Giftify 2025 Q3 Earnings 50% Reduction in Net Loss as Revenue Declines 19.1%

Giftify (GIFT) reported fiscal 2025 Q3 earnings on Nov 11, 2025, with a narrowed net loss of $0.08 per share, a 50% improvement from the prior year. The company posted a 28.8% year-over-year increase in gross billings despite a 19.1% revenue decline to $18.78 million. Stock price volatility followed, with a 2.68% drop in the latest trading day but a 0.93% weekly gain.

Revenue

Giftify’s total revenue fell to $18.78 million in Q3 2025, driven by a strategic shift toward agent-based transactions recognized on a net basis. CardCash Gift Cards remained the dominant revenue driver with $18.14 million, while Restaurant.com Gift Cards and Coupons contributed $623,472. Advertising revenue added $23,756, rounding out the total. The decline in reported revenue contrasts with a 28.8% rise in gross billings to $39.1 million, reflecting the company’s evolving business model.

Earnings/Net Income

The company narrowed its net loss to $2.44 million ($0.08 per share) in Q3 2025, a 40% reduction from $4.06 million ($0.16 per share) in the prior year. The improvement stemmed from a 25.3% increase in gross profit to $3.75 million and reduced operating expenses. The EPS loss narrowed by 50% to $0.08, reflecting improved cost management and margin expansion, though revenue challenges persist.

Post-Earnings Price Action Review

Following the earnings report, Giftify’s stock edged down 2.68% during the latest trading day, but showed resilience with a 0.93% gain over the most recent full trading week. The stock has also posted a 1.40% increase month-to-date, indicating mixed investor sentiment despite the narrowed losses and improved gross margins.

CEO Commentary

Ketan Thakker, President and CEO, emphasized the company’s progress in strategic transformation, highlighting the 28.8% growth in gross billings and 710-basis-point margin expansion. “Agent transactions reduce inventory risk while maintaining attractive margins,” he stated, underscoring optimism about the evolving business model. The tone was cautiously optimistic, balancing revenue challenges with operational efficiencies.

Guidance

Giftify anticipates increased SG&A expenses as it scales operations and integrates Takeout7. The company aims to optimize transaction mix to sustain gross margin expansion and improve Modified EBITDA. Forward-looking targets include maintaining agent transactions at ~7% of net sales and reducing net loss by ~40% year-over-year.

Additional News

Giftify recently completed the integration of Takeout7, Inc., enhancing its digital marketing and online ordering solutions for restaurants. CEO Ketan Thakker reiterated focus on B2C and B2B growth, alongside margin optimization. The company also noted plans to reduce operating expenses by 8% YoY while expanding its merchant partnerships.