Deep Value: cash covers more than 100% of the stock price

This company holds roughly $16M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Gaxos.ai

GXAI

Electronic Gaming & Multimedia · Technology

Price

$0.88

+0.01 (+1.48%)

Market Cap

$9.0M

Exchange

NASDAQ Capital Market

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Good

Cash Flow

Weak

Stability

Data not available

Valuation

Data not available

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Share count rising — dilution

+844.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 751K (2021) → 7.1M (2025)

Winston Score History

The full picture

Gaxos.ai Inc. is a small technology company focused on building AI-powered gaming experiences. It develops mobile and online games that use artificial intelligence to create personalized gameplay, targeting casual gamers and younger audiences. The company operates in the electronic gaming industry, where it is trying to carve out a niche by combining generative AI tools with game development.

Gaxos.ai earns revenue primarily through in-app purchases and digital content sales within its games, which explains its high gross margin since software has very low delivery costs. The company appears to operate mainly in the United States and is very early-stage, with a near-zero market cap and deeply negative operating margins, meaning it spends far more than it earns. The biggest risk the business faces is running out of cash before it can grow its player base large enough to become profitable, which is a common challenge for small gaming startups competing against much larger, well-funded studios.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

>+1,000% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+118.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$993,671/ year

→ Flat (-0% vs prior year)

51.4% of revenue

3.4x the sector average (15%)

Steady R&D investment year-over-year

Insider Activity

8.2%ownership

Insiders own a meaningful stake in the company

Cash Runway

~3 months

$1M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Short runway — potential dilution ahead through share issuance

Strong grower

Gaxos.ai is growing revenue at 1337% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

0.0%

Thin — 0.0% gross margin

Profit after running costs

Operating Margin

-75.9%

Losing money on operations — -75.9%

Return on the money invested

ROCE

-40.2%

Weak — -40.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

>+1,000%

Fast-growing sales (>+1,000% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

-91.0%

Burning cash (-91.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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