Giftify, Inc. Reports Second Quarter 2026 Financial Results: Gross Billings Grow 26% to $45.5 Million as Net Loss Improves 52%
Gross Profit Grows 14.2% to $4.4 Million on 180 Basis Point Margin Expansion
Net Loss Improves 52.1% to $1.2 Million, or $(0.04) Per Share; Interest Expense Declines 18.6%
Modified EBITDA Improves to $126,036 from $(150,236) in the Prior Year Period
SCHAUMBURG, IL, Aug. 03, 2026 (GLOBE NEWSWIRE) — Giftify, Inc. (NASDAQ: GIFT) (the “Company”), the owner and operator of CardCash.com and Restaurant.com, today announced financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights
- Gross billings, the total dollar value of customer transactions processed through Giftify’s marketplaces, increased 26.2% to $45.5 million, compared to $36.1 million in the second quarter of 2025.
- Net sales increased 4.0% to $21.7 million, compared to $20.9 million in the second quarter of 2025.
- Gross profit increased 14.2% to $4.4 million, compared to $3.9 million in the second quarter of 2025.
- Gross margin expanded to 20.2%, compared to 18.4% in the second quarter of 2025, an improvement of 180 basis points.
- Loss from operations improved to $1.3 million, compared to $2.6 million in the second quarter of 2025.
- Net loss improved to $1.2 million, or $(0.04) per share, compared to $2.6 million, or $(0.09) per share, in the second quarter of 2025.
- Interest expense declined to $116,725, compared to $143,374 in the second quarter of 2025, reflecting the Company’s reduced debt balance.
- Modified EBITDA was $126,036, compared to $(150,236) in the second quarter of 2025.
- Cash and cash equivalents were $3.9 million as of June 30, 2026, compared to $3.7 million at December 31, 2025.
Gross Billings Grew 26% in the Second Quarter
Gross billings, the total dollar value of customer transactions processed through Giftify’s marketplaces, increased 26.2% year over year to $45.5 million in the second quarter of 2026, compared to $36.1 million in the second quarter of 2025, outpacing 4.0% growth in net sales to $21.7 million. The gap reflects a higher proportion of transactions in which Giftify acts as agent rather than principal, recognizing revenue on a net commission basis rather than a gross basis. Agent transactions represented approximately 7% of net sales in the second quarter of 2026 and approximately 8% for the six months ended June 30, 2026, compared to approximately 5% in each respective period of 2025. Net revenue recognized on an agent basis increased $509,862, or 46.6%, for the three months ended June 30, 2026, and $1,109,603, or 51.9%, for the six months ended June 30, 2026, compared to the respective prior year periods.
Second Quarter 2026 Corporate Update
- Capital One Shopping Distribution Partnership: CardCash.com entered a new distribution partnership with Capital One Shopping, facilitated through the Rakuten affiliate network. The partnership launched April 1, 2026, with an insertion order covering the second quarter of 2026 (April 1 through June 30) and structured as a flat fee plus commission, surfacing CardCash’s discounted gift card inventory to Capital One Shopping’s user base.
- Follett Higher Education Partnership: CardCash.com entered a new partnership with Follett Higher Education to bring gift card exchange capabilities to campus bookstore locations nationwide. The partnership is expected to reach approximately 700 campus bookstore locations by August 2026, including stores serving Stanford University and the University of Texas.
Management Commentary
“Our second quarter results reflect continued progress on the fundamentals of our business,” said Ketan Thakker, President and Chief Executive Officer. “Gross billings grew 26% year-over-year to $45.5 million, and we expanded gross margin by 180 basis points to 20.2%, aided by a higher mix of agent transactions on the CardCash platform. Net loss improved by more than half compared to the prior year period, benefiting from a meaningful reduction in stock-based compensation expense and lower interest expense as we continue to manage down our debt balance.
Thakker continued, “We remain focused on growing gross billings, expanding margins, and reducing costs, while continuing to evaluate sources of capital to support our operations.
