Gross Profit Rises 18% to $15.5 Million on 380 Basis Point Margin Expansion; Operating Expenses Cut 18% Year-Over-Year
Net Loss Narrows 44% to $10.5 Million as Company Approaches Modified EBITDA Breakeven
SCHAUMBURG, IL, March 18, 2026 (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 its financial results for the full year ended December 31, 2025.
Full Year 2025 Financial Highlights:
- Gross billings — total transaction value processed through Giftify’s marketplaces — increased 27.1% to $154.7 million, compared to $121.7 million in full year 2024
- Gross profit increased 17.9% to $15.5 million, compared to $13.1 million in full year 2024, reflecting growth in both transaction volume and margins
- Gross margin expanded to 18.6%, compared to 14.8% in full year 2024, an improvement of 380 basis points
- Net loss improved 44.3% to $10.5 million, or $(0.35) per share, compared to $18.8 million, or $(0.73) per share, in full year 2024
- Modified EBITDA improved 65.3% to $(1.0) million, compared to $(2.8) million in full year 2024
- Selling, general and administrative expenses decreased 17.0% to $22.9 million from $27.6 million in full year 2024
- Total operating expenses decreased 18.0% to $25.9 million from $31.5 million in full year 2024
- Net sales were $83.2 million, compared to $88.9 million in full year 2024; the variance reflects a strategic mix shift toward agent transactions recognized on a net commission basis — a change in accounting presentation, not a reduction in transaction activity
Revenue Mix Shift Reflects Strategic Business Model Evolution
While reported net sales for full year 2025 were $83.2 million compared to $88.9 million in full year 2024, this decline primarily reflects an evolving transaction mix rather than a reduction in underlying business activity. The Company’s gross billings — which represent the total dollar value of customer transactions — increased substantially by 27.1% year-over-year to $154.7 million, demonstrating robust marketplace momentum across both the CardCash and Restaurant.com platforms.
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, and revenue from these transactions is recognized on a net basis representing only Giftify’s commission. Agent transactions represented approximately 6% of net sales in full year 2025, compared to approximately 2% in full year 2024.
Operational Progress and Strategic Initiatives
During full year 2025, Giftify continued to advance several strategic initiatives:
- Completed the acquisition of Takeout7, Inc. in May 2025, expanding the Company’s technology offerings to include comprehensive online ordering solutions and AI-powered digital marketing services for independent restaurants through its TakeOut7 and Platr platforms; Takeout7 was subsequently merged into the Company’s Restaurant.com subsidiary in early 2026
- Reduced total operating expenses by 18.0% year-over-year while maintaining investment in core growth initiatives, including an increase in advertising spend to $1.1 million from $0.9 million in 2024
- Improved gross margin by 380 basis points, driven by disciplined pricing strategies, operational efficiencies, and the favorable impact of an increased proportion of agent transactions carrying lower inventory risk
- Strengthened the balance sheet by retiring notes payable during 2025
- Amended the revolving line of credit, reducing the required minimum cash collateral from $1.25 million to $1.0 million and maintaining access to up to $7.0 million in borrowing capacity
- Generated $154.7 million in gross billings, with CardCash gift card sales accounting for approximately 97% of reported net sales, reflecting strong consumer and business demand for the Company’s secondary gift card exchange platform
Management Commentary
“2025 was a year of meaningful operational progress for Giftify,” said Ketan Thakker, President and Chief Executive Officer. “The growth in our marketplace activity, combined with disciplined expense management, demonstrates that our strategy is working. The shift toward agent-based transactions is a deliberate evolution that improves our capital efficiency and risk profile, and the acquisition and integration of Takeout7 further strengthens our ability to serve restaurant partners with comprehensive technology solutions.”
“We enter 2026 focused on expanding our customer base across both B2C and B2B channels, optimizing our transaction mix, and leveraging our integrated platforms to drive continued progress toward profitability,” concluded Mr. Thakker.
