Giftify, Inc. Reports First Quarter 2026 Financial Results: Gross Billings Grow 25% to $45 Million as CardCash Marketplace Reaches Multi-Year Highs

Gross Profit Grows 18.5% to $4.2 Million on 380 Basis Point Margin Expansion

Net Loss Improves 17.6% to $2.7 Million, or $(0.08) Per Share; Interest Expense Declines 44%

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 to 16.1% 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 $21.4 million compared to $22.3 million in Q1 2025, this reflects an evolving transaction mix rather than a reduction in underlying business activity. Gross billings, which represent the total dollar value of customer transactions, increased 25.0% year-over-year to $45.0 million, reflecting robust marketplace momentum across CardCash and Restaurant.com.

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 8% of net sales in Q1 2026, compared to approximately 4% in Q1 2025.

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 14.2% increase compared to 62,117 orders during the same period in 2025. New seller acquisition reached 25,508 first-time sellers, up 18.5% year-over-year, expanding the available card inventory that powers buy-side fulfillment.

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 $384 through March 22, 2026, up 15.4% year-over-year, with a peak week average of $429, the highest the platform has recorded since 2020. Return on ad spend held in the 2.75 to 3.14x range through the quarter, and the Rakuten affiliate channel continued to deliver year-over-year growth in both net sales and average order value.

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 above 96%. 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 25% year-over-year, gross margin expanded 380 basis points, and net loss improved by nearly 18%, all while we advanced our AI agent roadmap, strengthened both sides of the CardCash marketplace, and established a new distribution partnership with Capital One Shopping that extends our reach to tens of millions of savings-focused consumers. The buy-side and sell-side metrics we shared with investors ahead of this report are now confirmed in our quarterly results, and the connection is direct: when sellers find CardCash to be an attractive platform and buyers engage at five-year-high spending levels, that marketplace dynamic flows through to gross margin expansion and improved operating performance. That is the trajectory we intend to sustain."

First Quarter 2026 Financial Results

Net sales for Q1 2026 were $21.4 million compared to $22.3 million in Q1 2025, a decrease of 4.1%, primarily reflecting an increased proportion of agent transactions recognized on a net basis. Merchant gift card sales accounted for approximately 97% of net sales for the quarter.

Gross profit for Q1 2026 increased 18.5% to $4.2 million from $3.6 million in Q1 2025. Gross margin expanded 380 basis points to 19.9% from 16.1%, driven by the favorable impact of an increased proportion of agent transactions and continued pricing and operational efficiencies.

Selling, general and administrative expenses were $6.2 million for Q1 2026, compared to $6.0 million in Q1 2025. The change reflects increased employee compensation, legal and professional fees, and other general expenses, partially offset by a $606,865 reduction in stock-based compensation expense.

Loss from operations was $2.7 million for Q1 2026, compared to $3.2 million in Q1 2025, an improvement of 15.8%. Interest expense declined 44.3% to $116,715 from $209,571 in Q1 2025, reflecting the Company's reduced debt balance.

Net loss for Q1 2026 was $2.7 million, or $(0.08) per share, compared to $3.2 million, or $(0.11) per share, in Q1 2025, an improvement of 17.6%. Net cash used in operating activities improved substantially to $36,697 from $688,470 in Q1 2025.

As of March 31, 2026, the Company had cash and cash equivalents of $4.2 million, including $750,000 of restricted cash collateral supporting the revolving line of credit.

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 $750,000 and $1,000,000 at March 31, 2026 and December 31, 2025, respectively)		$	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, $0.001 par value, 10,000,000 shares authorized;			-				-
Common stock, $0.001 par value, 750,000,000 shares authorized; 34,007,467 and 33,146,517 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively			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.