Giftify Inc.'s third-quarter 2026 sales rose 18.8%, while its latest filing said available cash may not meet requirements over the next 12 months, raising a question about its ability to continue operating.
Net sales reached $22.32 million for the quarter ended Sept. 30, compared with $18.78 million a year earlier. Operating loss narrowed to $1.59 million from $2.49 million, and net loss fell to $1.51 million, or 4 cents per share, from $2.44 million, or 8 cents per share.
In its Nov. 3 Form 10-Q, Giftify reported $3.95 million in cash and cash equivalents, including $750,000 in restricted cash. Working capital was $631,754. Operating activities used $1.03 million in cash during the first nine months of 2026, up from $496,067 in the same period of 2025. Management said its assessment found substantial doubt about the company's ability to continue as a going concern.
Gross profit increased 16.7% to $4.37 million, but gross margin eased to 19.6% from 20% in the year-earlier quarter. Gross billings, a separate company measure that tracks purchases after refunds and discounts, climbed 17.1% to $45.77 million. Giftify excludes merchants' shares of discounted gift-card transactions from net sales, so gross billings and net sales measure different amounts.
Giftify said a change in the principal-agent mix accounted for the sales increase. It records agent transactions as commissions, which represented about 7% of net sales in each quarter. Stock-based compensation expense was $624,035 lower than a year earlier, also helping reduce expenses.
Giftify operates CardCash.com and Restaurant.com. Restaurant.com's membership plan took effect Oct. 27, with subscriptions priced at $14 per month or $99 per year. Giftify has described the plan as a recurring-revenue opportunity.
The filing says the company conducts its annual goodwill impairment test as of Dec. 31. Giftify cautioned that a sustained share price below about $0.58 or results below projections could require a potentially material impairment charge.
