Giftify 2025 Q3 Earnings 40% Net Loss Reduction Amid 28.8% Gross Billings Growth

Giftify (GIFT) reported its fiscal 2025 Q3 earnings on Nov 11, 2025, with a 40% reduction in net loss year-over-year and a 28.8% increase in gross billings, despite a 19.1% decline in total revenue. The results reflect strategic shifts in transaction mix and cost management, though the company continues to operate at a loss.

Revenue

The total revenue of Giftify decreased by 19.1% to $18.78 million in 2025 Q3, down from $23.21 million in 2024 Q3, driven by a shift toward agent transactions recognized on a net basis. CardCash Gift Cards accounted for the majority of revenue at $18.14 million, while Restaurant.com Gift Cards and Coupons contributed $623,472, and Advertising revenue totaled $23,756.

Earnings/Net Income

Giftify narrowed its losses to $0.08 per share in 2025 Q3 from a loss of $0.16 per share in 2024 Q3, marking a 50% improvement. The company’s net loss decreased to $-2.44 million, a 40% reduction compared to $-4.06 million in 2024 Q3. While the narrowing loss is a positive sign, the company remains unprofitable.

Price Action

The stock price of Giftify has edged down 2.68% during the latest trading day, has edged up 0.93% during the most recent full trading week, and has edged up 1.40% month-to-date.

Post-Earnings Price Action Review

Following the earnings report, Giftify’s stock price exhibited mixed performance. While the latest trading day saw a 2.68% decline, the stock recovered slightly over the subsequent week, gaining 0.93%. Month-to-date, the price has risen 1.40%, suggesting tentative investor confidence despite the company’s ongoing losses. The market appears to balance concerns over revenue contraction with optimism around gross margin expansion and strategic improvements.

CEO Commentary

Ketan Thakker, President and CEO of Giftify, highlighted the 28.8% year-over-year growth in gross billings as a key indicator of the company’s strategic transformation. “This growth, combined with expanding gross margins and improved profitability, validates our operational strategy,” he stated. Thakker emphasized the benefits of shifting to agent transactions, which reduce inventory risk and working capital needs while maintaining attractive margins. The CEO also reiterated a focus on B2C and B2B customer acquisition, transaction mix optimization, and leveraging the Takeout7 acquisition to enhance restaurant partnerships.

Guidance

Giftify provided forward-looking guidance, projecting continued investment in personnel and public company operational costs. Management anticipates increased selling, general, and administrative expenses but remains focused on achieving sustainable revenues and profitability. The company aims to maintain gross margin expansion and further narrow losses through operational efficiency and strategic acquisitions.

Additional News

Giftify completed the integration of Takeout7, Inc., expanding its technology offerings to include AI-powered digital marketing services for independent restaurants. The acquisition strengthens the company’s B2B capabilities and diversifies its revenue streams. Additionally, the CEO reiterated confidence in the long-term potential of the digital gift card and restaurant deals market, citing the combined scale of CardCash and Restaurant.com platforms. No dividend or buyback announcements were made, with capital allocation prioritized toward strategic initiatives and operational scalability.

Financial Health and Strategic Outlook

Giftify’s Q3 results underscore a strategic pivot toward agent transactions, which have improved gross margins to 20.0% but reduced reported revenue. While the company’s net loss has narrowed, challenges persist in achieving profitability. The integration of Takeout7 and focus on B2B expansion signal long-term growth ambitions, though near-term execution risks include maintaining unit economics and scaling efficiently. Investors are advised to monitor gross billings, transaction mix, and Modified EBITDA trends over the next two to four quarters for clarity on the company’s path to profitability.