Tendercard's gift-card processing programme generated USD145,433 in service-fee revenue for the six months ended July 31, 2026, down 17.3% from USD175,771 a year earlier, according to parent Kindcard's latest quarterly filing.
The unaudited results, filed with the U.S. Securities and Exchange Commission on September 21, show a USD30,338 decline in the programme's revenue. Tendercard remained the group's principal source of revenue, accounting for approximately 99% of its USD146,933 total. [S01] [S02]
The figures measure the processor's fees. They do not measure the amount customers loaded onto gift cards, the value redeemed at merchants or outstanding gift balances.
A recurring-fee business serving smaller merchants
Tendercard, a wholly owned Kindcard subsidiary, provides stored-value gift-card processing at the point of sale for small and mid-sized North American retail businesses. Its hosted system maintains records of gift-card account activity and supplies monthly reporting, the filing says.
The programme earns fixed monthly and annual service fees. Monthly fees are recognised each month, while annual fees are collected in arrears and accrued as revenue. This business model makes the reported result a measure of income from providing the processing service, rather than a direct reading of consumer demand for gift cards. [S01]
Tendercard service-fee revenue
Fees earned over each six-month period, in USD.
USD
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Source
Service fees are not card loads, redeemed value or outstanding balances. The filing does not disclose active merchants or the cause of the decline.
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| Category | Tendercard programme revenue |
|---|---|
| Six months to July 31, 2025 | 175,771 USD |
| Six months to July 31, 2026 | 145,433 USD |
Kindcard does not disclose the number of active merchants, changes in pricing or gift-card transaction volumes in the report. It also does not provide a programme-specific explanation for the revenue decline. The figures alone cannot establish whether it reflects fewer customers, changed service arrangements or another factor.
The group's other reported revenue stream, cash-pickup commissions through its Deb subsidiary, increased from USD750 to USD1,500. That small increase only partly offset the decline at Tendercard.
Lower expenses narrow the group loss
Kindcard's consolidated six-month net loss narrowed to USD116,601 from USD233,544. Operating expenses fell to USD228,356 from USD371,365, including lower general and administrative costs and amortisation. The comparative period included USD129,020 of shares issued for services in the cash-flow reconciliation. These are group results, rather than a separately reported Tendercard profit measure. [S01]
Kindcard consolidated operating expense components
Parent-group costs in the two six-month periods, in USD.
USD
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Source
Consolidated parent costs, not Tendercard profitability or customer gift-card losses. Lower accounting costs do not remove the disclosed funding uncertainty.
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| Category | Six months to July 31, 2025 | Six months to July 31, 2026 |
|---|---|---|
| General and administrative | 349,646 USD | 223,281 USD |
| Depreciation and amortization | 21,719 USD | 5,075 USD |
The filing reported USD9,254 in cash at July 31 and a working-capital deficit of about USD1.06 million. Management said additional funding was required and disclosed substantial doubt about the company's ability to continue as a going concern.
It also reported a material weakness in controls over related-party transactions and described remedial steps following a transfer of Tendercard loan proceeds to the chief executive. Those disclosures concern the operator's finances and governance; the filing does not report a loss of customer gift-card balances.
For the gift-card sector, the results provide a specific view of a small merchant-processing business: recurring service income weakened even as lower costs reduced the parent's loss. The missing merchant and transaction data limit how far that result can be used to explain trading conditions across the wider gift-card market.
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Oliver Reed
Oliver Reed covers industry acquisitions, investment and market research for Gift Card News.