Full Year 2025 Financial Results
- For the year ended December 31, 2025, net sales were $83.2 million compared to $88.9 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. Gross billings — which represent the total dollar value of customer transactions — increased 27.1% year-over-year to $154.7 million, demonstrating strong underlying business momentum.
- Gross profit for the full year increased 17.9% to $15.5 million compared to $13.1 million in the prior year period. Gross margin improved to 18.6% from 14.8%, reflecting the Company’s continued focus on optimizing pricing strategies, operational efficiencies, and the favorable impact of an increased proportion of agent transactions.
- Selling, general and administrative expenses decreased $4.7 million to $22.9 million from $27.6 million in the prior year period, primarily due to a $5.2 million reduction in stock-based compensation expense, partially offset by increases in payroll and benefits expenses, marketing and advertising costs, and other general expenses to support business growth.
- Total operating expenses decreased 18.0% to $25.9 million from $31.5 million in the prior year period, reflecting the reduction in SG&A as well as lower depreciation of capitalized software costs.
- The Company reported a net loss of $10.5 million, or $(0.35) per share, compared to a net loss of $18.8 million, or $(0.73) per share, in the prior year period. The improvement was driven by higher gross profit, reduced stock-based compensation expense, and lower interest expense. Modified EBITDA improved 65.3% to $(1.0) million compared to $(2.8) million in the prior year period.
- As of December 31, 2025, the Company had cash and cash equivalents of $3.7 million, including $1.0 million of restricted cash collateral supporting the revolving line of credit. Working capital as of December 31, 2025 was $249,223.
About Giftify, Inc.
Giftify, Inc. (Nasdaq: GIFT) is a pioneer in the incentive and rewards industry with a focus on retail, dining, and 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 from over 1,100 retailers. 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. Takeout7 is a restaurant technology company offering comprehensive online ordering solutions and AI-powered digital marketing services. For more information, visit www.giftifyinc.com, www.cardcash.com, www.restaurant.com, and www.takeout7.com.
Non-GAAP Financial Measures and Operating Metrics
Gross Billings
Gross billings are the total dollar value of customer purchases of goods and services, presented net of customer refunds and order discounts. A significant portion of the Company’s revenue transactions are comprised of sales of discounted merchant gift cards in which the Company collects the transaction price from the customer and remits a portion to third-party suppliers. For these transactions, gross billings differ from net sales reported in the Company’s Consolidated Statements of Operations, which is presented net of the merchant’s share of the transaction price. Gross billings are an indicator of the Company’s growth and business performance as they measure the dollar volume of transactions generated through its marketplaces.
Modified EBITDA
In addition to GAAP results, the Company presents Modified EBITDA as a supplemental measure of performance. 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. The Company defines Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and fair value of common stock issued for services.
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
CONSOLIDATED BALANCE SHEETS
| As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of $1,000,000 and $1,250,000 at December 31, 2025 and 2024, respectively) | $ | 3,654,944 | $ | 4,301,842 | ||||
| Accounts receivable | 142,878 | 164,700 | ||||||
| Inventories, net | 3,751,549 | 4,116,180 | ||||||
| Prepaid expenses and other current assets | 196,104 | 63,210 | ||||||
| Total current assets | 7,745,475 | 8,645,932 | ||||||
| Property and equipment, net | 443,811 | 1,089,984 | ||||||
| Operating lease right-of- use asset, net | 1,088,091 | 1,406,242 | ||||||
