Giftify, Inc. Reports Second Quarter 2025 Financial Results, Revenue of $20.9 Million
Giftify (NASDAQ: GIFT), owner of CardCash.com, Restaurant.com, and Takeout7.com, reported Q2 2025 financial results with net sales of $20.9 million, up 4.4% year-over-year. The company achieved an 18.3% increase in gross profit to $3.9 million and improved gross margin to 18.4% from 16.3%.
Key strategic initiatives include the acquisition of TakeOut7 in June 2025, launch of Buy Now, Pay Later options through Zip Co. partnership, and expansion into high-growth verticals. The company reported a net loss of $2.6 million ($0.09 per share), improved from a $7.7 million loss year-over-year, with Modified EBITDA loss narrowing to $0.15 million from $0.36 million.
Post-quarter developments include the launch of Restaurant Management Center (RMC) and uChoose corporate rewards platform, targeting the $46 billion corporate rewards market.
Giftify (NASDAQ: GIFT), proprietaria di CardCash.com, Restaurant.com e Takeout7.com, ha comunicato i risultati finanziari del 2° trimestre 2025 con vendite nette di 20,9 milioni di dollari, in aumento del 4,4% su base annua. L'azienda ha registrato un incremento del 18,3% del profitto lordo a 3,9 milioni di dollari e ha migliorato il margine lordo al 18,4% dal 16,3%.
Le principali iniziative strategiche includono l'acquisizione di TakeOut7 a giugno 2025, il lancio delle soluzioni "Compra ora, paga dopo" tramite la partnership con Zip Co. e l'espansione in verticali ad alta crescita. La società ha riportato una perdita netta di 2,6 milioni di dollari (0,09$ per azione), migliorata rispetto alla perdita di 7,7 milioni dello scorso anno, con la perdita di EBITDA rettificato che si è ridotta a 0,15 milioni da 0,36 milioni.
Tra gli sviluppi post-trimestrali figurano il lancio del Restaurant Management Center (RMC) e della piattaforma uChoose per le ricompense aziendali, rivolti al mercato delle ricompense aziendali da 46 miliardi di dollari.
Giftify (NASDAQ: GIFT), propietaria de CardCash.com, Restaurant.com y Takeout7.com, informó los resultados financieros del 2T 2025 con ventas netas de 20,9 millones de dólares, un aumento del 4,4% interanual. La compañía logró un aumento del 18,3% en la ganancia bruta hasta 3,9 millones de dólares y mejoró el margen bruto al 18,4% desde el 16,3%.
Las iniciativas estratégicas clave incluyen la adquisición de TakeOut7 en junio de 2025, el lanzamiento de opciones "Compre ahora, pague después" mediante una asociación con Zip Co. y la expansión hacia verticales de alto crecimiento. La empresa reportó una pérdida neta de 2,6 millones de dólares (0,09$ por acción), mejorando desde una pérdida de 7,7 millones en el año anterior, con la pérdida de EBITDA modificado reduciéndose a 0,15 millones desde 0,36 millones.
Entre los acontecimientos posteriores al trimestre está el lanzamiento del Restaurant Management Center (RMC) y la plataforma uChoose para recompensas corporativas, orientados al mercado de recompensas corporativas de 46.000 millones de dólares.
Giftify (NASDAQ: GIFT)는 CardCash.com, Restaurant.com 및 Takeout7.com의 소유주로서 2025년 2분기 실적을 발표하며 순매출 $20.9 million, 전년 대비 4.4% 증가를 기록했습니다. 회사는 매출총이익이 18.3% 증가해 $3.9 million에 달했으며, 매출총이익률은 16.3%에서 18.4%로 개선되었습니다.
주요 전략적 이니셔티브로는 2025년 6월의 TakeOut7 인수, Zip Co.와의 파트너십을 통한 Buy Now, Pay Later 옵션 도입, 고성장 분야로의 확장이 포함됩니다. 회사는 순손실 260만 달러 (주당 0.09달러)를 보고했으며, 이는 전년도의 770만 달러 손실에서 개선된 수치입니다. 수정 EBITDA 손실은 0.15백만 달러로 0.36백만 달러에서 축소되었습니다.
