revenue growth. In Q2, redemption revenue grew by 10% year-over-year, marking our fastest pace of growth in this core part of our business since the third quarter of 2024. Third-party redemption revenue grew 27% year-over-year. This growth corresponded to the continued growth in our redeemer base. We achieved year-over-year redeemer growth of 21% in the quarter. This represents our fastest rate of expansion since Q2 of 2025 at a time when our metrics were benefiting from the launch of our Instacart and DoorDash partnerships. What's most exciting about these results is that we're driving this redeemer velocity efficiently across a significantly larger network footprint, which speaks to the continued health in the demand side of our business. Today, we are reporting that we have 20.9 million redeemers. To put this in perspective, just 5 years ago, we had approximately 2 million redeemers, an increase of more than 10x since then. As you've heard me say before, increased demand for offers alone isn't enough. Until we have the depth of offer supply to match the demand, we can't capitalize fully on the opportunity it presents. There are positive signs on that front, including the fact that we delivered year-over-year growth in our third-party redemptions per redeemer for the first time since the third quarter of 2024. These results are a direct outcome of stronger execution by our team. With a few quarters now under their belt, it's clear that the new verticalized sales structure and broader revenue organization we put in place beginning in Q3 of last year is working as intended. Our teams are providing customers with an upgraded consultative sales and service motion, spending more time in market strengthening client relationships at all levels and ensuring the level of account management continuity required to unlock deeper advertising budgets. The recovery we're seeing is distributed broadly across our clients. In fact, within our enterprise client base, the majority of accounts that declined in 2025 were back to year-over-year growth in Q2. To share one anecdote to give you a sense of how this commercial inflection is playing out, one of our largest household products partners, a consistent top 20 client for us was actually an early pioneer who gave us feedback back in 2024 that help shape the initial concept of LiveLift. While their overall spend declined in 2025, we doubled down on our in-person engagement across several of their brand teams. We deepened that relationship significantly over the past year. In fact, our leadership team was invited to present at the client's internal marketing event earlier this year. We saw success by effectively multi-threading and engaging with teams across shopper marketing, analytics and sales. This high-touch service motion quickly translated into expanded business. With recent share losses in a key segment, the client has been hyper focused on driving incremental sales and household penetration. Given these objectives, LiveLift is a strong fit. After running a successful initial LiveLift campaign late last year, they expanded LiveLift in the first half of 2026 across the original brand as well as new brands in different product divisions. As a result of this upgraded execution and LiveLift expansion, our net revenue with this key partner is up 75% year-over-year in the first half of 2026. This upgraded commercial execution is aided by our seasonal events marketing playbook, which identifies opportunities for clients to leverage retailer native Ibotta offers during peak retail moments such as back-to-school, Prime Day and Walmart deal days. Since May, a substantial portion of our closed-won deals have directly benefited from this strategic playbook. As brands look to capture outsized market share and maximize visibility during times when consumer volume and engagement are high. From a vertical perspective, our growth this quarter was driven by 3 core categories: emerging brands, food and health and beauty. In emerging, we're seeing significant budget inflows from challenger brands that are leveraging our network to drive immediate, efficient, net new household acquisition. In food, which remains an important category and the one most challenged by the current macroeconomic landscape, our performance marketing message is resonating deeply, brand managers in this space view value delivery as a core mandate, and we believe they are leaning into our network because we provide scale and efficiency. In health and beauty, our strong growth is consistent with the relatively healthy industry trends for the category. Our performance across each of these categories illustrates how the Ibotta performance network benefits from its diverse content, driving critical volume in more challenged sectors like food, while capturing high velocity dollars in healthier expanding categories like health and beauty. We also continue to position ourselves as thought leaders in the promotion space. In June, our team was on stage at the Cannes Lions International Festival of Creativity alongside key partners from Kenvue, Grupo Bimbo, DoorDash and Uber. In July, our team appeared with the SVP of Marketing and insights at Mondelez at the ADWEEK House SportsCenter. Those sessions demonstrated our commitment to continuously raising the bar when it comes to measurement rigor in our industry. Along with Circana, we recently released a comprehensive meta study and analysis, evaluating 48 different Ibotta campaigns across multiple CPG categories. The data from this independent study showed an average lift of 16.5% in incremental sales and a 17% average increase in new household penetration for the products promoted in our network. Crucially, the study also revealed a 10.9% average sales lift on nonpromoted items within the same brand portfolio, demonstrating that our promotions generate a powerful cross retailer halo effect for a brand's broader catalog. These campaigns exceeded Circana's standard sales lift benchmarks by a factor of 7x, showing the power of our promotions to move the needle for our CPG brand clients. As Circana's SVP of Global Media Enablement and Measurement noted in the release, "For years promotions and media have been evaluated on different standards, limiting marketers' ability to make true investment comparisons. What this research shows is that when you apply the same methodology used for traditional media, promotions can play a much larger role in driving incremental growth than many organizations currently assume." We believe that stronger execution, coupled with continued investment in innovation and thought leadership reinforces our position as a trusted partner our clients look to in order to deliver more revenue and grow market share. We continue to focus on making it as easy as possible for our CPG clients to buy campaigns on the Ibotta Performance network. This, we believe, creates a larger TAM opportunity and unlocks access to even greater offer supply. As it relates to the key automation initiatives I discussed last quarter, we remain on track and have made significant progress against all 3 work streams. We're building a powerful and intuitive next-generation buying experience for our clients which we believe will also free up our sales force to focus on selling rather than navigating administrative tasks as well as enabling greater scaling of LiveLift. At the same time, revenue from LiveLift continues to grow both year-over-year and quarter-over-quarter. Finally, as I alluded to at the top of my comments, we believe the value proposition of the Ibotta performance network is resonating on the demand side of the marketplace. Earlier today, we officially welcomed 7-Eleven, Inc. to the IPN, marking our third major publisher addition this year and significantly expanding our convenience store footprint. Ibotta will serve as the exclusive third-party provider of CPG digital promotions, excluding age-restricted items to the 7-Eleven 7NOW and Speedway apps reaching shoppers across more than 11,500 U.S. store locations. The convenience store channel is strategically vital for many of our largest food and beverage clients, and we are thrilled to bring Ibotta's national offer supply to this broad and important consumer base. Historically, this specific retail channel has lacked access to coordinated digital promotions. By embedding our digital offers natively into this environment, we're unlocking another high intent surface for our advertisers, giving them an opportunity to impact consumer consideration and purchase behavior at the C-Store digital shelf. This addition is also a great example of how our network reinforces itself as several of our key CPG clients actively helped us advocate for and secure this new publisher. In addition to this new signing, we officially launched our native offer experiences at Uber at the tail end of the second quarter, and our integration with Giant Eagle went live in July. Both onboarding processes are progressing smoothly and according to plan. Furthermore, within our existing footprint, we continue to benefit from close collaboration with our publishers with multiple retail partners, we're expanding how offers are integrated across digital and in-store experiences. For example, we're working closely with Walmart to help customers more easily discover manufacturer funded savings throughout the shopper journey, including in stores, thereby reinforcing the retailers value proposition while creating a more seamless customer experience. Our partners continue to see substantial strategic benefits from these integrations, including deeper digital engagement, greater loyalty and increased basket size. Across the board, our network is strong and growing. Our go-to-market engine upgrades and product road map are moving forward on schedule, and our team is delivering against our plans. We look forward to building on this positive momentum throughout the back half of the year. With that, I'll turn the call over to Matt to walk through our financial results and outlook in greater detail.

Matthew Puckett: Thank you, Bryan, and good afternoon, everyone. We are encouraged with the recent performance of the business. These results marked the third quarter in a row that we delivered top and bottom line results above the high end of our guidance range. In addition, we achieved an even more important milestone. Total company revenue has returned to growth for the first time since the first quarter of 2025. We delivered revenue and adjusted EBITDA that were respectively, 6% and 58% above the midpoint of the guidance range that we provided on our first quarter earnings call. Now to share the details of our top line results in the quarter. Revenue was $88.9 million, up 3% versus last year. Within that, redemption revenue was $80.2 million, up 10% year-over-year, driving the stronger-than-anticipated performance in the quarter. As Bryan highlighted, this was the fastest pace of redemption revenue growth since the third quarter of 2024. During the quarter, we benefited from continued strong go-to-market execution, which led to increased offer supply. Specifically, we had great results this quarter, leveraging our seasonal events playbook. The pull forward of Walmart deal days into June this year from July last year represented exactly this type of opportunity and generated more revenue in the quarter than we had projected. In fact, it added approximately 2 to 3 points of growth versus our outlook. Finally, LiveLift revenue remains on track relative to our expectations and as Bryan mentioned, grew both year-over-year and sequentially versus Q1. Third-party publisher redemption revenue was $61.5 million or up 27% versus last year, accelerating meaningfully versus the prior quarter's increase of 12%. Direct-to-consumer redemption revenue was $18.7 million, down 24% year-over-year and similar to Q1's result where, as anticipated, we've continued to see redemption activity shift to our third-party publishers. Ad and other revenues, which represented 10% of our revenue in the quarter were $8.7 million, down 32% versus last year. We continue to see pressure on ad revenue as a result of lower direct-to-consumer redeemers, which is being partially offset by growth in data revenue. It is worth noting the year-over-year decline in ad and other revenue in Q2 was significantly larger than both what we reported in Q1 and what we expect to see in half 2. This quarter's comparison to last year was up against a period when CPG ad revenue grew. That was the only quarter in 2025 where that occurred. Turning now to the key performance metrics supporting redemption revenue. Total Redeemers were 20.9 million in the quarter, up 21% year-over-year. We again delivered significant growth in third-party redeemers across the IPN, including strong growth with our largest publisher partner highlighting healthy engagement on the demand side of our network. On top of organic growth with existing publishers, the quarter also benefited from the launch of DoorDash in the second quarter of 2025. Redemptions per redeemer were 4.4%, down 6% versus last year, a comparable result to Q1. The primary driver of this decline was the mix of redeemers, specifically the growth in third-party redeemers, which have a lower redemption frequency as compared to our direct-to-consumer redeemers. Notably, in another indication of improving offer supply, third-party redemptions per redeemer were 3.8%, up 2% year-over-year. representing a return to growth in this metric for the first time since the third quarter of 2024. Redemption revenue per redemption was $0.88, representing a 4% decline versus last year, driven primarily by the mix of redemption activity. Bringing it all together, total redemptions were 91.4 million, up 14% versus last year. This acceleration in growth versus Q1 was driven by 27% redemption growth with our third-party publishers. Switching to the cost side of our business. Non-GAAP cost of revenue was up $1.1 million or 6% versus a year ago, driven by an increase in both technology and publisher related costs. This resulted in a Q2 non-GAAP gross margin of 79.3%, down approximately 60 basis points versus last year, but up 170 basis points sequentially versus Q1. This increase versus Q1 coinciding with the step-up in revenue quarter-to-quarter demonstrates our opportunity to expand gross margins as revenue grows. Non-GAAP operating expenses were up 8% versus last year and were 64.5% of revenue, an increase of approximately 250 basis points year-over-year. Non-GAAP operating expenses were slightly favorable versus our prior expectations as we realized certain timing-related benefits in the quarter. Within that, non-GAAP sales and marketing expenses were up 17% versus the prior year driven by a planned