Giftify, Inc. Reports Second Quarter 2025 Financial Results, Revenue of $20.9 Million

Company achieves gross profit increase of 18.3% to $3.9 million

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% from 16.3%
• 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 $20.9 million while achieving an impressive 18.3% increase in gross profit and expanding our gross margin to 18.4%. This margin improvement underscores our team's focus on driving profitability and creating sustainable value in today's dynamic market environment."

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 4.4% to $20.9 million compared to $20.0 million in the prior year period. The growth was driven by continued strength in both business-to-consumer and business-to-business channels across the CardCash.com and Restaurant.com platforms.

Gross profit for the second quarter increased 18.3% to $3.9 million compared to $3.3 million in the prior year period. Gross margin improved to 18.4% from 16.3%, reflecting the Company's continued focus on optimizing pricing strategies and operational efficiencies.

Operating expenses decreased to $6.4 million from $10.7 million in the prior year period, primarily due to a $4.6 million reduction in stock-based compensation expense, partially offset by increased operational costs to support business growth.

The Company reported a net loss of $2.6 million, or $0.09 per share, compared to a net loss of $7.7 million, or $0.30 per share, in the prior year period. The improvement was driven by increased gross profit, reduced stock-based compensation expense, and lower interest expense.

Modified EBITDA loss improved to $0.15 million compared to $0.36 million in the prior year period, reflecting the Company's progress toward operational efficiency.

Six Months 2025 Financial Results

For the six months ended June 30, 2025, net sales increased 3.9% to $43.2 million compared to $41.5 million in the prior year period.

Gross profit for the six months increased 14.1% to $7.4 million compared to $6.5 million in the prior year period. Gross margin improved to 17.2% from 15.7%

The Company reported a net loss of $5.8 million, or $0.20 per share, compared to a net loss of $10.9 million, or $0.43 per share, in the prior year period.

Modified EBITDA loss improved to $0.8 million compared to $1.0 million in the prior year period.

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 $1,000,000 and $1,258,826 at June 30, 2025 and December 31, 2024)		$	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 $0 and $4,000, at June 30, 2025 and December 31, 2024, respectively			-				2,060,274
Notes payable, current portion, net of debt discount of $8,570 and $0, at June 30, 2025 and December 31, 2024, respectively			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, $0.001 par value, 10,000,000 shares authorized;			-				-
Common stock, $0.001 par value, 750,000,000 shares authorized; 30,154,612 and 27,021,423 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			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.