First Quarter 2026 Financial Highlights
Net Sales: $1.8 million, down 32% from $2.6 million in the first quarter of 2025
Gross Profit: $0.9 million, representing a 50% gross margin, compared to gross profit of $1.2 million and gross margin of 46% for the first quarter of 2025
Net Income: $0.2 million, improved from a net loss of $(0.3) million in the first quarter of 2025
Cash and Cash Equivalents: $9.9 million as of March 31, 2026, compared to $6.7 million at December 31, 2025
Working Capital: $18.2 million as of March 31, 2026, up from $9.4 million at December 31, 2025
Key Developments
Strategic Expansion into Artificial Intelligence
In March 2026, XMax's Board of Directors approved a strategic expansion into artificial intelligence (AI) while continuing to operate and develop its existing furniture business. The initiative is designed to diversify revenue streams and position the Company for long-term growth amid challenging conditions in the furniture market.
Under the new strategy, the Company plans to enter several high-growth AI segments, including:
AI software and hardware development
Cloud and GPU compute infrastructure
AI model access and orchestration
Enterprise-focused AI agent deployment
On April 1, 2026, the Company formally established a wholly owned subsidiary, XMax AI Inc. ("XMax AI") On April 6, 2026, XMax AI Inc. entered into an AI Inference Platform Deployment and Service Agreement with Cloud Alliance Inc. to develop and deploy a cloud-based AI inference platform to the Amazon Web Services (AWS) cloud environment designated by XMax AI. The platform is designed to support scalable AI application ...
