Nixxy, Inc. Reports 10,016% Revenue Growth to $13.5 Million, Despite $4.3 Million Net Loss

Nixxy, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $13.5 million for the three months ended June 30, 2025, compared to just $133,101 in the same period last year. This represents a remarkable increase of 10,016%. For the six-month period, revenue totaled $14.9 million, up from $355,658 in the prior year, marking a 4,079% increase. The surge in revenue is primarily attributed to the company's focus on telecommunications services through its Auralink subsidiary, which generated $13.4 million in the second quarter alone.

Despite the substantial revenue growth, Nixxy reported a net loss of $4.3 million for the second quarter, compared to a loss of $1 million in the same quarter of 2024. For the first half of 2025, the net loss was $8.8 million, significantly higher than the $1.8 million loss recorded in the previous year. The increase in losses is largely due to a rise in operating expenses, which totaled $16.2 million for the quarter, up from $1.1 million a year earlier. This increase was driven by higher costs associated with revenue generation, including a $13.4 million cost of revenue directly linked to the telecommunications operations.

In terms of strategic developments, Nixxy has been actively pursuing acquisitions to bolster its technology and service offerings. Notably, the company acquired NexGenAI Holding Group, Inc. for $2.25 million in restricted stock, aimed at enhancing its AI capabilities. Additionally, Nixxy has been restructuring its operations, including the planned spin-out of its recruitment-related assets to Atlantic Energy Solutions, Inc., which is being renamed CognoGroup. This strategic pivot is part of a broader effort to streamline operations and focus on high-growth areas.

Operationally, Nixxy has seen a notable increase in its customer base and engagement metrics. The company reported a significant rise in user statistics, particularly in its telecommunications segment, which has expanded its market share. As of June 30, 2025, Nixxy's total assets stood at $13.3 million, a substantial increase from $7 million at the end of 2024, driven by the acquisition of intangible assets and increased cash reserves from stock issuances.

Looking ahead, Nixxy's management has expressed concerns regarding its liquidity, indicating that the company may not have sufficient cash to fund its operations for the next twelve months without additional financing. The company is actively seeking to raise capital to support its ongoing operations and strategic initiatives. The outlook remains cautious, with management emphasizing the need for improved demand and profit margins in its marketplace solutions and telecommunications services to ensure long-term viability.