Giftify, Inc. Reports First Quarter 2026 Financial Results: Gross Billings Grow 25% to $45 Million as CardCash Marketplace Reaches Multi-Year Highs
Rhea-AI Summary
Giftify (NASDAQ:GIFT) reported Q1 2026 results with gross billings up 25% to $45.0 million and gross profit up 18.5% to $4.2 million. Gross margin expanded 380 bps to 19.9% while net loss improved 17.6% to $2.7 million, or $(0.08) per share.
Net sales were $21.4 million, down 4.1%, reflecting a shift toward agent transactions. CardCash marketplace metrics hit multi-year highs, aided by AI deployment, improved fraud detection, and a new Capital One Shopping distribution partnership. Operating cash use fell sharply and cash reached $4.2 million.
AI-generated analysis. Not financial advice.
Positive
- Gross billings rose 25% year-over-year to $45.0 million
- Gross profit increased 18.5% to $4.2 million; margin reached 19.9%
- Net loss improved 17.6% to $2.7 million, or $(0.08) per share
- Interest expense declined 44.3% to $116,715 due to lower debt
- Net cash used in operating activities shrank to $36,697 from $688,470
- CardCash average order value increased 15.4% to $384 through March 22, 2026
- CardCash reduced fraud-related order declines by 56% with >96% approval rate
- Cash and equivalents grew to $4.2 million as of March 31, 2026
- New Capital One Shopping partnership adds flat-fee plus commission revenue structure
Negative
- Net sales declined 4.1% year-over-year to $21.4 million
- Company reported a net loss of $2.7 million for Q1 2026
- Modified EBITDA was a loss of $(728,442), larger than $(626,320) in Q1 2025
- Selling, general and administrative expenses increased to $6.2 million from $6.0 million
News Market Reaction – GIFT
On the day this news was published, GIFT declined 8.15%, reflecting a notable negative market reaction. Argus tracked a peak move of +9.0% during that session. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $30.26M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Momentum scanner flagged the target as moving down while peers like BODI and GITS showed upside moves (>+5%), pointing to stock-specific dynamics rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Q3 2025 earnings | Positive | +1.8% | Strong gross billings growth, margin expansion, and narrowed net loss, plus cost cuts. |
| Aug 13 | Q2 2025 earnings | Positive | +0.0% | Net sales growth, higher gross margin, and much smaller net loss versus prior year. |
| May 13 | Q1 2025 earnings | Neutral | +9.3% | Moderate revenue growth and margin gains but ongoing net loss and cash burn. |
| Mar 31 | FY 2024 results | Neutral | -7.8% | Full-year revenue and gross profit growth offset by larger Modified EBITDA loss. |
| Nov 13 | Q3 2024 earnings | Neutral | -5.3% | Revenue and margin growth but sizable net loss with heavy non-cash expenses. |
Earnings releases have produced mixed reactions, with an average move of -0.42% and more divergences than clean alignments with the fundamentally improving metrics.
Over the last five earnings reports from Q3 2024 through Q3 2025, Giftify consistently reported rising gross profit and expanding gross margins, while net losses and Modified EBITDA losses generally narrowed. Revenue growth has been modest but supported by acquisitions like Takeout7 and the CardCash.com deal, plus new products and platforms. Despite these operational gains, share price reactions have often been muted or negative, making today’s strong Q1 2026 metrics a continuation of the operational improvement trend.
Historical Comparison
Across five prior earnings releases, the average 24-hour move was just -0.42%, indicating historically modest stock reactions to fundamentally improving results.
Earnings reports from late 2024 through 2025 showed steady gross margin expansion, rising gross billings, and narrowing net losses, setting a trajectory that Q1 2026 continues with higher billings and improved profitability metrics.
Market Pulse Summary
The stock moved -8.2% in the session following this news. A negative reaction despite improving Q1 2026 metrics would fit a pattern seen in earlier earnings, where expanding gross margin and narrowing losses often coincided with flat or negative 24-hour moves. With gross billings up 25% and margin at 19.9%, a selloff could reflect concerns about ongoing losses or liquidity rather than headline growth figures.
Key Terms
gross billings financial
modified EBITDA financial
return on ad spend financial
agent transactions financial
restricted cash financial
AI-generated analysis. Not financial advice.
