Giftify, Inc. Reports Third Quarter 2026 Financial Results: Net Sales Grow 19% as Operating Loss Narrows 36%
Quarterly operating loss narrowed to 7.1% of net sales from 13.2%, although gross margin declined year over year.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Giftify (NASDAQ: GIFT) reported third-quarter 2026 net sales of $22.3 million, up 18.8% from the same period a year earlier. Gross billings, the value of marketplace customer transactions, rose 17.1% to $45.8 million. Gross profit increased 16.7% to $4.4 million, while gross margin fell to 19.6% from 20.0%.
Operating loss narrowed to $1.6 million from $2.5 million. Net loss narrowed to $1.5 million, or $0.04 per share, from $2.4 million, or $0.08 per share. Modified EBITDA, a company-defined adjusted earnings measure, remained negative at $102,386 versus negative $268,508. Nine-month sales rose 5.6% to $65.4 million, and net loss narrowed to $5.4 million from $8.2 million. Cash, including restricted cash, was $3.9 million at September 30 versus $3.7 million at year-end. Restaurant.com announced a membership-model transition beginning October 27, which Giftify views as a recurring revenue opportunity.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter net sales increased 18.8% to $22.3 million from $18.8 million a year earlier.
- Moderate pointThird-quarter gross billings rose 17.1% to $45.8 million from $39.1 million a year earlier.
- Moderate pointThird-quarter gross profit increased 16.7% to $4.4 million from $3.7 million a year earlier.
- Moderate pointThird-quarter operating loss narrowed to $1.6 million from $2.5 million; loss-to-sales improved to 7.1% from 13.2%.
- Moderate pointThird-quarter net loss narrowed to $1.5 million, or $0.04 per share, versus $2.4 million, or $0.08.
- Moderate pointThird-quarter Modified EBITDA improved to negative $102,386 from negative $268,508 a year earlier.
- Moderate pointNine-month gross margin expanded to 19.9% from 18.1%, an improvement of 180 basis points.
- Moderate pointAgent-basis net revenue increased 15.1% quarterly and 37.8% over nine months versus corresponding 2025 periods.
14 minor points
- Minor pointThird-quarter selling, general and administrative expenses fell to $5,323,331 from $5,489,115 a year earlier.
- Minor pointThird-quarter interest expense declined to $120,656 from $135,005 a year earlier.
- Minor pointNine-month net sales increased 5.6% to $65.4 million from $62.0 million a year earlier.
- Minor pointNine-month gross billings increased 22.6% to $136.3 million from $111.2 million a year earlier.
- Minor pointNine-month gross profit increased 16.4% to $13.0 million from $11.2 million a year earlier.
- Minor pointNine-month operating loss narrowed to $5.5 million from $8.2 million a year earlier.
- Minor pointNine-month net loss narrowed to $5.4 million, or $0.16 per share, versus $8.2 million, or $0.28.
- Minor pointNine-month Modified EBITDA improved to negative $709,186 from negative $1,048,967 a year earlier.
- Minor pointNine-month selling, general and administrative expenses fell to $16,475,240 from $17,247,499 a year earlier.
- Minor pointNine-month net interest expense declined to $340,708 from $484,362 a year earlier.
- Minor pointCash, including restricted cash, increased to $3,945,212 at September 30 from $3,654,944 at year-end.
- Minor pointSecured revolving credit balance decreased to $3,122,932 at September 30 from $3,212,935 at year-end.
- Minor point. Forward-looking: it has not happened yet and may not happen.Restaurant.com’s membership transition beginning October 27, 2026 creates a recurring revenue opportunity, in Giftify’s view.
- Minor pointCardCash’s deployed AI support tools cut average response times more than 90% without increasing staffing costs.
Negative
- Moderate pointOutstanding common shares increased to 35,800,996 at September 30 from 33,146,517 at year-end, diluting holders.
- Minor pointThird-quarter gross margin declined to 19.6% from 20.0% a year earlier.
