Giftify, Inc. Reports Third Quarter 2026 Financial Results: Net Sales Grow 19% as Operating Loss Narrows 36%

Gross Billings Increase 17% to $45.8 Million; Gross Profit Grows 17% to $4.4 Million

Net Loss Improves 38% to $1.5 Million, or $(0.04) Per Share; Interest Expense Declines 11%

Modified EBITDA Narrows to $(102,386) from $(268,508) in the Prior Year Period

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 to 20.0% 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 to 7.1% of net sales from 13.2% 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 18.8% year over year to $22.3 million in the third quarter of 2026, while gross billings, the total dollar value of customer transactions processed through Giftify’s marketplaces, increased 17.1% to $45.8 million over the same period. Agent transactions, in which Giftify arranges for a distributor to deliver gift cards directly to the customer and recognizes revenue on a net commission basis, represented approximately 7% of net sales in both the third quarter of 2026 and the third quarter of 2025, and approximately 7% of net sales for the nine months ended September 30, 2026, compared to approximately 6% for the nine months ended September 30, 2025. Net revenue recognized on an agent basis increased $200,757, or 15.1%, for the three months ended September 30, 2026, and $1,310,359, or 37.8%, for the nine months ended September 30, 2026, compared to the respective prior year periods.

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 90% across a support operation handling approximately 5,000 tickets per month, without increasing staffing costs.

Management Commentary

“We had a strong quarter across our core metrics,” said Ketan Thakker, President and Chief Executive Officer. “Net sales grew 19% and gross billings grew 17% year-over-year, and we continued to run the business with discipline, meaningfully reducing stock-based compensation expense and driving improvement in operating leverage. Our operating loss narrowed to 7.1% of net sales from 13.2% in the prior year period, and on a year-to-date basis our gross margin expanded to 19.9% from 18.1%, while our third quarter margin of 19.6% was roughly in line with the 20.0% we reported a year ago. Modified EBITDA improved to $(102,386) from $(268,508) a year ago, putting us on a clear trajectory toward breakeven.”

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 $22.3 million compared to $18.8 million in the third quarter of 2025, an increase of 18.8%. The increase in net sales was due to the change in the mix of agent versus principal transactions. Merchant gift card sales accounted for approximately 98% and 97% of net sales for the three months ended September 30, 2026 and 2025, respectively.

Gross profit for the third quarter of 2026 increased 16.7%, or $624,376, to $4.4 million from $3.7 million in the third quarter of 2025. Gross margin was 19.6%, compared to 20.0% in the third quarter of 2025.

Selling, general and administrative expenses were $5.3 million for the third quarter of 2026, compared to $5.5 million in the third quarter of 2025, a decrease of $165,783. The decrease was due to a reduction in stock-based compensation expense of $624,035, offset by increased employee compensation, legal and professional fees, and other general expenses.

Loss from operations was $1.6 million for the third quarter of 2026, compared to $2.5 million in the third quarter of 2025. Interest expense declined to $120,656 from $135,005 in the third quarter of 2025, reflecting the Company’s reduced debt balance.

Net loss for the third quarter of 2026 was $1.5 million, or $(0.04) per share, compared to $2.4 million, or $(0.08) per share, in the third quarter of 2025. The improvement was driven by higher gross profit, lower stock-based compensation expense, and lower interest expense.

Modified EBITDA was $(102,386) for the third quarter of 2026, compared to $(268,508) in the third quarter of 2025.

Nine Months 2026 Financial Results

Net sales for the nine months ended September 30, 2026 were $65.4 million compared to $62.0 million in the same period of 2025, an increase of 5.6%. Gross billings for the nine months ended September 30, 2026 increased 22.6% to $136.3 million, compared to $111.2 million in the same period of 2025.

Gross profit for the nine months ended September 30, 2026 increased 16.4%, or $1,835,998, to $13.0 million from $11.2 million in the same period of 2025. Gross margin expanded to 19.9% from 18.1%, an improvement of 180 basis points.

Selling, general and administrative expenses were $16.5 million for the nine months ended September 30, 2026, compared to $17.2 million in the same period of 2025, a decrease of $772,258, reflecting a $2,137,816 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 $5.5 million for the nine months ended September 30, 2026, compared to $8.2 million in the same period of 2025. Interest expense, net, declined to $340,708 from $484,362 in the same period of 2025, reflecting the Company’s reduced debt balance.

Net loss for the nine months ended September 30, 2026 was $5.4 million, or $(0.16) per share, compared to $8.2 million, or $(0.28) 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 $(709,186) for the nine months ended September 30, 2026, compared to $(1,048,967) 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
		September 30, 2026				December 31, 2025
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents (includes restricted cash of $750,000 and $1,000,000 at September 30, 2026 and December 31, 2025, respectively)		$	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, $0.001 par value, 10,000,000 shares authorized;			-				-
Common stock, $0.001 par value, 750,000,000 shares authorized; 35,800,996 and 33,146,517 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively			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	)