Groupon 2.0? Giftify’s Q2 Trajectory Hints at Explosive Rerating

Last week, Giftify, Inc. [NASDAQ: GIFT] dropped its Q2 2025 results.

tl;dr → things are looking up.

Real up.

Now, obviously, there’s all the high-level stuff you can glean from Giftify’s announcement. And, since we’re gonna need some of that as background for this story, here’s the top-3 highlights in all their copy-pasted glory:

• Gross billings increased 23.2% to $36.1 million
• Gross profit increased 18.3% to $3.9 million
• Net sales increased 4.4% to $20.9 million

Then, there’s also all the strategic growth initiatives stuff. Again, I’ll drop a few highlights for you here:

• TakeOut7 Acquisition: Giftify acquired TakeOut7 to expand its restaurant tech offerings into full-blown end-to-end solutions. (This was/is a big one.)
• Partnered With ZipCo in BNPL Initiative: Giftify launched a Buy Now, Pay Later (BNPL) option in partnership with Zip Co to boost customer accessibility/payment flexibility.
• High-Leverage Marketing Initiatives: Giftify expanded its reach into high-revenue, high-growth verticals like travel/sports/pharmacy savings. (The GLP-1/Ozempic campaign was huge!)

Of course, as with any company announcement, there was a whole bunch of extra fluff.

You know the drill → “The Company’s strategic execution against previously outlined growth priorities continued to generate positive momentum across multiple fronts during the second quarter…”

But I’m leaving most of that out here.

Why?

Because it’s not important. (Plus, why bother regurgitating corporate word sludge when you can go and get it straight from the horse’s mouth? Here’s the link again if you really want it.)

Instead, what I really want to talk about today is what Giftify’s not telling you.

Not that any of it’s secret. (But retail investors are totally missing it.)

And not that any of it’s bad. (It’s actually really, really good news.)

So here goes.

Giftify’s results for last quarter confirm a narrative we predicted a few months ago.

That narrative? — Giftify’s going up.

Real up!

Let’s Go Back in Time (The Giftify Story Begins)

Usually, I hate repeating myself. But today, I’m making an exception.

Back in April, I was writing about Giftify’s CardCash.com marketing initiatives. Specifically, its travel discounts program.

Here’s what I wrote:

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Right now, rumor has it that Giftify, Inc. [NASDAQ: GIFT] is set to drop some massive revenue growth numbers in upcoming reporting seasons.

Maybe not so much for Q1. (Although you might wanna get in ahead of these results dropping.)

But Q2 and onwards? — You betcha!

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Now fast forward to today, and what just happened?

Just in case you did a speed run of the intro and skim-read the numbers, here they are again:

• Gross billings increased 23.2% to $36.1 million
• Gross profit increased 18.3% to $3.9 million

Read that first one again.

Gross billings increased 23.2%…

…

Are you kidding me!?!?!

That’s huge!

And, yeah, I hate to say “I told ya so” (actually, who am I kidding? I love it)… but… I kinda did tell ya so.

But hey, I also know when to be humble. So I’ll admit it. I did not see that gross profit bump coming.

That “little” 18.3% bump totally took me by surprise.

And only in the best of ways.

Anyway, gloating aside, there’s a reason I’m digging through the archives to bring you an old “prediction”.

That prediction was part of a broader (and very coherent) narrative that’s still playing out today.

Action == Results (The Giftify Story Builds)

Over the last six months or so, the team at Giftify have been some very busy little bees.

You saw some of that in the intro.

Between:

• super smart acquisitions (major synergies + killer market timing);
• viral marketing initiatives hijacking major trends (helllllloooo Ozempic!), and;
• high-profile fintech partnerships (massive growth driver)…

Gifftify’s been building the sort of momentum that starts out as “interesting”, then becomes “unstoppable”.

And right now, I think we’re nearing the unstoppable part of the story.

You see, we’re already getting the early signals that all that activity is translating into results. (If you read my “told you so” article, then you’d know that Q2 is just the beginning.)

And as it’s translating into results, the company’s quickly transforming — marginal-small-cap-cum-thrumming-cash-machine.

Liabilities? Waaayyyy Down

Giftify’s liabilities are one of the biggest signals outside of the topline numbers we saw in the highlights.

Why?

Because they’re down.

Real down.

• On Dec 31, 2024, Giftify had $14.7 million in liabilities on the books.
• On June 30, 2025, that dropped to $9.9 million.