increase in labor and the previously mentioned investment in third-party lift studies, partially offset by lower marketing expenses. Non-GAAP research and development expenses were unchanged, and lastly, non-GAAP general and administrative expenses, an area of the P&L where we are intent on driving leverage decreased by 5%, while depreciation and amortization increased by approximately $800,000 or 77%. As planned, our investments in areas related to our transformation, inclusive of both the P&L and what has been capitalized to the balance sheet, increased at a faster pace than our overall costs. This increase in investments was approximately 17% and again, was highlighted by higher labor costs in the sales organization, third-party lift studies and other technology-related costs. We delivered Q2 adjusted EBITDA of $16.5 million, representing an adjusted EBITDA margin of 18.6%, non-GAAP net income of $11.7 million and non-GAAP diluted net income per share of $0.46. Our non-GAAP net income excludes $15 million in stock-based compensation and includes a $2.1 million adjustment for income taxes. We ended the quarter with $148.2 million of cash and cash equivalents. And in Q2, we spent approximately $23 million, repurchasing approximately 700,000 shares of our stock at an average price of $32.33. We had 25.8 million fully diluted shares outstanding as of June 30. And as of the end of the quarter, we had $67.3 million remaining under our current share repurchase authorization. And finally, on cash flow, we generated $8.1 million in free cash flow in the quarter. Stepping back and looking at the year-to-date results, we generated $31.3 million in free cash flow in the first half, a decrease of 7% versus last year, but tracking a bit higher than our plans halfway through the year as a result of modestly higher earnings and favorable working capital. Now shifting to Q3 guidance. We currently expect revenue in the range of $86 million to $90 million, representing approximately 6% year-over-year growth at the midpoint. And we expect Q3 adjusted EBITDA in the range of $12 million to $14 million representing about a 15% adjusted EBITDA margin at the midpoint. With that, let me provide a little more color on the outlook. As both Bryan and I have referenced, we are benefiting from the consistency and effectiveness of our go-to-market execution with our clients and publisher partners. It's showing up in our results with both our core product offerings and with LiveLift. This has been the catalyst for improving revenue trends during the last few quarters, and we are confident that can continue. I do want to highlight that while our guidance implies improving year-over-year growth rates in Q3, we do expect a slight quarter-over-quarter revenue decline at the midpoint. This is a result of the timing of important seasonal promotional events that shifted into Q2 and as I referenced in my comments earlier. Regardless, our current expectations for Q2 and Q3 in combination for both revenue and adjusted EBITDA are higher than a quarter ago. Looking forward, beyond our specific Q3 revenue guidance, we continue to expect a modest sequential increase in revenue quarter-over-quarter into Q4. And factoring that in, we'd expect to exit 2026 with mid-single-digit year-over-year growth. As it relates to our cost outlook, while there was spin timing affecting our second quarter results, we continue to plan for modest sequential increases in quarterly non-GAAP cost of revenue and operating expenses across the back half of the year. These increases will continue to be squarely in areas that are critical to our transformation and geared toward our largest growth opportunities. With regards to free cash flow, given the strong cash generation in the first half, we now expect full year free cash flow as a percentage of adjusted EBITDA to be approximately 70% as compared to our expectation of 65% at the start of the year. Lastly, with the healthy balance sheet and strong free cash flow generation, we remain committed to the balanced capital allocation approach, we've now consistently deployed across a number of quarters. Investing in organic growth and our strategic priorities while also returning cash to shareholders. We are excited by the renewed traction in our business and the significant gains we've made in the first half both in unlocking more offer supply and continuing to drive growth in redeemers from existing publishers and the addition of new publishers to the IPN. We look forward to making further progress along these vectors and driving even greater value for our CPG partners, retailer publishers and consumers in the coming quarters. With that, operator, let's please open up the line for Q&A.

