Highlights

  • Giftify plans to replace individual Restaurant.com deal purchases with monthly or annual memberships beginning later in the month.
  • The company expects subscriptions to support recurring revenue, but it disclosed neither membership pricing nor subscriber acquisition targets.
  • Giftify increased second-quarter gross billings faster than net sales as agent transactions represented a larger share of activity.
  • The company disclosed going-concern uncertainty despite a narrower quarterly loss and a modest increase in reported cash balances.

A switch from individual deals to subscriptions is the next planned step for Restaurant.com owner Giftify, Inc. (NASDAQ:GIFT). Announced on 13 October 2026, the membership model is scheduled to begin on 27 October. The strategy seeks recurring revenue, but its economics remain unquantified as the group continues to report losses and going-concern uncertainty.

Membership Changes the Purchase Model

Customers will be able to choose month-to-month or annual subscriptions for continuing access to available restaurant deals, replacing one-time purchases. The company did not disclose membership prices.

Giftify identified more predictable revenue, higher customer lifetime value and stronger margins as aims of the transition. It did not provide subscriber targets or a quantified forecast of the financial improvement expected from the launch.

Chief executive Ketan Thakker described membership as an established model in digital consumer and food-delivery services. Chief technology officer Thomas Butt said it would make customer value continuous. Those comments explain the intent, rather than demonstrating that subscribers or additional revenue have already been secured.

CardCash Still Dominates Reported Sales

The group’s other business, CardCash, operates a marketplace for buying and selling unused gift cards. Merchant gift card sales accounted for approximately 97% of second-quarter net sales, leaving the group’s current revenue concentrated in that activity.

That mix is important when assessing the Restaurant.com change. A new model at the restaurant platform does not, by itself, establish a comparable change across the entire group’s revenue base.

Second-quarter net sales were USD 21.7 million, up 4.0%. Gross billings rose 26.2% to USD 45.5 million. The company attributed the different growth rates to a larger share of agent transactions, which are recorded as net commissions rather than gross sales.

Loss Narrows as Margins Improve

Results released on 3 August showed gross margin increasing to 20.2% from 18.4%. The net loss narrowed to USD 1.2 million, or USD 0.04 per share, from USD 2.6 million a year earlier.

Modified EBITDA was positive USD 126,036, compared with a USD 150,236 loss in the prior-year quarter. This supplemental measure is separate from the continuing net loss and should not be described as a statutory profit.

Cash Position Leaves Material Uncertainty

Cash was USD 3.9 million at 30 June, including USD 750,000 of restricted cash, compared with USD 3.7 million at 31 December 2025. The release disclosed substantial doubt about the company’s ability to continue as a going concern.

That disclosure is a material financial constraint alongside the planned membership launch. The company also identified its ability to find a suitable business model among the risks accompanying its forward-looking statements.

Other developments included AI-powered customer service tools at CardCash on 1 October, which Giftify said reduced response times by more than 90%, and a campus gift card exchange launched with Follett Higher Education bookstores on 29 June.

The next dated strategic milestone is the 27 October membership launch. Pricing, customer adoption and subsequent financial results remain necessary to establish whether the proposed model achieves the company’s stated aims.