GIFTIFY, INC. REPORTS THIRD QUARTER 2025 RESULTS
Rhea-AI Summary
Giftify (Nasdaq: GIFT) reported third quarter results for the period ended September 30, 2025 on Nov 10, 2025. Key Q3 highlights: gross billings $39.1M (+28.8% YoY), gross profit $3.7M (+25.3% YoY), gross margin 20.0% (up 710 bps YoY), net loss $2.4M or $(0.08) per share (improved 40% YoY), and Modified EBITDA $(0.3)M (60% improvement).
Year-to-date gross billings rose to $111.2M (+23.8% YoY) and gross margin expanded to 18.1%. Reported net sales declined to $18.8M in Q3 due to a higher mix of agent transactions recognized on a net basis. Operational notes: completed integration of Takeout7, reduced operating expenses 8% YoY, and improved working capital metrics.
Positive
- Gross billings +28.8% to $39.1M in Q3 2025
- Gross margin expanded 710 basis points to 20.0%
- Gross profit +25.3% to $3.7M in Q3 2025
- Modified EBITDA loss improved 60% to $(0.3)M
- Year-to-date gross billings +23.8% to $111.2M
- Operating expenses reduced 8% year-over-year
Negative
- Reported net sales declined 19.1% to $18.8M in Q3 2025
- Company remains GAAP loss-making: net loss $2.4M Q3 2025
- Year-to-date net loss still $(8.2)M despite 45% improvement
- Agent-transaction mix reduced reported revenue comparability
News Market Reaction
On the day this news was published, GIFT gained 1.82%, reflecting a mild positive market reaction. This price movement added approximately $567K to the company's valuation, bringing the market cap to $32M at that time.
Data tracked by StockTitan Argus on the day of publication.
Gross Billings Increase
Gross Margin Expands 710 Basis Points to
Net Loss Improves
SCHAUMBURG, IL, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Giftify, Inc. (Nasdaq: GIFT) ("Giftify" or the "Company"), a leading digital marketplace for gift cards and restaurant deals, today announced financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Financial Highlights:
- Gross billings increased
28.8% to$39.1 million , compared to$30.3 million in Q3 2024 - Gross profit increased
25.3% to$3.7 million , compared to$3.0 million in Q3 2024 - Gross margin expanded to
20.0% , compared to12.9% in Q3 2024 - Net loss improved
40% to$2.4 million , or$(0.08) per share, compared to$4.1 million , or$(0.16) per share, in Q3 2024 - Modified EBITDA improved
60% to$(0.3) million , compared to$(0.7) million in Q3 2024
2025 Year-to-Date Financial Highlights:
- Gross billings increased
23.8% to$111.2 million , compared to$89.8 million in Q3 2024 - Gross profit increased
17.6% to$11.1 million , compared to$9.5 million in Q3 2024 - Gross margin expanded to
18.1% , compared to14.7% in Q3 2024 - Net loss improved
45% to$8.2 million , or$(0.28) per share, compared to$15.0 million , or$(0.59) per share, in Q3 2024 - Modified EBITDA improved
38% to$(1.0) million , compared to$(1.7) million in Q3 2024
Revenue Mix Shift Reflects Strategic Business Model Evolution
While reported net sales for Q3 2025 were
The variance between gross billings growth and reported revenue is attributable to an increased proportion of transactions where Giftify acts as an agent rather than a principal. In agent transactions, the Company facilitates the connection between suppliers and customers but does not take inventory risk. Consequently, revenue from these transactions is recognized on a net basis (representing only Giftify's commission), rather than on a gross basis.