Second Quarter 2026 Financial Results
Net sales for the second quarter of 2026 were $21.7 million compared to $20.9 million in the second quarter of 2025, an increase of 4.0%. Merchant gift card sales accounted for approximately 97% and 98% of net sales for the three months ended June 30, 2026 and 2025, respectively.
Gross profit for the second quarter of 2026 increased 14.2%, or $548,019, to $4.4 million from $3.9 million in the second quarter of 2025. Gross margin expanded to 20.2% from 18.4%, an improvement of 180 basis points, positively impacted by the increase in net revenue from agent transactions described above.
Selling, general and administrative expenses were $5.0 million for the second quarter of 2026, compared to $5.7 million in the second quarter of 2025, a decrease of $735,978. The decrease was due to a reduction in stock-based compensation expense of $908,871, offset by increased employee compensation, legal and professional fees, and other general expenses.
Loss from operations was $1.3 million for the second quarter of 2026, compared to $2.6 million in the second quarter of 2025. Interest expense declined to $116,725 from $143,374 in the second quarter of 2025, reflecting the Company’s reduced debt balance.
Net loss for the second quarter of 2026 was $1.2 million, or $(0.04) per share, compared to $2.6 million, or $(0.09) per share, in the second quarter of 2025. The improvement was driven by higher gross profit, lower stock-based compensation expense, and lower interest expense.
Modified EBITDA was $126,036 for the second quarter of 2026, compared to $(150,236) in the second quarter of 2025.
Six Months 2026 Financial Results
Net sales for the six months ended June 30, 2026 were $43.1 million compared to $43.2 million in the same period of 2025, a decrease of 0.2%, primarily reflecting an increased proportion of agent transactions recognized on a net basis. Gross billings for the six months ended June 30, 2026 increased 25.6% to $90.6 million, compared to $72.1 million in the same period of 2025.
Gross profit for the six months ended June 30, 2026 increased 16.3%, or $1.2 million, to $8.6 million from $7.4 million in the same period of 2025. Gross margin expanded to 20.1% from 17.2%, an improvement of 290 basis points.
Selling, general and administrative expenses were $11.2 million for the six months ended June 30, 2026, compared to $11.8 million in the same period of 2025, a decrease of $606,475, reflecting a $1.5 million reduction in stock-based compensation expense, offset by increased payroll and benefits expenses, marketing and advertising costs, and other general expenses.
Loss from operations was $3.9 million for the six months ended June 30, 2026, compared to $5.7 million in the same period of 2025. Interest expense declined to $233,440 from $352,945 in the same period of 2025, reflecting the Company’s reduced debt balance.
Net loss for the six months ended June 30, 2026 was $3.9 million, or $(0.11) per share, compared to $5.8 million, or $(0.20) per share, in the same period of 2025. The improvement was driven by higher gross profit, lower stock-based compensation expense, lower interest expense, and an income tax benefit.
Modified EBITDA was $(606,800) for the six months ended June 30, 2026, compared to $(776,557) in the same period of 2025.
Non-GAAP Financial Measures and Operating Metrics
Gross Billings. Gross billings represent the total dollar value of customer purchases of goods and services, net of customer refunds and order discounts. A significant portion of the Company’s revenue transactions consist of sales of discounted merchant gift cards in which the Company collects the transaction price from the customer and remits a portion to third-party suppliers. For these transactions, gross billings differ from net sales reported in the Company’s Consolidated Statements of Operations, which is presented net of the merchant’s share of the transaction price. Gross billings are an indicator of the Company’s growth and business performance as they measure the dollar volume of transactions generated through its marketplaces.
Modified EBITDA. Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations, or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. The Company defines Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and fair value of common stock issued for services. The Company believes Modified EBITDA helps investors and analysts compare performance across reporting periods on a consistent basis by excluding items not indicative of core operating performance.
About Giftify, Inc.
