Gaxos.ai Inc. Common Stock (GXAI)

FairStock Score: 44/100 — MIXED

Key Financials

Current Price$0.46
Market Cap$5M
P/E Ratio-0.95
ROE-30.24%
Dividend Yield0%
SectorCommunication Services

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business and the numbers, not the story. Gaxos.ai is a three-employee company selling AI applications for game developers and publishers through Gaxos Labs, plus a gaming platform. That is a difficult, fast-moving field, and I see no durable moat in the provided figures. The reported record is mostly a chronic loss: in fiscal 2023 revenue was $256 and net loss was $3.9M; fiscal 2024 revenue was $4,027 and net loss was $3.4M; fiscal 2025 revenue was $1.9M and net loss was $3.9M. The Lynch category is none for a good reason: losses in each of the last four years. There is a flicker of hope in fiscal Q2 2026, the quarter ended 2026-06-30, when revenue was $2.5M and net income was $241,056, or $0.02 diluted EPS. But fiscal Q1 2026, the quarter ended 2026-03-31, produced a $2.2M net loss on $1.8M revenue, so one profitable quarter is not a trend. Trailing free cash flow is -$5.5M, and FairStock's FCF yield is -105.9% of the $5.2M market cap at the 2026-10-13 close. FairStock also shows P/E -1.02, P/B 0.30, ROE -30.24%, ROCE -26.45%, Piotroski 3/9, and Altman Z 2.10. A P/B of 0.30 looks cheap on paper, but when a business is burning cash and has no annual profits, book value can be a mirage. Revenue growth of 999.00% is from a tiny base, and profit growth of -82.29% is weak. I would want evidence of durable positive cash flow and a real competitive advantage before calling this a bargain. Price alone is not value.

In plain English: Gaxos.ai makes AI tools for game makers and also develops games. The business has mostly lost money and used cash, though the latest reported quarter showed a small profit. At $0.48 a share, the price looks very low compared with its accounting value, but the losses and cash burn make it hard to say the price is truly cheap rather than risky.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer