Giftify 2025 Q3 Earnings Net Loss Narrows 40% Amid Strong Gross Billings Growth

Giftify (GIFT) reported mixed Q3 2025 results, with revenue declining 19.1% year-over-year but net losses narrowing significantly. The company’s strategic shift toward agent transactions and cost reductions drove improved margins, though the earnings report lacked explicit forward guidance.

Revenue

Giftify’s total revenue fell to $18.78 million in Q3 2025, down from $23.21 million in the prior-year period. This decline primarily reflects a shift in transaction mix, as the company recognized a higher proportion of agent transactions on a net basis. Gross billings, a key performance indicator, surged 28.8% to $39.1 million, underscoring robust marketplace activity. The divergence between gross billings and reported revenue highlights the impact of the company’s evolving business model, which prioritizes lower-risk agent transactions.

Earnings/Net Income

The company reduced its net loss to $2.44 million ($0.08 per share) in Q3 2025, a 40% improvement from $4.06 million ($0.16 per share) in Q3 2024. This progress stems from higher gross margins (20.0% vs. 12.9%) and reduced operating expenses. Positive note as the company reduced its net loss by 40%, demonstrating early traction from cost discipline and margin expansion.

Post-Earnings Price Action Review

Following the earnings release, Giftify’s stock edged up 1.82% in a single trading day but remained flat for the week. Month-to-date, shares gained 3.70%, suggesting investor optimism about the company’s strategic direction. While the stock’s immediate reaction was muted, the broader trend reflects confidence in the shift toward agent transactions and improved operational efficiency. Analysts will likely monitor whether these improvements translate into sustainable profitability.

CEO Commentary

CEO Ketan Thakker emphasized the 28.8% growth in gross billings and 710-basis-point margin expansion as validation of the company’s strategic transformation. “We’re making real progress in optimizing our transaction mix, reducing inventory risk, and leveraging our expanded platform,” Thakker stated. The commentary underscored priorities: scaling agent transactions, integrating Takeout7, and maintaining expense discipline while pursuing B2C and B2B growth.

Guidance

The company did not provide explicit forward-looking guidance in the earnings report.

Additional News

Giftify announced the successful integration of Takeout7, a recent acquisition, which has enhanced its restaurant platform offerings. The company also highlighted a 7% increase in agent transactions as a percentage of net sales, a strategic move to reduce inventory risk and improve working capital efficiency. Additionally, operating expenses were reduced by 8% year-over-year, reflecting ongoing cost management efforts. These developments position Giftify to capitalize on its expanded market reach while addressing long-term profitability challenges.