Gross Profit Grows
Net Loss Improves
CardCash Buy Orders, Average Order Value, and New Seller Acquisition All Reach Multi-Year Highs in Q1 2026
SCHAUMBURG, IL, May 12, 2026 (GLOBE NEWSWIRE) -- Giftify, Inc. (NASDAQ: GIFT) (the “Company”), the owner and operator of CardCash.com and Restaurant.com, and a leader in the incentives and rewards industry, today announced financial results for the first quarter ended March 31, 2026, and provided a corporate update on key operational initiatives and marketplace performance during the period.
First Quarter 2026 Financial Highlights:
- Gross billings (the total dollar value of customer transactions processed through Giftify’s marketplaces) increased
25.0% to$45.0 million , compared to$36.0 million in Q1 2025 - Gross profit increased
18.5% to$4.2 million , compared to$3.6 million in Q1 2025 - Gross margin expanded to
19.9% , compared to16.1% in Q1 2025, an improvement of 380 basis points - Net loss improved
17.6% to$2.7 million , or$(0.08) per share, compared to$3.2 million , or$(0.11) per share, in Q1 2025 - Loss from operations improved
15.8% to$2.7 million , compared to$3.2 million in Q1 2025 - Interest expense declined
44.3% year-over-year to$116,715 , reflecting the Company’s reduced debt balance - Modified EBITDA was
$(728,442) , compared to$(626,320) in Q1 2025 - Net sales were
$21.4 million , compared to$22.3 million in Q1 2025; the variance reflects a strategic shift toward agent transactions recognized on a net commission basis, not a reduction in transaction activity - Cash and cash equivalents increased to
$4.2 million as of March 31, 2026, from$3.7 million at December 31, 2025; net cash used in operating activities improved to$36,697 from$688,470 in Q1 2025
Revenue Mix Reflects Continued Shift Toward Agent Transactions
While reported net sales for Q1 2026 were
The variance between gross billings growth and reported net sales is attributable to an increased proportion of transactions in which Giftify acts as an agent rather than a principal. In agent transactions, the Company facilitates the connection between suppliers and customers without taking inventory risk, and revenue is recognized on a net basis representing only the Company’s commission. Agent transactions represented approximately
CardCash Marketplace Performance: Q1 2026 Metrics Confirm Multi-Year Demand Strength
The Company entered 2026 with accelerating momentum across both sides of the CardCash marketplace, and the quarterly financial results reflect the underlying demand dynamics previewed in the Company’s pre-announced operational releases earlier this year.
Sell-Side: CardCash completed 70,954 sell orders from January 1 through March 15, 2026, a
Buy-Side: CardCash processed 112,084 buy orders through March 22, 2026, up from 105,583 in the prior year period. The week ending March 16, 2026 recorded 10,386 buy orders, among the platform’s strongest single-week figures since 2020, with a buy-to-sell ratio of 2.07 to 1.
Average Order Value: Average buyer order value reached
The concurrent growth on both sides of the marketplace, including expanded seller supply improving selection depth, higher buyer order volumes, and strengthening spend per transaction, reflects the self-reinforcing dynamic that drives operating leverage as the CardCash platform scales. The Q1 2026 financial results, including 380 basis points of gross margin expansion, are consistent with the demand trends the Company communicated in its pre-quarter operational updates.
Q1 2026 Corporate Update
In addition to its marketplace performance, Giftify advanced the following strategic initiatives during and immediately following Q1 2026:
- CardCash AI Order Review System Deployed (March 2026): The Company launched its second AI agent, an automated order review system operating at
85% accuracy and currently performing the equivalent capacity of two full-time reviewers. Three additional agents are nearing completion as part of a structured five-agent roadmap designed to systematically reduce the variable cost base and improve operating leverage as transaction volume scales. - Restaurant.com AI-Driven Development Model Live (March 2026): Giftify deployed AI tools across the full Restaurant.com development lifecycle, enabling the team to deliver platform improvements at accelerated speed. Passwordless registration for new users is now live, with a pipeline of additional enhancements targeting checkout friction, deal discovery, and overall user experience.
- Capital One Shopping Distribution Partnership Launched (April 1, 2026): CardCash.com entered a new distribution partnership with Capital One Shopping, facilitated through the Rakuten affiliate network, surfacing discounted gift card inventory to tens of millions of savings-focused consumers at high-intent shopping moments. The Q2 2026 insertion order is structured as a flat fee plus commission.
