Giftify, Inc. Reports First Quarter 2025 Financial Results, Reports Revenue Growth to $22.3 Million
Giftify (NASDAQ: GIFT) reported its Q1 2025 financial results, showing mixed performance with some improvements in profitability metrics despite ongoing losses. The company's revenue grew 3.5% to $22.3 million, while gross profit increased 10% to $3.6 million. Gross margin improved to 16.1% from 15.1% year-over-year.
The company reported a net loss of $3.2 million, including $2.6 million in non-cash expenses. Modified EBITDA loss slightly improved to $0.63 million from $0.66 million. Key strategic initiatives include AI implementation, expansion into high-margin verticals (pharmacy savings, sports merchandise, travel), and enhanced platform synergies between CardCash.com and Restaurant.com.
Post-quarter, Giftify fully repaid its GameIQ acquisition note and amended its secured credit line, releasing $0.25 million in restricted cash.
Giftify (NASDAQ: GIFT) ha comunicato i risultati finanziari del primo trimestre 2025, mostrando una performance mista con alcuni miglioramenti negli indicatori di redditività nonostante le perdite ancora presenti. Il fatturato è cresciuto del 3,5%, raggiungendo 22,3 milioni di dollari, mentre il profitto lordo è aumentato del 10%, arrivando a 3,6 milioni di dollari. Il margine lordo è migliorato al 16,1% rispetto al 15,1% dell’anno precedente.
L’azienda ha registrato una perdita netta di 3,2 milioni di dollari, comprensiva di 2,6 milioni di dollari di spese non monetarie. La perdita EBITDA modificata è leggermente migliorata, passando da 0,66 milioni a 0,63 milioni di dollari. Le iniziative strategiche principali includono l’implementazione dell’intelligenza artificiale, l’espansione in settori ad alto margine (risparmi in farmacia, merchandising sportivo, viaggi) e un potenziamento delle sinergie tra le piattaforme CardCash.com e Restaurant.com.
Dopo il trimestre, Giftify ha estinto completamente il debito relativo all’acquisizione di GameIQ e ha modificato la linea di credito garantita, liberando 0,25 milioni di dollari in contanti vincolati.
Giftify (NASDAQ: GIFT) presentó sus resultados financieros del primer trimestre de 2025, mostrando un desempeño mixto con algunas mejoras en los indicadores de rentabilidad a pesar de pérdidas continuas. Los ingresos de la empresa crecieron un 3,5%, alcanzando los 22,3 millones de dólares, mientras que la ganancia bruta aumentó un 10% hasta 3,6 millones de dólares. El margen bruto mejoró al 16,1% desde el 15,1% interanual.
La compañía reportó una pérdida neta de 3,2 millones de dólares, incluyendo 2,6 millones en gastos no monetarios. La pérdida de EBITDA ajustado mejoró ligeramente, pasando de 0,66 millones a 0,63 millones de dólares. Las principales iniciativas estratégicas incluyen la implementación de inteligencia artificial, la expansión en sectores de alto margen (ahorros en farmacia, mercancía deportiva, viajes) y una mayor sinergia entre las plataformas CardCash.com y Restaurant.com.
Después del trimestre, Giftify pagó por completo la nota de adquisición de GameIQ y modificó su línea de crédito garantizada, liberando 0,25 millones de dólares en efectivo restringido.
Giftify (NASDAQ: GIFT)는 2025년 1분기 재무 실적을 발표하며 지속적인 손실에도 불구하고 수익성 지표에서 일부 개선을 보인 혼합된 성과를 기록했습니다. 회사의 매출은 3.5% 증가한 2,230만 달러를 기록했고, 총이익은 10% 증가한 360만 달러에 달했습니다. 총이익률은 전년 동기 대비 15.1%에서 16.1%로 개선되었습니다.
회사는 비현금 비용 260만 달러를 포함하여 320만 달러의 순손실을 보고했습니다. 수정 EBITDA 손실은 66만 달러에서 63만 달러로 소폭 개선되었습니다. 주요 전략적 이니셔티브로는 인공지능 도입, 고수익 분야(약국 할인, 스포츠 상품, 여행)로의 확장, CardCash.com과 Restaurant.com 간의 플랫폼 시너지 강화가 포함됩니다.
분기 이후 Giftify는 GameIQ 인수 채무를 전액 상환하고 담보 신용 한도를 수정하여 25만 달러의 제한 현금을 해제했습니다.
Giftify (NASDAQ : GIFT) a publié ses résultats financiers du premier trimestre 2025, affichant une performance mitigée avec certaines améliorations des indicateurs de rentabilité malgré des pertes persistantes. Le chiffre d'affaires de la société a augmenté de 3,5 % pour atteindre 22,3 millions de dollars, tandis que le bénéfice brut a progressé de 10 % pour s'établir à 3,6 millions de dollars. La marge brute s'est améliorée, passant de 15,1 % à 16,1 % d'une année sur l'autre.
