XMax Inc. Announces Preliminary Third Quarter 2026 Financial Results

The board recently approved a share repurchase program of up to $30 million.

Rhea-AI Summary

XMax (NASDAQ: XMAX) announced preliminary third-quarter 2026 results, with net sales of approximately $6.42 million and an expected net loss. Sales compared with $9.76 million a year earlier. Gross profit was approximately $0.89 million, with gross margin of approximately 13.9% versus 10.1%. The expected $12.10 million to $13.10 million net loss primarily reflects a non-cash unrealized loss.

For the nine months ended September 30, sales were approximately $10.94 million versus $14.95 million in 2025. Gross profit was approximately $2.87 million, with margin of approximately 26.2% versus 23.2%. Expected net income of $19.50 million to $20.50 million primarily reflects a non-cash unrealized gain, partially offset by income tax expense. Results remain preliminary and unaudited. XMax expects an AI infrastructure services agreement to generate over US$100 million over five years, subject to satisfaction of certain closing conditions.

6 points · 1 major

PositiveiHow this balance works

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0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.AI infrastructure services agreement expected to generate over US$100 million in revenue over the next five years. 37% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Board approved a share repurchase program of up to $30 million. 11% of market cap
• Moderate pointNine-month expected net income of $19.50 million to $20.50 million primarily reflects a non-cash unrealized gain, partially offset by income tax expense.
• Moderate pointThird-quarter gross profit of approximately $0.89 million; margin approximately 13.9%, versus 10.1% in 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Agreement to acquire Hexa Creation adds an announced acquisition initiative.
• Minor pointNine-month gross profit of approximately $2.87 million; margin approximately 26.2%, versus 23.2% in 2025.

Negative

• Moderate pointThird-quarter expected net loss of $12.10 million to $13.10 million primarily reflects a non-cash unrealized loss.
• Moderate pointThird-quarter net sales fell to approximately $6.42 million from $9.76 million in 2025.
• Minor pointNine-month net sales fell to approximately $10.94 million from $14.95 million in 2025.
• Minor pointAI infrastructure services agreement remains subject to satisfaction of certain closing conditions.
• Minor pointPreliminary, unaudited results remain subject to unfinished financial closing procedures and independent accounting review.

News Explained

The board approved a XMax share repurchase program of up to $30 million: the stated amount is a ceiling, authorizing repurchases within that limit rather than establishing a fixed purchase amount.

Key Figures

Q3 net sales: Approximately $6.42 million Q3 gross margin: Approximately 13.9% Q3 net loss: $12.10 million to $13.10 million +5 more

Q3 net sales

Approximately $6.42 million

Third quarter 2026; compared with $9.76 million in Q3 2025

Q3 gross margin

Approximately 13.9%

Third quarter 2026; compared with 10.1% in Q3 2025

Q3 net loss

$12.10 million to $13.10 million

Preliminary estimate; primarily reflects a non-cash unrealized loss

Nine-month net sales

Approximately $10.94 million

Nine months ended September 30, 2026; compared with $14.95 million in 2025

Nine-month gross margin

Approximately 26.2%

Nine months ended September 30, 2026; compared with 23.2% in 2025

Nine-month net income

$19.50 million to $20.50 million

Preliminary estimate; primarily reflects a non-cash unrealized gain, partially offset by income tax expense

Share repurchase program

Up to $30 million

Recently approved by the board

Expected AI infrastructure services revenue

Over US$100 million

Over the next five years; subject to satisfaction of certain closing conditions

Previous Earnings Reports

1 past event · Latest: Aug 14

Same Type 1 event

1. Aug 14

   Q2 earnings

   24h Move

   -1.3%

   Q2 reported $32.4 million net income, mainly from a $42.1 million unrealized investment gain.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

unrealized loss, unrealized gain, share repurchase program, form 10-q, +1 more

5 terms

unrealized loss financial

"primarily reflecting a non-cash unrealized loss"

An unrealized loss is the drop in value of an investment that you still own — it's a loss on paper, not one you've locked in by selling. It matters to investors because it changes the reported worth of a portfolio and can influence decisions about holding, selling, or rebalancing; like seeing a car’s resale value fall while you still drive it, the loss only becomes permanent if you sell.

unrealized gain financial

"primarily reflecting a non-cash unrealized gain"

An unrealized gain is the increase in value of an investment that you still hold and have not sold, so the profit exists on paper but hasn’t been converted into cash. Like a balloon that has inflated but hasn’t been popped, it raises your reported net worth and signals how well an investment is performing, yet it can fall before you sell; investors watch unrealized gains to decide when to lock in profits, manage risk, and plan for taxes.

share repurchase program financial

"approved a share repurchase program of up to $30 million"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

form 10-q regulatory

"in its Quarterly Report on Form 10-Q"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

gaap financial

"prepared in accordance with U.S. generally accepted accounting principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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LOS ANGELES, Nov. 03, 2026 (GLOBE NEWSWIRE) -- XMax Inc. (NASDAQ: XMAX, “XMAX” or the “Company”), a distributor of contemporary furniture and artificial intelligence software and platform-based service provider, today announced selected preliminary unaudited financial results for the third quarter and nine months ended September 30, 2026.

