Arizona Tribune - Nixxy, Inc. (NASDAQ:NIXX) Reports Q3 $31.5MM Revenues, and Continued Execution Toward 2026 AI Strategy

Third Quarter 2025 Highlights

• Strong top-line acceleration in Q3 vs. Q2: Revenue grew approximately 135% sequentially to an estimated $31.5 million, compared with $13.47 million in Q2 2025. Month-over-month telecom revenues increased from $7.5 million in July, to $10.0 million in August, and $14.0 million in September, demonstrating sustained operational growth.

• Route quality and margin mix improving: With core routes established, the Company is actively replacing lower-margin voice traffic with higher-margin voice and SMS traffic over time while maintaining a stable top line.

• Infrastructure and commercial capacity enhanced: The Company advanced integration of recently acquired carrier and edge data-center assets, adding AI-ready capacity that supports Nixxy's private LLM and data services roadmap.

• Balance sheet optionality: During the third quarter, Nixxy secured a $2.0 million revolving growth facility with a premium conversion feature, providing non-dilutive operating flexibility as the Company prioritizes disciplined expansion.

Nixxy continued to execute its operational plan through Q3 by:

• Scaling interconnects and partnerships with independent carriers to support whole origination and termination across Voice and SMS.

• Optimizing route mix to emphasize margin expansion while keeping top-line consistent.

• Advancing the planned spin-out of certain legacy and recruitment-related assets to CognoGroup (formerly Atlantic Energy Solutions), positioning Nixxy's core for AI-led growth while enabling clearer financial visibility across business lines.

• Preparing AI commercialization, including LeadNova, on top of the Company's AI-ready infrastructure.

Nixxy reiterates that 2026 is expected to be a transformative year, with the Company laser-focused on its AI vision, cutting through market noise by delivering pragmatic, revenue-oriented products and infrastructure. Nixxy's 2026 plan includes:

• Expanding AI infrastructure capacity across edge and core networks to support low-latency, private LLM workloads.

• Rolling out AI products, including LeadNova and white-label offerings designed for enterprise workflows and data-driven automation.

• Disciplined margin execution, with continued telecom mix improvement and incremental contribution from higher-margin AI and data services.

• Executing key transformative transactions, forging market partnerships, and securing minimally dilutive financing to maximize shareholder value.

"Our third quarter results demonstrate the strength of Nixxy's model, consistent top-line with rising quality of revenue," said Mike Schmidt, Chief Executive Officer of Nixxy. "We believe the sequential lift from Q2, the strengthening of our carrier routes, and the integration of AI-ready infrastructure set the stage for margin expansion. With product workstreams like LeadNova nearing commercialization and major telecom partnerships expanding, we believe Nixxy is positioned for sustainable profitability and a breakout year ahead."

About Nixxy, Inc. (NASDAQ:NIXX) a technology company at the forefront of AI-powered business services, powering the next generation of intelligent services across telecom, healthcare, and enterprise markets. Anchored by its proprietary AI Infrastructure platform, Nixxy provides scalable, secure, and LLM-agnostic infrastructure for deploying private AI at scale. From global voice and messaging to AI-enhanced diagnostics, Nixxy delivers solutions where infrastructure, intelligence, and monetizable data converge. With a strategy focused on platform extensibility, data monetization, and data access models, Nixxy is building the foundation for the future of enterprise AI deployment and private data economy.

Filings and press releases can be found at http://www.nixxy.com/investor-relations.

Contact Information
Investor Contact: Nixxy, Inc.
Investor Relations Email: [email protected]
Phone: (877) 708-8868

Forward-Looking Statements Disclaimer
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including those regarding the Company's business strategy, future operations, acquisition strategy, financial position, potential growth, spin-out transactions, and market opportunities. Words such as 'anticipates,' 'believes,' 'expects,' 'intends,' 'plans,' and 'will,' or similar expressions, are intended to identify forward-looking statements. These statements are based on the Company's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Preliminary Financial Information and Revenue Estimates. Any references in this press release to billing activity, platform usage, or forecasted revenues are unaudited, provisional, and derived solely from internal system data, telemetry, and operational logs. These figures do not constitute earned, invoiced, or collectible revenue and may not result in future cash flow. They are operational estimates provided solely for contextual and informational purposes. The Company makes no representation that such activity will result in recognized revenue under GAAP or any applicable accounting standards. These internal models are based on usage metrics and port-level system outputs and, though supported by finalized contracts, invoicing, or payment, may not be recognized. As such, no assurance can be given that any portion of this activity will be billable, collected, or otherwise monetized. Investors should rely exclusively on the Company's audited financial statements and public filings with the SEC when evaluating its financial performance or making investment decisions.

No Offer or Solicitation Disclaimer
This communication is for informational purposes only and is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Risk Factors
Investors should carefully consider the risks associated with the Company's business and the spin-out transaction described herein, including but not limited to: the uncertainty surrounding the timing of the spin-out; the ability to successfully execute acquisitions and integrate acquired companies; the impact of technological changes on the Company's operations; and other risks detailed in the Company's filings with the Securities and Exchange Commission, including those risk factors contained in the Company's Form 10-K for the year ended December 31, 2024.

SOURCE: Nixxy, Inc.

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