RDE (GIFT) AI Stock Analysis

• Market Cap: $53.87M
• Dividend Yield: N/A
• Average Volume (3M): 80.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 2.05%
• EPS Growth: -171.14%
• Country: US
• Employees: 42
• Sector: Communication Services
• Sector Strength: 80
• Industry: Internet Content & Information
• EPS (TTM): -0.73
• Shares Outstanding: 29,118,406
• 10 Day Avg. Volume: 30,367
• 30 Day Avg. Volume: 80,543
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.33
• Price to Cash Flow (P/CF): -561.20
• P/FCF Ratio: 361.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 116.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

GIFT's overall stock score is low due to significant financial difficulties, including negative profitability and cash flows. Technical indicators show some potential for recovery, but these are overshadowed by the poor valuation and financial instability. The company needs to address these fundamental issues to improve its financial health and market position.

Positive Factors

Future Projections

Analyst maintains estimates for 20%+ revenue growth in 2025 and 2026, with positive adjusted EBITDA in 2026.

Market Position

Analyst expects growth to accelerate with increased brand awareness, which could lead to multiple expansion.

Revenue Growth

Giftify reported results with revenue up 12% year-over-year, topping estimates and guidance on revenue.

Negative Factors

Growth Challenges

A discount to the peer group is warranted as Giftify had low to negative growth in the past two years.

Profitability Issues

Giftify trades at an EV/revenue multiple of 0.3x revenue versus a peer group average of 1.3x, and a discount is warranted as it is not yet profitable.

RDE Business Overview & Revenue Model

Company Description

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

How the Company Makes Money

RDE (GIFT) generates revenue primarily through direct sales of its personalized gift products via its e-commerce platform. The company's key revenue streams include sales from individual customers and corporate clients seeking customized gifting solutions for events and promotions. Additionally, RDE (GIFT) collaborates with strategic partners and suppliers to enhance its product offerings and expand its market reach, contributing to its earnings.

RDE Financial Statement Overview

Summary

GIFT faces significant financial challenges with persistent negative margins and cash flow deficits. Despite improvements in revenue and equity position, the company struggles with profitability, high leverage, and negative cash flows.

Income Statement

The company's revenue shows volatility with a recent decrease from 2022 to 2023, followed by slight recovery in 2024. Gross profit margin improved from 12% in 2023 to 14.8% in 2024, but net profit margin remains negative due to significant losses. The EBIT and EBITDA margins also indicate ongoing operational challenges with consistent negative margins, reflecting issues in managing operating costs.

Balance Sheet

The balance sheet reflects a high debt burden relative to equity with a debt-to-equity ratio of 0.47 in 2024, though improved from significantly negative equity in past years. The company has shown improvement in equity position from negative in prior years to positive in 2023 and 2024. However, the equity ratio of 58.5% in 2024, while positive, is still indicative of potential financial instability.

Cash Flow

Cash flows are concerning with consistently negative free cash flow, though the free cash flow has improved in 2024 compared to previous years. The operating cash flow to net income ratio remains negative, indicating that the company struggles to generate cash from its operations. The free cash flow to net income ratio is also negative, highlighting difficulties in sustaining operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement		Total Revenue
88.93M	86.66M	97.01M	3.32M	4.14M
	Gross Profit
13.14M	10.44M	10.48M	2.93M	1.55M
	EBIT
-18.38M	-3.08M	-5.60M	-5.51M	-12.82M
	EBITDA
-14.47M	4.39M	-897.75K	-4.24M	-10.12M
	Net Income Common Stockholders
-18.83M	-124.55K	-8.32M	-4.99M	-13.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.32M	4.10M	2.04M	1.93M	216.00K
	Total Assets
35.48M	39.76M	13.14M	2.51M	587.00K
	Total Debt
9.69M	9.41M	33.29M	3.62M	4.68M
	Net Debt
7.38M	5.31M	31.25M	1.69M	4.47M
	Total Liabilities
14.72M	15.44M	34.45M	5.53M	8.41M
	Stockholders Equity
20.76M	24.32M	-21.31M	-3.02M	-7.83M
Cash Flow		Free Cash Flow
-2.55M	-1.44M	-1.10M	-1.26M	-706.00K
	Operating Cash Flow
-2.55M	-541.79K	-102.41K	-1.26M	-706.00K
	Investing Cash Flow
0.00	-900.00K	-1.00M	0.00	0.00
	Financing Cash Flow
2.03M	1.46M	409.33K	2.59M	805.00K

RDE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIFT, the sentiment is Positive. The current price of 1.85 is below the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.78, and below the 200-day MA of 2.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.96 is Neutral, neither overbought nor oversold. The STOCH value of 42.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIFT.

RDE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCG	59 Neutral	$75.11M	―	-16.65%	―	105.31%	95.66%
Sector *	58 Neutral	$13.61B	6.75	-2.45%	3.85%	2.33%	-35.55%
MNY	56 Neutral	$32.57M	―	-218.25%	―	345.36%	-650.95%
PODC	56 Neutral	$45.06M	―	-36.00%	―	22.98%	69.10%
IZEA	45 Neutral	$32.98M	―	-33.05%	―	-0.92%	-140.08%
BZFD	41 Neutral	$70.50M	―	-28.67%	―	-34.37%	72.58%
GIFT	38 Underperform	$53.87M	―	-83.54%	―	2.05%	-171.14%

RDE Corporate Events

RDE Terminates $10 Million Stock Purchase Agreement

On February 3, 2025, Giftify, Inc. announced the termination of a Stock Purchase Agreement (SPA) with ClearThink Capital Partners, which was initially established on December 16, 2024. This agreement allowed for the potential sale of up to $10 million in stock. The decision to cancel the equity line of credit was made effective February 4, 2025, by mutual consent, which reflects Giftify’s strategic reassessment of its financial arrangements.