Gifty (GIFT) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were $20.9M, up 4.4% year-over-year; gross billings rose 23.2% to $36.1M.

• Net loss narrowed to $2.6M from $7.7M in Q2 2024, driven by higher gross profit and lower stock-based compensation.

• Gross margin improved to 18.4% from 16.3% year-over-year.

• Acquired Takeout7 in May 2025, expanding technology offerings for independent restaurants.

• Substantial doubt remains about ability to continue as a going concern due to recurring losses and negative cash flows.

Financial highlights

• Six-month net sales reached $43.2M, up 3.9% year-over-year; gross billings for the period were $73.1M, up 23.2%.

• Six-month net loss was $5.8M, improved from $10.9M in the prior year.

• Modified EBITDA for Q2 2025 was $(150K), a significant improvement from $(357K) in Q2 2024.

• Cash and cash equivalents at June 30, 2025, were $3.26M; negative working capital of $1.71M.

• Operating cash flow for the first half of 2025 was $290K, compared to $(3.1M) in the prior year.

Outlook and guidance

• Management expects selling, general, and administrative expenses to rise as public company costs increase.

• Cash balance projected to last until December 2025; additional financing is required to sustain operations.