Preliminary Third Quarter 2026 Financial Highlights:

• Net Sales: Approximately $6.42 million, compared to $9.76 million in the third quarter of 2025.
• Gross Profit: Approximately $0.89 million, representing a gross margin of approximately 13.9%, compared to 10.1% in the third quarter of 2025.
• Net Loss: Expected to be in the range of $12.10 million to $13.10 million, primarily reflecting a non-cash unrealized loss
  
  

Preliminary Nine Months Ended September 30, 2026 Financial Highlights:

• Net Sales: Approximately $10.94 million, compared to $14.95 million for the nine months ended September 30, 2025.
• Gross Profit: Approximately $2.87 million, representing a gross margin of approximately 26.2%, compared to 23.2% for the nine months ended September 30, 2025.
• Net Income: Expected to be in the range of $19.50 million to $20.50 million, primarily reflecting a non-cash unrealized gain, partially offset by income tax expense.
  
  

Management Commentary

“The third quarter was a period of transition for XMax as we continued to build our AI business alongside our furniture distribution business,” said Andy Lu, Chief Executive Officer of XMax. “We have continued to make commercial progress in AI,” Mr. Lu added. “Since mid-September, we have announced our cooperation with apM Group in Korea, our entry into an agreement to acquire Hexa Creation Inc., and an AI infrastructure services agreement that we expect to generate over US$100 million in revenue over the next five years, subject to satisfaction of certain closing conditions. Our focus now is on executing on and commercializing these initiatives. Our Board of Directors recently approved a share repurchase program of up to $30 million, which reflects our confidence in our long-term strategy and our commitment to disciplined capital allocation.”

Preliminary Financial Information

The unaudited financial information presented in this press release is preliminary and subject to change. The Company's financial closing and review procedures with respect to the preliminary financial information have not yet been completed, and the Company's independent registered public accounting firm has not completed its review of, and does not express an opinion or any other form of assurance with respect to, the preliminary financial information. As a result, the Company's final reported financial results may differ materially from the preliminary amounts presented in this release.

The preliminary financial information reflects the Company's current estimates based on information available as of the date of this release and should not be viewed as a substitute for complete financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). The preliminary results may be affected by the completion of financial closing procedures, final adjustments and other developments.

The Company expects to report its complete financial results for the third quarter and nine months ended September 30, 2026 in its Quarterly Report on Form 10-Q, which it expects to file with the Securities and Exchange Commission on or before November 16, 2026.

About XMax Inc.

Headquartered in Commerce, California, XMax Inc. (NASDAQ: XMAX), formerly known as Nova LifeStyle, Inc., is a diversified company engaged in the design, sourcing, and distribution of contemporary furniture, as well as the development of artificial intelligence technologies and applications. The Company operates through an established global network of suppliers, distributors, and e-commerce channels, serving a broad customer base. In addition, the Company is expanding into artificial intelligence technologies, including AI software and platform-based services through its wholly owned subsidiaries XMax AI Inc. and Elonx AI Holdings PTE. LTD., to support future growth. By leveraging emerging technologies, the Company aims to drive diversification and long-term value creation.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including, among others, statements regarding the Company's preliminary financial results for the third quarter and nine months ended September 30, 2026, our expected future growth prospects, our ability to successfully deploy and commercialize our AI platform and services, our ability to generate revenue from our AI initiatives, the satisfaction of the closing conditions under, and the expected benefits of, our GPU-as-a-service agreement, the timing, manner and amount of any repurchases under our share repurchase program, and our plans to regain compliance with Nasdaq Listing Rule 5635(d). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory,” “focus,” “work to,” “attempt,” “pursue,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including adjustments arising from the completion of our financial closing procedures and the review of our interim financial statements; fluctuations in the value of our investments; whether the board approval and security conditions under the GPU-as-a-service agreement are satisfied and the performance of our counterparties; changes in the trading price of our common stock and market conditions; our ability to regain and maintain compliance with Nasdaq listing requirements; and the other risks described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required by law.

Investor Relations Contact
ICR LLC.
XMaxIR@icrinc.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were XMax's preliminary third-quarter 2026 financial results?

XMax reported net sales of approximately $6.42 million and expects a net loss of $12.10 million to $13.10 million. Sales compared with $9.76 million in the third quarter of 2025. Gross profit was approximately $0.89 million, with gross margin of approximately 13.9% versus 10.1% a year earlier.

When does XMax expect to file its complete third-quarter 2026 results?

XMax expects to file its Quarterly Report on Form 10-Q with the SEC on or before November 16, 2026. The report will cover the third quarter and nine months ended September 30, 2026. Final reported results may differ materially from the preliminary amounts.