Yup. Most downloads are 50% off within what seems like a month of release anyway, I imagine they are still making a margin even when they discount things 25-35% constantly. Often the "after coupon" price is not a ton better than other stores prices.
This kind of business has very little operating expenses, pay for hosting, pay a couple of people to keep the pricebook updated and answer a few emails... they don't need to store or ship any product, have any store front, etc. Personally I think their "always a discount code" system is stupid, and I would rather they just skip the annoying codes and just make the prices on the site what they really are. Nobody is going to buy anything from them without at least 25% off, so just build it into your prices and quit making it confusing for no reason.
They would have to be pretty stupid to think that taking losses will "build a user base" that will continue to buy from them if their prices are no longer the best in the future. There is no reason at all to pay more for a steam code due to "loyalty". Their user base will last as long as their prices are the lowest... it needs to be a long term strategy.