Giftify, Inc. reported a net loss of $10.5 million for the fiscal year ending December 31, 2025, a significant improvement from the $18.8 million loss recorded in the previous year. The company's net sales decreased by 6.5% to $83.2 million, down from $88.9 million in 2024. This decline was attributed to a shift in the mix of agent versus principal transactions, with merchant gift card sales accounting for approximately 97% of total net sales. Despite the decrease in sales, gross profit increased by 17.9% to $15.5 million, resulting in a gross margin of 18.6%, up from 14.8% in 2024.
The company underwent significant strategic changes during the fiscal year, including the acquisition of CardCash Exchange, Inc. for $26.7 million in December 2023, which has since enhanced Giftify's market profile and operational capabilities. Additionally, in May 2025, Giftify acquired Takeout7, Inc. for $609,000, further expanding its technology offerings in the restaurant sector. These acquisitions are expected to bolster Giftify's growth potential and market share in the digital deals space.
Operationally, Giftify's customer base grew to 6.2 million, with the Business-to-Consumer (B2C) division contributing approximately 15% of gross revenue, while the Business-to-Business (B2B) division accounted for 85%. The company reported gross billings of $154.7 million, a 27.1% increase from the previous year, indicating a strong demand for its services despite the decline in net sales. The company also noted a reduction in employee headcount to 40 full-time employees as of December 31, 2025, reflecting ongoing efforts to streamline operations.
Looking ahead, Giftify faces challenges related to its financial stability, as it reported substantial doubt about its ability to continue as a going concern due to ongoing operating losses and negative cash flows. The company has $3.7 million in cash available, which it expects to last until December 2026. Management is actively exploring funding alternatives to support its operations and growth initiatives, including potential equity and debt financing. The company aims to improve its operating performance through various strategies, including product optimization and enhanced marketing efforts, to achieve sustainable revenue growth and profitability.
About GIFTIFY, INC.
Giftify, Inc. operates a digital platform offering restaurant discount certificates, dining passes, and gift card exchange services. Its core segments include B2C and B2B, serving consumers and businesses nationwide. The company leverages proprietary technology, strategic partnerships, and a large customer database to facilitate cost-effective dining and gift card solutions, competing through brand recognition, deal volume, and innovative offerings in the online e-commerce and gift card markets.
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