Gaxos Delivers Record Second-Quarter Revenue, Up 35.8% Sequentially and 1,337% Year over Year
Rhea-AI Summary
Gaxos (NASDAQ: GXAI) reported record second-quarter 2026 consolidated revenue of approximately $2.46 million, up 35.8% from the first quarter and 1,337% from the prior-year quarter. 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 was about $3.14 million, up roughly 13.5% sequentially, while revenue per advertising dollar improved around 20% to $0.78. Advertising spend fell to about 128% of revenue from 153% in Q1. During the quarter, Gaxos sold substantially all gaming assets to Game Foundry AI in exchange for 2.2 million Game Foundry AI shares valued at approximately $1.76 million, and it continues to hold a 19.99% interest in America First Defense.AI.
Cash and short-term investments totaled roughly $11.44 million as of June 30, 2026, compared with $11.71 million on March 31, 2026. Gaxos raised about $1.0 million via its at-the-market offering and had 10,744,634 common shares outstanding as of August 12, 2026.
Positive
- Record Q2 2026 revenue of approximately $2.46 million, up 35.8% sequentially and 1,337% year over year
- GAAP net income of $241,056, or $0.02 per basic and diluted share
- Revenue per advertising dollar improved about 20% to $0.78 from $0.65 in Q1 2026
- Advertising expense as % of revenue decreased to ~128% from ~153% sequentially
- Gaming asset sale consideration of 2.2 million Game Foundry AI shares valued at about $1.76 million
- Cash and short-term investments remained high at approximately $11.44 million at June 30, 2026
Negative
- Advertising and marketing expense of about $3.14 million still exceeded quarterly revenue of $2.46 million
- Cash and short-term investments declined slightly to $11.44 million from $11.71 million sequentially
- GAAP net income primarily reflected a one-time gain from the gaming asset sale, limiting visibility into core operating profitability
- Equity issuance via ATM raised approximately $1.0 million in Q2 2026, implying some shareholder dilution
News Explained
Separately reported for the second quarter, cash and equivalents were
Sources and calculations
- Gaxos second-quarter 2026 results release (2026-08-12)
- Gaxos Form 10-Q (2026-08-12)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $1,089,449 / ($1,087,746 / 90) = [object Object]
Market Reaction – GXAI
Following this news, GXAI has gained 66.57%, reflecting a significant positive market reaction. Argus tracked a peak move of +70.2% during the session. Our momentum scanner has triggered 76 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $1.45. Trading volume is exceptionally heavy at 128.7x the average, suggesting very strong buying interest.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 03 | Share repurchase plan | Positive | +8.9% | Board authorized up to $1 million of common-stock repurchases. |
| Jul 28 | Operating strategy update | Positive | -22.9% | Company focused resources on revenue-generating AI and health platforms. |
| Jun 24 | Gaming asset sale | Positive | -4.2% | Gaming assets were sold to Game Foundry AI in an all-stock deal. |
| Jun 02 | AWS funding announcement | Positive | +14.3% | Amazon Web Services committed additional funding for the AI sales platform. |
| Apr 16 | AI product expansion | Positive | +0.8% | Gaxos Labs added music generation, AI chat and 3D model creation. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Gaxos's recent positive announcements produced mixed reactions, with three aligned gains and two divergent declines.
Key Terms
gaap financial
at-the-market offering financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenue growth significantly outpaces advertising expense growth as revenue generated per advertising dollar improves
Roseland, NJ, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Gaxos.ai Inc. ("Gaxos" or the "Company")(NASDAQ: GXAI), a company developing artificial intelligence applications across various high-growth sectors, today reported financial and operating results for the three and six months ended June 30, 2026.
Second-quarter consolidated revenue reached a record of
“Our second-quarter results show continued commercial momentum across our core business,” said Vadim Mats, Chief Executive Officer of Gaxos. “We achieved record quarterly revenue at nearly twice the rate of advertising expense growth and generated more revenue from each advertising dollar invested. We believe these results demonstrate the scalability of our operating platforms and the effectiveness of our increasingly disciplined approach to growth and capital allocation.”
Second Quarter Financial Highlights
- Record consolidated revenue of approximately
$2.46 million , increasing35.8% from the first quarter of 2026 and 1,337% from the second quarter of 2025. - GAAP net income of
$241,056 , or$0.02 per basic and diluted share, primarily reflecting a gain from the gaming asset sale. - Advertising and marketing expense amounted to
$3,141,273 in the second quarter compared with$2,766,824 in the first quarter of 2026. - Revenue generated per advertising dollar improved approximately
20% to$0.78 from$0.65 in the first quarter. - Revenue increased
35.8% , substantially outpacing the approximately13.5% increase in advertising and marketing expense. - Cash and short-term investments remained strong at approximately
$11.44 million as of June 30, 2026.
Improving Marketing Efficiency
Revenue increased
Advertising and marketing expense represented approximately
Advertising and marketing expense totaled approximately
“We are applying a more disciplined, data-driven approach to customer acquisition,” Mats continued. “By concentrating spending on the customer segments, marketing channels and products demonstrating the strongest retention and contribution economics, we increased revenue at a substantially faster rate than advertising expense during the second quarter. We intend to continue building on that progress.”
Focused Operating Strategy with Retained Portfolio Upside
During the second quarter, Gaxos completed the sale of substantially all its 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 for transaction purposes at approximately
Gaxos also maintains a
Liquidity and Capital Structure
As of June 30, 2026, Gaxos maintained cash and short-term investments of approximately
As of August 12, 2026, the Company had 10,744,634 shares of common stock outstanding.
During the second quarter, the Company sold shares through its at-the-market offering program, generating net proceeds of approximately
Outlook and Operating Priorities
During the remainder of 2026, Gaxos intends to focus on:
- Increasing recurring and repeat revenue across its core operating businesses;
- Improving customer-acquisition efficiency and advertising payback;
- Scaling products and customer channels demonstrating favorable contribution economics;
- Maintaining discipline in operating expenditures and capital allocation; and
- Providing investors with additional operating measurements, where reliable and appropriate.
Form 10-Q
Additional information regarding the Company’s second-quarter results is available in its Quarterly Report on Form 10-Q for the period ended June 30, 2026, filed today with the Securities and Exchange Commission.
About Gaxos.ai Inc.
Gaxos.ai Inc. (Nasdaq: GXAI) develops artificial intelligence applications designed to address opportunities across consumer and enterprise markets. The Company’s 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. Gaxos also holds a strategic minority investment in America First Defense.AI, a defense-technology company developing next-generation counter-UAS and robotic platforms.
For more information, visit Gaxos.AI. You can also follow Gaxos.ai on LinkedIn for the latest updates and news.
Forward-Looking Statements
Certain statements contained in this press release are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will”, “anticipate”, “estimate”, “expect”, “should”, “may”, and other words and terms of similar meaning or use of future dates; however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors disclosed in our filings with the SEC, accessible through the SEC’s website (http://www.sec.gov), including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed or furnished with the SEC. In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors, including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. The Company disclaims any obligation to update forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release. The contents of any website referenced in this press release are not incorporated by reference herein.
Gaxos.ai Inc. Company Contact
Investor Relations
E:ir@gaxos.ai
T: 1-888-319-2499
