Gaxos.ai Inc. (NASDAQ: GXAI) announced record second-quarter 2026 consolidated revenue of approximately $2.46 million, a 35.8% increase from $1.81 million in the first quarter and a 1,337% surge from $0.17 million in the same period last year. The company reported GAAP net income of $241,056, or $0.02 per basic and diluted share, primarily reflecting a gain from the sale of its gaming assets.
The revenue growth outpaced advertising and marketing expenses, which rose only about 13.5% sequentially, leading to a 20% improvement in revenue generated per advertising dollar to $0.78. This efficiency gain underscores Gaxos's focus on customer-acquisition effectiveness and scalable growth channels. The company ended the quarter with approximately $11.44 million in cash and short-term investments, providing a solid foundation for future investments.
During the quarter, Gaxos completed the sale of substantially all its gaming assets to Game Foundry AI in exchange for 2.2 million shares valued at approximately $1.76 million. This strategic divestiture aligns with the company's pivot towards AI-driven solutions across defense, health, wellness, entertainment, and productivity. Gaxos also maintains a 19.99% interest in America First Defense.AI LLC, positioning it in the high-growth defense AI sector.
For the remainder of 2026, Gaxos plans to focus on increasing recurring and repeat revenue, improving customer-acquisition efficiency, scaling products and channels with favorable contribution economics, and maintaining discipline in operating expenditures and capital allocation. This strategic direction is expected to drive sustainable growth and shareholder value.
The company's portfolio spans multiple high-impact industries, aiming to make advanced AI technology practical and accessible. With the sale of gaming assets, Gaxos is streamlining its operations to concentrate on AI applications that can deliver meaningful real-world outcomes. The record revenue and improved efficiency metrics signal strong execution of its strategic plan.
Investors can access the full press release at https://ibn.fm/8Cibd. For the latest news and updates on GXAI, visit the company's newsroom at https://ibn.fm/GXAI.
