Giftify, Inc.

What they do

Giftify operates two principal divisions: Restaurant.com, a restaurant-focused digital deals brand offering discount certificates and Dining Discount Passes, and CardCash, a gift card exchange platform that buys and resells gift cards from over 1,100 retailers. The company also provides white-label gift card exchange solutions and, following the Takeout7 acquisition, offers online ordering and AI-powered marketing services for independent restaurants. Revenue is generated primarily through B2C and B2B channels across both divisions, with B2B recently accounting for the vast majority of gross revenue.

Revenue drivers

• CardCash B2B gift card sales — CardCash purchases gift cards at a discount and resells them at a markup; B2B is the fastest growing segment, representing about 97% of gross revenue in Q2 2026.
• CardCash B2C gift card sales — Consumer-focused purchasing and selling of discounted gift cards from major retailers like Target, Home Depot, Starbucks, and TJ Maxx.
• Restaurant.com B2B certificates and passes — Sales of discount certificates and Dining Discount Passes to corporations and marketers for customer acquisition and incentives; this division accounted for roughly 3% of gross revenue in Q2 2026, down from 15% in FY2025.
• Restaurant.com B2C deals and Specials — Direct sales of restaurant certificates and bundled 'Specials' (dining plus theater, movies, wine, travel) to a 6.2 million customer database; Specials generate nearly five times the average order value of a certificate purchase.

Recent performance

Annual revenue declined from $88.9M in 2024 to $83.2M in 2025, while net loss narrowed from $18.8M to $10.5M. Quarterly revenue has risen sequentially: $18.8M (Sep 2025), $21.2M (Dec 2025), $21.4M (Mar 2026), and $21.7M (Jun 2026). The company reported cash of $3.9M and total liabilities of $9.1M as of June 30, 2026. Operating cash flow was negative $1.6M in 2025. The B2B segment has become the dominant revenue source, representing 97% of gross revenue in Q2 2026.

Strategy

Giftify is focusing on expanding its B2B gift card exchange and white-label solutions, leveraging CardCash's brand and management team. The company integrated Takeout7 into Restaurant.com in early 2026 to enhance technology offerings for independent restaurants. Management is seeking additional internal and external growth opportunities following the CardCash acquisition. Restaurant.com is leveraging its 'Specials' bundles to drive higher order values, though B2C has shrunk to a small part of revenue.

Risks

• Going concern uncertainty — Management and the auditor have expressed substantial doubt about the company's ability to continue as a going concern for at least 12 months, citing recurring net losses and negative operating cash flow.
• Nasdaq listing risk — The company received multiple delisting notices or listing-rule failures in March, April, and August 2026, which could lead to loss of listing and associated liquidity.
• Historical losses and dilution — CardCash had net losses of $2.05M in 2024 and $0.12M in 2023, and if it cannot maintain profitability, shareholders face dilution and the business plan could be delayed.
• Dependence on B2B concentration — Revenue is heavily concentrated in B2B sales (97% of Q2 2026 gross revenue), making results vulnerable to shifts in corporate demand or the gift card market.

Outlook

Management expects expenses to increase as it continues its activities, and there is no assurance of future profitability. The company is pursuing growth in B2B gift card solutions and technology services for restaurants, though it faces significant liquidity challenges. The going concern note indicates that the company's ability to continue operations depends on improving revenue and margins or securing additional financing.