Gaxos.ai Inc.

What they do

Gaxos.AI builds and markets AI-powered applications through its Gaxos Labs studio, including UnGPT.ai (AI text humanization), Art-Gen.AI (image/video generation), and Bible Pray AI (spiritual wellness). It also operates Gaxos Health (AI wellness) and a 70%-owned RNK Health subsidiary marketing health products. The company recently sold substantially all its gaming assets to Game Foundry AI, receiving 2.2 million shares of Game Foundry AI common stock.

Revenue drivers

• UnGPT.ai — AI text rewriting tool; likely subscription or usage-based, launched May 2025; contributes to overall consumer app revenue.
• Art-Gen.AI — AI image and video creation platform launched August 2025; monetizes through content creation features; part of Gaxos Labs portfolio.
• Bible Pray AI — Founded December 2025; AI-powered spiritual growth platform; part of expansion into digital faith and wellness; revenue from user subscriptions or engagement.
• Advertising-driven consumer apps — Revenue driven largely by advertising, with $0.78 revenue per advertising dollar in Q2 2026; advertising expense was 128% of revenue in Q2.

Recent performance

For Q2 2026, revenue was a record $2.46 million, up 35.8% sequentially and 1,337% year-over-year. GAAP net income was $241,056, or $0.02 per share, primarily due to a gain from the gaming asset sale. Advertising and marketing expense was $3.14 million, up 13.5% sequentially. Cash and short-term investments were $11.44 million as of June 30, 2026. Annual revenue grew from $4,027 in 2024 to $1.9 million in 2025.

Strategy

Management focuses on improving customer-acquisition efficiency, with advertising expense growing slower than revenue. The company completed the sale of its gaming assets to Game Foundry AI to concentrate on core AI applications. It intends to scale products and channels with favorable contribution economics. Gaxos retains a 19.99% ownership stake in America First Defense.AI LLC. The company plans to provide additional operating measurements where reliable.

Risks

• Limited operating history — The company has a limited history and cannot accurately project revenues or expenses, with no sustainable revenue generation since inception.
• Dependence on advertising efficiency — Advertising expense still exceeds revenue ($3.14M vs $2.46M in Q2), so any deterioration in marketing ROI could hurt profitability.
• Product and market uncertainty — Rapidly evolving AI markets and uncertainty about how they develop could reduce ability to forecast growth.
• Need for additional capital — Although cash is $11.44M, the company has funded operations through ATM offerings and may need more capital to scale products.

Outlook

Management intends to focus on increasing recurring and repeat revenue, improving customer-acquisition efficiency, and scaling products with favorable contribution economics. They plan to maintain discipline in operating expenditures and capital allocation. The company will provide additional operating measurements where reliable and appropriate.