XMax Inc. Announces Third Quarter 2026 Financial Results

Rhea-AI Summary

XMax (NASDAQ: XMAX) reported third-quarter 2026 revenue of $6.4 million, down 34% from the same period a year earlier. API-based services contributed $4.5 million in their first full quarter; furniture revenue fell 81% to $1.9 million. The prior-year quarter included a $7.9 million marble slab liquidation sale.

Gross profit fell to $0.9 million from $1.0 million, while gross margin rose to 14% from 10%. Net loss widened to $9.0 million from $1.1 million, primarily reflecting a $10.5 million non-cash unrealized investment loss, partly offset by a $3.6 million deferred tax benefit. At September 30, cash was $10.6 million and working capital was $22.0 million, both above year-end levels.

In October, XMax signed an agreement for capacity of up to 512 NVIDIA B300 GPUs, subject to closing conditions. The board also authorized up to $30 million in share repurchases.

10 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 7 points

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

Positive

• Moderate pointAPI-based services revenue of $4.5 million marked the business's first full quarter of contribution.
• Moderate pointGross margin rose to 14% in third-quarter 2026 from 10% a year earlier.
• Moderate pointWorking capital rose to $22.0 million at September 30, 2026, from $9.4 million at December 31, 2025.
• Moderate pointFirst-nine-month net income was $23.6 million in 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Up to $30 million in repurchases authorized in October; purchases commenced November 5, 2026, below $5.50 per share. 7.8% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Up to 512 NVIDIA B300 GPUs covered by an October agreement for dedicated capacity.

4 minor points

• Minor pointFurniture gross margin was 51% in third-quarter 2026.
• Minor point$3.6 million deferred tax benefit partly offset the third-quarter investment loss.
• Minor pointCash increased to $10.6 million at September 30, 2026, from $6.7 million at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.AI expansion remains a company priority through XMax AI in the U.S. and Elonx AI Holdings in Singapore.

Negative

• Moderate pointNet loss widened to $9.0 million in third-quarter 2026 from $1.1 million a year earlier.
• Moderate pointRevenue fell 34% to $6.4 million in third-quarter 2026 from $9.8 million a year earlier.
• Minor point$10.5 million non-cash unrealized loss on the Preamble Capital investment primarily drove the quarterly net loss.
• Minor pointFurniture revenue fell 81% to $1.9 million; the prior-year quarter included a $7.9 million liquidation sale.
• Minor pointGross profit declined to $0.9 million in third-quarter 2026 from $1.0 million a year earlier.

2 minor points

• Minor pointAPI-based services were approximately break-even at the gross level in third-quarter 2026.
• Minor pointGPU capacity agreement remains subject to closing conditions.

News Explained

XMax has moved its previously authorized buyback into execution: it says open-market purchases of common stock began November 5, 2026, funded from existing cash, and must be made below $5.50 per share.

Key Figures

Revenue: $6.4 million, down 34% from $9.8 million Gross margin: 14%, compared with 10% Net loss: $(9.0) million +5 more

Revenue

$6.4 million, down 34% from $9.8 million

Third quarter 2026 vs. third quarter 2025

Gross margin

14%, compared with 10%

Third quarter 2026 vs. third quarter 2025

Net loss

$(9.0) million

Third quarter 2026

Unrealized investment loss

$10.5 million

Non-cash loss on the investment in Preamble Capital

Net income

$23.6 million

First nine months of 2026

Working capital

$22.0 million, up from $9.4 million

September 30, 2026 vs. December 31, 2025

Share repurchase program

Up to $30 million

Authorized by the Board; repurchases commenced November 5, 2026

GPU capacity

Up to 512 GPUs

Dedicated NVIDIA B300 capacity agreement, subject to closing conditions

Previous Earnings Reports

2 past events · Latest: Nov 03

Same Type 2 events

1. Nov 03

   Q3 preliminary earnings

   24h Move

   +24.4%

   Preliminary Q3 estimates showed falling sales and an expected investment-driven net loss, later finalized here.

2. Aug 14

   Q2 earnings results

   24h Move

   -1.3%

   Net income reflected a Preamble unrealized gain while gross margin declined amid initial AI services costs.

