XMax Inc. Reports 273% Revenue Growth in Q3 2025, Despite Increased Net Loss

XMax Inc., formerly known as Nova LifeStyle, Inc., reported significant financial developments in its latest 10-Q filing for the third quarter of 2025. The company achieved net sales of $9.76 million for the three months ended September 30, 2025, marking a substantial increase of 273% compared to $2.62 million in the same period of 2024. For the nine months ending September 30, 2025, net sales reached $14.95 million, a 95% increase from $7.68 million in the prior year. This growth was primarily driven by a 12% increase in sales volume and a 232% rise in average selling prices, particularly due to strong sales of marble slabs to a customer in Hong Kong.

Despite the increase in sales, the company's cost of sales also rose significantly, totaling $8.78 million for the third quarter, which represented 90% of sales, compared to 55% in the same quarter of 2024. This increase in cost of sales was attributed to the low profit margins associated with the marble slabs sold. Consequently, gross profit for the third quarter decreased to $983,803, resulting in a gross profit margin of 10%, down from 45% in the previous year. Operating expenses also saw a decline, falling to $1.47 million from $3.59 million, primarily due to reduced marketing and administrative costs.

XMax reported a net loss of $1.13 million for the third quarter of 2025, an improvement from a net loss of $2.47 million in the same quarter of 2024. For the nine-month period, the net loss was $1.76 million, compared to a loss of $4.49 million in the prior year. The company attributed this reduction in losses to lower operating expenses and a tax benefit of $757 for the third quarter, contrasting with an expense of $211 in the same period last year.

In terms of operational changes, XMax has been focusing on strategic initiatives, including a shift towards higher-margin products and the integration of advanced technologies such as AI and virtual reality into its offerings. The company has also made significant investments, including a $5 million subscription to a fund that holds shares in SpaceX, which is expected to enhance its financial position. As of September 30, 2025, XMax reported total assets of $18.29 million, a significant increase from $9.92 million at the end of 2024, driven by higher cash reserves and accounts receivable.

Looking ahead, XMax remains optimistic about its growth trajectory, emphasizing its commitment to expanding its product lines and market presence. The company plans to leverage its recent financial improvements and strategic investments to enhance its operational capabilities and drive future profitability. However, it also acknowledges potential challenges, including economic conditions and market competition, which could impact its performance.