Gaxos.ai (NASDAQ: GXAI) announced record second-quarter 2026 consolidated revenue of approximately $2.46 million, a 35.8% increase from the first quarter's $1.81 million and a staggering 1,337% surge from $0.17 million in the same period last year. The company reported GAAP net income of $241,056, or $0.02 per basic and diluted share, primarily reflecting a gain from the sale of its gaming assets. This financial performance underscores the company's successful transition toward artificial intelligence-driven ventures.
Revenue generated per advertising dollar improved approximately 20% sequentially to $0.78, as revenue growth outpaced the 13.5% increase in advertising and marketing expenses. This efficiency gain highlights the company's focus on optimizing customer acquisition and scaling profitable channels. Gaxos ended the quarter with a robust cash position of approximately $11.44 million in cash and short-term investments, providing a solid foundation for its strategic initiatives.
During the quarter, Gaxos completed the sale of substantially all its gaming assets to Game Foundry AI in exchange for 2.2 million shares valued at approximately $1.76 million. This divestiture marks a pivotal move, allowing the company to concentrate on its core mission of developing AI-powered solutions across defense, health and wellness, entertainment, and productivity. Additionally, Gaxos maintains a 19.99% interest in America First Defense.AI LLC, positioning it in the high-growth defense AI sector.
For the remainder of 2026, Gaxos plans to focus on increasing recurring and repeat revenue, improving customer-acquisition efficiency, scaling products and channels with favorable contribution economics, and maintaining discipline in operating expenditures and capital allocation. These strategic priorities are designed to drive sustainable growth and shareholder value.
The announcement comes as Gaxos continues to build a portfolio of AI-powered solutions aimed at making advanced technology more practical and accessible. The company's pivot from gaming to AI reflects a broader industry trend, as businesses increasingly leverage artificial intelligence to transform high-impact industries. With a strong balance sheet and a clear strategic direction, Gaxos is poised to capitalize on the growing demand for AI applications.
Investors can access the full press release for more details. For ongoing updates, visit the company's newsroom. This financial milestone marks a significant step in Gaxos's evolution, demonstrating its ability to execute strategic divestitures while maintaining revenue growth and operational efficiency.
