Giftify gross billings surge 25% as AI deployment boosts marketplace

Giftify (NASDAQ:GIFT) reported a 25% surge in first-quarter gross billings, fueled by record engagement on its CardCash marketplace and a strategic pivot toward higher-margin agent transactions.

The Schaumburg, Illinois-based incentive and rewards leader processed $45 million in total transaction value for the period ended March 31, 2026, up from $36 million a year ago.

The company’s focus on its "agent model"—where it acts as an intermediary for gift card exchanges—led to a 4.1% decline in reported net sales to $21.4 million.

Gross profit rose 18.5% to $4.2 million, while gross margins expanded by 380 basis points to 19.9%.

Marketplace metrics for CardCash reached multi-year highs during the quarter.

Management attributed the performance to the deployment of new AI-driven tools that improved fraud detection and personalized user experiences.

Growth was further supported by a new distribution partnership with Capital One Shopping, broadening the platform's reach to a wider base of digital consumers.

On the bottom line, Giftify’s net loss narrowed by 17.6% to $2.7 million, or $0.08 per share, compared to a loss of $3.2 million, or $0.11 per share, in the prior year.

The improvement was aided by a 44% reduction in interest expenses as the company continued to pay down debt.

The company ended the quarter with $4.2 million in cash and cash equivalents, up from $3.7 million at the end of 2025.

Notably, net cash used in operating activities improved substantially to approximately $37,000, signaling a move toward cash-flow breakeven as the company scales its Restaurant.com and CardCash operations.