Mr. Brad Kirby reports

XTM FILES Q3 2025 INTERIM FINANCIAL RESULTS

XTM Inc. has filed its interim financial statements and management's discussion and analysis (MD&A) for the quarter ended Sept. 30, 2025.

With the Oct. 24, 2025, announcement of a management services and program management agreement (MSA) with Everyday People Financial Corp. (EPF), XTM is transitioning from a directly managed payments model to a capital-light, profit-sharing structure. Under the MSA, EPF will assume full operational management, compliance oversight and technology administration for XTM's Canadian network-branded card and digital wallet programs.

Q3 (third quarter) 2025 financial and operational highlights:

• Revenue growth: Revenue was $7.4-million for the nine months ended Sept. 30, 2025, up 19 per cent from $6.4-million in the prior-year period.
• Reduced net operating loss: Net loss from operations decreased to $10.8-million, a 25-per-cent improvement over the prior-year period loss of $14.5-million. Total net less and comprehensive loss for the nine months ended totalled $11,930,735.
• Sale of processor assets: On Sept. 16, 2025, the company sold the QRails processor assets, recording a $1.2-million loss on sale. XTM retained all QRails EWA assets, including EWA technology, payroll, and time and attendance API integrations, mobile apps, web portals, and EWA client contracts.
• Processing restructure: Following the asset sale, the company now pays transaction-based processing fees, significantly reducing fixed costs and overhead previously required to operate the processor.

Subsequent events:

• Management services agreement with EPF: On Oct. 24, 2025, the company entered into an MSA with EPF, under which a newly formed joint subsidiary, Everyday People Payments Inc. (EP Payments), will assume operational management, compliance and technology administration of XTM's Canadian card and digital wallet programs. This marks a significant shift to a capital-light, profit-sharing business model.
• Cost reductions and transition: Following execution of the MSA, XTM initiated a transition plan that includes substantial reductions in employee, rent, consultant and other operating costs. As of Nov. 30, 2025, monthly payroll costs were reduced by more than 35 per cent, with further reductions expected upon full transition by year-end.
• XTM USA -- finance tokenization initiative: On Nov. 18, 2025, the company announced a binding letter of intent (LOI) with AGORACOM RWA DBX, a Dubai-based consulting agency, to support the acquisition of preferred shares of XTM USA by an arm's-length organization for tokenization. The initiative applies only to preferred shares of a private subsidiary, and does not create or imply any blockchain token associated with XTM's common equity or public listing.
• United States EWA contracts: As part of its focus on the U.S. market, XTM is pursuing multiple contracts to provide EWA and early tip disbursement services. Employer adoption is being driven in part by the "One, Big, Beautiful Bill Act: Tax deductions for working Americans," which offers tax-free treatment on tips up to $25,000 annually and overtime up to $12,500. Employers are seeking instant access solutions for these earnings, leveraging XTM's technology.

Filing details

The interim financial statements and MD&A for the quarter ended Sept. 30, 2025, are available on the company's profile on SEDAR+.

About XTM Inc.

XTM is a fintech company providing real-time payment and earned wage access solutions. XTM's platform enables instant access to earnings for workers and contractors through digital wallets and prepaid cards, serving the restaurant, hospitality and gig-economy sectors across North America.

We seek Safe Harbor.