Giftify, Inc. Reports Q1 2025 Financial Results with 3.5% Revenue Growth

Giftify, Inc. (formerly RDE, Inc.) reported its financial results for the first quarter of 2025, revealing a net sales figure of $22.3 million, a 3.5% increase from $21.5 million in the same period last year. The company's gross profit also rose to $3.6 million, compared to $3.3 million in Q1 2024. However, the company continued to experience a net loss of $3.2 million, slightly higher than the $3.2 million loss reported in the previous year. The loss per share improved to $(0.11) from $(0.13) year-over-year, reflecting a marginally better performance despite ongoing challenges.

In terms of operational changes, Giftify's acquisition of CardCash Exchange Inc. in December 2023 has significantly influenced its revenue structure, with CardCash accounting for 98% of total revenues in both the current and prior year periods. The company has also undergone a rebranding, officially changing its name to Giftify, Inc. in late October 2024, which aligns with its strategic focus on the gift card market. The company’s stock is now listed on the Nasdaq, following approval in August 2024, which may enhance its visibility and access to capital.

The company’s total assets decreased to $33.9 million as of March 31, 2025, down from $35.5 million at the end of 2024. Current liabilities also saw a reduction, falling to $9.9 million from $11.9 million, primarily due to a decrease in accounts payable and accrued expenses. Giftify's cash and cash equivalents decreased to $2.1 million from $3.6 million, indicating a tightening liquidity position. The company reported a significant increase in accounts receivable, which rose to $1.6 million from $891,666, suggesting a potential increase in sales volume or delayed collections.

Giftify's employee headcount has remained stable, with no significant changes reported in staffing levels. The company continues to focus on enhancing its product offerings and customer engagement, as evidenced by its ongoing marketing efforts and the introduction of new services. The management has expressed concerns regarding the company's ability to continue as a going concern, citing the need for additional capital to fund operations and achieve sustainable profitability. The outlook remains cautious, with management indicating that future performance will depend on market conditions and the company's ability to secure necessary financing.