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