Operational Progress and Strategic Initiatives
During the third quarter, Giftify continued to advance several strategic initiatives:
- Completed the integration of Takeout7, acquired in May 2025, which expands the Company's technology offerings to include comprehensive online ordering solutions and AI-powered digital marketing services for independent restaurants
- Reduced operating expenses by
8% year-over-year while maintaining investment in growth initiatives - Improved Modified EBITDA by
60% to$(0.3) million , reflecting enhanced operational efficiency - Generated positive trends in inventory turnover and working capital management
Looking ahead, Giftify sees several opportunities to drive growth and further improve profitability:
- Expanding B2B relationships with corporations and marketers who use gift cards and dining certificates for customer acquisition, loyalty programs, and employee rewards
- Leveraging the Takeout7 platform to deepen relationships with restaurant partners through integrated technology solutions
- Optimizing transaction mix to balance growth in gross billings with margin expansion
- Continuing to scale operations while managing expenses efficiently
Management Commentary
"Our third quarter results demonstrate meaningful progress in our strategic transformation," said Ketan Thakker, President and Chief Executive Officer of Giftify. "We're particularly pleased with the
"This shift in our business mix is actually a positive development for several reasons," continued Mr. Thakker. "Agent transactions typically carry lower inventory risk and require less working capital, while still generating attractive margins for Giftify. The 710 basis point improvement in our gross margin to
"We believe Giftify is well-positioned in the growing digital gift card and restaurant deals market," concluded Mr. Thakker. "The combination of our CardCash and Restaurant.com platforms, enhanced by our recent Takeout7 acquisition, gives us a unique ability to serve both consumers and merchants across the dining ecosystem. We remain focused on executing our strategy, improving our financial performance, and creating long-term value for our shareholders."
Third Quarter 2025 Financial Results
For the three months ended September 30, 2025, net sales decreased
Gross profit for the third quarter increased
Operating expenses decreased to
The Company reported a net loss of
Modified EBITDA loss improved
About Giftify, Inc.
Giftify, Inc. (Nasdaq: GIFT) operates through two principal divisions: CardCash and Restaurant.com. CardCash is a leading gift card exchange platform, facilitating the purchase and sale of gift cards at discounted rates for both consumers and businesses from over 1,100 retailers. Restaurant.com is a pioneer in the restaurant deal space and one of the nation's largest restaurant-focused digital deals brands, connecting digital consumers, businesses, and communities with dining and merchant deal options at over 182,500 restaurants and retailers nationwide. Founded in 1999, Restaurant.com serves over 7.8 million customers. For more information, visit www.giftify.com.
Non-GAAP Financial Measures and Operating Metrics
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.
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
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding Giftify's future financial and operational performance, business strategy, growth opportunities, transaction mix optimization, integration of acquisitions, and market position. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to: changes in consumer spending patterns; competition in the gift card and restaurant deals markets; our ability to maintain and expand relationships with merchants and corporate clients; successful integration of acquired businesses; our ability to achieve and maintain profitability; our liquidity and ability to raise additional capital; general economic conditions; and other risks detailed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements in this press release are made as of the date hereof, and Giftify undertakes no obligation to update these statements or to explain the reasons why actual results may differ.
Investor Contact:
Giftify, Inc.
IR@giftifyinc.com
GIFTIFY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | ||||||||
| September 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of | $ | 4,021,227 | $ | 4,301,842 | ||||
| Accounts receivable | 122,697 | 164,700 | ||||||
| Inventories | 2,798,063 | 4,116,180 | ||||||
| Prepaid expenses and other current assets | 274,720 | 63,210 | ||||||
| Total current assets | 7,216,707 | 8,645,932 | ||||||
| Property and equipment, net | 606,152 | 1,089,984 | ||||||
| Operating lease right of use asset, net | 1,170,174 | 1,406,242 | ||||||
| Deposits | 68,189 | 65,556 | ||||||
| Intangible assets, net | 3,073,167 | 4,268,332 | ||||||
| Goodwill | 20,007,670 | 20,007,670 | ||||||
| Total assets | $ | 32,142,059 | $ | 35,483,716 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,909,145 | $ | 1,966,616 | ||||
| Accrued expenses | 1,708,012 | 1,768,607 | ||||||
| Customer deposits | 1,612 | 95,000 | ||||||
| Deferred revenue | 123,583 | 77,051 | ||||||
| Secured revolving line of credit | 2,693,735 | 3,805,080 | ||||||
| Convertible promissory notes | 45,387 | 43,137 | ||||||
| Secured notes payable — related party, net of debt discount of | - | 2,060,274 | ||||||
| Notes payable, current portion, net of debt discount of | 1,925,315 | 1,717,632 | ||||||
| Operating lease liability, current portion | 347,912 | 316,612 | ||||||
