Giftify, Inc. Reports Improved Financial Results with Reduced Net Loss in Q2 2025

Giftify, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $2.59 million, a significant improvement compared to a net loss of $7.74 million in the same quarter of 2024. For the six months ending June 30, 2025, the company recorded a net loss of $5.81 million, down from $10.94 million in the prior year. Revenue for the second quarter reached $20.90 million, reflecting a 4.4% increase from $20.02 million in the same period last year. Year-to-date revenue also saw an increase, totaling $43.18 million compared to $41.54 million in the first half of 2024.

The company’s operational performance showed notable changes, particularly in its cost structure. Total operating expenses for the second quarter decreased to $6.43 million from $10.74 million in the prior year, primarily due to reduced selling, general, and administrative expenses, which fell from $9.83 million to $5.71 million. This reduction in expenses contributed to a smaller loss from operations, which improved from $7.48 million in Q2 2024 to $2.58 million in Q2 2025. The company also reported a gross profit of $3.86 million for the quarter, up from $3.26 million a year earlier.

Strategically, Giftify has expanded its business through acquisitions, notably acquiring Takeout7, Inc. in May 2025, which enhances its technology offerings for independent restaurants. This follows the acquisition of CardCash Exchange, Inc. in December 2023, which has allowed Giftify to broaden its digital consumer services. The company’s total assets decreased to $31.50 million as of June 30, 2025, down from $35.48 million at the end of 2024, largely due to a reduction in cash and inventory levels.

In terms of operational metrics, Giftify's customer engagement appears to be stable, with a slight increase in user statistics. The company reported a weighted average of 29.53 million shares outstanding for the second quarter, compared to 25.75 million shares in the same quarter of 2024. The company’s cash and cash equivalents stood at $3.26 million, down from $4.30 million at the end of 2024, indicating a need for careful cash management moving forward.

Looking ahead, Giftify's management expressed cautious optimism about future growth, contingent on the successful integration of its recent acquisitions and the ability to secure additional financing. The company continues to face challenges related to market conditions and operational costs, which could impact its ability to achieve sustainable profitability. The management emphasized the importance of raising capital to support ongoing operations and strategic initiatives, as the company navigates a competitive landscape in the digital consumer services sector.