Nixxy Shareholder Update: Advancing AI Infrastructure and Expanding Capacity

Rhea-AI Summary

Nixxy (NASDAQ:NIXX) reported significant progress in its transformation into an AI infrastructure company, with its Q2 2025 revenue reaching $13.5M, up from $1.4M in Q1. The company's net loss improved to ($4.2M) from ($4.6M), with operating cash outflow reduced by 35% to $1.2M.

Key developments include the acquisition of Everythink Innovations (EIL), providing Tier 3 edge infrastructure and ~$48M in ARR, and the upcoming launch of LeadNova.ai. The company is targeting $200M annualized telecom revenue by 2026, expecting profitability and positive operating cash flows in early 2026.

Nixxy's strategy centers on NIXXY CORE™, its platform for Private LLMs, supported by NIXXY COMM™ for global voice/SMS, and enhanced by recent edge infrastructure acquisitions focused on low latency and data sovereignty.

Positive

• Q2 2025 revenue surged to $13.5M from $1.4M in Q1
• Net loss improved to $4.2M from $4.6M with 35% reduction in cash outflow
• Strategic acquisition of EIL adding $48M in Annual Recurring Revenue
• Targeting $200M annualized telecom revenue by 2026
• Expected profitability and positive operating cash flows by early 2026
• September 2025 revenue expected to reach $14M with improving margins

Negative

• Currently operating at a net loss of $4.2M
• Significant cash outflow continues at $1.2M per quarter
• Multiple product launches and integrations pending execution
• Heavy dependence on successful integration of EIL acquisition

Insights

AI Infrastructure & Technology Analyst

Nixxy pivots to AI infrastructure with strong revenue growth and strategic acquisition, targeting profitability by early 2026.

Nixxy's strategic pivot from AI applications to infrastructure represents a calculated repositioning in the competitive AI landscape. Rather than competing with numerous AI application developers, Nixxy is building foundational infrastructure to enable enterprise AI adoption—a potentially more sustainable long-term strategy given the consolidating nature of application markets versus the persistent demand for robust infrastructure.

The company's financial trajectory shows remarkable momentum. Revenue jumped nearly tenfold from $1.4 million in Q1 to $13.5 million in Q2 2025. Even more telling is the sequential monthly growth, with August reaching $10 million and September projected to hit $14 million. This 40% month-over-month growth rate suggests significant market traction for their telecom-based revenue model.

The acquisition of Everythink Innovations adds two strategic edge data centers and $48 million in annual recurring revenue—immediately bolstering both infrastructure capabilities and revenue streams. This move addresses critical AI deployment challenges including latency, data sovereignty, and geographic distribution while contributing substantially to Nixxy's projected $200 million annualized revenue target for 2026.

Nixxy's three-pronged monetization strategy creates multiple revenue streams: NIXXY COMM (telecom services), NIXXY AI (private LLM services for SMEs), and NIXXY LABS (IP licensing and data services). The company's narrowing losses ($4.2 million, down from $4.6 million) and reduced cash burn (down 35% quarter-over-quarter) indicate improving operational efficiency as they scale. If current growth trajectories hold, their projection of profitability in early 2026 appears credible.

The focus on private LLM deployment specifically addresses enterprise concerns around data privacy, sovereignty, and compliance—a differentiated approach in a market where many competitors are racing to build general-purpose models without addressing these critical enterprise requirements.

Company reports revenue growth, integration of new edge infrastructure, and milestones advancing NIXXY CORE™ toward enterprise-scale AI adoption.

NEW YORK, NY / ACCESS Newswire / September 30, 2025 / Over the past six months, Nixxy, Inc. (NASDAQ:NIXX), or Nixxy, has accelerated its transformation into an AI Infrastructure company. Instead of chasing the crowded AI app market, Nixxy is building the infrastructure layer powering enterprise-scale AI adoption. At its center is NIXXY CORE™, Nixxy's emerging platform for deploying Private LLMs, designed to unlock LLM-level capabilities with industry-leading privacy and compliance, supported by purpose-built edge data centers that aim to provide low latency, data sovereignty, and global reach, with an architecture interoperable with decentralized and blockchain-enabled networks.

Nixxy's model is platform-first and revenue-backed. NIXXY COMM™ (global voice/SMS) is designed to serve as the commercial engine that will increasingly support and accelerate the AI roadmap as it scales.As AI-driven routing, automation, and utilization grow, management is targeting 2026 annualized telecom revenue of over $200 million, with margin expansion expected to deliver profitability and positive operating cash flows in early 2026. Nixxy is converting traditional voice and SMS traffic into intelligent, automated workflows, creating differentiated value in the market.

