Gifty (GIFT) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 were $18.8M, down 19.1% year-over-year, with gross profit up 25.3% to $3.7M due to a higher mix of agent transactions and improved gross margin.

• Net loss for Q3 2025 was $2.4M, a significant improvement from $4.1M in Q3 2024, driven by higher gross profit, lower stock-based compensation, and reduced interest expense.

• For the nine months ended September 30, 2025, net sales were $62.0M (down 4.3% year-over-year), gross profit rose 17.6% to $11.2M, and net loss narrowed to $8.2M from $15.0M in the prior year period.

• Gross billings increased 28.8% in Q3 2025 and 23.8% for the nine months, reflecting higher transaction volumes despite lower reported net sales due to revenue recognition as agent.

• The company completed the acquisition of Takeout7 in May 2025, expanding technology offerings for independent restaurants, and continued integration of CardCash, acquired in late 2023.

Financial highlights

• Q3 2025 gross margin improved to 20.0% from 12.9% in Q3 2024; nine-month gross margin rose to 18.1% from 14.7% year-over-year.

• Operating expenses for Q3 2025 were $6.2M, down from $6.8M in Q3 2024, mainly due to a $775K reduction in stock-based compensation.

• Modified EBITDA for Q3 2025 was $(269)K, an improvement from $(669)K in Q3 2024; for the nine months, Modified EBITDA was $(1.05)M versus $(1.68)M year-over-year.

• Cash used in operations for the nine months was $496K, with a period-end cash balance of $4.0M.

Outlook and guidance

• Management expects existing cash and cash generated from operations to last until March 31, 2026.

• The company is evaluating funding alternatives, including equity or debt issuance, to address upcoming debt maturities and ongoing negative working capital.

• Management is focused on product optimization, sales growth, and operational streamlining to improve cash generation.