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	)

Giftify, Inc. Reports Second Quarter 2026 Financial Results: Gross Billings Grow 26% to $45.5 Million as Net Loss Improves 52%