| Deposits | 68,189 | 65,556 | ||||||
| Intangible assets, net | 2,487,822 | 4,268,332 | ||||||
| Goodwill | 20,007,670 | 20,007,670 | ||||||
| Total assets | $ | 31,841,058 | $ | 35,483,716 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,815,727 | $ | 1,966,616 | ||||
| Accrued expenses | 1,917,961 | 1,768,607 | ||||||
| Customer deposits | 2,015 | 95,000 | ||||||
| Deferred revenue | 130,376 | 77,051 | ||||||
| Secured revolving line of credit | 3,212,935 | 3,805,080 | ||||||
| Convertible promissory note | 46,137 | 43,137 | ||||||
| Secured notes payable — related party, net of debt discount of $0 and $4,000, at December 31, 2025 and 2024, respectively | – | 2,060,274 | ||||||
| Notes payable, current portion | 12,240 | 1,717,632 | ||||||
| Operating lease liability, current portion | 358,861 | 316,612 | ||||||
| Total current liabilities | 7,496,252 | 11,850,009 | ||||||
| Notes payable, net of current portion | 651,349 | 615,000 | ||||||
| Deferred income taxes | 608,000 | 1,123,000 | ||||||
| Operating lease liability, net of current portion | 774,510 | 1,133,371 | ||||||
| Total liabilities | 9,530,111 | 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; 33,146,517 and 27,021,423 shares issued and outstanding at December 31, 2025 and 2024, respectively | 33,147 | 27,015 | ||||||
| Additional paid-in-capital | 120,713,202 | 108,679,065 | ||||||
| Common stock issuable, 350,843 and 350,843 shares, respectively | 350,843 | 350,843 | ||||||
| Accumulated deficit | (98,786,245 | ) | (88,294,587 | ) | ||||
| Total stockholders’ equity | 22,310,947 | 20,762,336 | ||||||
| Total liabilities and stockholders’ equity | $ | 31,841,058 | $ | 35,483,716 | ||||
GIFTIFY, INC. AND SUBSDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net Sales | $ | 83,181,716 | $ | 88,934,036 | ||||
| Cost of sales | 67,686,362 | 75,789,255 | ||||||
| Gross profit | 15,495,354 | 13,144,781 | ||||||
| Operating Expenses | ||||||||
| Selling, general and administrative expenses | 22,933,052 | 27,615,865 | ||||||
| Depreciation of capitalized software costs | 645,375 | 1,472,974 | ||||||
| Amortization of intangible assets | 2,271,673 | 2,431,668 | ||||||
| Total operating expenses | 25,850,100 | 31,520,507 | ||||||
| Loss from operations | (10,354,746 | ) | (18,375,726 | ) | ||||
| Other expense: | ||||||||
| Interest income | 15,511 | – | ||||||
| Interest expense | (604,759 | ) | (1,002,354 | ) | ||||
| Financing costs | (95,000 | ) | (131,000 | ) | ||||
| Other income | 38,540 | |||||||
| Total other expense, net | (645,708 | ) | (1,133,354 | ) | ||||
| Net loss before income tax benefit | (11,000,454 | ) | (19,509,080 | ) | ||||
| Income tax benefit | 508,796 | 677,000 | ||||||
| Net loss | $ | (10,491,658 | ) | $ | (18,832,080 | ) | ||
| Net loss per share – basic and diluted | $ | (0.35 | ) | $ | (0.73 | ) | ||
| Weighted average common shares outstanding – basic and diluted | 29,845,707 | 25,745,113 | ||||||
GIFTIFY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year Ended December 31, 2025 |
Year Ended December 31, 2024 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (10,491,658 | ) | $ | (18,832,080 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
| Fair value of vested stock options | 3,671,565 | 8,031,289 | ||||||
| Fair value of vested restricted common stock | 2,055,336 | 2,681,848 | ||||||
| Fair value of common stock issued for services | 575,713 | 771,500 | ||||||
| Loss on fair value of common stock issued for settlement of vendor | 33,750 | 135,415 | ||||||
| Fair value of common stock issued as financing costs | – | 131,000 | ||||||
| Change in inventory reserve balance | (25,000 | ) | (61,000 | ) | ||||
| Depreciation of capitalized software costs | 646,173 | 1,472,974 | ||||||
| Right-of-use assets | 318,151 | 304,481 | ||||||
| Amortization of intangible assets | 2,271,673 | 2,431,668 | ||||||
| Amortization of debt discount | 19,000 | 18,000 | ||||||
| Accrued interest | (151,190 | ) | 131,398 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 80,936 | (66,170 | ) | |||||
