Revenue plummeted 97.8% year-over-year in 2025Q4, while gross margins deteriorated to -149.5%, indicating that the cost of service delivery now vastly exceeds generated income.
Xiao-I Corporation (AIXI) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 50.76M | 12.33M | 70.31M | 59.17M | 48.18M | 32.52M | 13.86M |
| Revenue Growth % | -60.1% | -82.47% | 18.84% | 22.79% | 48.15% | 134.72% | - |
| Cost of Goods Sold | 19.1M | 6.85M | 22.26M | 19.74M | 17.38M | 10.89M | 7.23M |
| COGS % of Revenue | - | 55.56% | 31.66% | 33.37% | 36.07% | 33.47% | 52.16% |
| Gross Profit | 31.66M | 5.48M | 48.05M | 39.42M | 30.81M | 21.64M | 6.63M |
| Gross Margin % | 62.37% | 44.44% | 68.34% | 66.63% | 63.93% | 66.53% | 47.84% |
| Gross Profit Growth % | - | -88.6% | 21.88% | 27.97% | 42.37% | 226.43% | - |
| Operating Expenses | 138.68M | 102.08M | 60.92M | 61.35M | 33.94M | 16.64M | 14.5M |
| OpEx % of Revenue | - | 828.07% | 86.64% | 103.69% | 70.44% | 51.17% | 104.63% |
| Selling, General & Admin | 105.65M | 77.63M | 26.26M | 8.96M | 9.94M | 11.28M | 10.26M |
| SG&A % of Revenue | - | 629.69% | 37.35% | 15.14% | 20.63% | 34.67% | 74.05% |
| Research & Development | 33.03M | 24.46M | 34.66M | 52.39M | 24M | 5.36M | 4.24M |
| R&D % of Revenue | - | 198.39% | 49.29% | 88.54% | 49.81% | 16.49% | 30.58% |
| Other Operating Expenses | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -107.01M | -96.6M | -12.87M | -21.92M | -3.14M | 5M | -7.87M |
| Operating Margin % | -210.82% | -783.63% | -18.3% | -37.05% | -6.51% | 15.36% | -56.79% |
| Operating Income Growth % | - | -650.55% | 41.29% | -599.1% | -162.75% | 163.5% | - |
| EBITDA | -106.19M | -96.43M | -11.73M | -20.61M | -2.24M | 6.26M | -6.32M |
| EBITDA Margin % | -209.18% | -782.25% | -16.68% | -34.84% | -4.65% | 19.24% | -45.59% |
| EBITDA Growth % | -164.67% | -722.33% | 43.11% | -819.97% | -135.81% | 199.04% | - |
| D&A (Non-Cash Add-back) | 828.72K | 170.26K | 1.14M | 1.31M | 895.11K | 1.26M | 1.55M |
| EBIT | -107.01M | -98.75M | -12.23M | -20.89M | -2.9M | 5.78M | -6.07M |
| Net Interest Income | -5.94M | -3.08M | -2.32M | -2.32M | -2.44M | -1.87M | -1.03M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.94M | 3.08M | 2.32M | 2.32M | 2.44M | 1.87M | 1.03M |
| Other Income/Expense | -7.17M | -5.22M | -1.68M | -1.3M | -2.21M | -1.08M | 577.68K |
| Pretax Income | -114.19M | -101.83M | -14.55M | -23.22M | -5.34M | 3.92M | -7.29M |
| Pretax Margin % | -224.95% | -826% | -20.69% | -39.24% | -11.09% | 12.04% | -52.62% |
| Income Tax | 0 | 0 | 0 | 3.79M | 660.65K | 552.36K | -235.85K |
| Effective Tax Rate % | 0% | 0% | 0% | -16.31% | -12.36% | 14.1% | 3.23% |
| Net Income | -113.57M | -101.22M | -14.51M | -26.46M | -5.9M | 3.68M | -6.81M |
| Net Margin % | -223.73% | -821.09% | -20.63% | -44.73% | -12.24% | 11.31% | -49.13% |
| Net Income Growth % | -135.04% | -597.81% | 45.18% | -348.62% | -260.38% | 154.02% | - |
| Net Income (Continuing) | -114.19M | -101.83M | -14.55M | -27.01M | -6.01M | 3.37M | -7.06M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -4.33M | -4.31M | -3.57M | -3.6M | -3.1M | -3.19M | -2.82M |
| EPS (Diluted) | -398.57 | -1026.90 | -222.60 | -469.93 | -113.29 | 67.13 | -130.07 |
| EPS Growth % | -50.75% | -361.32% | 52.63% | -314.8% | -268.76% | 151.61% | - |
| EPS (Basic) | - | -1026.90 | -222.60 | -469.93 | -111.89 | 67.13 | -128.67 |
| Diluted Shares Outstanding | 284.94K | 98.82K | 65.41K | 56.3K | 52.66K | 53.24K | 52.66K |
| Basic Shares Outstanding | 284.94K | 98.82K | 65.41K | 56.25K | 52.02K | 53.24K | 52.29K |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AIXI stock.