| Total current liabilities | 8,754,701 | 11,850,009 | ||||||
| Notes payable, net of current portion | 659,367 | 615,000 | ||||||
| Deferred income taxes | 682,426 | 1,123,000 | ||||||
| Operating lease liability, net of current portion | 868,433 | 1,133,371 | ||||||
| Total liabilities | 10,964,927 | 14,721,380 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 30,711 | 27,015 | ||||||
| Additional paid-in-capital | 117,334,768 | 108,679,065 | ||||||
| Common stock issuable, 350,843 and 350,843 shares, respectively | 350,843 | 350,843 | ||||||
| Accumulated deficit | (96,539,190 | ) | (88,294,587 | ) | ||||
| Total stockholders’ equity | 21,177,132 | 20,762,336 | ||||||
| Total liabilities and stockholders’ equity | $ | 32,142,059 | $ | 35,483,716 | ||||
GIFTIFY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net Sales | $ | 18,783,908 | $ | 23,210,850 | $ | 61,961,652 | $ | 64,753,246 | ||||||||
| Cost of sales | 15,036,367 | 20,220,237 | 50,776,850 | 55,244,862 | ||||||||||||
| Gross profit | 3,747,541 | 2,990,613 | 11,184,802 | 9,508,384 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | 5,489,115 | 5,908,603 | 17,247,499 | 20,954,914 | ||||||||||||
| Amortization of capitalized software costs | 160,745 | 254,292 | 483,832 | 935,766 | ||||||||||||
| Amortization of intangible assets | 585,349 | 607,917 | 1,686,328 | 1,823,751 | ||||||||||||
| Total operating expenses | 6,235,209 | 6,770,812 | 19,417,659 | 23,714,431 | ||||||||||||
| Loss from operations | (2,487,668 | ) | (3,780,199 | ) | (8,232,857 | ) | (14,206,047 | ) | ||||||||
| Other income (expenses) | ||||||||||||||||
| Interest income | 1,811 | - | 3,588 | 5,223 | ||||||||||||
| Interest expense | (135,005 | ) | (280,953 | ) | (487,950 | ) | (795,694 | ) | ||||||||
| Other income | 38,540 | - | 38,540 | |||||||||||||
| Total other income (expenses) | (94,654 | ) | (280,953 | ) | (445,822 | ) | (790,471 | ) | ||||||||
| Net loss before income taxes | (2,582,322 | ) | (4,061,152 | ) | (8,678,679 | ) | (14,996,518 | ) | ||||||||
| Income tax benefit | 144,860 | - | 434,076 | - | ||||||||||||
| Net loss | $ | (2,437,462 | ) | $ | (4,061,152 | ) | $ | (8,244,603 | ) | $ | (14,996,518 | ) | ||||
| Net loss per share – basic and diluted | $ | (0.08 | ) | $ | (0.16 | ) | $ | (0.28 | ) | $ | (0.59 | ) | ||||
| Weighted average common shares outstanding – basic and diluted | 30,402,871 | 25,964,213 | 29,446,269 | 25,574,719 | ||||||||||||
GIFTIFY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (8,244,603 | ) | $ | (14,996,518 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
| Fair value of vested stock options | 2,843,690 | 6,874,603 | ||||||
| Fair value of vested restricted common stock | 1,559,627 | 2,136,138 | ||||||
| Fair value of common stock issued for services | 479,755 | 751,500 | ||||||
| Loss on fair value of common stock issued for settlement of vendor | 33,750 | - | ||||||
| Depreciation of capitalized software costs | 483,832 | 935,766 | ||||||
| Amortization of intangible assets | 1,686,328 | 1,823,751 | ||||||
| Amortization of debt discount | 14,717 | 1,700 | ||||||
| Accrued interest | 20,632 | 54,802 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 101,117 | (16,955 | ) | |||||
| Inventories | 1,318,117 | (243,223 | ) | |||||
| Prepaid expenses and other current assets | (211,510 | ) | 62,557 | |||||
| Right of use assets | 236,067 | 228,982 | ||||||
| Accounts payable | 17,029 | (223,416 | ) | |||||
| Accrued expenses | (113,548 | ) | 220,367 | |||||
| Customer deposits | (93,388 | ) | - | |||||
| Deferred revenue | 46,532 | (258,593 | ) | |||||
| Deferred taxes | (440,574 | ) | - | |||||
| Operating lease liability | (233,637 | ) | (209,829 | ) | ||||
| Net cash used in operating activities | (496,067 | ) | (2,858,368 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Cash received on acquisition | 109,543 | - | ||||||
| Capital expenditures | - | (674,646 | ) | |||||
| Net cash provided by (used in) investing activities | 109,543 | (674,646 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from line of credit | 96,816,921 | 76,769,125 | ||||||
| Repayment of line of credit | (97,928,266 | ) | (79,272,361 | ) | ||||
| Proceeds from note payable | 985,000 | - | ||||||
| Repayment of notes payable | (826,323 | ) | - | |||||
| Proceeds from notes payable – related party | - | 1,978,000 | ||||||
| Repayment of notes payable – related party | (2,000,000 | ) | - | |||||
| Proceeds from sale of common stock, net of expenses, under at-the-market sale agreement | 1,444,077 | - | ||||||
| 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 | 762,000 | - | ||||||
| Repayment of acquisition obligation | - | (500,000 | ) | |||||
| Proceeds from private placement of common stock | - | 3,054,073 | ||||||
| Net cash provided by financing activities | 105,909 | 2,028,837 | ||||||
| Net decrease in cash and cash equivalents | (280,615 | ) | (1,504,177 | ) | ||||
| Cash and cash equivalents beginning of period | 4,301,842 | 5,682,372 | ||||||
| Cash and cash equivalents end of period | $ | 4,021,227 | $ | 4,178,195 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Interest paid | $ | 431,818 | $ | 704,961 | ||||
| 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 | $ | 59,114 | $ | - | ||||
| Deposits from acquisition | $ | 2,633 | $ | - | ||||
| Accounts payable from acquisition | $ | 500 | $ | - | ||||
| Accrued expenses from acquisition | $ | 52,953 | $ | - | ||||
| Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | - | $ | 1,395,541 | ||||
Giftify, Inc.