분기 이후 개발 사항으로는 Restaurant Management Center(RMC)과 기업 보상 플랫폼 uChoose의 출시가 있으며, 이는 460억 달러 규모의 기업 리워드 시장을 겨냥합니다.
Giftify (NASDAQ: GIFT), propriétaire de CardCash.com, Restaurant.com et Takeout7.com, a publié ses résultats financiers du 2e trimestre 2025 avec un chiffre d'affaires net de 20,9 millions de dollars, en hausse de 4,4% sur un an. La société a enregistré une augmentation de 18,3% du bénéfice brut à 3,9 millions de dollars et a amélioré la marge brute à 18,4% contre 16,3%.
Les initiatives stratégiques clés incluent l'acquisition de TakeOut7 en juin 2025, le lancement d'options « Achetez maintenant, payez plus tard » via un partenariat avec Zip Co. et l'expansion vers des secteurs à forte croissance. La société a déclaré une perte nette de 2,6 millions de dollars (0,09 $ par action), en amélioration par rapport à une perte de 7,7 millions l'année précédente, et la perte d'EBITDA ajusté s'est réduite à 0,15 million contre 0,36 million.
Après le trimestre, ont été lancés le Restaurant Management Center (RMC) et la plateforme uChoose pour les récompenses d'entreprise, visant le marché des récompenses d'entreprise de 46 milliards de dollars.
Giftify (NASDAQ: GIFT), Eigentümer von CardCash.com, Restaurant.com und Takeout7.com, meldete die Finanzergebnisse für das 2. Quartal 2025 mit Netto-Umsätzen von 20,9 Mio. US-Dollar, ein Anstieg von 4,4% gegenüber dem Vorjahr. Das Unternehmen erzielte einen 18,3%igen Anstieg des Bruttogewinns auf 3,9 Mio. US-Dollar und verbesserte die Bruttomarge von 16,3% auf 18,4%.
Wesentliche strategische Maßnahmen umfassen die Übernahme von TakeOut7 im Juni 2025, die Einführung von Buy Now, Pay Later über eine Partnerschaft mit Zip Co. und die Expansion in wachstumsstarke Branchen. Das Unternehmen meldete einen Nettoverlust von 2,6 Mio. US-Dollar (0,09 USD je Aktie), eine Verbesserung gegenüber dem Verlust von 7,7 Mio. im Vorjahr, wobei der bereinigte EBITDA-Verlust auf 0,15 Mio. von 0,36 Mio. zurückging.
Nach dem Quartalsende wurden das Restaurant Management Center (RMC) und die uChoose Corporate Rewards-Plattform eingeführt, mit Fokus auf den 46 Milliarden US-Dollar großen Markt für Firmenprämien.
- Gross profit increased 18.3% to $3.9 million with margin improvement to 18.4%
- Operating expenses decreased significantly from $10.7M to $6.4M
- Modified EBITDA loss improved to $0.15M from $0.36M
- Strategic acquisition of TakeOut7 expanding technology offerings
- Strong balance sheet with $31.5M in total assets
- Launch of new revenue streams through RMC and uChoose platform
- Net loss of $2.6M despite improvement from previous year
- Modest revenue growth of only 4.4% year-over-year
- $2.4M in non-cash expenses including stock compensation
- Still operating at negative Modified EBITDA
Insights
Giftify shows margin improvement despite modest revenue growth; reduced losses but still not profitable as strategic investments continue.
Giftify's Q2 results present a mixed financial picture with some encouraging trends. The company delivered
The improved Modified EBITDA loss of
The balance sheet appears stable with
Revenue diversification efforts are evident with the Restaurant Management Center subscription model and uChoose corporate rewards platform targeting the
The
Giftify's tech investments in AI and acquisitions show strategic vision but remain early-stage with uncertain ROI timeframes.
Giftify's technology strategy reveals a calculated platform expansion beyond its core marketplace business. The TakeOut7 acquisition represents a vertical integration play, providing "end-to-end solutions for independent restaurants" rather than just connecting consumers to restaurants. This positions Giftify to capture more value throughout the restaurant technology stack.