Operator: [Operator Instructions] Our first question comes from Ron Josey with Citi. Please feel free to ask your question.

Jamesmichael Sherman-Lewis: This is Jamesmichael Sherman-Lewis on for Ron Josey. Two questions here, if I may. On the steady improvement Ibotta has seen offer supply. Can you unpack the drivers of progress here and whether you're seeing macro improvement amongst CPG advertisers or having more success with this more verticalized sales structure? And then I have a follow-up.

Bryan Leach: Sure. Thanks, Jamesmichael. Appreciate the question. Yes, as I mentioned in my remarks, we're seeing the benefits of the last year of improved go-to-market execution by our team. That has included the verticalized go-to-market structure, but it's far from a comprehensive list of all the things that we've been doing differently. Our team really deserves a lot of credit for spending more time in the room with our customers, meeting with more people when they visit in person with those customers, maintaining consistency, being more proactive, understanding their business more deeply. Our business-to-business marketing function has allowed us to have reasons to be in touch and ways to help our clients, for example, the Walmart deal days example or the example I gave last quarter relating to SNAP benefits. And those things have meant that when in a challenging environment, these CPG companies are increasingly turning to us because they trust our measurement. They trust our team will deliver what we say we're going to deliver. And you're seeing that in the turnaround account by account, accounts that were shrinking are now growing again. We're hearing that we're one of their most -- the first phone calls that they make when they face some of these headwinds in the macro. So I think, while there are challenges in their business, clearly, they view us as a partner that can help them navigate those challenges right now.

Jamesmichael Sherman-Lewis: Perfect. Appreciate it. And then on the pickup in new publisher wins, 7-Eleven, Uber Eats, Giant Eagle, et cetera. Curious if you have any update on your expectations for the long-term cadence of new publisher signings. Great to see the recent win rate, but curious if you're potentially expanding further into verticals outside core grocery as well.

Bryan Leach: Yes. Thank you, Jamesmichael. We are, as you can see, now the leaders in multiple different verticals. So if you look at the mass vertical, we have Walmart, if you look at the dollar vertical, Dollar General and Family Dollar. If you look at the last mile delivery, you have Uber, you have DoorDash, you have Instacart. You look at something like 7-Eleven, and that's really the anchor tenant in the convenience channel. We also have Shell in that category. And so we're increasingly positioning ourselves as the place where you can put your content natively in the experience of the largest retailers in the country. We'll continue to do that. There are other categories that we haven't penetrated yet. That will be a priority. There are other companies within categories that we have that are a priority and we have ongoing conversations with a number of them. In fact, we're finding that our CPG brand partners are some of our biggest advocates and I want to call that out with regard to the 7-Eleven win. Without naming the client, there were a couple of different clients for whom this was a very strategic channel, very important, and they made their views known as references. And I think that, that just shows you the kind of network effects in action, but we plan to celebrate this, and then we will have, we believe, is a steady stream of additional announcements in the coming quarters.

Operator: Our next question comes from Bernard McTernan with Needham.

Bernard McTernan: Great. Bryan, I was hoping you could just dive into the balance of the supply and demand in your marketplace. Growth in the quarter was driven by new supply, obviously, bringing on 7-Eleven, some more redeemers. Was there a need from like a marketplace equilibrium perspective to bring on 7-Eleven now.

Bryan Leach: Yes. So I think a couple of things. The first thing is it's true that we did increase overall redeemers. And over the last 5 years have grown from 2 million to 20 million in overall redeemers, and it's true that by doing that, it's allowed us to stimulate some offer supply. And I think in this category is a particularly good example. I just mentioned a couple of these clients that this is a really strategic channel for them. This is where they sell a lot of their individual pack sizes. And so by bringing this on, it will unlock different budgets that are specific to that channel for us to be able to add more offer content. So that's an example of how one leads to the other. It's also worth noting that this is the first quarter in some time in which we actually increased redemptions per redeemer. And that's important because it means that offer supply is growing far enough to exceed the growth in redeemer demand. And thus, you're seeing there's actually more offers per redeemer even with more redeemers. And I think that's a really valuable leading indicator in this instance shows that we're on the right path in terms of rebuilding our supply offer supply pipeline. And we think that this development with 7-Eleven will demonstrate even more momentum. We think that will affect the calculus of other publishers. And that in turn, sends a signal to the market that, look, this is the best place to drive incremental sales at scale. And now you can do that across a lot of different formats, a lot of different channels to a single set of technologies through a single set of relationships with one company, and we think that, that network is more valuable, the broader it grows.