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

Key Terms

api, unrealized loss, deferred tax benefit, rule 10b-18

4 terms

api technical

"including $4.5 million from API-based services"

An API, or Application Programming Interface, is a set of rules that allows different software programs to communicate and work together smoothly, much like a waiter translating your order into the kitchen and then bringing your meal back. For investors, APIs are important because they enable real-time access to financial data, trading systems, and other digital services, making it easier to make informed decisions quickly and efficiently.

unrealized loss financial

"a $10.5 million non-cash unrealized loss on the Company's investment"

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.

deferred tax benefit financial

"partially offset by a $3.6 million deferred tax benefit"

A deferred tax benefit is an accounting entry that represents taxes a company will save in the future because current accounting records and tax rules don’t match or because the company can use past losses to offset future taxable income. Think of it like a coupon for lower tax bills later: it doesn’t put cash in the bank today but reduces expected future taxes, so investors watch it to judge future profitability, cash flow and the realism of reported earnings.

rule 10b-18 regulatory

"in the open market in accordance with Rule 10b-18"

Rule 10b-18 is a regulation that sets strict rules for how a company's executives and employees can buy back their own company's stock from the market. It helps ensure that these buybacks happen in a fair and transparent way, reducing the chance of market manipulation. This is important for investors because it offers protection against unfair practices and promotes confidence in the integrity of the stock market.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LOS ANGELES, Nov. 13, 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 financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights

• Revenue: $6.4 million, down 34% from $9.8 million in the third quarter of 2025, including $4.5 million from API-based services and $1.9 million from furniture (down 81%, as the prior-year period included a $7.9 million marble slab liquidation sale)
• Gross Profit: $0.9 million, representing a 14% gross margin, compared to gross profit of $1.0 million and gross margin of 10% for the third quarter of 2025
• Net Loss: $(9.0) million, driven primarily by a $10.5 million non-cash unrealized loss on the Company's investment in Preamble Capital and partially offset by a $3.6 million deferred tax benefit, compared to a net loss of $(1.1) million in the third quarter of 2025
• Cash and Cash Equivalents: $10.6 million as of September 30, 2026, compared to $6.7 million at December 31, 2025
• Working Capital: $22.0 million as of September 30, 2026, up from $9.4 million at December 31, 2025
  

Management Commentary

“The third quarter of 2026 was a period of rapid scaling for XMax as our API-based services generated $4.5 million of revenue, their first full quarter of contribution,” said Xiaohua Lu, Chief Executive Officer of the Company. “We reported a net loss of $9.0 million for the quarter, driven primarily by a $10.5 million non-cash unrealized loss on our investment in Preamble Capital, partly offset by a $3.6 million deferred tax benefit. For the first nine months, net income was $23.6 million, while our balance sheet was supported by approximately $10.6 million in cash, $22.0 million in working capital and a $79.3 million investment in Preamble Capital funds as of September 30, 2026.”

“Our overall gross margin was 14% in the third quarter, compared to 10% a year ago, when results included a low-margin marble slab liquidation sale. Furniture gross margin was 51%, while our API-based services were approximately break-even at the gross level as we scale,” Mr. Lu continued. “Total revenue declined 34% to $6.4 million as furniture sales fell 81% to $1.9 million, reflecting the prior-year liquidation sale, challenging market conditions and tariffs, only partly offset by $4.5 million from our API-based services. With working capital of $22.0 million, up from $9.4 million at year-end, we have financial flexibility to pursue our strategic AI initiatives.”

“Looking ahead, our priority is to scale our AI offerings through XMax AI Inc. in the U.S. and Elonx AI Holdings PTE. LTD. in Singapore, while allocating capital with discipline to build long-term value for our shareholders,” Mr. Lu added. “In October, we signed an agreement for dedicated NVIDIA B300 GPU capacity of up to 512 GPUs, subject to closing conditions. Combined with our live API platform, this would meaningfully expand the compute we can offer enterprise customers building AI into their products and operations.”

“We are also committed to returning value to shareholders,” Mr. Lu added. “In October, our Board authorized a share repurchase program of up to $30 million, to be funded from existing cash and shares shall be repurchased at prices below $5.50 per share and the Company has commenced repurchases of its common stock on November 5, 2026 through its engaged broker-dealer with purchases made from time to time in the open market in accordance with Rule 10b-18.”

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 may contain 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, including, among others, our ability to fully resume our operations and remain financially healthy, our expected future growth prospects, our ability to successfully deploy and commercialize our AI platform and services, and our ability to generate revenue from our AI initiatives. 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.

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 third-quarter 2026 financial results?

XMax reported $6.4 million in revenue and a $9.0 million net loss for the quarter ended September 30, 2026. Revenue declined 34% from $9.8 million a year earlier, while the net loss widened from $1.1 million. Gross margin increased to 14% from 10%.

What are the terms of XMax's share repurchase program?

XMax's board authorized repurchases of up to $30 million, funded from existing cash, at prices below $5.50 per share. Repurchases commenced November 5, 2026, through an engaged broker-dealer, with purchases made from time to time in the open market under Rule 10b-18.

How large was XMax's Preamble Capital funds investment at September 30, 2026?

XMax held a $79.3 million investment in Preamble Capital funds as of September 30, 2026.