Nixxy Completes Separation of CognoGroup, Increasing Strategic Focus, Reducing Operating Costs, and Unlocking Shareholder Value as AI Infrastructure Platform Scales Into 2026
Rhea-AI Summary
Nixxy (NASDAQ:NIXX) completed the previously disclosed separation of its Marketplace business into CognoGroup (OTC:CGNO) on January 5, 2026, creating two independent public companies. Following the transaction, Nixxy holds approximately 19.99% of CognoGroup's fully diluted equity and expects to file a Form 10 to distribute CognoGroup shares to eligible Nixxy shareholders.
The company said the separation is intended to sharpen strategic focus on its AI-native communications and data infrastructure, simplify reporting and capital allocation, and reduce operating complexity as it scales into 2026.
Positive
- Completed separation creating two independent public companies
- Nixxy holds approximately 19.99% stake in CognoGroup
- Nixxy expects to file a Form 10 to distribute CognoGroup shares to eligible shareholders
- Strategic focus shifted to AI communications and data infrastructure for 2026
Negative
- Minority ownership (~19.99%) limits direct control over CognoGroup
News Market Reaction
On the day this news was published, NIXX gained 3.88%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
NIXX rose 7.22% while key staffing/IT peers showed mixed moves: HSON, JOB, and MHH were down, whereas GLXG and IPDN gained 10% and 17.7%. Momentum scanner only flagged ATLN up 7.35% without news, supporting a stock-specific reaction to Nixxy’s separation news rather than a broad sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 04 | CFO appointment | Positive | +2.6% | Named seasoned finance executive as CFO to support 2026 growth plans. |
| Dec 03 | AI revenue update | Positive | +23.9% | Disclosed >$15M Nov run-rate and ~$180M annualized AI revenue scaling. |
| Nov 21 | AI platform progress | Positive | -0.9% | Announced Leadnova.ai entering UAT with beta targeted for Q1 2026. |
| Nov 19 | Capital strategy update | Positive | -0.9% | Chose nondilutive credit line over digital asset holdings or ATM/PIPE deals. |
| Nov 14 | Q3 revenue update | Positive | -3.3% | Reported Q3 revenues of $31.5M and progression of AI infrastructure strategy. |
Recent news has generally been positive, but price reactions have been mixed, with three of the last five upbeat updates (AI growth, strategic review, strong Q3) followed by short-term declines. The strong AI run-rate announcement on Dec 3, 2025 did trigger a large upside move, suggesting investors have selectively rewarded milestones tied directly to scaling AI infrastructure and revenue.
Over the past six months, Nixxy has reported rapid AI-driven telecom growth, including Q3 2025 revenue of $31.5M and an implied $180M annualized run-rate by Dec 3, 2025. It advanced its AI infrastructure strategy, acquired edge and carrier assets, and moved legacy Marketplace assets toward a CognoGroup spin-out. Governance actions included a new CFO and a digital asset treasury decision favoring nondilutive funding. Today’s completion of the CognoGroup separation fits this ongoing pivot to a focused AI communications and data platform.
Market Pulse Summary
This announcement finalizes the separation of the legacy Marketplace business into CognoGroup, leaving Nixxy with a focused AI-native communications and data infrastructure platform and a 19.99% stake in CognoGroup. It follows prior AI-tagged updates detailing rapid revenue growth, infrastructure acquisitions, and a roadmap toward operational profitability. Investors may track how the cleaner structure affects operating costs, margin trends, and execution on 2026 AI scaling objectives relative to earlier milestones.
Key Terms
form 10 registration statement regulatory
pro rata distribution financial
AI-generated analysis. Not financial advice.