Bernard McTernan: Understood. And just as a follow-up, Bryan, you mentioned health and beauty is 1 of the 3 drivers in the quarter of strength. I don't think you've mentioned that a subcategory within CPG before, but can you just talk to in terms of how new it is for a revenue driver for you guys?

Bryan Leach: Yes. I think it's a category that is expanding and doing well. We've had strength in that category for some time. we put more focus on the category in the last year, and I think that's paying dividends now. And I do want to clarify, Bernie, in response to your first question, that the growth in redemptions for redeemer that I alluded to is on the third-party publishers. But I think it's still a valid point because as we add more third-party publishers, we expect to be able to keep up with that on the offer supply side.

Operator: The next question comes from Ken Gawrelski with Wells Fargo.

Kenneth Gawrelski: Appreciate the questions. Two, if I may. First, I want to stay on the supplier side. It seems like from your commentary that you've seen some real progress there with your suppliers. Could you just talk about what's been effective at unlocking some more supply? Is this -- are you moving past the traditional kind of trade or promotional budgets and getting into the more traditional media side of the budgets, digital media side. That's question one. The second question is, when you -- maybe Bryan stepping back, when you think about the margin profile of the business, look out maybe 1 to 2 years, relative to the path you were on kind of prior to the sales reset, the go-to-market reset, how would you contrast over the future margin profile of the business relative to what the trajectory was prior to kind of the sales reset.

Bryan Leach: Thanks, Ken. I'll take those questions in turn. I'll add a few comments on the second, but then I'll hand it over to Matt to comment in more detail. So with regard to your first question, I think there are a number of different factors. Fundamentally, it's about trust. It's about building deeper relationships so that these brands pick up the phone and call us and say, "I've got a problem this quarter. I need a solution I can turn to that can act very quickly to drive a meaningful amount of market share change in my favor." I think that we're being able to go into multiple different levels of an organization, something we call multi-threading. So we might be talking to brand leadership, but we're also talking to the shopper marketing and trade team, the marketing leadership within the overall company, revenue growth management, the media agencies. And it's not -- we have thousands of brands, hundreds of clients. So there's a wide range of different arrangements that we have. But I would say that, broadly speaking, they believe that our measurement is stronger and more credible than it was a year ago. The partnership with Circana, I think, has been very validating in terms of a third-party independent. We put out a major study at Cannes, a meta study showing that we were 7x more effective in driving incremental sales lift than the benchmark median. So these kinds of validating points create an environment where this stigma that may or may not have existed in the promotions category is no longer attaching to Ibotta. I think we are seen as transcending that as performance marketing that's delivering top and bottom line growth. I think the verticalization has paid off, and there's more specialized knowledge among our sellers. So they're going in proactively and saying, we noticed this trend. We think we can help you in this way. And I think that is not something that people have the data to do in many cases, and we can do it with the data that we have. So I think that being seen as a problem solver that's trusted and having those relationships is the primary unlock that we're seeing. Now we're continuing to work on the things that I mentioned last quarter, for example, making it easier to buy on our network, make it easier to sell and spend, therefore, more time selling rather than actually setting up offers and handling the kind of quote-to-cash logistics. I believe that, that will be a further tailwind to developing more and more offer supply. But what you're seeing now is the benefit of the last year of sustained commitment, better training, better incentives, alignment, better quotas, folks that are the right folks in the role, that's what you're seeing primarily right now. On your second question, looking out a year or 2 relative to the path we were on, I think what's exciting is these trends that I've just been alluding to are going to accelerate our ability to capture more offer supply. And we are dropping a high percentage of those incremental revenue dollars to our adjusted EBITDA line because we have relative to that a much more fixed or growing much more modestly, the cost profile of our business. And so because that we're getting favorable terms, broadly speaking, with these publishers that we're adding on, we're not seeing a lot of hit to our margin there. In fact, we're really pleased with the leverage that we're getting as our marketplace grows bigger and bigger. And as far as how that translates over that time period, I'll defer a little bit to Matt on that.

Matthew Puckett: Yes. So yes, I'm probably not going to give you the answer you want, meaning I'm going to give you a number necessarily. But I'll give you a couple of data points I think could be helpful as you think about this. And I would just start by saying with consistent and sustainable revenue growth, we're going to have the opportunity to deliver strong incremental unit margin and overall margin expansion. We saw that play out just right now in Q2 relative to Q1, where a step-up in revenue kind of meaningful step-up just from a value standpoint, $82 million, $82.5 million in Q1 to $89 million in Q2. We dropped a lot of that increase to the bottom line quarter-over-quarter, right? So that gives you a sense as we see consistent top line growth, we're going to have the ability to drop more and more EBITDA to the bottom line. If you look at the business today, it's a very healthy business, although the margins are lower where they have been historically. We just generated on a trailing 12-month basis 16% EBITDA margin at a time when the business was declining about 7% on a same trailing 12-month basis. So the business is sound even in a moment where the business has been declining, and we've been investing through that transformation and through that decline because different to 2 years ago, the opportunity that we see in terms of the top line potential of this business, and the work that we're doing to transform the company gives us a lot of confidence in the upside potential of this business over time. And the investments that we've made over the last several quarters are, we think the right ones, and we think they're paying off already. And there's not a significant step change in investments from here. We need to get past to kind of lap the things that we've done, and we'll see that happen. To some degree, as we move through the end of this year and the early part of next year, and so we'll see kind of those increases begin to moderate a little bit. So we're set up really well both in terms of where we see the potential in the top line and how we see the opportunity to leverage the P&L as we deliver that over time.