The enterprise-wide AI implementation is particularly noteworthy as it's already delivering "measurable operational efficiencies" according to management. This suggests Giftify is applying AI pragmatically to streamline existing operations rather than pursuing speculative moonshots. The efficiency gains likely contribute to the improved gross margins we're seeing.
The July launch of the Restaurant Management Center creates a new SaaS-like revenue stream by offering subscription services to their 184,000+ restaurant partners. This represents a sophisticated platform strategy – leveraging their existing restaurant relationships to sell technology services, similar to how companies like Shopify evolved from marketplaces to technology providers.
The uChoose corporate rewards platform represents another technology-driven expansion, targeting B2B customers in the corporate incentives space. This demonstrates product diversification beyond consumer-facing offerings.
The company's continued investment in capitalized software (
Company achieves gross profit increase of
Strategic initiatives including TakeOut7 acquisition and AI implementation driving operational improvements
SCHAUMBURG, IL, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Giftify, Inc. (NASDAQ: GIFT) (the "Company"), the owner and operator of CardCash.com, Restaurant.com, and Takeout7.com, and a leader in the incentives and rewards industry, today announced financial and operational results for the second quarter ended June 30, 2025.
Key Highlights for the Three Months Ended June 30, 2025, Compared to Prior Year Period
- Net sales increased
4.4% to$20.9 million - Gross billings increased
23.2% to$36.1 million - Gross profit increased
18.3% to$3.9 million - Gross margin improved to
18.4% from16.3% - Modified EBITDA loss improved to
$0.15 million from$0.36 million - Net loss of
$2.6 million (Of note, net loss for the three months ended June 30, 2025 included$2.4 million in non-cash expenses, including$1.6 million in stock options and other non-cash compensation,$0.6 million in amortization of intangible assets, and$0.16 million in amortization of capitalized software costs) - Strong balance sheet with total assets of
$31.5 million and stockholders' equity of$21.6 million
Strategic Growth Initiatives
The Company's strategic execution against previously outlined growth priorities continued to generate positive momentum across multiple fronts during the second quarter:
- Completed strategic acquisition of TakeOut7 in June 2025, expanding technology offerings to include end-to-end solutions for independent restaurants
- Launched Buy Now, Pay Later (BNPL) flexible payment option through partnership with Zip Co., enhancing CardCash.com customer accessibility and payment flexibility
- Expanded strategic offerings through CardCash.com in high-revenue, high-growth verticals including travel, sports merchandise, and pharmacy savings
- Continued deployment of enterprise-wide AI solutions driving measurable operational efficiencies
- Enhanced synergies between CardCash.com and Restaurant.com platforms
- Continued expansion of the At-the-Market offering program to strengthen the Company's cash position and provide financial flexibility
Subsequent Events
- Launch of Restaurant Management Center (RMC) in July 2025, creating new subscription revenue opportunities for Restaurant.com's 184,000+ restaurant partners
- Introduction of uChoose corporate rewards platform in July 2025, targeting the
$46 billion corporate rewards market
Management Commentary
Ketan Thakker, Chief Executive Officer of Giftify, Inc., commented, "Our second quarter performance reflects the strength of our strategic vision and operational discipline. We delivered revenue of
Thakker continued, "The quarter was marked by significant strategic milestones that position us for accelerated growth. The TakeOut7 acquisition in June strengthens our restaurant technology ecosystem, while our new Buy Now, Pay Later partnership with Zip Co. enhances customer access to CardCash.com's savings opportunities. Combined with our ongoing AI initiatives and vertical market expansion in travel, sports, and healthcare, we're building a comprehensive platform that serves multiple high-growth markets. Looking ahead, our recent launches of the Restaurant Management Center and uChoose corporate platform create exciting new revenue streams that complement our core marketplace business."
Second Quarter 2025 Financial Results
For the three months ended June 30, 2025, net sales increased
Gross profit for the second quarter increased
Operating expenses decreased to
The Company reported a net loss of
Modified EBITDA loss improved to
Six Months 2025 Financial Results
For the six months ended June 30, 2025, net sales increased
Gross profit for the six months increased
The Company reported a net loss of
Modified EBITDA loss improved to
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, Restaurant.com, and Takeout7.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. Restaurant.com is the nation's largest restaurant-focused digital deals brand, connecting digital consumers, businesses and communities by offering thousands of dining, retail and entertainment deal 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. Takeout7 is a restaurant technology company offering comprehensive online ordering solutions through its TakeOut7 platform and AI-powered digital marketing services through its Platr platform.
