Exxe Group Inc. (OTC: AXXA), a multidisciplinary technology company, is pleased to announce its financial and operational highlights for Q2 FY2025 which ended September 30, 2024. The results showcase significant gains in operating performance, progress in debt reduction, revenue growth, and strategic transformation toward a hybrid SaaS-based model.

Key Highlights:

• Debt Reduction: Over the last two years, Exxe Group reduced total liabilities by $49.46 million, from $75.74 million in 2Q2023 to $26.28 million in 2Q2025. This is a reduction of 65.33% in total liabilities and marks a significant milestone in strengthening Exxe’s financial health. Long-term debt is currently $19.04 million, down from $56.53 million two years ago.
• Strong Operating Performance: For Q2 FY2025, Exxe reported major gains across gross, operating, and net profit categories.
  • Gross profit rose by $1.13 million, a 15% rise from the year-ago period.
  • Operating profit jumped by $1.82 million, a 35.5% jump from 2Q FY2024.
  • Exxe enjoyed a substantial improvement in net profit. For 2Q FY2025 net profit was $3.46 million versus a loss of ($11.40 million).
• Revenue Growth: Q2 FY2025 revenue was $15.66 million, or moderate growth as compared to Q2 2024’s $15.62 million quarterly revenue.

Changes in revenue in the Second Quarter were due to expected annual seasonal factors. Exxe Group anticipates revenue to increase in the Third Quarter to approximately $16.5 million.

Revenue for the first six months of FY-2025 were $32.29 million. Revenues supplied to each industrial segment are broken down as follows: Automotive: $7.97 million; Medical: $4.57 million; Agri/Crypto Trading(RCS/SAAS basis): $1.50 million; Real Estate: $1.17 million; Miscellaneous: $0.45 million.

• Business Transformation: The company continues its migration to a hybrid SaaS-first model, emphasizing licenses, software, and contracts for recurring revenue and scalability.

Exxe Group’s hybrid SaaS-based model features four types of revenue streams:

• 360 Management Module: Exxe offers crisp applications that finance, factor, bill, and collect, as well as pays suppliers, vendors, and contractors
• Recurring Consulting Service (RCS): revenue module which provides software and management at a fixed-cost on a monthly basis
• Licensing revenues
• Special situations

• Audit : After a year of dedicated work addressing the audit preparers' recommended strategy, Exxe Group is nearing a key milestone. The Company agreed and plans to deliver financial statements for the entire Exxe Group to the Auditor during the week of January 25, 2025. Following delivery of the financial statements our Auditor will commence their review.
• Operational Streamlining: Exxe finalized the disposal of non-core assets, reclassified key acquisitions, and optimized its portfolio to focus on high-growth sectors, including fintech, real estate, and AI. This process is now complete, setting the stage for future revenue growth.
• Growth Platform Buildout: Acquiring new software (including fintech and AI) skills management agreements, licenses, and adapting the software Exxe already had in its existing portfolio
• New Acquisitions Pipeline: Includes specialized skills, contracts in local markets, M&A, global expansion strategy execution, AI, and fintech.
• Onboarding Platform Deals: Exxe has lined up approximately a dozen multi-million dollar commercial and residential properties in Germany, Switzerland, Spain, Thailand as well as other deals extended into industrial segments such as telecom, and biotech.

Management Commentary:

Eduard Nazmiev, CEO of Exxe Group, stated: “As evidenced by Exxe’s operating performance, the strategic migration to a hybrid SaaS-based model is delivering results. We’ve made substantial progress in strengthening our balance sheet, increasing liquidity, and focusing on scalable, recurring revenue streams. As we look ahead, Exxe is poised for sustained growth, supported by our innovative platform and diversified business portfolio.”

About Exxe Group

Exxe is a multidisciplinary technology company that develops, acquires, and delivers diversified service suites through its proprietary, innovative platform. The Company offers these suites and applications via a hybrid SaaS-based model to enhance operations and productivity for digital and brick and mortar businesses. Core competencies and capabilities include fintech-based financial management, marketing through media and design, management consulting, strategic advisory, and AI-based systems. Exxe operates in a broad scope of segments. These include fintech, real estate, agritech, software, AI, medical products, media and design, automotive products, and automotive repair. Revenue and profit are generated via license, software, and service contracts related to its platform and core competencies. For additional information please visit the Company's:

Website: http://www.exxegroup.com/

Twitter: https://twitter.com/exxegroup

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.

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