Aug 12, 2026, 4:15 PM ETCommunication Services

Gaxos — Second Quarter 2026 Earnings Summary

GXAIGAXOSAI INC

Financial Performance

Consolidated revenue reached a record $2.46 million for the quarter ended June 30, 2026, representing a 35.8% increase from $1.81 million in Q1 2026 and a 1,337% increase from $0.17 million in Q2 2025.
GAAP net income was $241,056, or $0.02 per basic and diluted share, primarily driven by a gain from the sale of gaming assets.
Advertising and marketing expense totaled $3,141,273 in Q2 2026, up from $2,766,824 in Q1 2026.
Revenue grew 35.8% while advertising and marketing expense increased only 13.5%.
Revenue generated per advertising dollar improved approximately 20% to $0.78 in Q2 2026, compared to $0.65 in Q1 2026.
Advertising and marketing expense represented 128% of revenue in Q2 2026, down from 153% in Q1 2026.
Cash and short-term investments were $11.44 million as of June 30, 2026, compared to $11.71 million as of March 31, 2026.

For the remainder of 2026, the Company intends to focus on increasing recurring and repeat revenue across core operating businesses.
Strategic priorities include improving customer-acquisition efficiency and advertising payback.
The Company plans to scale products and customer channels that demonstrate favorable contribution economics.
Management intends to maintain discipline in operating expenditures and capital allocation.
The Company aims to provide investors with additional operating measurements where reliable and appropriate.

Gaxos completed the sale of substantially all gaming assets, including its mobile-game portfolio and Gaxos Gaming Labs, to Game Foundry AI.
Gaxos received 2.2 million shares of Game Foundry AI common stock valued at approximately $1.76 million as part of the transaction.
The Company maintains a 19.99% ownership interest in America First Defense.AI LLC, a defense technology company.
Core operations include Gaxos Labs, which develops and commercializes AI-powered applications, and RNK Health, a majority-owned subsidiary offering personalized weight loss, longevity, and performance treatments.

The Company is applying a data-driven approach to customer acquisition by concentrating spending on customer segments, marketing channels, and products with the strongest retention and contribution economics.
Management highlighted the scalability of operating platforms and the effectiveness of a disciplined approach to growth and capital allocation.

Forward-looking statements involve risks and uncertainties, including general industry and market conditions, growth rates, economic conditions, and governmental and public policy changes.
Actual results may differ materially from expectations due to factors disclosed in SEC filings, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

CEO Vadim Mats stated that results demonstrate continued commercial momentum and that revenue growth significantly outpaced advertising expense growth.
Management noted that the Company generated more revenue from each advertising dollar invested, demonstrating the effectiveness of its increasingly disciplined approach.
Mats emphasized the intent to continue building on progress made in Q2 by focusing on data-driven customer acquisition.

During the second quarter, the Company sold shares through its at-the-market offering program, generating net proceeds of approximately $1.0 million.
No additional shares were issued through the at-the-market offering program between July 1, 2026, and August 12, 2026.
As of August 12, 2026, there were 10,744,634 shares of common stock outstanding.
The Company filed its Quarterly Report on Form 10-Q for the period ended June 30, 2026, with the SEC.