La société a enregistré une perte nette de 3,2 millions de dollars, comprenant 2,6 millions de dollars de charges non monétaires. La perte d'EBITDA modifié s'est légèrement réduite, passant de 0,66 million à 0,63 million de dollars. Les initiatives stratégiques clés comprennent la mise en œuvre de l'IA, l'expansion dans des secteurs à forte marge (économies en pharmacie, produits dérivés sportifs, voyages) et une meilleure synergie entre les plateformes CardCash.com et Restaurant.com.
Après le trimestre, Giftify a intégralement remboursé sa note d'acquisition GameIQ et a modifié sa ligne de crédit garantie, libérant ainsi 0,25 million de dollars en liquidités restreintes.
Giftify (NASDAQ: GIFT) veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 und zeigte eine gemischte Leistung mit einigen Verbesserungen bei den Rentabilitätskennzahlen trotz anhaltender Verluste. Der Umsatz des Unternehmens stieg um 3,5 % auf 22,3 Millionen US-Dollar, während der Bruttogewinn um 10 % auf 3,6 Millionen US-Dollar zunahm. Die Bruttomarge verbesserte sich von 15,1 % auf 16,1 % im Jahresvergleich.
Das Unternehmen meldete einen Nettoverlust von 3,2 Millionen US-Dollar, einschließlich 2,6 Millionen US-Dollar an nicht zahlungswirksamen Aufwendungen. Der bereinigte EBITDA-Verlust verbesserte sich leicht von 0,66 Millionen auf 0,63 Millionen US-Dollar. Wichtige strategische Initiativen umfassen die Implementierung von KI, die Expansion in margenstarke Bereiche (Apothekenrabatte, Sportartikel, Reisen) sowie verbesserte Plattform-Synergien zwischen CardCash.com und Restaurant.com.
Nach dem Quartal hat Giftify seine GameIQ-Akquisitionsanleihe vollständig zurückgezahlt und seine besicherte Kreditlinie angepasst, wodurch 0,25 Millionen US-Dollar an gebundenen Mitteln freigesetzt wurden.
- Revenue increased 3.5% to $22.3 million
- Gross profit grew 10% to $3.6 million
- Gross margin improved to 16.1% from 15.1%
- Modified EBITDA loss improved to $0.63 million from $0.66 million
- Strong balance sheet with $33.9 million in total assets
- Successfully repaid GameIQ acquisition note
- Released $0.25 million of restricted cash through credit line amendment
- Net loss of $3.2 million in Q1 2025
- Continued reliance on At-the-Market offering for cash position strengthening
- Significant non-cash expenses of $2.6 million impacting bottom line
Insights
Giftify shows modest revenue growth with improving margins, but substantial losses continue despite operational improvements.
Giftify's Q1 2025 financials present a mixed picture. Revenue growth of
However, the persistent
The balance sheet appears relatively healthy with
Their strategic initiatives in AI implementation and expansion into higher-margin verticals (pharmacy savings, sports merchandise, travel) align with their focus on margin improvement. However, continued use of the At-the-Market offering suggests ongoing cash needs, which bears watching. The significant stock-based compensation (
Company achieves gross profit increase of
Strategic initiatives in AI implementation and new market expansion generating positive momentum
SCHAUMBURG, IL, May 13, 2025 (GLOBE NEWSWIRE) -- Giftify, Inc. (NASDAQ: GIFT) (the "Company"), the owner and operator of CardCash.com and Restaurant.com, and a leader in the incentives and rewards industry, today announced financial and operational results for the first quarter ended March 31, 2025.
