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Significant Commercial Loan and Deposit Growth Nationally Positions Esquire for Continued Success in 2026

JERICHO, N.Y., Jan. 22, 2026 /PRNewswire/ — Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the “Company”), the financial holding company for Esquire Bank, National Association (“Esquire Bank” or the “Bank”), (collectively “Esquire”) today announced its operating results for the fourth quarter and full year 2025. Significant achievements and key performance metrics during the current quarter and year include:

• Net income increased 14.6% to $13.5 million, or $1.55 per diluted share in the current quarter, as compared to $11.8 million, or $1.37 per diluted share, for the comparable quarter in 2024 despite a $1.2 million increase in the provision for credit losses and a $3.4 million increase in total noninterest expense. For the full year of 2025, net income increased 16.4% to $50.8 million notwithstanding a $5.0 million increase in the provision for credit losses and a $10.4 million increase in total noninterest expense when compared to 2024. During the current quarter and full year 2025, certain discrete tax benefits related to share-based compensation reduced the reported tax rate to 22.8% and 22.6%, respectively, as compared to 25.0% and 26.4% for the fourth quarter and full year 2024, respectively. Excluding these compensation related items, our 2025 and 2024 normalized effective tax rate was approximately 27%.
• On a linked quarter basis, pretax profit was relatively flat despite a $1.2 million increase in the provision for credit losses due to significant commercial law firm loan growth and a $704 thousand increase in total noninterest expenses in the current quarter.
• Consistent industry leading returns on average assets and equity of 2.36% and 18.90% in the current quarter, respectively, and 2.43% and 19.41% for full year 2025, respectively, notwithstanding our continued investment in current resources to support future growth and excellence in client service while also maintaining excess capital with an equity to assets ratio of 12.2%.
• Resilient net interest margin of 6.05% and 6.02% in the current quarter and full year 2025, respectively, led by our national litigation platform growth, despite continued declines in short-term market interest rates from their highs in 2023. Total full year revenue increased $21.7 million, or 17.4%, to $146.6 million when comparing 2025 to 2024.
• Significant loan growth on a linked quarter basis totaling $211.4 million, or 54.2% annualized, to $1.76 billion, fueled by a $185.3 million or a 74.0% annualized increase in higher yielding commercial litigation related loans nationally. Growth was led by both new lending facility originations of $68.5 million and net draws on existing facilities of $116.8 million, respectively. As in previous years, we anticipate that a portion of these draws may pay down in early 2026, tempering first quarter 2026 loan growth. Average loans grew $122.9 million or 31.8% annualized to $1.66 billion on a linked quarter basis. For the full year 2025, loans grew $361.4 million, or 25.9%, when compared to $1.40 billion in 2024 with commercial litigation loan growth totaling $342.5 million or 41.0%. These commercial relationships will continue to create additional opportunities for future loan growth (future draws on existing facilities and additional availability on renewed lines-of-credit) as well as future growth in core deposits through our full-service commercial relationship banking programs and commercial cash management platform on a national basis.
• Significant corresponding commercial core deposit growth on a linked quarter basis totaling $183.5 million, or 38.9% annualized, to $2.06 billion, comprised of low-cost commercial relationship deposits with a cost-of-funds of 1.00% (including demand deposits). Growth on a linked quarter basis was fueled by our litigation related escrow or IOLTA deposits nationally. We anticipate that a portion of these elevated escrow/IOLTA funds may be disbursed in early 2026 to claimants, tempering first quarter deposit growth. For the full year 2025, core deposits grew $428.7 million, or 26.3%, when compared to $1.63 billion in 2024. Off-balance sheet sweep funds increased $182 million, or 33%, to $736.6 million when compared to year-end 2024, with approximately 61.0% available for additional on-balance sheet liquidity, while the associated administrative service payments (“ASP”) fee income totaled $741 thousand for the current quarter. Additional available liquidity, excluding the aforementioned sweeps, totaled approximately $1.1 billion.
• Solid credit metrics, asset quality, and reserve coverage ratios with an allowance for credit losses to loans ratio of 1.37%, nonperforming loans totaling $8.6 million, and nonperforming loans to total assets ratio of 0.36%.
• Stable and consistent noninterest income in the current quarter totaling $6.1 million, or 16% of total revenue, led by our payment processing platform with 93,000 small business clients nationally. Our tech-enabled payments platform allowed us to perform commercial treasury clearing services for $10.0 billion in credit and debit card payment volume, a 7.9% increase from the comparable quarter in 2024, across 145.4 million transactions for our small business clients in all 50 states.
• Strong efficiency ratio of 48.4% for the current quarter, notwithstanding our investments to support future growth, risk management and excellence in client service as well as the August 2025 opening of our flagship full-service branch in Los Angeles, California (Watt Plaza in Century City) to support our current and future clients in Southern California.
• Named to the Piper Sandler 2025 Bank & Thrift Sm-All Stars for the third time in several years, placing Esquire among an elite peer group of top performing small-cap banks nationwide.
• Strong capital foundation with common equity tier 1 (“CET1”) and tangible common equity to tangible assets⁽¹⁾ (“TCE/TA”) ratios of 14.18% and 12.24%, respectively. The Bank remains well above the bank regulatory “Well Capitalized” standards.