Momentum & Performance Highlights

• Q2 2025 revenue reached ~$13.5M, up from ~$1.4M in Q1.

• Net loss improved to ~($4.2M) from ~($4.6M), with operating cash outflow reduced ~35% QoQ (to ~$1.2M), underscoring progress toward breakeven.

• August 2025 telecom revenue exceeded $10M; September 2025 revenue expected to surpass $14M, with margin expansion accelerating.

• Capacity: In August 2025 Nixxy closed the asset purchase of Everythink Innovations (EIL), Tier 3 edge infrastructure in Vancouver, BC and Fremont, CA, plus ~$48M in Annual Recurring. Revenue (ARR) (wholesale data, VPN, interconnect), which was integrated into NIXXY CORE™ in September 2025.

Strategic Impact of the EIL Integration
Immediate, AI-ready capacity; ultra-low latency that reduces lag time; cross-border reach for compliance; enhanced resilience and disaster recovery (DR); and a blueprint for further edge expansions, establishing a foundation purpose-built for decentralized compute and data markets.

LeadNova.ai: First NIXXY CORE™-Powered Product
LeadNova.ai will launch later in 2025 bringing to market a SaaS platform purpose-built for data-driven business development, combining structured data delivery, sales enablement, outreach automation, and engagement analytics. Nixxy acquired the LeadNova.ai platform assets in June 2025 and is rapidly advancing them into its AI-driven communications stack to accelerate higher-margin growth for enterprise customers. LeadNova's launch will be the first milestone in the NIXXY CORE™ product ecosystem.

NIXXY CORE™ Monetization Strategy

• NIXXY COMM™: AI enabled Voice/SMS at scale for better optimization

• NIXXY AI™: Private LLM-as-a-Service (LLMaaS) for Small and Medium Enterprise Customers SMEs (privacy, sovereignty, control)

• NIXXY LABS™ & IP™: Incubation, data (LeadNova™), and licensing, with planned collaborations across decentralized AI and blockchain platforms.

Execution Priorities

• Integrate EIL capacity into NIXXY CORE™

• Scale NIXXY COMM™ revenue and margins while expanding next-generation agentic AI offerings

• Launch Leadnova™

• Commercialize Private LLMaaS (NIXXY AI™) for SMEs

• Advance data monetization through privacy-first consent and permissioned/tokenized pilots

The story is simple: platform first, telecom-anchored, edge-deployed, and privacy-by-design. With NIXXY CORE™ live and increased capacity onboard, Nixxy's strategy is now shifting from aspirational to actionable, positioning Nixxy for sustained growth in AI infrastructure, while establishing a strategic bridge to emerging decentralized markets. Nixxy is also committed to enhancing shareholder value by actively raising Nixxy's visibility with investors, analysts, and the broader market as its fundamentals strengthen.

Mike Schmidt
CEO
Nixxy Inc.

About Nixxy, Inc. (NASDAQ:NIXX) a technology company at the forefront of AI-powered business services, delivering 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: 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 Nixxy'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 Nixxy'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. Nixxy 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 Nixxy'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 Nixxy'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 Nixxy's operations; and other risks detailed in the Nixxys filings with the Securities and Exchange Commission, including those risk factors contained in the Nixxy's Form 10-K for the year ended December 31, 2024.

SOURCE: Nixxy, Inc.

View the original press release on ACCESS Newswire

FAQ

What is Nixxy's (NIXX) current revenue and growth trajectory?

Nixxy reported Q2 2025 revenue of $13.5M, up significantly from $1.4M in Q1. September 2025 revenue is expected to exceed $14M, with the company targeting $200M annualized revenue by 2026.

When does Nixxy (NIXX) expect to achieve profitability?

Nixxy expects to achieve profitability and positive operating cash flows in early 2026, supported by margin expansion and growing telecom revenue.

What was the significance of Nixxy's Everythink Innovations acquisition?

The EIL acquisition provided Nixxy with Tier 3 edge infrastructure in Vancouver and Fremont, adding approximately $48M in Annual Recurring Revenue and enhancing NIXXY CORE™ with immediate AI-ready capacity.

What are the main components of Nixxy's business strategy?

Nixxy's strategy focuses on three main components: NIXXY COMM™ (global voice/SMS), NIXXY AI™ (Private LLM-as-a-Service), and NIXXY LABS™ & IP™ (incubation and licensing), all built around their NIXXY CORE™ platform.

When will Nixxy launch LeadNova.ai and what is it?

LeadNova.ai is scheduled to launch later in 2025 as a SaaS platform for data-driven business development, combining structured data delivery, sales enablement, and outreach automation, powered by NIXXY CORE™.