Giftify 2025 Q1 Earnings Narrowed EPS Loss with Revenue Growth

Giftify (GIFT) reported its fiscal 2025 Q1 earnings on May 13th, 2025. Giftify's first quarter results showcased a notable improvement in their earnings performance compared to the previous year. Although the company continues to operate at a loss, the earnings per share loss was reduced to $0.11, showing a 15.4% improvement from the prior year's loss of $0.13 per share. The company maintained its revenue growth trajectory, increasing by 3.5% to $22.3 million. Giftify's 2025 Q1 performance, while in line with revenue growth expectations, reflects ongoing challenges in profitability, despite narrowing EPS losses.

Revenue
Giftify achieved total revenue of $22.28 million in the first quarter of 2025, marking a 3.5% increase from the previous year. The CardCash Gift Cards segment was the major contributor, generating $21.87 million, while the Restaurant.com Gift Cards and Coupons segment added $374,968. Additionally, the Advertising segment contributed $34,931, collectively driving the overall revenue growth.

Earnings/Net Income
During the first quarter of 2025, Giftify narrowed its loss per share to $0.11, representing a 15.4% improvement from a loss of $0.13 per share in the same period of 2024. However, the net loss slightly widened to $3.22 million, up from $3.19 million in the prior year. Despite the improved EPS, the net loss highlights ongoing financial challenges.

Post-Earnings Price Action Review
The strategy of purchasing Giftify stock following an earnings miss and holding it for 30 days has demonstrated positive outcomes historically. This approach aims to capitalize on the market's tendency to rebound after initial negative reactions to earnings misses, assuming these declines are more related to earnings news than broader market trends. The strategy, backtested over historical periods, indicated that buying after a revenue miss and selling after a 30-day holding period could yield positive returns. The market often corrects its initial overreaction, allowing for potential gains. However, while the backtests show promise, investors should consider ongoing market conditions and company fundamentals before making decisions, as past performance does not guarantee future results.

CEO Commentary
Ketan Thakker, Chief Executive Officer of Giftify, Inc., expressed optimism about the company's performance, stating, "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." He highlighted the successful deployment of AI solutions as a key driver of operational efficiencies and acknowledged strong traction in targeted vertical market expansions, emphasizing a focus on scaling platforms and enhancing user engagement throughout 2025.

Guidance
The company anticipates continued revenue growth, with expectations of reaching approximately $26.3 million in the second quarter of 2025. Giftify aims to improve its modified EBITDA loss, projecting an enhancement to around -$0.26 million, while maintaining a strategic focus on expanding into high-margin vertical markets. The leadership remains committed to building sustainable shareholder value as part of its long-term strategic priorities.

Additional News
Giftify, Inc. has recently announced a strategic partnership to leverage NBA playoff enthusiasm, offering up to 37% discounts on NBA Store cards as viewership surges. This initiative aims to accelerate platform growth and capitalize on the increased interest in sports merchandise. Additionally, Giftify has expanded its strategic AI implementation to enhance operational efficiency and decision-making, positioning itself for potential growth in the competitive gift card marketplace. Furthermore, Giftify's CardCash has emerged as a strategic solution for travelers amid record-high travel costs, offering significant savings as travel expenditures soar in 2025.