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

1. Gross profit increased 18.3%, reaching $3.9 million for Q2 2025. 2. Net sales rose 4.4% to $20.9 million, driven by improved operational efficiency. 3. TakeOut7 acquisition and AI initiatives are enhancing competitiveness in the market. 4. New platforms targeting corporate rewards may open additional revenue streams. 5. Company's net loss narrowed significantly, demonstrating improved financial health.

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$1.0308/14 03:06 PM EDTLatest Updated
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FAQ

Why Bullish?

The overall improvement in gross profit and strategic expansions position GIFT favorably. For instance, similar strategic adjustments in tech acquisitions have led to positive market reactions for comparable firms in the past.

How important is it?

The article details substantial growth metrics and strategic partnerships that are pivotal for GIFT's future profitability. Such developments are vital in enhancing investor confidence and attracting new investments.

Why Long Term?

The initiatives set in place (like AI implementation) may yield revenue returns over an extended period. Historical examples include companies like Square, which saw sustained growth after acquiring complementary services.

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SQCASHWEN
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 millionGross billings increased 23.2% to $36.1 millionGross profit increased 18.3% to $3.9 millionGross margin improved to 18.4% from 16.3%Modified EBITDA loss improved to $0.15 million from $0.36 millionNet 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 restaurantsLaunched Buy Now, Pay Later (BNPL) flexible payment option through partnership with Zip Co., enhancing CardCash.com customer accessibility and payment flexibilityExpanded strategic offerings through CardCash.com in high-revenue, high-growth verticals including travel, sports merchandise, and pharmacy savingsContinued deployment of enterprise-wide AI solutions driving measurable operational efficienciesEnhanced synergies between CardCash.com and Restaurant.com platformsContinued 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 partnersIntroduction 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 SUBSIDIARIESCONDENSED 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 SUBSDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor 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 SUBSDIARIESCONDENSED 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 EndedJune 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 MonthsEndedJune 30, 2025  Three MonthsEndedJune 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 MonthsEndedJune 30, 2025  Six MonthsEndedJune 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.

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