Aug. 5 at 6:23 PM
$GIFT MAXIM REITERAT BUY WITH
$4.00 TARGET
On 8/3, Giftify reported 2Q26 results with revenue of
$21.7M, up 4% y/y, beating our estimate. Gross billings, which we view as a better proxy for top-line results, were up 26% y/y. Adjusted EBITDA of
$0.1M, topped our estimate on better top-line and lower operating expenses.
CardCash is shifting toward becoming more of a payments company, from a secondary gift card provider, which expands the market opportunity. Restaurant.com declined y/y and sequentially during the quarter, and we have lowered our expectations as a result. The segment has attractive 90%+ gross margins.
We slightly adjust our 2026 and 2027 estimates to factor in 2Q26 results, lowering Restaurant.com revenue but improving margins for CardCash.
GIFT ended June 2026 with
$3.9M in cash and
$3.8M in debt. The company also has access to a
$30M ATM. We believe capital is sufficient to fund operations.
GIFT
$4.00 Target
