RDE (GIFT) AI Stock Analysis

• Market Cap: $32.37M
• Dividend Yield: N/A
• Average Volume (3M): 161.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -28.77%
• EPS Growth: 9.06%
• Country: US
• Employees: 42
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): -0.09
• Shares Outstanding: 30,542,166
• 10 Day Avg. Volume: 174,745
• 30 Day Avg. Volume: 161,692
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: -4.54
• 1Y Price Target: $4.00
• Price Target Upside: 277.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 35 Underperform
• Price Target: ―

GIFT's overall score is driven by financial instability and a challenging valuation outlook. Despite some technical indicators not showing immediate selling pressure, the company's financial performance and valuation issues pose significant risks. Without positive earnings and dividends, GIFT’s appeal is limited, and it faces ongoing operational challenges.

Positive Factors

Acquisition and Expansion

The acquisition of TakeOut7 expands the company's offerings and offers strong cross-sell opportunities with Restaurant.com.

Capital and Funding

GIFT has access to a $30M ATM, providing sufficient capital to fund its initiatives.

Financial Performance

GIFT is expected to see gross margin expansion as optimization efforts continue and Restaurant.com begins to make up a larger percentage of the revenue mix.

Negative Factors

Profitability Concerns

GIFT is not yet profitable and had low to negative growth in the past two years.

Valuation

GIFT trades at an EV/revenue multiple of 0.3x our '26E revenue vs. a peer group average of 1.3x, and a discount is warranted as GIFT is not yet profitable and had low to negative growth in the past two years.

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. Despite some improvements in revenue and equity position, the company continues to grapple with profitability issues, high leverage, and negative cash flows. Persistent negative margins and cash flow deficits suggest ongoing difficulties in operational efficiency and financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	90.57M	88.93M	87.15M	97.01M	3.32M	4.14M
Gross Profit	13.35M	13.14M	10.44M	10.48M	2.93M	1.55M
EBITDA	-10.27M	-14.47M	4.39M	-898.00K	-4.24M	-10.12M
Net Income	-13.70M	-18.83M	-124.55K	-8.32M	-4.99M	-13.98M
Balance Sheet
Total Assets	31.50M	35.48M	39.76M	13.14M	2.51M	587.00K
Cash, Cash Equivalents and Short-Term Investments	3.26M	2.32M	4.10M	2.04M	1.93M	216.00K
Total Debt	5.60M	9.69M	9.41M	33.29M	3.62M	4.68M
Total Liabilities	9.93M	14.72M	15.44M	34.45M	5.53M	8.41M
Stockholders Equity	21.57M	20.76M	24.32M	-21.31M	-3.02M	-7.83M
Cash Flow
Free Cash Flow	528.76K	-2.55M	-1.44M	-1.10M	-1.26M	-706.00K
Operating Cash Flow	79.11K	-2.55M	-541.79K	-102.41K	-1.26M	-706.00K
Investing Cash Flow	559.19K	0.00	-900.00K	-1.00M	0.00	0.00
Financing Cash Flow	-2.77M	2.03M	1.46M	409.33K	2.59M	805.00K

RDE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIFT, the sentiment is Neutral. The current price of 1.06 is above the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.24, and below the 200-day MA of 1.47, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 28.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GIFT.

RDE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNY	60 Neutral	$86.41M	―	-48.12%	―	4.11%	78.58%
Sector *	56 Neutral	C$4.26B	1.37	-13.88%	5.36%	-5.96%	-56.64%
IZEA	55 Neutral	$67.18M	―	-22.39%	―	12.49%	-30.99%
CCG	54 Neutral	$62.44M	―	-16.65%	―	105.31%	95.66%
PODC	52 Neutral	$41.73M	―	-38.57%	―	17.74%	65.18%
BZFD	45 Neutral	$78.21M	―	-28.67%	―	-38.21%	72.58%
GIFT	35 Underperform	$32.37M	―	-60.38%	―	-28.77%	9.06%

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.