PAID, Inc. Reports 8% Revenue Growth to $5.87 Million in Q2 2026

PAID, Inc. reported a net revenue of $5.87 million for the second quarter of 2026, reflecting an 8% increase from $5.43 million in the same period last year. For the first half of 2026, total revenues reached $11.19 million, a 14% rise compared to $9.81 million in the first half of 2025. The growth was primarily driven by the shipping coordination and label generation services segment, which saw a 13% increase in revenue to $11.08 million for the six months ended June 30, 2026. The newly introduced Warehowz segment also contributed to the overall revenue increase, while the client services segment experienced a complete revenue drop due to the discontinuation of certain software applications.

The company's gross profit for the second quarter of 2026 was $1.22 million, slightly up from $1.20 million in the prior year, although the gross margin decreased to 21% from 22%. Operating expenses decreased significantly to $1.25 million from $1.61 million year-over-year, largely due to reduced share-based compensation expenses. As a result, PAID, Inc. reported a net loss of $7,403 for the second quarter, a substantial improvement from a net loss of $397,349 in the same quarter of 2025. For the first half of 2026, the net loss was $48,934, compared to $546,122 for the same period in 2025.

In terms of operational metrics, PAID, Inc. reported a total of 8.62 million shares outstanding as of June 30, 2026, with an accumulated deficit of $69.29 million. The company’s cash and cash equivalents stood at $1.08 million, a slight decrease from $1.11 million at the end of 2025. The working capital deficit improved to $230,140 from $304,212 at the end of the previous fiscal year, indicating a positive trend in liquidity. The company also reported a significant increase in accounts receivable, which rose to $469,348 from $302,894 at the end of 2025.

Strategically, PAID, Inc. completed the acquisition of Warehowz, a warehousing and fulfillment marketplace, on January 30, 2026, for a total consideration of $176,785. This acquisition is expected to enhance the company's shipping services by providing access to over 2,500 warehousing facilities across North America. The integration of Warehowz is anticipated to create cross-selling opportunities and improve operational efficiencies. The company continues to focus on expanding its market reach and enhancing its service offerings, particularly in the small to medium business segment.

Looking ahead, PAID, Inc. management expressed optimism about the company's growth trajectory, citing ongoing strategic initiatives and the potential for new product launches. However, they acknowledged the inherent risks and uncertainties associated with achieving profitability and maintaining positive cash flow. The company plans to explore additional capital sources to support future operations and growth initiatives, while also aiming to reduce operational costs to mitigate losses.