Giftify, Inc. (NASDAQ: GIFT) is a pioneer in the incentive and rewards industry with a focus on retail, dining, and entertainment experiences, as the owner and operator of leading digital platforms, CardCash.com and Restaurant.com. CardCash.com is a leading secondary gift card exchange platform, allowing consumers and retailers to realize value by buying and selling gift cards at various scales from over 1,100 retailers. Restaurant.com is the nation’s largest restaurant-focused digital deals brand, connecting digital consumers, businesses, and communities by offering thousands of dining, retail, and entertainment deal options nationwide at over 182,500 restaurants and retailers. For more information, visit www.giftifyinc.com, www.cardcash.com, and www.restaurant.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding Giftify’s future financial and operational performance, business strategy, and market position. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to: changes in consumer spending patterns; competition in the gift card and restaurant deals markets; the Company’s ability to maintain and expand relationships with merchants and corporate clients; the Company’s ability to achieve and maintain profitability; the Company’s liquidity and ability to raise additional capital; general economic conditions; and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company has identified substantial doubt about its ability to continue as a going concern, as disclosed in the accompanying Form 10-Q; see the Form 10-Q for further detail. The forward-looking statements in this press release are made as of the date hereof, and Giftify undertakes no obligation to update these statements or to explain the reasons why actual results may differ.
Investor Contact: Giftify, Inc. | IR@giftifyinc.com
GIFTIFY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of $750,000 and $1,000,000 at June 30, 2026 and December 31, 2025, respectively) | $ | 3,924,338 | $ | 3,654,944 | ||||
| Accounts receivable | 130,927 | 142,878 | ||||||
| Inventories, net | 3,293,956 | 3,751,549 | ||||||
| Prepaid expenses and other current assets | 309,539 | 196,104 | ||||||
| Total current assets | 7,658,760 | 7,745,475 | ||||||
| Property and equipment, net | 154,074 | 443,811 | ||||||
| Operating lease right-of- use asset, net | 918,551 | 1,088,091 | ||||||
| Deposits | 75,115 | 68,189 | ||||||
| Intangible assets, net | 1,359,632 | 2,487,822 | ||||||
| Goodwill | 20,007,670 | 20,007,670 | ||||||
| Total assets | $ | 30,173,802 | $ | 31,841,058 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,199,460 | $ | 1,815,727 | ||||
| Accrued expenses | 1,743,559 | 1,917,961 | ||||||
| Customer deposits | 8,473 | 2,015 | ||||||
| Deferred revenue | 91,710 | 130,376 | ||||||
| Secured revolving line of credit | 3,049,171 | 3,212,935 | ||||||
| Convertible promissory note | 47,637 | 46,137 | ||||||
| Notes payable, current portion | 12,240 | 12,240 | ||||||
| Operating lease liability, current portion | 364,566 | 358,861 | ||||||
| Total current liabilities | 7,516,816 | 7,496,252 | ||||||
| Notes payable, net of current portion | 644,361 | 651,349 | ||||||
| Deferred income taxes | 350,500 | 608,000 | ||||||
| Operating lease liability, net of current portion | 595,820 | 774,510 | ||||||
| Total liabilities | 9,107,497 | 9,530,111 | ||||||
| Commitments and contingencies (Note 12) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized; | – | – | ||||||
| Common stock, $0.001 par value, 750,000,000 shares authorized; 34,526,941 and 33,146,517 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively | 34,527 | 33,147 | ||||||
| Additional paid-in-capital | 123,358,640 | 120,713,202 | ||||||
| Common stock issuable, 350,843 and 350,843 shares, respectively | 350,843 | 350,843 | ||||||
| Accumulated deficit | (102,677,705 | ) | (98,786,245 | ) | ||||
| Total stockholders’ equity | 21,066,305 | 22,310,947 | ||||||
| Total liabilities and stockholders’ equity | $ | 30,173,802 | $ | 31,841,058 | ||||
GIFTIFY, INC. AND SUBSDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2026 and 2025
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Sales | $ | 21,747,024 | $ | 20,900,731 | $ | 43,104,428 | $ | 43,177,744 | ||||||||
| Cost of sales | 17,343,380 | 17,045,106 | 34,455,545 | 35,740,483 | ||||||||||||
