Gaxos Q2 Revenue Hits Record $2.46M, Up 1,337% YoY; First GAAP Profit
GXAI sits 65% above its 52-week low of $0.735.
Summary
Gaxos reported record Q2 revenue of $2.46 million, up 35.8% sequentially and 1,337% year-over-year, driven by its health and AI units. The company posted GAAP net income of $241,056, or $0.02 per share, primarily from the gaming asset sale. Advertising spend rose only 13.5% sequentially, improving revenue per ad dollar to $0.78 from $0.65. Cash remains strong at $11.44 million, and the company sold $1.0 million through its ATM in Q2 but none since July 1. This follows the reverse stock split approval on August 11 and the $1 million buyback authorization on August 3. The revenue acceleration and first GAAP profit are notable for a micro-cap, but the company still spends $1.28 on advertising for every $1 of revenue, and the profit is largely a one-time gain from the gaming divestiture.
At the time of this announcement, GXAI was trading at $1.21 on NASDAQ in the Technology sector, with a market capitalization of approximately $9.4M. The 52-week trading range was $0.73 to $2.96. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.