For more information, visit: www.giftifyinc.com, www.cardcash.com, www.restaurant.com, and www.takeout7.com.
Non-GAAP Financial Measures and Operating Metrics
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.
Gross Billings
Gross billings are the total dollar value of customer purchases of goods and services. Gross billings are presented net of customer refunds and order discounts. A significant portion of our revenue transactions are comprised of sales of discounted merchant gift cards in which we collect the transaction price from the customer and remit a portion of the transaction price to the third-party suppliers who will provide the related goods or services. For these transactions, gross billings differ from Net Sales reported in our Condensed Consolidated Statements of Operations, which is presented net of the merchant's share of the transaction price. Gross billings are an indicator of our growth and business performance as it measures the dollar volume of transactions generated through our marketplaces. Tracking gross billings also allows us to monitor the percentage of gross billings that we are able to retain after payments to merchants.
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
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of | $ | 3,257,427 | $ | 4,301,842 | ||||
| Accounts receivable | 121,139 | 164,700 | ||||||
| Inventories | 2,021,395 | 4,116,180 | ||||||
| Prepaid expenses and other current assets | 368,871 | 63,210 | ||||||
| Total current assets | 5,768,832 | 8,645,932 | ||||||
| Property and equipment, net | 766,904 | 1,089,984 | ||||||
| Operating lease right of use asset, net | 1,250,518 | 1,406,242 | ||||||
| Deposits | 68,189 | 65,556 | ||||||
| Intangible assets, net | 3,640,517 | 4,268,332 | ||||||
| Goodwill | 20,007,670 | 20,007,670 | ||||||
| Total assets | $ | 31,502,630 | $ | 35,483,716 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,619,833 | $ | 1,966,616 | ||||
| Accrued expenses | 1,772,419 | 1,768,607 | ||||||
| Customer deposits | 153 | 95,000 | ||||||
| Deferred revenue | 107,504 | 77,051 | ||||||
| Secured revolving line of credit | 1,715,897 | 3,805,080 | ||||||
| Convertible promissory notes | 44,637 | 43,137 | ||||||
| Secured notes payable — related party, net of debt discount of | - | 2,060,274 | ||||||
| Notes payable, current portion, net of debt discount of | 1,881,668 | 1,717,632 | ||||||
| Operating lease liability, current portion | 337,195 | 316,612 | ||||||
| Total current liabilities | 7,479,306 | 11,850,009 | ||||||
| Notes payable, net of current portion | 664,500 | 615,000 | ||||||
| Deferred income taxes | 829,284 | 1,123,000 | ||||||
| Operating lease liability, net of current portion | 960,386 | 1,133,371 | ||||||
| Total liabilities | 9,933,476 | 14,721,380 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 30,155 | 27,015 | ||||||
| Additional paid-in-capital | 115,289,884 | 108,679,065 | ||||||
| Common stock issuable, 350,843 and 350,843 shares, respectively | 350,843 | 350,843 | ||||||
| Accumulated deficit | (94,101,728 | ) | (88,294,587 | ) | ||||
| Total stockholders’ equity | 21,569,154 | 20,762,336 | ||||||
| Total liabilities and stockholders’ equity | $ | 31,502,630 | $ | 35,483,716 | ||||
GIFTIFY, INC. AND SUBSDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2025 and 2024
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||
| Net Sales | $ | 20,900,731 | $ | 20,020,502 | $ | 43,177,744 | $ | 41,542,396 | |||||||||||||
| Cost of sales | 17,045,106 | 16,760,007 | 35,740,483 | 35,024,625 | |||||||||||||||||
| Gross profit | 3,855,625 | 3,260,495 | 7,437,261 | 6,517,771 | |||||||||||||||||
| Operating expenses | |||||||||||||||||||||
| Selling, general and administrative expenses | 5,714,543 | 9,832,270 | 11,758,384 | 15,046,311 | |||||||||||||||||
| Amortization of capitalized software costs | 161,544 | 302,737 | 323,087 | 681,474 | |||||||||||||||||
| Amortization of intangible assets | 557,062 | 607,917 | 1,100,979 | 1,215,834 | |||||||||||||||||
| Total operating expenses | 6,433,149 | 10,742,924 | 13,182,450 | 16,943,619 | |||||||||||||||||
| Loss from operations | (2,577,524 | ) | (7,482,429 | ) | (5,745,189 | ) | (10,425,848 | ) | |||||||||||||
| Other income (expenses) | |||||||||||||||||||||