Operator: Our next question comes from Mark Mahaney with Evercore.

Mark Stephen Mahaney: Okay. I may be old school, but the 7-Eleven deal sounds like a really huge win for you. So could you spend a little bit more time on that. The amount of time it took you to put that deal together. I know you got sort of endorsements from your network to get that going, but how long it takes to get that fully up and operational kind of across the 7-Eleven franchise and put this in context with other publishers. Less materials, equally material, more material than those 2 other major publishers that you've announced year-to-date.

Bryan Leach: Yes. Thank you, Mark. I mean these wins are multiple quarters or some even years in the making. These are conversations that may involve creating new user experiences. They may involve sharing a level of data that these companies have not ever shared before or certainly not with folks in the promotion space. And the reason why is because we have a really robust innovative approach to measurement and that means we're going to be able to put this data into a way of tracking incremental sales that is really powerful from the standpoint of bringing content into these channels. And so we've taken the time to kind of make the case that we need to do this right so we can create an environment where people really feel good about the return on their investment and then you're able to pass more value on to the 7-Eleven shopper. You build these relationships with these large companies that have year, 2-year packed product road maps and then you have to find your way into those product road maps with a business case and then you have to negotiate all of the various agreements that surround this evolving not just the commercials, but other dimensions of the partnership. So as far as this particular partner. This is a different realm than loyalty and digital promotions has played in, in the past. This is the first time they will have a large access to those kind of offers, which is really exciting for their customers. I think they were made aware that, look, value is kind of the key thing. And so it bumped up the prominence of this opportunity. And then look, I think the more that we partner with companies like Uber, what we hear from companies like 7-Eleven is we really respect them if they've put the effort and thought and judgment into this, we ought to take a harder look at it. So you start to see these things snowballing a little bit. In terms of the rollout timing, we're looking at the second half of this year to roll this out. Of course, you have 11,500 stores. And as you mentioned, you have these other parts of their organization that are included, which are important. The 7NOW, the Speedway, et cetera, in addition to 7-Eleven, but I think they've begun the process of figuring out how they want to do this, and we work in parallel to do this as we're finalizing the commercial agreement. That will give us some time to make sure we get out and have the conversations we need to with our supply partners. In terms of the scale, there are a lot of different variables that go into that. On the one hand, the consideration is lower in the convenience channel, and so people are making more impulse purchases, not as many people will probably select offers prior to going into a store and plan their list the way they would a grocery trip. However, we know from the deals and the content they have right now that is heavily used and very popular and something people do open when they get into the 7-Eleven and it drives their purchase decisions once they're in the store. Where they choose to place our offers and how they show up in the results of searches and things like that will have a big effect on the the redemption rate and thus, the size of this opportunity. So I'm not going to comment on the T-shirt size of it just yet, but we'll get a sense of that in the back half of this year and be able to factor that into the '27 commentary that we give you.

Operator: Our next question comes from Nitin Bansal with Bank of America.

Nitin Bansal: It feels like many of the foundational pieces are getting in place. You have completed the go-to-market transformation, making steady progress on the product front and expanding the publisher network as well. So as we think about the next leg of your growth and specifically LiveLift adoption, is the biggest hurdle like customer adoption and educating market around the new way of winning promotions? Or do you believe the remaining bottlenecks are like largely internal and within your control?

