GIFTIFY, INC. REPORTS THIRD QUARTER 2025 RESULTS

Gross Billings Increase 28.8% Year-Over-Year to $39.1 Million Gross Margin Expands 710 Basis Points to 20.0% Net Loss Improves 40% to $2.4 Million 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 2024Gross profit increased 25.3% to $3.7 million, compared to $3.0 million in Q3 2024Gross margin expanded to 20.0%, compared to 12.9% in Q3 2024Net loss improved 40% to $2.4 million, or $(0.08) per share, compared to $4.1 million, or $(0.16) per share, in Q3 2024Modified 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 2024Gross profit increased 17.6% to $11.1 million, compared to $9.5 million in Q3 2024Gross margin expanded to 18.1%, compared to 14.7% in Q3 2024Net loss improved 45% to $8.2 million, or $(0.28) per share, compared to $15.0 million, or $(0.59) per share, in Q3 2024Modified 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 $18.8 million compared to $23.2 million in Q3 2024, this decline primarily reflects an evolving transaction mix rather than reduced business activity. The Company's gross billings—which represent the total dollar value of customer transactions—increased substantially by 28.8% year-over-year, demonstrating robust underlying business momentum. 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 restaurantsReduced operating expenses by 8% year-over-year while maintaining investment in growth initiativesImproved Modified EBITDA by 60% to $(0.3) million, reflecting enhanced operational efficiencyGenerated 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 rewardsLeveraging the Takeout7 platform to deepen relationships with restaurant partners through integrated technology solutionsOptimizing transaction mix to balance growth in gross billings with margin expansionContinuing 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 28.8% growth in gross billings, which reflects the true scale of our marketplace activity and the strong demand we're experiencing across both our CardCash and Restaurant.com platforms. This growth, combined with our expanding gross margins and improving bottom-line performance, validates our operational strategy and positions us well for continued progress." "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 20.0% reflects the benefits of this evolving mix. Additionally, agent transactions represented approximately 7% of net sales in Q3 2025 compared to just 2% in the prior year period, and we see further opportunity to optimize our transaction mix going forward. Our focus remains on three key priorities: growing our customer base across both B2C and B2B channels, optimizing our transaction mix to improve profitability, and leveraging our recent acquisitions to deliver comprehensive solutions for our restaurant partners. The improvements we're seeing in our gross margin and bottom-line performance demonstrate that we're making real progress on these fronts." "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 19.1% to $18.8 million compared to $23.2 million in the prior year period. The decline in reported net sales was primarily due to an increased proportion of agent transactions, where revenue is recognized on a net basis. Notably, gross billings—which represent the total dollar value of customer transactions—increased substantially by 28.8% year-over-year, demonstrating strong underlying business momentum. Gross profit for the third quarter increased 25.3% to $3.7 million compared to $3.0 million in the prior year period. Gross margin improved to 20.0% from 12.9%, reflecting the Company's continued focus on optimizing pricing strategies, operational efficiencies, and the favorable impact of an increased proportion of agent transactions, which carry lower inventory risk while generating attractive margins. Operating expenses decreased to $6.2 million from $6.8 million in the prior year period, primarily due to a $0.8 million reduction in stock-based compensation expense and lower amortization costs, partially offset by operational costs to support business growth. The Company reported a net loss of $2.4 million, or $(0.08) per share, compared to a net loss of $4.1 million, or $(0.16) 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 60% to $(0.3) million compared to $(0.7) million in the prior year period, reflecting the Company's progress toward operational efficiency. 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 SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS As of September 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 September 30, 2025 and December 31, 2024) $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 $0 and $4,000, at September 30, 2025 and December 31, 2024, respectively - 2,060,274 Notes payable, current portion, net of debt discount of $4,283 and $0, at September 30, 2025 and December 31, 2024, respectively 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, $0.001 par value, 10,000,000 shares authorized; - - Common stock, $0.001 par value, 750,000,000 shares authorized; 30,710,580 and 27,021,423 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor 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 SUBSIDIARIESCONDENSED 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 MonthsEndedSeptember 30, 2025 Three MonthsEndedSeptember 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 MonthsEndedSeptember 30, 2025 Nine MonthsEndedSeptember 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.

GIFTIFY, INC. REPORTS THIRD QUARTER 2025 RESULTS

FAQ

Why Bullish?

How important is it?

Why Long Term?

Related Companies

Related News