XMax Inc., formerly known as Nova LifeStyle, Inc., reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2025. The company achieved revenues of $16.72 million, marking a 73% increase from $9.69 million in 2024. This growth was primarily driven by a 102% rise in average selling prices, although it was partially offset by a 15% decline in sales volume. The largest product categories contributing to sales included marble slabs, sofas, and coffee tables, which accounted for approximately 47%, 30%, and 5% of total sales, respectively.
Despite the increase in revenue, XMax Inc. reported a net loss of $3.42 million for 2025, an improvement from the $5.56 million loss in the previous year. The gross profit margin decreased to 25% from 44% in 2024, largely due to the lower profit margins associated with the sale of marble slabs. Operating expenses also decreased significantly to $6.11 million from $9.61 million, reflecting reduced marketing and administrative costs, as well as a complete cessation of research and development expenses related to abandoned AI initiatives.
Strategically, XMax Inc. is diversifying its operations by expanding into artificial intelligence (AI) while continuing to develop its core furniture business. The company plans to enter high-growth AI segments, including software and hardware development, cloud infrastructure, and enterprise-focused AI solutions. This initiative aims to create new revenue streams and enhance long-term growth potential. In April 2026, the company incorporated XMax AI Inc. and entered into a service agreement for the development of an AI inference platform.
Operationally, XMax Inc. has seen a shift in its customer base, with sales to Hong Kong increasing significantly, while sales to North America decreased by 8%. The company is also focusing on improving its supply chain by seeking to source products from manufacturers in countries with lower tariffs, such as Vietnam and India, although most production remains in China due to quality considerations. As of December 31, 2025, the company had 22 full-time employees and reported a working capital of $9.39 million, indicating a strong liquidity position.
Looking ahead, XMax Inc. anticipates that its strategic initiatives in AI and continued focus on high-margin products will position the company for future growth. However, the company acknowledges potential risks, including economic instability, competition, and supply chain disruptions, which could impact its financial performance. The management remains optimistic about leveraging its existing relationships and expanding its market presence to capitalize on emerging opportunities.
About Nova Lifestyle, Inc.
Nova Lifestyle, Inc. designs and markets contemporary residential and commercial furniture globally, featuring modern styles and versatile collections. The company operates through wholly-owned subsidiaries, supplying products primarily to North American markets via wholesale, retail, and online channels. It emphasizes quality, trend responsiveness, and efficient supply chain management, competing on design, price, and service while managing international sourcing and trade risks.
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