Bryan Leach: I think -- thank you, Nitin, I think both of those are within our control to some extent. So let's take the premise of your question and break it down into both those. I think it's very astute to observe that just because you have a product that delivers profitable revenue that the entire market will adopt it when it has for a century viewed promotions as a risk of subsidizing purchases that are already occurring. That is why all the groundwork we've laid with measurement, the statistics, the approach, validating that, making sure to walk people through that, train them. And we had a whole on-site session with the top CPG here, in which we spent 8 hours talking about measurement and proof, that is starting to change those attitudes within the finance teams, within the people that control the purse strings and the budgets. And that is behavioral change on the ground level. But there still is a norm of allocating resources in an annual way with kind of an annual measurement process. And Nitin, as you might imagine, that is not the way you would do this if you were going to leverage things like machine learning and digital capabilities of the present. Instead, you would function more like a digitally native company where you set a set of rules or constraints around how profitable you want your promotion to be, and you have a target number of incremental sales that you're trying to achieve and then you essentially configure and change the parameters of a promotion as you go to get as close to those parameters as possible, and what's exciting is that if we deliver that, and we're giving ranges that are generally accurate and then hitting those ranges, the message we're hearing back from the market is we're going to keep doing that until those rules and constraints are no longer met. So it's not the old world of kind of an aliquot of money and then come back to me in a year no matter what, it's kind of like, if you can meet these conditions, we'll continue to invest in an ongoing way until you can't meet them and then we'll cut it off. And that's what we want. I think the second part that's going on is there are thing's on our roadmap that I discussed last quarter that we do need to improve. So we do want to make it so that people can buy on this network in a way that is much more self-service that allows them to see the relationship between efficiency and scale and choosing where they want to be on that kind of continuum that allows them to see the recommendations that we're making for opportunities. So we could scour the market and actually look and say, "Oh, here's an opportunity based on the data that we're crunching and then recommend a campaign design and have them implement that and then build confidence in our algorithms and our recommendations, those interfaces that make it feel more like buying media are being built right now. And that has required us to revisit the foundational data models and our program APIs and things like that, but we are making good progress on that. And I think as we head into next year, we're going to have a next-generation suite of products that grow out of those program APIs and that reimagined streamlined product catalog, things like that. So there's a lot of kind of behind the scenes getting ready to really scale. The road map is very clear. It's got total alignment in the business. And I think what remains to be seen is how fast will that help our sales team demonstrate that this is something new and different and change those behavioral norms that have been there for so long. But what we're seeing already is that the conditions for that are there, which is that they trust us. They believe that this is a valid way of measuring. If now you could get more data and build it with a benefit of more publishers like 7-Eleven, and you can actually have a signal that's even more powerful and more definitive with better predictions, it would allow more clients to use LiveLift because we would have more confidence in those projections even shorter into their campaign. They wouldn't have to run such a long campaign to benefit from LiveLift and that will open the aperture of access to that product. And I think they're confident in our current products. We have a whole new generation of products coming out. And it remains to be seen exactly the pace of adoption of that. And I think I will be -- I'll get more information on that, and we'll have a better insight as next year unfolds. But clearly, we are going to be not just relying on the improved go-to-market execution, but a host of these other innovations, and we believe we're investing more in innovation than anyone else ever has in this space, and we're excited to see how the market responds to that.

Operator: Our next question comes from Eric Sheridan with Goldman Sachs.

Eric Sheridan: Great. Maybe building on that last question, Bryan, and I certainly understand the desire to get to a point where you're sort of always on and budget is sort of being toggled with relationships on that side. But when you think about the end of this year and the budget setting exercise that the CPG industry generally goes through and the priorities that are being set, what do you see as the mission-critical pieces of execution that you have to put in place to ensure that the budgeting cycle coming out of this year and going into next year sets the company up for the most incrementalism it can capture, especially when measuring at some of the innovation you guys have introduced into the market.

Bryan Leach: Yes. So first of all, it's true. Most of our clients still do have an annual cycle. Keep in mind, not all of them are at the end of the calendar year, plenty of them are midyear, different times in the year. So it kind of is always happening. And I would say the most important things are to continue to be -- to have a seat at the table in the conversation about the strategy and high-level objectives of our clients. As long as we are upstream in understanding what they're trying to achieve, we can fashion a set of proposals that will make sense for their needs. Part of that is communicating to them the growth that we anticipate in our own network and what the actual opportunity size is for their brands right now. And that might be, hey, you've got 2 brands, but there's 9 brands that aren't participating here's the opportunity. It might be, hey, you've got 2 brands, but they're capitalizing on about 15% of the total capacity of our network, and our network is projected to grow by roughly this amount. We are already having lots and lots of those 2027 conversations. And it's important to get out in front of that because, as you said, they're going to lock in those budgets. I think that what's also interesting, though, I mentioned that on-site we have with the large CPG company what I heard them say very clearly was, look, it's true we have annual budgets. And to the extent we genuinely believe that you can deliver top and bottom line growth, we're going to invest in that. I don't care what time of year it is. I don't care what budgets look like, we're still convincing them. They're intrigued but there's some more work to do to completely convince all of our clients of that and to change that mindset. In a lot of cases, we are considered a marketing expenditure. And so when they go to protect their bottom line, the impulse is, well, let me cut anything that's in the category of marketing expenditure. And what we're trying to communicate is, okay, no, if you cut this, you're actually going to cut your bottom line. You're going to worsen your bottom line because we are accretive to your bottom line. We are not like some billboard that you invest in, on the theory of long-term brand equity, very, very different, very, very provable. And so distinguishing ourselves is kind of the substance of those forward conversations that we're having right now. And I think that these more trusted relationships with our sellers on the front lines is what's going to give me the confidence that we'll have strong enough partnerships that they'll be there to capitalize on a much higher percentage of our redeemer demand capacity than they have in the past.

Operator: Our next question comes from Andrew Marok with Raymond James.

