Gifty (GIFT) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $21.4M, down 4.1% year-over-year, primarily due to a shift in agent vs. principal transactions.

• Gross profit increased 18.5% to $4.2M, with gross margin rising to 19.9% from 16.1% in Q1 2025.

• Net loss narrowed to $2.7M from $3.2M in the prior year, driven by higher gross profit and lower stock-based compensation and interest expense.

• The company continues to face substantial doubt about its ability to continue as a going concern due to recurring net losses and limited working capital.

Financial highlights

• Net sales: $21.4M (Q1 2026), $22.3M (Q1 2025), a 4.1% decrease.

• Gross profit: $4.2M (Q1 2026), $3.6M (Q1 2025), up 18.5%.

• Gross margin: 19.9% (Q1 2026) vs. 16.1% (Q1 2025).

• Net loss: $2.7M (Q1 2026) vs. $3.2M (Q1 2025).

• Modified EBITDA: $(728K) (Q1 2026) vs. $(626K) (Q1 2025).

• Cash and cash equivalents: $4.2M as of March 31, 2026.

• Working capital: $7,631 as of March 31, 2026.

Outlook and guidance

• Management expects cash on hand to last until March 2027, but ongoing losses and limited working capital raise going concern risks.

• The company is seeking additional financing and implementing operational improvements but cannot assure successful capital raising.