LOS ANGELES, Aug. 14, 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 second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights
- Net Sales: $2.7 million, up 7% from $2.6 million in the second quarter of 2025
- Gross Profit: $1.1 million, representing a 40% gross margin, compared to gross profit of $1.3 million and gross margin of 50% for the second quarter of 2025
- Net Income: $32.4 million, driven primarily by a $42.1 million unrealized gain on the Company's investment in Preamble Capital, compared to a net loss of $(0.3) million in the second quarter of 2025
- Cash and Cash Equivalents: $34.6 million as of June 30, 2026, compared to $6.7 million at December 31, 2025
- Working Capital: $45.3 million as of June 30, 2026, up from $9.4 million at December 31, 2025
Management Commentary
"The second quarter of 2026 was a transformative period for XMax as we launched our API platform, generated our first AI-related revenue," said Xiaohua Lu, Chief Executive Officer of the Company. "We reported net income of $32.4 million, driven primarily by a $42.1 million unrealized gain on our investment in Preamble Capital, while our balance sheet was further strengthened by approximately $34.6 million in cash and $45.3 million in working capital as of June 30, 2026."
"Our overall gross margin was 40% in the second quarter, compared to 50% a year ago, primarily reflecting the initial cost mix of our new AI-based services," Mr. Lu continued. "Total revenue grew 7% as our new API-based services contributed for the first time, while our furniture sales declined due to challenging market conditions and the impact of tariffs. With our working capital increasing to $45.3 million, we have significant financial flexibility to pursue our strategic AI initiatives."
"As we move forward, we are focused on our key priorities: building scalable AI software and platform-based services through our wholly owned subsidiaries, XMax AI Inc. in the U.S. and Elonx AI Holdings PTE. LTD. in Singapore, and deploying capital strategically to create long-term shareholder value," Mr. Lu added. "The launch of our API platform, together with the service agreements we have executed with new customers, represent important steps in establishing our AI infrastructure and service capabilities, positioning us to serve enterprise customers seeking to integrate advanced AI capabilities into their commercial applications."
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
