Gaxos.AI Inc. reported a more than 7,500 percent surge in first-quarter revenue, driven by its new artificial intelligence and health-tech ventures, though the growth came at the cost of a wider net loss.
The technology company, which is developing a portfolio of AI-powered applications, did not provide a quote from management in its quarterly filing. The results reflect the company's first full quarter of operations for its new Gaxos Labs and Gaxos Health segments.
For the quarter ended March 31, 2026, Gaxos.AI posted revenue of $1.81 million, up from just $23,732 in the same period last year. The company’s net loss nearly doubled to $2.47 million, or $0.25 per share, compared to a loss of $1.23 million, or $0.17 per share, a year ago. The company did not provide guidance or consensus estimate comparisons in its filing.
The widening loss was driven by a 208 percent increase in operating expenses to $4.36 million, primarily from a surge in advertising and marketing costs to support the new product launches. The company's stock performance following the release was not immediately available.
The revenue surge was primarily generated by two new business lines. The company's RNK Health subsidiary, a partnership focused on marketing health-related products, generated $1.25 million in administrative services revenue. Its Gaxos Labs segment, which includes AI applications like Art-Gen.AI and UnGPT.ai, brought in $563,458 from subscription services.
Gaxos.AI has been actively expanding its portfolio, recently launching several AI tools and making a $2.9 million investment for a 19.99% stake in America First Defense.AI LLC in March. To fund these initiatives, the company utilized an "at the market" offering, raising approximately $5.3 million in net proceeds during the quarter.
The results highlight the company's rapid pivot to AI and health-tech, showing early signs of revenue traction. However, the accompanying increase in cash burn and losses puts the focus on the company's path to achieving profitability as it scales its new operations.
This article is for informational purposes only and does not constitute investment advice.