- Minor pointCash at September 30 included $750,000 of restricted cash.
- Minor pointThird-quarter employee compensation, legal and professional fees, and other general expenses increased, partly offsetting compensation savings.
- Minor pointNine-month payroll and benefits, marketing and advertising, and other general expenses increased, partly offsetting compensation savings.
News Explained
At
Key Figures
- Net sales
- $22.3 million (+18.8%)
- Third quarter 2026; compared with $18.8 million in third quarter 2025
- Gross billings
- $45.8 million (+17.1%)
- Third quarter 2026; compared with $39.1 million in third quarter 2025
- Gross profit
- $4.4 million (+16.7%)
- Third quarter 2026; compared with $3.7 million in third quarter 2025
- Gross margin
- 19.6%
- Third quarter 2026; compared with 20.0% in third quarter 2025
- Operating loss
- $1.6 million
- Third quarter 2026; compared with $2.5 million in third quarter 2025
- Net loss
- $1.5 million, or $(0.04) per share
- Third quarter 2026; compared with $2.4 million, or $(0.08) per share, in third quarter 2025
- Modified EBITDA
- $(102,386)
- Third quarter 2026; compared with $(268,508) in third quarter 2025
- Interest expense
- $120,656
- Third quarter 2026; compared with $135,005 in third quarter 2025
Previous Earnings Reports
-
Gross billings rose 26.2%, net loss improved, and Modified EBITDA turned positive.
-
Gross billings and gross profit grew, while net loss improved year over year.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
stock-based compensation financial
convertible promissory note financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Gross Billings Increase
Net Loss Improves
Modified EBITDA Narrows to
SCHAUMBURG, IL, Nov. 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 third quarter ended September 30, 2026.
Third Quarter 2026 Financial Highlights
- Gross billings, the total dollar value of customer transactions processed through Giftify’s marketplaces, increased
17.1% to$45.8 million , compared to$39.1 million in the third quarter of 2025. - Net sales increased
18.8% to$22.3 million , compared to$18.8 million in the third quarter of 2025. - Gross profit increased
16.7% to$4.4 million , compared to$3.7 million in the third quarter of 2025. - Gross margin was
19.6% , compared to20.0% in the third quarter of 2025. - Loss from operations improved to
$1.6 million , compared to$2.5 million in the third quarter of 2025, narrowing to7.1% of net sales from13.2% of net sales in the prior year period. - Net loss improved to
$1.5 million , or$(0.04) per share, compared to$2.4 million , or$(0.08) per share, in the third quarter of 2025. - Interest expense declined to
$120,656 , compared to$135,005 in the third quarter of 2025, reflecting the Company’s reduced debt balance. - Modified EBITDA improved to
$(102,386) , compared to$(268,508) in the third quarter of 2025, continuing the Company’s progress toward breakeven. - Cash and cash equivalents were
$3.9 million as of September 30, 2026, compared to$3.7 million at December 31, 2025.
Net Sales and Gross Billings Both Grew Double Digits in the Third Quarter
Net sales increased
Subsequent Events
On October 13, 2026, the Company announced that Restaurant.com, the nation’s largest restaurant-focused digital deals brand, is transitioning to a membership-based model beginning October 27, 2026. The new Restaurant.com Membership offers consumers the choice of a monthly or annual subscription, providing ongoing access to available restaurant deals rather than requiring individual deal purchases.
On October 1, 2026, the Company announced that CardCash deployed AI-powered customer service tools that have cut average customer response times by more than
Management Commentary
“We had a strong quarter across our core metrics,” said Ketan Thakker, President and Chief Executive Officer. “Net sales grew
Thakker continued, “We’re building on that momentum. Shortly after the close of the quarter, we announced the transition of Restaurant.com to a membership-based model, creating a new recurring revenue opportunity for the business. We believe this is an important step in how we grow Restaurant.com going forward, and we remain focused on converting our top-line growth into sustained profitability improvement.”