| Gross profit | 4,403,644 | 3,855,625 | 8,648,883 | 7,437,261 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | 4,978,565 | 5,714,543 | 11,151,909 | 11,758,384 | ||||||||||||
| Amortization of capitalized software costs | 128,194 | 161,544 | 289,737 | 323,087 | ||||||||||||
| Amortization of intangible assets | 550,849 | 557,062 | 1,128,190 | 1,100,979 | ||||||||||||
| Total operating expenses | 5,657,608 | 6,433,149 | 12,569,836 | 13,182,450 | ||||||||||||
| Loss from operations | (1,253,964 | ) | (2,577,524 | ) | (3,920,953 | ) | (5,745,189 | ) | ||||||||
| Other income (expenses) | ||||||||||||||||
| Interest income | 4,187 | 1,777 | 8,581 | 1,777 | ||||||||||||
| Interest expense | (116,725 | ) | (143,374 | ) | (233,440 | ) | (352,945 | ) | ||||||||
| Total other income (expenses) | (112,538 | ) | (141,597 | ) | (224,859 | ) | (351,168 | ) | ||||||||
| Net loss before income taxes | (1,366,502 | ) | (2,719,121 | ) | (4,145,812 | ) | (6,096,357 | ) | ||||||||
| Income tax benefit | 125,450 | 129,312 | 254,352 | 289,216 | ||||||||||||
| Net loss | $ | (1,241,052 | ) | $ | (2,589,809 | ) | $ | (3,891,460 | ) | $ | (5,807,141 | ) | ||||
| Net earnings/(loss) per share – basic and diluted | $ | (0.04 | ) | $ | (0.09 | ) | $ | (0.11 | ) | $ | (0.20 | ) | ||||
| Weighted average common shares outstanding – basic and diluted | 34,156,421 | 29,532,501 | 33,869,370 | 28,946,644 | ||||||||||||
Non-GAAP Financial Measure – Modified EBITDA
In addition to our GAAP results, we present Modified EBITDA as a supplemental performance measure. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and fair value of common stock issued for services.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit-generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Set forth below is a reconciliation of net loss to Modified EBITDA for the three months ended June 30, 2026 and 2025 (unaudited):
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | |||||||
| Net Loss | $ | (1,241,052 | ) | $ | (2,589,809 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (125,450 | ) | (129,312 | ) | ||||
| Interest expense, net | 112,538 | 141,597 | ||||||
| Amortization of intangible assets | 550,849 | 557,062 | ||||||
| Amortization of capitalized software costs | 128,194 | 161,544 | ||||||
| Bad debt expense | – | 100,810 | ||||||
| Stock option and other noncash compensation | 700,957 | 1,607,872 | ||||||
| Total Modified EBITDA adjustments | 1,367,088 | 2,439,573 | ||||||
| Modified EBITDA | $ | 126,036 | $ | (150,236 | ) | |||
We present Modified EBITDA because we believe it helps investors and analysts compare our performance across reporting periods on a consistent basis by excluding items we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA to develop our internal budgets, forecasts, and strategic plan; to analyze the effectiveness of our business strategies and evaluate potential acquisitions; to make compensation decisions; and to communicate with our board of directors regarding our financial performance. Modified EBITDA has limitations as an analytical tool, which include, among others, the following:
| ● | Modified EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; | |
| ● | Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs; | |
| ● | Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and | |
| ● | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements. | |
Set forth below is a reconciliation of net loss to Modified EBITDA for the six months ended June 30, 2026 and 2025 (unaudited):
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |||||||
| Net Loss | $ | (3,891,460 | ) | $ | (5,807,141 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (254,352 | ) | (289,216 | ) | ||||
| Interest expense, net | 224,859 | 351,167 | ||||||
| Amortization of intangible assets | 1,128,190 | 1,100,979 | ||||||
| Amortization of capitalized software costs | 289,737 | 323,087 | ||||||
| Loss on fair value of stock issued on vendor settlement | – | 33,750 | ||||||
| Bad debt expense | – | 100,810 | ||||||
| Stock option and other noncash compensation | 1,896,226 | 3,410,007 | ||||||
| Total Modified EBITDA adjustments | 3,284,660 | 5,030,584 | ||||||
| Modified EBITDA | $ | (606,800 | ) | $ | (776,557 | ) | ||
