Revenue: As of FY2026 Q1, the actual value is USD 1.782 M.EPS: As of FY2026 Q1, the actual value is USD 0.EBIT: As of FY2026 Q1, the actual value is USD -499.79 K.XMax Inc. operates as a single reportable segment, encompassing its furniture business and newly expanded artificial intelligence (AI) initiatives.<h4>Segment Revenue</h4>Net sales decreased by 32% to $1.78 million for the three months ended March 31, 2026, from $2.64 million in the prior year period. This decrease was primarily due to a 36.92% decrease in sales volume, partially offset by a 7.16% increase in average selling price. Sales to North America decreased by 32% to $1.78 million, while sales to other countries decreased by $0.02 million to $1,519.<h4>Operational Metrics</h4><ul><li>Cost of Sales: Cost of sales decreased by 37% to $0.90 million in 2026 from $1.43 million in 2025. As a percentage of sales, cost of sales decreased to 50% in 2026 from 54% in 2025, reflecting sales of products with higher profit margins.</li><li>Gross Profit: Gross profit decreased by $0.32 million to $0.88 million in 2026 from $1.20 million in 2025. The gross profit margin increased to 50% in 2026 from 46% in 2025.</li><li>Operating Expenses: Total operating expenses were $1.42 million in 2026, slightly up from $1.40 million in 2025.<ul><li>Selling Expenses: Selling expenses increased by 13% or $0.04 million to $0.37 million in 2026 from $0.33 million in 2025, mainly due to increased marketing and advertising.</li><li>General and Administrative Expenses: General and administrative expenses decreased by 2% or $0.02 million to $1.05 million in 2026 from $1.07 million in 2025, driven by a decrease in accounting and auditing fees and consulting fees, partially offset by increased legal and professional fees and travel expenses.</li><li>Research and Development: Research and development expenses were $0 in 2026 compared to $390 in 2025.</li></ul></li><li>Loss from Operations: Loss from operations increased to - $0.53 million in 2026 from - $0.19 million in 2025.</li><li>Other Income (Expenses), Net: This shifted to an income of $0.73 million in 2026 from an expense of - $0.21 million in 2025, an increase of $0.94 million, primarily due to an unrealized gain of $0.79 million from investment in the Preamble fund.</li><li>Income Tax Benefit (Expense): Income tax benefit (expense) was $0 in 2026 compared to a benefit of $62,260 in 2025, mainly due to the unrealized gain being non-taxable in 2026.</li><li>Net Income (Loss): XMax Inc. reported a net income of $0.19 million in 2026, a significant improvement from a net loss of - $0.34 million in 2025.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Used in Operating Activities: Net cash used in operating activities was - $0.64 million in 2026, an increase in cash outflow of $0.32 million from - $0.32 million in 2025. This was influenced by decreased cash inflow for inventory and increased cash outflow for other current assets, partially offset by increased cash inflow from accounts payable, contract liabilities, and delayed payments for accrued liabilities.</li><li>Net Cash Used in Investing Activities: Net cash used in investing activities was - $8.35 million in 2026, compared to $0 million in 2025, primarily due to a $5.30 million loan to a third party and a $3.05 million investment in Preamble Capital LLC funds.</li><li>Net Cash Provided by Financing Activities: Net cash provided by financing activities was $12.20 million in 2026, up from $0.28 million in 2025, mainly from issuing stocks to investors for $12.20 million.</li><li>Cash and Cash Equivalents, End of Period: Cash and cash equivalents increased to $9,911,255 as of March 31, 2026, from $147,300 as of March 31, 2025.</li></ul><h4>Unique Metrics</h4><ul><li>Working Capital: Working capital was $18,187,987 as of March 31, 2026, an increase of $8,798,031 from $9,389,956 as of December 31, 2025.</li><li>Current Ratio: The current ratio was 12.99-to-1 as of March 31, 2026.</li><li>Investment in Fund: Investment in fund was $26.95 million as of March 31, 2026, compared to $23.10 million as of December 31, 2025.</li><li>Loan to Third Party: A loan to a third party amounted to $5,354,888 as of March 31, 2026, with no comparable amount as of December 31, 2025.</li></ul><h4>Future Outlook and Strategy</h4>XMax Inc. is strategically expanding into artificial intelligence (AI) while continuing its furniture business to diversify revenue streams and achieve long-term growth. The AI strategy includes developing AI software and hardware, cloud and GPU compute infrastructure, AI model access, orchestration, and enterprise-focused AI agent deployment, with plans to raise capital for these initiatives. The company anticipates its current financial resources will be sufficient for the next 12 months, though it acknowledges potential instability in securities markets for future capital raising.

XMAX | 10-Q: FY2026 Q1 Revenue: USD 1.782 M