Key Highlights for the Three Months Ended March 31, 2025, Compared to Prior Year Period
- Revenue increased
3.5% to$22.3 million - Gross profit increased
10.0% to$3.6 million - Gross margin increased to
16.1% from15.1% - Modified EBITDA loss improved to
$0.63 million from$0.66 million - Net loss of
$3.2 million (Of note, net loss for the three months ended March 31, 2025 included$2.6 million in non-cash expenses, including$1.8 million in stock option and other non-cash compensation,$0.54 million in amortization of intangible assets,$0.16 million in amortization of capitalized software costs, and$0.03 million from fair value of stock issued on vendor settlement.) - Strong balance sheet with total assets of
$33.9 million and stockholders' equity of$21.3 million
Growth Initiatives
The Company's strategic execution against previously outlined growth priorities is generating positive momentum across multiple fronts:
- Successful deployment of enterprise-wide AI solutions driving measurable operational efficiencies and cost reductions
- Expansion into high-margin vertical markets including pharmacy savings, sports merchandise and travel
- Enhanced synergies between CardCash.com and Restaurant.com platforms
- Introduction of innovative savings solutions for consumers facing rising costs in everyday expenses
Subsequent Events
- Subsequent to March 31, 2025, the Company repaid in full its GameIQ acquisition note payable
- Amended the Company’s secured line of credit releasing
$0.25 million of restricted cash - Continued expansion of the At-the-Market offering to strengthen the Company's cash position
Management Commentary
Ketan Thakker, Chief Executive Officer of Giftify, Inc., commented, "Our first quarter results demonstrate solid execution against our growth strategy, with revenue increasing and gross profit climbing. Most importantly, we've improved our gross margin to
Thakker continued, "During the quarter, we continued our strategic AI implementation, which is creating measurable benefits across our organization from marketing to customer service. We're also seeing strong traction in our targeted vertical market expansions in pharmacy savings, sports merchandise and travel, which provides consumers with practical solutions to combat inflation in everyday expenses. As we move through 2025, we remain focused on scaling our platforms, enhancing user engagement, and building sustainable value for our shareholders."
About Giftify, Inc.
Giftify, Inc. is a pioneer in the incentive and rewards industry with a focus on retail, dining & entertainment experiences, as the owner and operator of leading digital platforms, CardCash.com and Restaurant.com. CardCash.com is a leading secondary gift card exchange platform, allowing consumers and retailers to realize value by buying and selling gift cards at various scales. Its Restaurant.com is the nation’s largest restaurant-focused digital deals brand. Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deals options nationwide at over 184,000 restaurants and retailers. Restaurant.com prides itself on offering the best deal, every meal. Our gift cards and restaurant certificates allow customers to save at thousands of restaurants across the country with just a few clicks.
For more information, visit: www.giftifyinc.com and www.cardcash.com and https://www.restaurant.com.
Modified EBITDA
In addition to our GAAP results, we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and fair value of common stock issued for services.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Forward-Looking Statements
Press Releases may include forward-looking statements. In particular, the words “believe,” “may,” “could,” “should,” “expect,” “anticipate,” “estimate,” “project," "propose," "plan," "intend," and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Accordingly, you should not place undue reliance on these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the company. Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although Giftify, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Giftify, Inc. is unable to give any assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include the company’s ability identify a suitable business model for the corporation.
Investors Contacts: IR@giftifyinc.com
GIFTIFY, INC. AND SUBSIDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of | $ | 2,121,814 | $ | 3,574,876 | ||||
| Accounts receivable | 1,591,180 | 891,666 | ||||||
| Inventories | 3,825,181 | 4,116,180 | ||||||
| Prepaid expenses and other current assets | 308,440 | 63,210 | ||||||
| Total current assets | 7,846,615 | 8,645,932 | ||||||
| Property and equipment, net | 928,441 | 1,089,984 | ||||||
| Operating lease right of use asset, net | 1,329,181 | 1,406,242 | ||||||
| Deposits | 65,556 | 65,556 | ||||||
| Intangible assets, net | 3,724,415 | 4,268,332 | ||||||
| Goodwill | 20,007,670 | 20,007,670 | ||||||
| Total assets | $ | 33,901,878 | $ | 35,483,716 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,085,508 | $ | 1,966,616 | ||||
| Accrued expenses | 1,714,629 | 1,768,607 | ||||||
| Customer deposits | 271 | 95,000 | ||||||
| Deferred revenue | 113,360 | 77,051 | ||||||
| Secured revolving line of credit | 3,682,328 | 3,805,080 | ||||||
