XMax Inc. Announces Third Quarter 2026 Financial Results

Xiaohua Lu, Chief Executive Officer of XMax Inc.

“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”

Xiaohua Lu, Chief Executive Officer of XMax Inc.

“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.”

Xiaohua Lu, Chief Executive Officer of XMax Inc.

“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”

Xiaohua Lu, Chief Executive Officer of XMax Inc.

“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.”

Xiaohua Lu, Chief Executive Officer of XMax Inc.

“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.”

Xiaohua Lu, Chief Executive Officer of XMax Inc.

“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.”

Xiaohua Lu, Chief Executive Officer of XMax Inc.

“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.”