By Lisa Thompson
READ THE FULL GXAI RESEARCH REPORT
Gaxos.AI (NASDAQ: GXAI) continues to beat on the top line as it spends on advertising and brings in new customers. Again, we have to raise revenue estimates as the company is bringing in customers faster than expected. As a result, we are raising our revenue forecast for the year to $8.7 million. Initially, a customer will be unprofitable as the company absorbs the loss of acquiring them, but repeat orders add to profits. Management is exploring ways to increase its profit margins and is testing using different partners for fulfillment for the health business as a possible way to do that.
During the quarter, the company invested in America First Defense .ai LLC (AFD) by acquiring a 19.99% stake in this New Mexico-based defense technology start-up for $2.9 million in cash. Gaxos says that America First Defense is a defense technology company developing next-generation security platforms across both air and ground domains. The company is focused on two high-priority categories: a detachable counter-drone system designed to neutralize hostile UAVs through precise protocol-level cyber-attacks without collateral jamming, and a biomimetic soft robotics platform engineered for low-detection ground and subsurface operations. Gaxos announced that AFD had secured a license for the Detachable Drone Highjacker (DDH), a drone-mounted electronic warfare payload originally developed at the Naval Postgraduate School to counter and defeat hostile Unmanned Aircraft Systems (UAS). The licensing agreement positions America First Defense to further develop and commercialize a scalable airborne counter-UAS capability for defense, security, and protection applications. Then on March 18, 2026, Gaxos.ai Inc. announced that America First Defense had been accepted into Anduril's Lattice Program. Anduril’s Lattice is an AI-powered, software-defined operating system designed to manage, integrate, and command autonomous defense and security systems.
The stock trades at a negative enterprise value of $59,000, using $11.7 million in cash plus short-term investments and the current share count. We believe the stock could be worth $2.70, based on $8.6 million in revenue in 2026 at a blended EV-to-Sales, in line with its peers.
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