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SHERIDAN, Wyo., November 20, 2024--(BUSINESS WIRE)--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.