Margin expansion from Hua Zang LLM MaaS and AI hardware sets the stage for sustainable earnings growth

SHANGHAI, April 9, 2025 /PRNewswire/ -- Xiao‑I Corporation (NASDAQ: AIXI), a global leader in artificial‑intelligence solutions, today pre‑announced selected, unaudited results for the year ended December 31, 2024.

Driven by accelerating adoption of its Hua Zang large language model (LLM) as a Model‑as‑a‑Service (MaaS) offering and rising sales of AI‑powered consumer hardware, Xiao‑I generated approximately US$70.3 million in revenue, up 19 % year‑over‑year. Strong margin expansion enabled the Company to achieve positive operating income in the fourth quarter of 2024, establishing a profitable run‑rate as it enters 2025. Management now guides to full‑year profitability in 2025.

Key Financial Highlights 

- Revenue: ~US$70.3 million in 2024, +19 % YoY.

- Gross Margin: Improved to 69 % (vs. 67 % in 2023) on higher‑margin MaaS mix and scale efficiencies.

- Net Loss: Narrowed to US$12.9 million, a 52 % improvement from 2023, reflecting disciplined cost control and revenue growth.

- Run‑Rate Profitability: Positive operating income achieved in Q4 2024 positions the Company for sustained profitability.

Management Commentary

"A year ago we set out to prove that our technology platform could scale profitably," said a Company spokesperson. "By the fourth quarter of 2024 we crossed into operating profitability on a run‑rate basis, and the momentum in both Hua Zang MaaS deployments and AI hardware sales gives us confidence to guide for full‑year profitability in 2025. We will continue to focus on high‑margin, recurring revenue streams while prudently investing in innovation that deepens our competitive moat."

Litigation Update – Additional Upside Potential

As previously disclosed, Xiao‑I has sued Apple Inc. for alleged patent infringement related to voice‑assistant technologies. All hearings concluded in 2024, and the parties are awaiting a ruling from the Shanghai High People's Court. A favorable judgment could provide non‑operating upside to the Company's 2025 financial results; however, no potential award is included in current guidance.