Andrew Marok: Great. Maybe one on this revamped event strategy that you've talked about. Obviously, with 3Q coming up, we do have a back to school on the calendar. Just kind of how you're thinking about that in the context of this new event strategy and anything new that you might be trying out around that?

Bryan Leach: Yes. So as you know, we've developed expertise over this -- over the years, and most notably our free Thanksgiving program, which has given away millions of free Thanksgiving meals and been a very big driver of usage and awareness of our platform. And we've just -- what we've done in the last year is add to the sales effort, a real kind of built-out scaffolding around them and a much more fully loaded revenue organization. Part of that is the B2B marketing division, which is sort of broken out of our old marketing department and put into our revenue function. And that what they've done is identify these moments that matter. And sometimes, you can see them on a calendar, like it will be back to school or it will be St. Patty's Day or Dads and Grads or Resolution. And they certainly got a packet of insights that are specific to each client and a proposal that makes sense. But really great companies also capitalize when things come up that they didn't necessarily think would come up. So gas prices are high or there's a challenge with changing consumer behavior because of a lettuce scare or you have something going on with Amazon that you need to defend against or worry about. These things then cause us -- or the SNAP example where just suddenly, okay, the government is going to change the allowance for SNAP. Being responsive, being the first one in their inbox with a hey, we're seeing the effect of GLP-1s on your business. Here's what we're going to do about it for you. We're seeing the effect of private label on your business. Here's what we think we can do. And the more we're hearing from them, what they're worried about, the better able we are to sort of see the world through their lens one by one. And so we're able to then hand our sellers -- think of it like a packet, but it's a kit, a set of data, a set of a collateral that they can go out with and win. And a big part of why we've done as well as we have in this last quarter and the beginning to see this going forward is that there is a kind of a trust factor between our sellers and the client analytics, client insights and the B2B marketing team, the product marketing team that's enabling this go-to-market to be much more effective and we made sure those incentives are better aligned and those teams are working better together. So I think it's the right thing to point to as an example of a variety of things we're doing, whether it's sales operations, sales finance, like I said, insights that are all supporting the sellers. And when I talk about making it easier, that's another way of supporting the sellers because that's getting the sellers as close to 100% as possible selling on the road, listening, developing solutions, creating solutions versus administering business that we've already won.

Operator: Our next question comes from Andrew Boone with Citizens.

Andrew Boone: I wanted to ask on D2C. As supply improves, what should our outlook be as we think about D2C broadly, Bryan, is there a point that, that should arrest in terms of declines and start to grow again? Or how are you guys thinking about that strategically? And then we've talked in the past about pricing. This quarter, there was a step up in third-party revenue per redemption. Is there anything behind that or anything you want to touch on in terms of pricing strategy that happened in this quarter and how we think about that going forward?

Bryan Leach: Yes. I think the pricing point, it has a lot to do with the composition of where the redeemer growth is coming and where the redemptions are coming. The third-party revenue per redemption was actually flat. So it just is a function of that mix. But we feel like on pricing, we have gotten it to a place that is client-centric that is consistent with the goal of delivering highly effective promotions. However, that's defined by the client, whether that's profitable revenue growth or maximizing scale. And they want to know that we're able to charge them an amount that doesn't preclude that, and we've generally seen that reached a good equilibrium on that. It's also a more continuous rational pricing approach, and that's been, I think, well received by our clients, moving away from setup fees and things like that. As far as the D2C business more broadly, we continue to see that when inventory of offer supply is strong, we have the opportunity to lean more into user acquisition, user retention initiatives such that we feel confident there's enough value that we'll retain those savers within our D2C, which is why we've been focusing so much on unlocking offer supply because we know that's the primary kind of precondition for leaning back in. However, there are some things we're trying on the D2C app to try to arrest the decline and ad and another in particular. So some new kinds of ad units, things like that, that we hope may cause that to level out. And there may become a point where we have such a nice amount of offer supply and quality of offer supply that we choose to increase our investment in terms of marketing spend on the D2C property to regrow that. One of the things we're always focusing on is making sure that the data asset that we get in connection with the D2C property is not diminished. And we had some very big wins this last quarter in terms of turning that trend around and making sure we actually have more data than we did coming from D2C. So there's -- while that doesn't translate into revenue per se directly, it is important to everything else we do as we -- that powers a lot of the LiveLift capabilities and so forth. So I think the first step is to begin increasing offer supply. That is now starting to happen. You're seeing double-digit growth in redemption revenue, that's the headline. And then I think we will see on what time line we feel confident reinvesting in the D2C property.

Operator: This concludes the Q&A session of the call. I would now like to turn the call back to management for closing remarks.

Bryan Leach: Thank you very much for joining us today. We're very pleased with the progress in our business. I'm grateful to our team for their commitment to these actions we've taken over the last year. And I think we've pulled forward by a quarter the time line on which we've returned to growth as a company on the top line. We're really excited to see that inflection and think we can build on this from here. And I appreciate the questions, everyone, and we'll see you in November.

Operator: Thank you for joining us today's session. The call has concluded. You may now disconnect.