- CardCash Fraud Detection Enhancement (Q1 2026): CardCash reduced fraud-related order declines by
56% year-over-year in Q1 2026, approving over 100,000 customer orders at an approval rate above96% . The improvement was driven by continued refinement of proprietary fraud models, expanded deployment of automated screening tools, and deepened integration with external risk data partnerships, enabling more effective identification of legitimate transactions while maintaining strong controls across the marketplace.
Management Commentary
“The first quarter of 2026 demonstrates the compounding nature of what we are building at Giftify,” said Ketan Thakker, President and Chief Executive Officer. “Gross billings grew
First Quarter 2026 Financial Results
Net sales for Q1 2026 were
Gross profit for Q1 2026 increased
Selling, general and administrative expenses were
Loss from operations was
Net loss for Q1 2026 was
As of March 31, 2026, the Company had cash and cash equivalents of
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 184,000 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, AI deployment roadmap, marketplace growth, 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; our ability to maintain and expand relationships with merchants and corporate clients; our ability to achieve and maintain profitability; our liquidity and ability to raise additional capital; general economic conditions; and other risks detailed in our filings with the Securities and Exchange Commission, including our 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 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 | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of | $ | 4,181,974 | $ | 3,654,944 | ||||
| Accounts receivable | 162,075 | 142,878 | ||||||
| Inventories, net | 3,089,936 | 3,751,549 | ||||||
| Prepaid expenses and other current assets | 304,365 | 196,104 | ||||||
| Total current assets | 7,738,350 | 7,745,475 | ||||||
| Property and equipment, net | 282,267 | 443,811 | ||||||
| Operating lease right-of- use asset, net | 1,004,231 | 1,088,091 | ||||||
| Deposits | 75,115 | 68,189 | ||||||
| Intangible assets, net | 1,910,480 | 2,487,822 | ||||||
| Goodwill | 20,007,670 | 20,007,670 | ||||||
| Total assets | $ | 31,018,113 | $ | 31,841,058 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,334,515 | $ | 1,815,727 | ||||
| Accrued expenses | 1,713,464 | 1,917,961 | ||||||
| Customer deposits | 3,880 | 2,015 | ||||||
| Deferred revenue | 96,189 | 130,376 | ||||||
| Secured revolving line of credit | 3,154,247 | 3,212,935 | ||||||
| Convertible promissory note | 46,137 | 46,137 | ||||||
| Notes payable, current portion | 12,240 | 12,240 | ||||||
| Operating lease liability, current portion | 370,047 | 358,861 | ||||||
| Total current liabilities | 7,730,719 | 7,496,252 | ||||||
| Notes payable, net of current portion | 648,171 | 651,349 | ||||||
| Deferred income taxes | 479,250 | 608,000 | ||||||
| Operating lease liability, net of current portion | 678,573 | 774,510 | ||||||
| Total liabilities | 9,536,713 | 9,530,111 | ||||||
| Commitments and contingencies (Note 12) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 34,008 | 33,147 | ||||||
| Additional paid-in-capital | 122,533,202 | 120,713,202 | ||||||
| Common stock issuable, 350,843 and 350,843 shares, respectively | 350,843 | 350,843 | ||||||
| Accumulated deficit | (101,436,653 | ) | (98,786,245 | ) | ||||
| Total stockholders’ equity | 21,481,400 | 22,310,947 | ||||||
| Total liabilities and stockholders’ equity | $ | 31,018,113 | $ | 31,841,058 | ||||
GIFTIFY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net Sales | $ | 21,357,404 | $ | 22,277,013 | ||||
| Cost of sales | 17,112,165 | 18,695,377 | ||||||
| Gross profit | 4,245,239 | 3,581,636 | ||||||
| Operating Expenses | ||||||||
| Selling, general and administrative expenses | 6,173,344 | 6,043,841 | ||||||
| Depreciation of capitalized software costs | 161,543 | 161,543 | ||||||
| Amortization of intangible assets | 577,341 | 543,917 | ||||||
| Total operating expenses | 6,912,228 | 6,749,301 | ||||||
| Loss from operations | (2,666,989 | ) | (3,167,665 | ) | ||||
| Other expense: | ||||||||
| Interest income | 4,394 | - | ||||||
| Interest expense | (116,715 | ) | (209,571 | ) | ||||
| Total other expense, net | (112,321 | ) | (209,571 | ) | ||||