| Inventories | 389,631 | 97,093 | ||||||
| Prepaid expenses and other current assets | (132,894 | ) | 113,909 | |||||
| Accounts payable | (76,389 | ) | (236,731 | ) | ||||
| Accrued expenses | 96,401 | 592,673 | ||||||
| Customer deposits | (92,985 | ) | 95,000 | |||||
| Deferred revenue | 53,325 | (259,945 | ) | |||||
| Deferred taxes | (515,000 | ) | (677,000 | ) | ||||
| Operating lease liability | (316,612 | ) | (282,861 | ) | ||||
| Net cash used in operating activities | (1,590,074 | ) | (3,407,539 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Cash received on acquisition | 109,543 | – | ||||||
| Net cash provided by investing activities | 109,543 | – | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from line of credit | 135,736,042 | 104,752,474 | ||||||
| Repayment of line of credit | (136,328,187 | ) | (107,684,779 | ) | ||||
| Proceeds from note payable | 985,000 | – | ||||||
| Repayment of notes payable | (2,579,127 | ) | (26,271 | ) | ||||
| 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 | 1,735,406 | 286,063 | ||||||
| Proceeds from sale of common stock, net of expenses, under stock purchase agreement | 374,500 | 200,000 | ||||||
| Proceeds from public offering of common stock | 478,000 | – | ||||||
| Proceeds from private offering of common stock | 2,431,999 | 3,021,522 | ||||||
| Repayment of acquisition obligation | – | (500,000 | ) | |||||
| Net cash provided by financing activities | 833,633 | 2,027,009 | ||||||
| Net decrease in cash and cash equivalents | (646,898 | ) | (1,380,530 | ) | ||||
| Cash and cash equivalents beginning of period | 4,301,842 | 5,682,372 | ||||||
| Cash and cash equivalents end of period | $ | 3,654,944 | $ | 4,301,842 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Interest paid | $ | 431,818 | $ | 704,961 | ||||
| Taxes paid | $ | 6,204 | $ | – | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Common shares issued for acquisition | $ | 609,000 | $ | – | ||||
| Common shares issued for trade accounts payable | $ | 108,750 | $ | 150,000 | ||||
| Issuance of common stock issued for common stock issuable | $ | – | $ | 32,500 | ||||
| Accounts receivable from acquisition | $ | 59,114 | $ | – | ||||
| Intangible assets from acquisition | $ | 491,163 | $ | – | ||||
| 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 | ||||
Non-GAAP Financial Measure – Modified EBITDA
In addition to our GAAP results, we present Modified EBITDA as a supplemental performance measure. 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.
Set forth below is a reconciliation of net loss to Modified EBITDA for the year ended December 31, 2025 and 2024 (unaudited):
| Year Ended December 31, 2025 |
Year Ended December 31, 2024 |
|||||||
| Net Loss | $ | (10,491,658 | ) | $ | (18,832,080 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (508,796 | ) | (677,000 | ) | ||||
| Interest expense, net | 604,759 | 1,002,354 | ||||||
| Financing costs | 95,000 | 131,000 | ||||||
| Other income | (38,540 | ) | – | |||||
| Amortization of intangible assets | 2,271,673 | 2,431,668 | ||||||
| Amortization of capitalized software costs | 645,375 | 1,472,974 | ||||||
| Loss on fair value of stock issued on vendor settlement | 33,750 | 150,000 | ||||||
| Bad debt expense | 100,810 | – | ||||||
| Stock option and other noncash compensation | 6,302,614 | 11,484,708 | ||||||
| Total Modified EBITDA adjustments | 9,506,645 | 15,995,704 | ||||||
| Modified EBITDA | $ | (985,013 | ) | $ | (2,836,376 | ) | ||
We present Modified EBITDA because we believe it helps investors and analysts compare our performance across reporting periods on a consistent basis by excluding items we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA to develop our internal budgets, forecasts, and strategic plan; to analyze the effectiveness of our business strategies and evaluate potential acquisitions; to make compensation decisions; and to communicate with our board of directors regarding our financial performance. Modified EBITDA has limitations as an analytical tool, which include, 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. |