| Convertible promissory notes | 43,887 | 43,137 | ||||||
| Secured note payable — related party, net of debt discount of | - | 2,060,274 | ||||||
| Notes payable, current portion, net of debt discount of | 1,906,361 | 1,717,632 | ||||||
| Operating lease liability, current portion | 326,770 | 316,612 | ||||||
| Total current liabilities | 9,873,114 | 11,850,009 | ||||||
| Notes payable, net of current portion | 664,500 | 615,000 | ||||||
| Deferred income taxes | 976,142 | 1,123,000 | ||||||
| Operating lease liability, net of current portion | 1,048,620 | 1,133,371 | ||||||
| Total liabilities | 12,562,376 | 14,721,380 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 29,267 | 27,015 | ||||||
| Additional paid-in-capital | 112,471,311 | 108,679,065 | ||||||
| Common stock issuable, 350,843 and 383,343 shares, respectively | 350,843 | 350,843 | ||||||
| Accumulated deficit | (91,511,919 | ) | (88,294,587 | ) | ||||
| Total stockholders’ equity | 21,339,502 | 20,762,336 | ||||||
| Total liabilities and stockholders’ equity | $ | 33,901,878 | $ | 35,483,716 | ||||
GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net Sales | $ | 22,277,013 | $ | 21,521,894 | ||||
| Cost of sales | 18,695,377 | 18,264,618 | ||||||
| Gross profit | 3,581,636 | 3,257,276 | ||||||
| Operating Expenses | ||||||||
| Selling, general and administrative expenses | 6,043,841 | 5,214,041 | ||||||
| Depreciation of capitalized software costs | 161,543 | 378,737 | ||||||
| Amortization of intangible assets | 543,917 | 607,917 | ||||||
| Total operating expenses | 6,749,301 | 6,200,695 | ||||||
| Loss from operations | (3,167,665 | ) | (2,943,419 | ) | ||||
| Other expense: | ||||||||
| Interest expense | (209,571 | ) | (247,301 | ) | ||||
| Total other expense, net | (209,571 | ) | (247,301 | ) | ||||
| Net loss before income tax benefit | (3,377,236 | ) | (3,190,720 | ) | ||||
| Income tax benefit | 159,904 | - | ||||||
| Net loss | $ | (3,217,332 | ) | $ | (3,190,720 | ) | ||
| Net loss per share – basic and diluted | $ | (0.11 | ) | $ | (0.13 | ) | ||
| Weighted average common shares outstanding – basic and diluted | 28,354,277 | 25,004,222 | ||||||
GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (3,217,332 | ) | $ | (3,190,720 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
| Fair value of vested stock options | 994,295 | 37,126 | ||||||
| Fair value of vested restricted common stock | 568,709 | 1,044,250 | ||||||
| Fair value of common stock issued for services | 239,130 | 217,500 | ||||||
| Loss on fair value of common stock issued for settlement of vendor | 33,750 | - | ||||||
| Depreciation of capitalized software costs | 161,543 | 378,737 | ||||||
| Amortization of intangible assets | 543,917 | 607,917 | ||||||
| Amortization of debt discount | 6,143 | - | ||||||
| Accrued interest | (62,438 | ) | 15,934 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (699,514 | ) | 569,794 | |||||
| Inventories | 290,999 | 678,068 | ||||||
| Prepaid expenses and other current assets | (245,230 | ) | (127,172 | ) | ||||
| Right of use assets | 77,061 | 65,632 | ||||||
| Accounts payable | 193,893 | (374,262 | ) | |||||
| Accrued expenses | (53,978 | ) | 305,141 | |||||
| Customer deposits | (94,729 | ) | - | |||||
| Deferred revenue | 36,309 | (168,818 | ) | |||||
| Deferred taxes | (146,858 | ) | - | |||||
| Operating lease liability | (74,594 | ) | (65,763 | ) | ||||
| Net cash used in operating activities | (1,448,924 | ) | (6,636 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Capital expenditures | - | (224,815 | ) | |||||
| Net cash provided by investing activities | - | (224,815 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from line of credit | 30,435,894 | 26,070,274 | ||||||
| Repayment of line of credit | (30,558,645 | ) | (26,746,739 | ) | ||||
| Proceeds from note payable | 985,000 | - | ||||||
| Repayment of notes payable | (750,000 | ) | - | |||||
| Repayment of notes payable – related party | (2,000,000 | ) | - | |||||
| Proceeds from sale of common stock, net of expenses, under at-the-market sale agreement | 1,031,113 | - | ||||||
| Proceeds from sale of common stock, net of expenses, under stock purchase agreement | 374,500 | - | ||||||
| Proceeds from public offering of common stock | 478,000 | - | ||||||
| Repayment of acquisition obligation | - | (500,000 | ) | |||||
| Proceeds from private placement of common stock | - | 2,709,000 | ||||||
| Net cash provided by (used in) financing activities | (4,138 | ) | 1,532,535 | |||||
| Net increase (decrease) in cash and cash equivalents | (1,453,062 | ) | 1,301,084 | |||||
| Cash and cash equivalents beginning of period | 3,574,876 | 4,099,737 | ||||||
| Cash and cash equivalents end of period | $ | 2,121,814 | $ | 5,400,821 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Interest paid | $ | 232,877 | $ | - | ||||
| Taxes paid | $ | - | $ | - | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Common shares issued for trade accounts payable | $ | 108,675 | $ | - | ||||
FAQ
What was Giftify's (GIFT) revenue growth in Q1 2025?
How much net loss did GIFT report in Q1 2025?
What is Giftify's (GIFT) gross margin for Q1 2025?
What are the main growth initiatives for Giftify (GIFT) in 2025?
What is the current balance sheet status of Giftify (GIFT)?
