Giftify, Inc. Reports First Quarter 2025 Financial Results, Reports Revenue Growth to $22.3 Million

Company achieves gross profit increase of 10% to $3.6 million 

Strategic initiatives in AI implementation and new market expansion generating positive momentum

/EIN News/ -- SCHAUMBURG, IL, May 13, 2025 (GLOBE NEWSWIRE) -- Giftify, Inc. (NASDAQ: GIFT) (the "Company"), the owner and operator of CardCash.com and Restaurant.com, and a leader in the incentives and rewards industry, today announced financial and operational results for the first quarter ended March 31, 2025.

Key Highlights for the Three Months Ended March 31, 2025, Compared to Prior Year Period

• Revenue increased 3.5% to $22.3 million
• Gross profit increased 10.0% to $3.6 million
• Gross margin increased to 16.1% from 15.1%
• Modified EBITDA loss improved to $0.63 million from $0.66 million
• Net loss of $3.2 million (Of note, net loss for the three months ended March 31, 2025 included $2.6 million in non-cash expenses, including $1.8 million in stock option and other non-cash compensation, $0.54 million in amortization of intangible assets, $0.16 million in amortization of capitalized software costs, and $0.03 million from fair value of stock issued on vendor settlement.)
• Strong balance sheet with total assets of $33.9 million and stockholders' equity of $21.3 million

Growth Initiatives 

The Company's strategic execution against previously outlined growth priorities is generating positive momentum across multiple fronts:

• Successful deployment of enterprise-wide AI solutions driving measurable operational efficiencies and cost reductions
• Expansion into high-margin vertical markets including pharmacy savings, sports merchandise and travel
• Enhanced synergies between CardCash.com and Restaurant.com platforms
• Introduction of innovative savings solutions for consumers facing rising costs in everyday expenses

Subsequent Events

• Subsequent to March 31, 2025, the Company repaid in full its GameIQ acquisition note payable
• Amended the Company’s secured line of credit releasing $0.25 million of restricted cash
• Continued expansion of the At-the-Market offering to strengthen the Company's cash position
  

Management Commentary 

Ketan Thakker, Chief Executive Officer of Giftify, Inc., commented, "Our first quarter results demonstrate solid execution against our growth strategy, with revenue increasing and gross profit climbing. Most importantly, we've improved our gross margin to 16.1%, showing our ability to enhance profitability even in a challenging economic environment. Our focus on operational efficiency and strategic expansion into high-growth vertical markets is beginning to yield results."

Thakker continued, "During the quarter, we continued our strategic AI implementation, which is creating measurable benefits across our organization from marketing to customer service. We're also seeing strong traction in our targeted vertical market expansions in pharmacy savings, sports merchandise and travel, which provides consumers with practical solutions to combat inflation in everyday expenses. As we move through 2025, we remain focused on scaling our platforms, enhancing user engagement, and building sustainable value for our shareholders."

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 and Restaurant.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. Its Restaurant.com is the nation’s largest restaurant-focused digital deals brand. Restaurant.com and our Corporate Incentives division connect digital consumers, businesses and communities offering thousands of dining, retail and entertainment deals 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.

For more information, visit: www.giftifyinc.com and www.cardcash.com and https://www.restaurant.com.

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

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 (FKA RDE, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS

		As of
		March 31, 2025				December 31, 2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents (includes restricted cash of $1,258,826 at March 31, 2025 and December 31, 2024)		$	2,121,814			$	3,574,876
Accounts receivable			1,591,180				891,666
Inventories			3,825,181				4,116,180
Prepaid expenses and other current assets			308,440				63,210
Total current assets			7,846,615				8,645,932
Property and equipment, net			928,441				1,089,984
Operating lease right of use asset, net			1,329,181				1,406,242
Deposits			65,556				65,556
Intangible assets, net			3,724,415				4,268,332
Goodwill			20,007,670				20,007,670
Total assets		$	33,901,878			$	35,483,716
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	2,085,508			$	1,966,616
Accrued expenses			1,714,629				1,768,607
Customer deposits			271				95,000
Deferred revenue			113,360				77,051
Secured revolving line of credit			3,682,328				3,805,080
Convertible promissory notes			43,887				43,137
Secured note payable — related party, net of debt discount of $0 and $4,000, at March 31, 2025 and December 31, 2024, respectively			-				2,060,274
Notes payable, current portion, net of debt discount of $12,857 and $0, at March 31, 2025 and December 31, 2024, respectively			1,906,361				1,717,632
Operating lease liability, current portion			326,770				316,612
Total current liabilities			9,873,114				11,850,009
Notes payable, net of current portion			664,500				615,000
Deferred income taxes			976,142				1,123,000
Operating lease liability, net of current portion			1,048,620				1,133,371
Total liabilities			12,562,376				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; 29,273,359 and 27,021,423 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively			29,267				27,015
Additional paid-in-capital			112,471,311				108,679,065
Common stock issuable, 350,843 and 383,343 shares, respectively			350,843				350,843
Accumulated deficit			(91,511,919	)			(88,294,587	)
Total stockholders’ equity			21,339,502				20,762,336
Total liabilities and stockholders’ equity		$	33,901,878			$	35,483,716

GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended March 31,
		2025				2024
		(Unaudited)				(Unaudited)
Net Sales		$	22,277,013			$	21,521,894
Cost of sales			18,695,377				18,264,618
Gross profit			3,581,636				3,257,276
Operating Expenses
Selling, general and administrative expenses			6,043,841				5,214,041
Depreciation of capitalized software costs			161,543				378,737
Amortization of intangible assets			543,917				607,917
Total operating expenses			6,749,301				6,200,695
Loss from operations			(3,167,665	)			(2,943,419	)
Other expense:
Interest expense			(209,571	)			(247,301	)
Total other expense, net			(209,571	)			(247,301	)
Net loss before income tax benefit			(3,377,236	)			(3,190,720	)
Income tax benefit			159,904				-
Net loss		$	(3,217,332	)		$	(3,190,720	)
Net loss per share – basic and diluted		$	(0.11	)		$	(0.13	)
Weighted average common shares outstanding – basic and diluted			28,354,277				25,004,222

GIFTIFY, INC. AND SUBSDIARIES (FKA RDE, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
			(Unaudited)				(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(3,217,332	)		$	(3,190,720	)
Adjustments to reconcile net loss to net cash provided by operating activities
Fair value of vested stock options			994,295				37,126
Fair value of vested restricted common stock			568,709				1,044,250
Fair value of common stock issued for services			239,130				217,500
Loss on fair value of common stock issued for settlement of vendor			33,750				-
Depreciation of capitalized software costs			161,543				378,737
Amortization of intangible assets			543,917				607,917
Amortization of debt discount			6,143				-
Accrued interest			(62,438	)			15,934
Changes in operating assets and liabilities:
Accounts receivable			(699,514	)			569,794
Inventories			290,999				678,068
Prepaid expenses and other current assets			(245,230	)			(127,172	)
Right of use assets			77,061				65,632
Accounts payable			193,893				(374,262	)
Accrued expenses			(53,978	)			305,141
Customer deposits			(94,729	)			-
Deferred revenue			36,309				(168,818	)
Deferred taxes			(146,858	)			-
Operating lease liability			(74,594	)			(65,763	)
Net cash used in operating activities			(1,448,924	)			(6,636	)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			-				(224,815	)
Net cash provided by investing activities			-				(224,815	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit			30,435,894				26,070,274
Repayment of line of credit			(30,558,645	)			(26,746,739	)
Proceeds from note payable			985,000				-
Repayment of notes payable			(750,000	)			-
Repayment of notes payable – related party			(2,000,000	)			-
Proceeds from sale of common stock, net of expenses, under at-the-market sale agreement			1,031,113				-
Proceeds from sale of common stock, net of expenses, under stock purchase agreement			374,500				-
Proceeds from public offering of common stock			478,000				-
Repayment of acquisition obligation			-				(500,000	)
Proceeds from private placement of common stock			-				2,709,000
Net cash provided by (used in) financing activities			(4,138	)			1,532,535
Net increase (decrease) in cash and cash equivalents			(1,453,062	)			1,301,084
Cash and cash equivalents beginning of period			3,574,876				4,099,737
Cash and cash equivalents end of period		$	2,121,814			$	5,400,821
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid		$	232,877			$	-
Taxes paid		$	-			$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES
Common shares issued for trade accounts payable		$	108,675			$	-