NEW YORK, NY / ACCESS Newswire / January 5, 2026 / Nixxy, Inc. (NASDAQ:NIXX) ("Nixxy" or the "Company"), an AI-driven communications and data infrastructure company, today announced the completion of its previously disclosed separation of its legacy Marketplace line of business into CognoGroup, Inc. (OTC Markets: CGNO) ("CognoGroup"). Following several actions, Nixxy now holds an ownership percentage of approximately
As part of the separation, Nixxy has streamlined its corporate structure and eliminated Marketplace-related, which management believes will reduce operating complexity and decrease operational costs as the Company advances its AI-native communications and data infrastructure roadmap. Following the transaction, Nixxy is now fully focused on scaling its AI-native communications and data infrastructure platform, while CognoGroup operates independently with a dedicated mandate to build and grow technology-enabled businesses focused on human capability, talent, and learning.
"This transaction is about focus and execution," said Mike Schmidt, Chief Executive Officer of Nixxy. "After a year of rapid revenue growth and platform scaling, we believe this separation positions Nixxy to move faster, operate more efficiently, and continue building long-term value as we head into 2026. Importantly, it also reduces the operational costs associated with maintaining a non-core business, improving our operating leverage as we scale."
What This Means for Shareholders
Clearer investment thesis: Nixxy is now a more focused, pure-play AI communications and data infrastructure company.
Direct ownership in two public companies: Eligible Nixxy shareholders are expected to receive CognoGroup shares via a pro rata distribution, retaining upside exposure to both businesses.
Improved simplicity and transparency: The separation is intended to simplify financial reporting, capital allocation, and operational priorities, supporting scalability and investor clarity.
Transaction Overview
Completed separation: The Marketplace business has been fully separated into CognoGroup, which now operates as an independent public company.
Shareholder distribution: Nixxy is expects to file a Form 10 registration statement with the SEC to distribute its CognoGroup shares to eligible Nixxy shareholders
Independent execution: Each company now operates with its own management focus, strategy, and growth priorities.
Strategic Impact for Nixxy
Nixxy believes the completion of the separation from CognoGroup strengthens its ability to execute on its 2026 objectives, including:
Scaling AI-driven global voice and messaging infrastructure
Expanding high-margin, marketing-driven traffic strategies
Deploying AI across routing, diagnostics, and monetizable data layers
Advancing toward sustained operational profitability
"With our revenue run-rate growth, the appointment of a new CFO, and this structural simplification now complete, we believe Nixxy is entering 2026 with momentum, clarity, and a stronger foundation for scale," Schmidt added.
About CognoGroup, Inc. (OTC Markets: CGNO)
CognoGroup is focused on building and supporting technology-driven businesses that enhance human capability across work, learning, and personal development. Its strategy centers on leveraging AI and intelligent technologies to help individuals develop skills, connect with opportunity, and reach their potential in an evolving digital economy. CognoGroup's planned portfolio includes platforms spanning talent marketplaces, learning, AI-powered career tools, and professional communities. Miles Jennings serves as Chief Executive Officer of CognoGroup. Learn more at https://www.cognogroup.com.
About Nixxy, Inc. (NASDAQ:NIXX)
Nixxy is a technology company at the forefront of AI-powered business services, powering the next generation of intelligent services. 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 https://nixxy.com/investor-relations.
Contact Information
Investor Contact: Nixxy, Inc.
Investor Relations Email: IR@nixxy.com
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, financial position, potential growth, spin-out transactions, and market opportunities. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. Readers are cautioned not to place undue reliance on forward-looking statements.
No Offer or Solicitation Disclaimer
This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities.
Risk Factors
Investors should carefully consider the risks associated with the Company's business and the spin-out transaction, including execution risks, operational separation risks, market conditions, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 2024.
SOURCE: Nixxy, Inc.
View the original press release on ACCESS Newswire
FAQ
What did Nixxy (NIXX) announce on January 5, 2026 about CognoGroup?
Will Nixxy shareholders receive CognoGroup shares from NIXX?
How does the separation affect Nixxy's business focus for 2026 (NIXX)?
How large is Nixxy's remaining ownership in CognoGroup after the split (NIXX)?
Does the announcement quantify expected cost savings or revenue impact for Nixxy (NIXX)?