| Net loss before income tax benefit | (2,779,310 | ) | (3,377,236 | ) | ||||
| Income tax benefit | 128,902 | 159,904 | ||||||
| Net loss | $ | (2,650,408 | ) | $ | (3,217,332 | ) | ||
| Net loss per share – basic and diluted | $ | (0.08 | ) | $ | (0.11 | ) | ||
| Weighted average common shares outstanding – basic and diluted | 33,579,131 | 28,354,277 | ||||||
GIFTIFY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, | |||||||||||||
| 2026 | 2025 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
| Net loss | $ | (2,650,408 | ) | $ | (3,217,332 | ) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||||
| Fair value of vested options | 622,034 | 994,295 | |||||||||||
| Fair value of vested restricted common stock | 526,778 | 568,709 | |||||||||||
| Fair value of common stock issued for services | 46,457 | 239,130 | |||||||||||
| Loss on fair value of common stock issued for settlement of vendor | - | 33,750 | |||||||||||
| Change in inventory reserve | 5,000 | - | |||||||||||
| Depreciation of capitalized software costs | 161,543 | 161,543 | |||||||||||
| Right of use assets | 83,860 | 77,061 | |||||||||||
| Amortization of intangible assets | 577,341 | 543,917 | |||||||||||
| Amortization of debt discount | - | 6,143 | |||||||||||
| Accrued interest | - | (62,438 | ) | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||
| Accounts receivable | (19,197 | ) | 60,940 | ||||||||||
| Inventories | 656,613 | 290,999 | |||||||||||
| Prepaid expenses and other current assets | (108,261 | ) | (245,230 | ) | |||||||||
| Deposits | (6,926 | ) | - | ||||||||||
| Accounts payable | 518,789 | 193,893 | |||||||||||
| Accrued expenses | (204,497 | ) | (53,978 | ) | |||||||||
| Customer deposits | 1,865 | (94,729 | ) | ||||||||||
| Deferred revenue | (34,187 | ) | 36,309 | ||||||||||
| Deferred taxes | (128,750 | ) | (146,858 | ) | |||||||||
| Operating lease liability | (84,751 | ) | (74,594 | ) | |||||||||
| Net cash used in operating activities | (36,697 | ) | (688,470 | ) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
| Proceeds from line of credit | 39,209,772 | 30,435,894 | |||||||||||
| Repayments of line of credit | (39,268,460 | ) | (30,558,645 | ) | |||||||||
| Proceeds from note payable | - | 985,000 | |||||||||||
| Repayment of notes payable | (3,178 | ) | (750,000 | ) | |||||||||
| Repayment of notes payable – related party | - | (2,000,000 | ) | ||||||||||
| Proceeds from sale of common stock under at-the-market sale agreement, net of issuance costs | 30,593 | 1,031,113 | |||||||||||
| Proceeds from sale of common stock in private placement, net of issuance costs | 595,000 | - | |||||||||||
| Proceeds from sale of common stock under stock purchase agreement, net of issuance costs | - | 374,500 | |||||||||||
| Proceeds from sale of common stock in public offering, net of issuance costs | - | 478,000 | |||||||||||
| Net cash provided by (used in) financing activities | 563,727 | (4,138 | ) | ||||||||||
| Net increase (decrease) in cash and cash equivalents | 527,030 | (692,608 | ) | ||||||||||
| Cash and cash equivalents beginning of period | 3,654,944 | 4,301,842 | |||||||||||
| Cash and cash equivalents end of period | $ | 4,181,974 | $ | 3,609,234 | |||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||
| Interest paid | $ | 116,715 | $ | 232,877 | |||||||||
| Taxes paid | $ | - | $ | - | |||||||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||
| Common shares issued for trade accounts payable | $ | - | $ | 108,750 | |||||||||
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 March 31, 2026 and 2025 (unaudited):
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net Loss | $ | (2,650,408 | ) | $ | (3,217,332 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (128,902 | ) | (159,904 | ) | ||||
| Interest expense, net | 116,715 | 209,571 | ||||||
| Amortization of intangible assets | 577,341 | 543,917 | ||||||
| Amortization of capitalized software costs | 161,543 | 161,543 | ||||||
| Loss on fair value of stock issued on vendor settlement | - | 33,750 | ||||||
| Stock option and other noncash compensation | 1,195,269 | 1,802,135 | ||||||
| Total Modified EBITDA adjustments | 1,921,966 | 2,591,012 | ||||||
| Modified EBITDA | $ | (728,442 | ) | $ | (626,320 | ) | ||
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.
