Free cash flow remains severely constrained at -$2.5 million for 2026Q1, reflecting a persistent inability to fund operations through internal revenue generation.
| Cash from Operations | -5.05M | -3.85M | -3.28M | -2.98M | -1.26M | -3.52K |
| Operating CF Margin % | - | -199.36% | -81460.07% | -1164293.75% | - | - |
| Operating CF Growth % | -148.76% | -17.48% | -10.06% | -136.48% | -35717.7% | - |
| Net Income | -4.88M | -4.28M | -3.42M | -3.95M | -1.42M | -12.26K |
| Depreciation & Amortization | 235.51K | 204.7K | 52.44K | 10.65K | 4.19K | 0 |
| Stock-Based Compensation | 124.36K | 136.89K | 119.44K | 936.35K | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -31.2K | -21.99K | -121K | 31.7K | 0 | 0 |
| Working Capital Changes | 6.5K | 108.89K | 93K | -11.2K | 156.56K | 8.74K |
| Change in Receivables | -75.63K | -76.25K | 8 | -8 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -93.63K | -68.69K | 122.91K | -29.93K | 148.76K | 0 |
| Cash from Investing | -1.32M | -9.7M | 67.73K | -2.53M | -62.84K | 0 |
| Capital Expenditures | -62.9K | -583.05K | -195.21K | -56.97K | -62.84K | 0 |
| CapEx % of Revenue | 1.69% | 30.16% | 4847.53% | 22254.3% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -2.91M | -10K | 0 | 0 | 0 | 0 |
| Cash from Financing | 5.32M | 0 | 16.59M | 5.86M | -75.1K | 2.08M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 5.32M | 0 | 8.19M | 5.86M | -112.6K | 2.08M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -19.6K | -99.74K | 0 | 0 |
| Other Financing | 0 | 0 | 8.4M | 0 | 37.5K | 0 |
| Net Change in Cash | -1.06M | -13.56M | 13.37M | 344.93K | -1.4M | 2.08M |
| Free Cash Flow | -5.11M | -4.44M | -3.48M | -3.04M | -1.32M | -3.52K |
| FCF Margin % | -137.42% | -229.53% | -86307.6% | -1186548.05% | - | - |
| FCF Growth % | -31.87% | -27.66% | -14.42% | -129.55% | -37492.64% | - |
| FCF per Share | -0.59 | -0.63 | -1.96 | -3.07 | -1.31 | -0.00 |
| FCF Conversion (FCF/Net Income) | 1.05x | 0.99x | 0.96x | 0.75x | 0.89x | 0.29x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and dilution
According to recent financial statements, GXAI consistently reports operating cash flow deficits that track closely with net losses, with an OCF/NI ratio of 1.15 in 2026Q1, suggesting that the company lacks any meaningful non-cash accruals to bridge the gap between accounting losses and actual cash burn.
The tight correlation between net income and operating cash flow indicates that the company's losses are primarily cash-based rather than driven by non-cash accounting charges. This suggests that the business model is currently unable to generate the operational efficiencies required to decouple cash outflows from its aggressive R&D spending.
As reported in quarterly filings, GXAI's free cash flow remains deeply negative, reaching -$2.5 million in 2026Q1, which underscores a persistent inability to fund its operational requirements through internal revenue generation despite the company's pivot toward an AI-integrated gaming platform and its associated high-growth narrative.
The consistent negative FCF margins, which reached -137.8% in the most recent quarter, highlight the structural difficulty the company faces in scaling its platform without incurring significant cash-draining expenses. Investors should monitor whether the company can achieve any meaningful FCF improvement before its current cash reserves are fully exhausted.
Based on the provided data, GXAI maintains extremely low capital expenditures, with only $2.6K spent in 2026Q1, which may suggest that the company is relying on third-party infrastructure or capitalized software development costs rather than traditional physical asset investment to support its gaming and AI ecosystem.
While the low CapEx/Revenue ratio might appear favorable, it warrants further investigation into whether the company is under-investing in the proprietary technology necessary to maintain a competitive moat. The lack of significant capital investment suggests that the primary cost burden is shifted entirely to operating expenses, further pressuring the company's liquidity.
As indicated by historical cash flow data, GXAI exhibits significant volatility in working capital changes, including a $219.0K outflow in 2026Q1, which suggests that the company's cash management is highly sensitive to the timing of its operational cycles and potential delays in collecting revenue from digital asset sales.
The erratic nature of these working capital swings implies that the company lacks a predictable cash conversion cycle, which is common for early-stage firms reliant on lumpy NFT or digital asset revenue. This instability adds another layer of risk to the company's already precarious cash position.
Based on reported figures, GXAI utilizes stock-based compensation to manage its talent costs, with $53.9K recorded in 2026Q1, a practice that effectively obscures the true cost of human capital while simultaneously diluting existing shareholders to preserve the company's limited cash reserves for essential operating expenses.
While SBC is a standard tool for early-stage tech firms, its use here highlights the company's inability to pay competitive cash salaries for the specialized engineering talent required for its AI pivot. This reliance on equity-based incentives may indicate that the company's cash-burn profile is even more severe than the headline operating cash flow suggests.
Quick answers to the most common questions about buying GXAI stock.
Gaxos.ai Inc. (GXAI) generated $-3.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Gaxos.ai Inc. (GXAI) reported negative free cash flow of $4.4M in 2025, indicating capital requirements exceeded cash from operations.
Gaxos.ai Inc. (GXAI) spent $0.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.