| Interest income | 1,777 | 5,223 | 1,777 | 5,223 | |||||||||||||||||
| Interest expense | (143,374 | ) | (267,440 | ) | (352,945 | ) | (514,741 | ) | |||||||||||||
| Total other income (expenses) | (141,597 | ) | (262,217 | ) | (351,168 | ) | (509,518 | ) | |||||||||||||
| Net loss before income taxes | (2,719,121 | ) | (7,744,646 | ) | (6,096,357 | ) | (10,935,366 | ) | |||||||||||||
| Income tax benefit | 129,312 | - | 289,216 | - | |||||||||||||||||
| Net loss | $ | (2,589,809 | ) | $ | (7,744,646 | ) | $ | (5,807,141 | ) | $ | (10,935,366 | ) | |||||||||
| Net earnings/(loss) per share – basic and diluted | $ | (0.09 | ) | $ | (0.30 | ) | $ | (0.20 | ) | $ | (0.43 | ) | |||||||||
| Weighted average common shares outstanding – basic and diluted | 29,532,501 | 25,751,441 | 28,946,644 | 25,377,832 | |||||||||||||||||
GIFTIFY, INC. AND SUBSDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (5,807,141 | ) | $ | (10,935,366 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
| Fair value of vested stock options | 1,962,000 | 5,706,311 | ||||||
| Fair value of vested restricted common stock | 1,063,918 | 1,589,609 | ||||||
| Fair value of common stock issued for services | 384,088 | 217,500 | ||||||
| Loss on fair value of common stock issued for settlement of vendor | 33,750 | - | ||||||
| Depreciation of capitalized software costs | 323,080 | 681,474 | ||||||
| Amortization of intangible assets | 1,100,979 | 1,215,834 | ||||||
| Amortization of debt discount | 10,430 | - | ||||||
| Accrued interest | (14,740 | ) | 31,868 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 81,060 | 46,211 | ||||||
| Inventories | 2,094,785 | (1,087,690 | ) | |||||
| Prepaid expenses and other current assets | (305,661 | ) | (28,735 | ) | ||||
| Right of use assets | 155,724 | 155,011 | ||||||
| Accounts payable | (272,281 | ) | (510,163 | ) | ||||
| Accrued expenses | (9,528 | ) | 205,235 | |||||
| Customer deposits | (94,847 | ) | - | |||||
| Deferred revenue | 30,453 | (222,972 | ) | |||||
| Deferred taxes | (293,716 | ) | - | |||||
| Operating lease liability | (152,402 | ) | (138,327 | ) | ||||
| Net cash provided by (used in) operating activities | 289,951 | (3,074,200 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Cash received on acquisition | 109,543 | - | ||||||
| Capital expenditures | - | (449,646 | ) | |||||
| Net cash provided by (used in) investing activities | 109,543 | (449,646 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from line of credit | 61,299,312 | 53,772,243 | ||||||
| Repayment of line of credit | (63,388,495 | ) | (52,839,180 | ) | ||||
| Proceeds from note payable | 985,000 | - | ||||||
| Repayment of notes payable | (825,928 | ) | - | |||||
| Repayment of notes payable – related party | (2,000,000 | ) | - | |||||
| Proceeds from sale of common stock, net of expenses, under at-the-market sale agreement | 1,383,702 | - | ||||||
| Proceeds from sale of common stock, net of expenses, under stock purchase agreement | 374,500 | - | ||||||
| Proceeds from public offering of common stock | 478,000 | - | ||||||
| Proceeds from private offering of common stock | 250,000 | - | ||||||
| Repayment of acquisition obligation | - | (500,000 | ) | |||||
| Proceeds from private placement of common stock | - | 2,921,500 | ||||||
| Net cash provided by (used in) financing activities | (1,443,909 | ) | 3,354,563 | |||||
| Net increase (decrease) in cash and cash equivalents | (1,044,415 | ) | (169,283 | ) | ||||
| Cash and cash equivalents beginning of period | 4,301,842 | 5,682,372 | ||||||
| Cash and cash equivalents end of period | $ | 3,257,427 | $ | 5,513,089 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Interest paid | $ | 322,289 | $ | 510,417 | ||||
| Taxes paid | $ | - | $ | - | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Common shares issued for acquisition | $ | 609,000 | $ | - | ||||
| Common shares issued for trade accounts payable | $ | 108,750 | $ | - | ||||
| Accounts receivable from acquisition | $ | 37,499 | $ | - | ||||
| Deposits from acquisition | $ | 2,633 | $ | - | ||||
| Accounts payable from acquisition | $ | 500 | $ | - | ||||
| Accrued expenses from acquisition | $ | 13,340 | $ | - | ||||
| Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | - | $ | 1,395,541 | ||||
Giftify, Inc.