For fiscal year 2025, Xiao-I Corporation (AIXI) reported total revenue of $12.3M. This represents a 11.0% decline compared to $13.9M in 2020.
Xiao-I Corporation (AIXI) reported a net loss of $101.2M for the fiscal year ending 2025.
Xiao-I Corporation (AIXI) reported an operating income of $-96.6M, resulting in an operating profit margin of -783.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Xiao-I Corporation (AIXI) generated $5.5M in gross profit for the year, representing a gross profit margin of 44.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Imminent liquidity and solvency
Revenue Collapse Signals Structural Distress
As reported in recent financial filings, AIXI experienced a severe 97.8% year-over-year revenue contraction in 2025Q4, reflecting a fundamental breakdown in the company's project-based B2G sales pipeline and suggesting that previous growth drivers have effectively stalled in the current municipal IT spending environment.
The precipitous drop in top-line performance indicates that the company's reliance on lumpy, one-off government contracts has become a significant liability. This trend suggests that the firm lacks a recurring revenue base to buffer against cyclical downturns in Chinese municipal budget allocations.
Gross Margin Erosion Reflects Delivery Inefficiencies
Based on the latest income statement data, AIXI's gross margin plummeted to -149.5% in 2025Q4, a stark reversal from the 71.7% levels observed in 2024Q4, which implies that the cost of fulfilling existing contracts now significantly exceeds the revenue generated from those same projects.
This negative margin suggests that the company is likely incurring substantial cost overruns or third-party infrastructure expenses that are not being offset by project pricing. Such a structural shift warrants further investigation into whether the firm is attempting to fulfill legacy obligations at a loss to maintain client relationships.
Operating Leverage Decoupled From Revenue
According to the provided quarterly data, AIXI's operating margin deteriorated to -82.9% in 2025Q4, demonstrating that the company's fixed cost base remains bloated despite the near-total evaporation of its revenue stream, which highlights a critical failure in operational scaling and expense management.
The inability to align SG&A and R&D expenditures with the current revenue reality suggests that management has not yet implemented the necessary austerity measures to preserve capital. This disconnect between overhead and top-line performance appears to be the primary driver of the company's rapid cash depletion.
Unchecked R&D Spend Amidst Revenue Decline
As indicated by the income statement, AIXI continues to sustain significant R&D and SG&A outlays despite the 97.8% revenue decline, with SG&A expenses reaching $65.8M in 2025Q4, which suggests a lack of expense discipline that threatens the company's status as a going concern.
The persistence of high operating costs in the face of collapsing revenue suggests that the company is either heavily invested in long-term patent development or is unable to quickly shed its engineering headcount. Investors should monitor whether these costs are being rationalized or if they represent a permanent, unsustainable burden on the balance sheet.
Sustainability Risks and Liquidity Constraints
Based on the reported figures, the company's net margin of -87.7% and minimal cash reserves of approximately $2.4M suggest that AIXI faces an acute liquidity crisis, raising significant doubts about its ability to fund operations without immediate, highly dilutive external capital injections.
While some may argue that the patent portfolio provides a defensive floor, the current income statement suggests that the company is burning through its remaining liquidity at an unsustainable rate. The lack of a clear path to profitability implies that the current business model may be fundamentally incompatible with the firm's existing cost structure.