Nixxy (NIXX) Q1 2026 earnings summary

Executive summary

• Completed strategic transformation to a telecommunications platform, divesting legacy recruiting operations as of December 31, 2025.

• Achieved significant revenue growth, reaching an annualized run-rate of $150–$180 million by late 2025.

• Focused on scaling wholesale voice and messaging, optimizing traffic mix, and expanding into infrastructure and software-driven applications.

• Invested in AI-enabled automation for routing, billing, and fraud mitigation to improve operational efficiency.

• Pursuing telco-fintech convergence initiatives, including messaging-based payments and identity verification.

Financial highlights

• Revenue for Q1 2026 was $29.1 million, up from $1.3 million in Q1 2025 (2205% increase), driven by telecom expansion.

• Cost of revenue rose to $29.0 million from $1.3 million year-over-year.

• Operating expenses (excluding cost of revenue) decreased to $1.2 million from $3.8 million, mainly due to lower G&A.

• Net income from continuing operations was $537 thousand, compared to a net loss of $3.7 million in Q1 2025.

• Gain on change in fair value of marketable securities contributed $1.8 million to other income.

Outlook and guidance

• Management expects continued growth in telecom traffic and margin expansion through traffic mix optimization and automation.

• Ongoing investments in infrastructure and software to support higher-value applications and fintech convergence.

• Substantial doubt exists about the ability to continue as a going concern without additional capital; management is seeking further financing.