Non-GAAP Financial Measures and Operating Metrics
(Unaudited)
Gross Billings
A reconciliation of our net sales (as reported) to our gross billings for the three and nine months ended September 30, 2025 and 2024 were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | |||||||||||||||||||
| Net sales (as reported) | $ | 18,783,908 | $ | 23,210,850 | -19.1 | % | $ | 61,961,952 | $ | 64,753,246 | -4.3 | % | ||||||||||||
| Company costs of Agent Transactions (see discussion below) | 20,302,632 | 7,130,276 | 184.7 | % | 49,216,416 | 25,042,449 | 96.5 | % | ||||||||||||||||
| Gross billings | $ | 39,086,540 | $ | 30,341,126 | 28.8 | % | $ | 111,178,068 | $ | 89,795,695 | 23.8 | % | ||||||||||||
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.
Modified EBITDA
Set forth below is a reconciliation of net loss to Modified EBITDA for the three months ended September 30, 2025 and 2024 (unaudited):
| Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | |||||||
| Net Loss | $ | (2,437,462 | ) | $ | (4,061,152 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (144,860 | ) | - | |||||
| Interest expense, net | 133,195 | 280,953 | ||||||
| Other income | (38,540 | ) | - | |||||
| Amortization of intangible assets | 585,349 | 607,917 | ||||||
| Amortization of capitalized software costs | 160,745 | 254,292 | ||||||
| Stock option and other noncash compensation | 1,473,065 | 2,248,821 | ||||||
| Total Modified EBITDA adjustments | 2,168,954 | 3,391,983 | ||||||
| Modified EBITDA | $ | (268,508 | ) | $ | (669,169 | ) | ||
Set forth below is a reconciliation of net loss to Modified EBITDA for the nine months ended September 30, 2025 and 2024 (unaudited):
| Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | |||||||
| Net Loss | $ | (8,244,603 | ) | $ | (14,996,518 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (434,076 | ) | - | |||||
| Interest expense, net | 484,362 | 790,471 | ||||||
| Other income | (38,540 | ) | - | |||||
| Amortization of intangible assets | 1,686,328 | 1,823,751 | ||||||
| Amortization of capitalized software costs | 483,832 | 935,766 | ||||||
| Loss on fair value of stock issued on vendor settlement | 33,750 | - | ||||||
| Bad debt expense | 100,810 | - | ||||||
| Stock option and other noncash compensation | 4,879,170 | 9,762,241 | ||||||
| Total Modified EBITDA adjustments | 7,195,636 | 13,312,229 | ||||||
| Modified EBITDA | $ | (1,048,967 | ) | $ | (1,684,289 | ) | ||
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
What were Giftify's Q3 2025 gross billings and year-over-year change (GIFT)?
How did Giftify's gross margin change in Q3 2025 and why (GIFT)?
Why did Giftify's reported net sales fall in Q3 2025 despite billings growth (GIFT)?
What was Giftify's Q3 2025 net loss and EPS (GIFT)?
What operational progress did Giftify report for Q3 2025 (GIFT)?
How did Giftify's Modified EBITDA perform in Q3 2025 (GIFT)?