That’s literally one-third of their liabilities wiped out in Q1.

Just like that.

Gone.

And I’m not just talking about the petty sort of quarter-to-quarter liability fluctuations that crop up on every company’s balance sheet. You know, like customer deposits.

Giftify has actually wiped out a huge chunk of serious liabilities. Notably in the form of:

• A $2 million secured note payable to a related party — completely eliminated. (As in $0 owed)
• A $2.1 million reduction in its revolving line of credit. ($3.81 million at December 31, 2025 — down to just $1.72 M at June 30, 2025)

Cash! So Much Cash.

Okay, so Giftify did note that it had a “strong balance sheet” in the highlights bit of its Q2 announcement.

But there are a couple of numbers they didn’t highlight that, on closer inspection, really caught my attention.

First, we’ve got their net cash from operating activities.

One year ago, Giftify was bleeding cash to the tune of -$3.07 million in 1H 2024.

Fast forward to 1H 2025, and that number flipped positive to +$0.29 million.

That’s the sort of trajectory that I like to see.

But it’s not the only signal.

One of my favorite signals is their inventory numbers. They’ve been slashed in half, dropping from $4.12 million down to just $2.02 million as of June 30, 2025.

Why’s that a good signal?

First, let’s get the obvious thing out of the way.

Cash flow.

Hoarding stockpiles of inventory can literally strangle a company from the inside out. So by slashing that figure, Giftify’s just freed up ~$2.1 million in working capital.

Capital that can fuel more growth. (Which I fully expect to see more of going forward.)

But there are also some more subtle things this inventory reduction brings with it.

For instance, that should start to translate into lower carrying costs/risks as they find a closer match between supply/demand (e.g., Giftify’s CardCash.com business buys/sells unwanted gift cards. Gift cards expire, so inventory, while necessary, does carry a risk.)

It should also mean Giftify’s able to start juicing some extra margin. It doesn’t take much imagination to realize that excess inventory == fire sales/extra discounts. So less of that should equal more profit.

And that’s what we like to see — more cash, more margin, more profit, more growth.

What more could you want?

Losses? Melting Away

Alright, so now comes the “bad” part.

Or, at least, it looks bad if you take it as a static number.

In Q2 2025, Giftify posted an operating loss of $2.58 million.

Bummer, right?

Well, not quite.

First, basically all of that ($2.4 million) was non-cash ($1.6 million stock-based comp; $0.6 million intangible amortization; $0.16 million software amortization).

Second — and this bit’s the really important bit — this isn’t a static number. What we should be interested in is the trajectory. And that’s going in a very, very positive direction.

For reference, in Q2 2024, Giftify posted a $7.48 million operating loss. 

In other words, they’ve delivered a 65% improvement since then.

And that is a very, very big number.

Now, granted. That’s not a “positive” result yet in terms of EPS or anything like that. (And that might be a good thing for us… but more on that soon.)

But, when a company’s on the sort of trajectory that Giftify’s on right now, you don’t look at the numbers today — you look at where they’re gonna be tomorrow.

So just follow the line.

Coming Soon (The Giftify Story Explodes )

I like to think I have a pretty good gut for this type of thing. (I did call Giftify’s Q2 results earlier this year, didn’t I?)

So, I’m gonna leave the numbers alone for now and put this into plain old English.

Right now, Giftify’s numbers are showing a clear trajectory. (Up.)

And that trajectory is following a clear narrative. (Growth.)

Marketing initiatives. Strategies. Acquisitions. Synergies.

It’s all starting to combine into a serious, money-making machine.

And when the last piece of that puzzle flips positive (EPS), things are likely going to explode.

How do I know that?

One word.

Groupon [NASDAQ: GRPN] — the closest thing to Giftify on the public markets today.

Now, if you don’t remember what happened when Groupon delivered its little EPS “surprise” earlier this year, let me jog your memory.

Line go up. 

Real up. (+100% in a day. Just saying.)

Now, can I guarantee that Giftify’s going to finally flip its EPS positive? — No. Of course I can’t. Things could always change.

New competitors… (Not likely)

Black swan events…. (Not likely)

Stuff…

But, assuming things keep ticking along in their current direction (especially if inflation starts ticking up again — that’s a huge growth driver for Giftify), then I’ve only got one piece of advice.

Watch Giftify’s trajectory — it’s pointing up.

Real up.

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(Featured image by Mikhail Nilov via Pexels)

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