Third Quarter 2026 Financial Results
Net sales for the third quarter of 2026 were
Gross profit for the third quarter of 2026 increased
Selling, general and administrative expenses were
Loss from operations was
Net loss for the third quarter of 2026 was
Modified EBITDA was
Nine Months 2026 Financial Results
Net sales for the nine months ended September 30, 2026 were
Gross profit for the nine months ended September 30, 2026 increased
Selling, general and administrative expenses were
Loss from operations was
Net loss for the nine months ended September 30, 2026 was
Modified EBITDA was
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 | ||||||||
| September 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (includes restricted cash of | $ | 3,945,212 | $ | 3,654,944 | ||||
| Accounts receivable | 119,327 | 142,878 | ||||||
| Inventories, net | 3,470,734 | 3,751,549 | ||||||
| Prepaid expenses and other current assets | 357,096 | 196,104 | ||||||
| Total current assets | 7,892,369 | 7,745,475 | ||||||
| Property and equipment, net | 75,904 | 443,811 | ||||||
| Operating lease right-of-use asset, net | 830,963 | 1,088,091 | ||||||
| Deposits | 75,115 | 68,189 | ||||||
| Intangible assets, net | 795,785 | 2,487,822 | ||||||
| Goodwill | 20,007,670 | 20,007,670 | ||||||
| Total assets | $ | 29,677,806 | $ | 31,841,058 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,122,678 | $ | 1,815,727 | ||||
| Accrued expenses | 1,433,380 | 1,917,961 | ||||||
| Customer deposits | 72,371 | 2,015 | ||||||
| Deferred revenue | 99,271 | 130,376 | ||||||
| Secured revolving line of credit | 3,122,932 | 3,212,935 | ||||||
| Convertible promissory note | 48,387 | 46,137 | ||||||
| Notes payable, current portion | 12,240 | 12,240 | ||||||
| Operating lease liability, current portion | 349,356 | 358,861 | ||||||
| Total current liabilities | 7,260,615 | 7,496,252 | ||||||
| Notes payable, net of current portion | 641,631 | 651,349 | ||||||
| Deferred income taxes | 175,250 | 608,000 | ||||||
| Operating lease liability, net of current portion | 519,077 | 774,510 | ||||||
| Total liabilities | 8,596,573 | 9,530,111 | ||||||
| Commitments and contingencies (Note 12) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 35,801 | 33,147 | ||||||
| Additional paid-in capital | 124,879,396 | 120,713,202 | ||||||
| Common stock issuable, 350,843 and 350,843 shares, respectively | 350,843 | 350,843 | ||||||
| Accumulated deficit | (104,184,807 | ) | (98,786,245 | ) | ||||
| Total stockholders’ equity | 21,081,233 | 22,310,947 | ||||||
| Total liabilities and stockholders’ equity | $ | 29,677,806 | $ | 31,841,058 | ||||
GIFTIFY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Sales | $ | 22,323,212 | $ | 18,783,908 | $ | 65,427,640 | $ | 61,961,652 | ||||||||
| Cost of sales | 17,951,295 | 15,036,367 | 52,406,840 | 50,776,850 | ||||||||||||
| Gross profit | 4,371,917 | 3,747,541 | 13,020,800 | 11,184,802 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | 5,323,331 | 5,489,115 | 16,475,240 | 17,247,499 | ||||||||||||
| Amortization of capitalized software costs | 78,170 | 160,745 | 367,907 | 483,832 | ||||||||||||
| Amortization of intangible assets | 563,847 | 585,349 | 1,692,037 | 1,686,328 | ||||||||||||
| Total operating expenses | 5,965,348 | 6,235,209 | 18,535,184 | 19,417,659 | ||||||||||||
| Loss from operations | (1,593,431 | ) | (2,487,668 | ) | (5,514,384 | ) | (8,232,857 | ) | ||||||||
| Other income (expenses) | ||||||||||||||||
| Interest income | 4,807 | 1,811 | 13,388 | 3,588 | ||||||||||||
| Interest expense | (120,656 | ) | (135,005 | ) | (354,096 | ) | (487,950 | ) | ||||||||