Supplemental Operating Metrics
(Unaudited)
Our gross billings for the three and six months ended June 30, 2025 and 2024 were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | |||||||||||||||||||
| Gross billings | $ | 36,072,063 | $ | 29,287,369 | 23.2 | % | $ | 73,091,528 | $ | 59,319,954 | 23.2 | % | ||||||||||||
Gross billings are the total dollar value of customer purchases of goods and services. Gross billings are presented net of customer refunds and order discounts. A significant portion of our revenue transactions are comprised of sales of discounted merchant gift cards in which we collect the transaction price from the customer and remit a portion of the transaction price to the third-party suppliers who will provide the related goods or services. For these transactions, gross billings differ from Net Sales reported in our Condensed Consolidated Statements of Operations, which is presented net of the merchant's share of the transaction price. Gross billings are an indicator of our growth and business performance as it measures the dollar volume of transactions generated through our marketplaces. Tracking gross billings also allows us to monitor the percentage of gross billings that we are able to retain after payments to merchants.
Giftify, Inc.
Non-GAAP Reconciliation Schedules
(Unaudited)
Set forth below is a reconciliation of net loss to Modified EBITDA for the three months ended June 30, 2025 and 2024 (unaudited):
| Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | |||||||
| Net Loss | $ | (2,589,809 | ) | $ | (7,744,646 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (129,312 | ) | - | |||||
| Interest expense, net | 141,597 | 262,217 | ||||||
| Amortization of intangible assets | 557,062 | 608,017 | ||||||
| Amortization of capitalized software costs | 161,544 | 302,737 | ||||||
| Bad debt expense | 100,810 | - | ||||||
| Stock option and other noncash compensation | 1,607,872 | 6,214,545 | ||||||
| Total Modified EBITDA adjustments | 2,439,573 | 7,387,516 | ||||||
| Modified EBITDA | $ | (150,236 | ) | $ | (357,130 | ) | ||
Set forth below is a reconciliation of net loss to Modified EBITDA for the six months ended June 30, 2025 and 2024 (unaudited):
| Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |||||||
| Net Loss | $ | (5,807,141 | ) | $ | (10,935,366 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (289,216 | ) | - | |||||
| Interest expense, net | 351,167 | 509,518 | ||||||
| Amortization of intangible assets | 1,100,979 | 1,215,834 | ||||||
| Amortization of capitalized software costs | 323,087 | 681,474 | ||||||
| Loss on fair value of stock issued on vendor settlement | 33,750 | - | ||||||
| Bad debt expense | 100,810 | - | ||||||
| Stock option and other noncash compensation | 3,410,007 | 7,513,421 | ||||||
| Total Modified EBITDA adjustments | 5,030,584 | 9,920,247 | ||||||
| Modified EBITDA | $ | (776,557 | ) | $ | (1,015,119 | ) | ||
We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; making compensation decisions; and in communications with our board of directors concerning our financial performance. Modified EBITDA has limitations as an analytical tool, which includes, among others, the following:
| ● | Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; | |
| ● | Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs; | |
| ● | Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and | |
| ● | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements. |
FAQ
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