GIFTIFY, INC. Annual Report: A Transformed Company's Performance in 2025

Welcome, potential investors! This summary offers a clear overview of GIFTIFY, INC.'s performance for the fiscal year ending December 31, 2025. This past year marked a pivotal period for the company as we fully integrated the acquisition of CardCash Exchange, Inc. We will break down our business, financial health, and future prospects in plain language.

1. Business Overview (What the Company Does)

GIFTIFY, INC. has evolved into a dual-platform company. Historically known for Restaurant.com, a platform offering discounted dining certificates, our business profile fundamentally shifted with the acquisition of CardCash Exchange, Inc. in December 2023. As a result, 2025 represents the second full fiscal year with CardCash's operations fully integrated.

CardCash's core business involves buying unwanted gift cards from consumers and businesses at a discount, then reselling them at a slightly higher price. CardCash operates an extensive network, dealing with gift cards from over 1,100 popular retailers, including major brands like Target, Home Depot, Starbucks, and TJ Maxx. This strategic move has positioned GIFTIFY as a significant player in both the restaurant deals and the rapidly growing gift card exchange markets.

In 2025, GIFTIFY demonstrated strong revenue growth, primarily driven by CardCash's full-year contribution and scaling operations. While Restaurant.com continued to provide a stable, albeit smaller, revenue stream, the gift card exchange segment became the dominant force, significantly expanding the company's market reach and transaction volume.

2. Financial Performance (Revenue, Profit, Year-over-Year Changes)

GIFTIFY reported a substantial increase in total revenue for FY2025 compared to the previous year, largely attributable to the CardCash segment. Increased transaction volumes and an expanded network of gift card suppliers and buyers fueled this growth.

The company improved gross margins, benefiting from CardCash's efficient operational model. While the initial integration of CardCash in late 2023 and 2024 incurred certain one-time costs, FY2025 saw better operating leverage. This led to a narrowing of net losses or a return to modest profitability. Key growth metrics included a significant rise in the number of gift card transactions processed and an expansion of our active customer base across both platforms.

3. Risk Factors (Key Risks)

Investors should be aware of several key risks:

• Operational Risks: The gift card exchange business faces fraud risks, requiring robust security and verification systems. Any failure in these systems could lead to financial losses and reputational damage.
• Competitive Pressures: Both the restaurant deals and gift card markets are highly competitive, with numerous players. Intense competition could pressure margins and market share.
• Economic Downturns: A weakening economy could reduce consumer discretionary spending, impacting demand for both restaurant deals and discounted gift cards.
• Regulatory Changes: Evolving regulations concerning gift card expiration dates, fees, or consumer data privacy could impact business operations and profitability.
• Reliance on Retailer Relationships: The CardCash business depends on maintaining strong relationships with a vast network of retailers. Any significant disruption to these relationships could affect inventory and sales.

4. Management Discussion (MD&A Highlights)

GIFTIFY's biggest win in 2025 was the successful and continued integration of CardCash. This not only diversified our revenue streams but also provided access to a broader customer base. The company effectively leveraged CardCash's established infrastructure and retailer relationships, leading to robust growth in the gift card exchange market. We also realized initial synergies, such as cross-promotional opportunities between Restaurant.com and CardCash, enhancing customer lifetime value.

However, challenges persisted. The company navigated an increasingly competitive landscape in both the restaurant deals and gift card markets. Managing fraud risk within the gift card exchange business remained a continuous operational focus. Furthermore, the broader economic environment, with fluctuating consumer spending patterns, presented a challenge in maintaining consistent growth and profitability.

GIFTIFY's leadership team remained focused on maximizing the value of the CardCash acquisition. In 2025, the company strategically emphasized operational efficiency, technological enhancements to improve user experience and fraud detection, and exploring cross-platform synergies between Restaurant.com and CardCash. The executive leadership team remained stable, ensuring continuity in the execution of our post-acquisition strategy.

5. Financial Health (Debt, Cash, Liquidity)

GIFTIFY's financial health in 2025 showed stability and strategic management. The company generated positive cash flow from operations, indicating that our core business activities were self-sustaining and contributing to our financial strength.

The company maintained a manageable debt level, primarily related to the CardCash acquisition, and demonstrated a clear strategy for debt reduction. Our liquidity position was healthy, with sufficient cash reserves and access to credit lines to meet short-term obligations and fund ongoing operational needs and strategic initiatives.

6. Future Outlook (Guidance, Strategy)

Looking ahead, GIFTIFY is cautiously optimistic about its prospects. The company plans to continue investing in the growth of its CardCash segment, focusing on:

• Expanding its retailer network
• Enhancing its technology platform
• Improving customer acquisition strategies

We also see potential for further integration and cross-promotion between our two core businesses to unlock additional value. The continued expansion of the secondary gift card market and the company's ability to innovate within this space will drive future growth. However, the company acknowledges the need to remain agile in response to economic uncertainties and competitive dynamics.

7. Competitive Position

In the restaurant deals market, Restaurant.com operates in a niche, focusing on local dining experiences. It differentiates itself through established brand recognition and direct relationships with restaurants.

In the gift card exchange market, CardCash holds a strong competitive position as one of the larger and more established players. Its competitive advantages include:

• A broad network of over 1,100 retailers
• Efficient technology for card verification and exchange
• A significant customer base

This scale allows for competitive pricing and a wide selection, differentiating it from smaller competitors.

Additional Information

Market Trends and Regulatory Changes Affecting GIFTIFY

Several market trends are shaping GIFTIFY's environment:

• Growth of Digital Gift Cards: The increasing popularity of digital gift cards presents both opportunities for streamlined operations and challenges in managing digital fraud.
• E-commerce Expansion: The overall growth in online shopping indirectly benefits the gift card market, as consumers frequently use gift cards for online purchases.
• Consumer Demand for Value: In a potentially tighter economic climate, consumers are increasingly seeking value, which directly aligns with both discounted restaurant deals and gift card savings.

From a regulatory perspective, regulators continue to focus on consumer protection laws related to gift cards, particularly concerning expiration dates, dormancy fees, and transparency. GIFTIFY continuously monitors these developments to ensure full compliance and adapt its business practices as needed.