| Other income | 26,746 | 38,540 | 26,746 | 38,540 | ||||||||||||
| Total other income (expenses) | (89,103 | ) | (94,654 | ) | (313,962 | ) | (445,822 | ) | ||||||||
| Net loss before income taxes | (1,682,534 | ) | (2,582,322 | ) | (5,828,346 | ) | (8,678,679 | ) | ||||||||
| Income tax benefit | 175,432 | 144,860 | 429,784 | 434,076 | ||||||||||||
| Net loss | $ | (1,507,102 | ) | $ | (2,437,462 | ) | $ | (5,398,562 | ) | $ | (8,244,603 | ) | ||||
| Net loss per share – basic and diluted | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.16 | ) | $ | (0.28 | ) | ||||
| Weighted average common shares outstanding – basic and diluted | 35,220,809 | 30,402,871 | 34,324,800 | 29,446,269 | ||||||||||||
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 September 30, 2026 and 2025 (unaudited):
| Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | |||||||
| Net Loss | $ | (1,507,102 | ) | $ | (2,437,462 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (175,432 | ) | (144,860 | ) | ||||
| Interest expense, net | 115,848 | 133,195 | ||||||
| Other income | (26,746 | ) | (38,540 | ) | ||||
| Amortization of intangible assets | 563,847 | 585,349 | ||||||
| Amortization of capitalized software costs | 78,170 | 160,745 | ||||||
| Stock option and other noncash compensation | 849,030 | 1,473,065 | ||||||
| Total Modified EBITDA adjustments | 1,404,717 | 2,168,954 | ||||||
| Modified EBITDA | $ | (102,386 | ) | $ | (268,508 | ) | ||
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 nine months ended September 30, 2026 and 2025 (unaudited):
| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | |||||||
| Net Loss | $ | (5,398,562 | ) | $ | (8,244,603 | ) | ||
| Modified EBITDA adjustments: | ||||||||
| Income taxes | (429,784 | ) | (434,076 | ) | ||||
| Interest expense, net | 340,707 | 487,950 | ||||||
| Other income | (26,746 | ) | (38,540 | ) | ||||
| Amortization of intangible assets | 1,692,037 | 1,686,328 | ||||||
| Amortization of capitalized software costs | 367,907 | 483,832 | ||||||
| Loss on fair value of stock issued on vendor settlement | - | 33,750 | ||||||
| Bad debt expense | - | 97,222 | ||||||
| Stock option and other noncash compensation | 2,745,256 | 4,879,170 | ||||||
| Total Modified EBITDA adjustments | 4,689,377 | 7,195,636 | ||||||
| Modified EBITDA | $ | (709,186 | ) | $ | (1,048,967 | ) | ||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did Giftify’s third-quarter 2026 sales grow?
Giftify’s third-quarter net sales increased 18.8% to $22.3 million from $18.8 million in the third quarter of 2025. Gross billings, which measure marketplace customer transaction value rather than reported sales, increased 17.1% to $45.8 million.
Was Giftify profitable in the third quarter of 2026?
Giftify reported a net loss of $1.5 million, or $0.04 per share, compared with $2.4 million, or $0.08 per share, a year earlier. Operating loss was $1.6 million, and its company-defined Modified EBITDA remained negative at $102,386.
Why did Giftify’s administrative expenses decline in the third quarter of 2026?
A $624,035 reduction in stock-based compensation expense drove the decline in selling, general and administrative expenses. Increased employee compensation, legal and professional fees, and other general expenses partly offset that reduction.
How does Giftify recognize revenue from agent transactions?
Giftify recognizes agent transactions on a net commission basis when it arranges for a distributor to deliver gift cards directly to customers. These transactions represented approximately 7% of net sales in both the third quarter of 2026 and the third quarter of 2025.