“Despite our industry leading performance metrics and the associated industry accolades in 2025, we continue to remain steadfast in serving two vast, complex, fragmented, and significantly underserved national markets, both the litigation and payments verticals, with tailored tech-enabled financial solutions and data that support our clients’ unique businesses and growth objectives,” stated Tony Coelho, Chairman of the Board.

“By continuously expanding our knowledge of the markets we serve, investing in technology and the client experience, and cultivating key national regions through our senior business development officers and best-in-class client service, we are confident that we will grow and perform commensurate with our 2025 results,” stated Andrew C. Sagliocca, Vice Chairman, CEO, and President. “Our culture and goals are aligned; we will continue to generate best-in-class products, technology and client service to meet the needs and wants of the businesses we serve nationally as well as industry leading growth, performance, and financial metrics for the benefit of all stakeholders.”

Fourth Quarter 2025 vs. 2024

Net income for the quarter ended December 31, 2025 was $13.5 million, or $1.55 per diluted share, compared to $11.8 million, or $1.37 per diluted share for the same period in 2024. Returns on average assets and equity for the current quarter were 2.36% and 18.90%, respectively, compared to 2.49% and 19.99% for the same period of 2024.

Net interest income increased $6.4 million, or 23.8%, to $33.3 million, due to growth in average interest earning assets totaling $360.0 million, or 19.7%, to $2.18 billion, funded with low-cost core deposits from our regional new business development teams and existing relationship banking efforts. Our net interest margin increased 18 basis points to 6.05%, led by higher yielding commercial loan production nationally. Average loan yields increased 17 basis points to 7.95% while average loans increased $340.0 million, or 25.8%, to $1.66 billion, with litigation related loan growth totaling $320.3 million, or 42.1%. Loan interest income increased $7.4 million, or 28.9%, to $33.2 million with $6.9 million related to growth in average loan volumes, led by litigation related commercial growth, and $568 thousand due to an increase in average loan rates. Average securities increased $31.4 million, or 10.4%, to $334.4 million with yields increasing 34 basis points to 3.78%. Securities income increased $566 thousand with $290 thousand attributable to average volume increases and $276 thousand attributable to increases in average rate. Average deposits increased $327.4 million, or 20.1%, to $1.96 billion, led by increases in litigation related escrow or IOLTA, commercial money market, and noninterest bearing commercial demand deposits totaling $154.3 million, $99.5 million, and $82.4 million, respectively. Our cost of deposits, including noninterest bearing demand deposits, increased 5 basis points to 1.00% due to changes in deposit composition coupled with increases in short-term money market rates. Our loan-to-deposit ratio was 85% at December 31, 2025.

The provision for credit losses was $2.9 million for the fourth quarter of 2025, a $1.2 million increase from the fourth quarter 2024, primarily due to significant loan growth in the current quarter. As of December 31, 2025, our allowance to loans ratio was 1.37% as compared to 1.50% as of December 31, 2024. Based on management’s evaluation of current credit risk in our commercial real estate and commercial portfolios as well as increases in the general reserves considering loan growth, loan composition, and the current uncertain economic and short-term interest rate environment, management believes the allowance for credit losses is adequate at December 31, 2025.

Noninterest income totaled $6.1 million in the current quarter, consistent with 2024. Payment processing income was $5.1 million for the fourth quarter of 2025, consistent with the prior year quarter. Growth in payment processing income has been muted, primarily due to changes in our overall merchant risk profile and merchant composition. Payment processing volumes for the credit and debit card processing platform increased $729.5 million, or 7.9%, to $10.0 billion while transactions volume totaled 145.4 million for the current quarter. We continue to focus on the expansion of merchant sales channels through our current and future ISOs, new merchant originations, active management of our merchant risk profiles, and by expanding our technology and other resources in the payment vertical. The Company utilizes proprietary and industry leading/customized technology to ensure card brand and regulatory compliance, to support multiple processing platforms, to manage daily risk across 93,000 small business merchants in all 50 states, and to perform commercial treasury clearing services for $10.0 billion in volume across 145.4 million in transactions in the current quarter. ASP fees totaled $741 thousand, consistent with prior quarters, and are directly impacted by the average balance of off-balance sheet sweep funds as well as current short-term market interest rates.

Noninterest expense increased $3.4 million, or 21.5%, to $19.1 million for the fourth quarter of 2025. This was primarily due to increases in employee compensation and benefits, data processing, occupancy and equipment costs, professional and consulting services, and travel and business relations. Employee compensation and benefits costs increased $1.5 million, or 16.1%, primarily due to increases in year-end salaries, employee benefit costs, stock grants and related stock-based compensation, staffing, regional business development officer (“BDO”) incentive pay or  sales commissions, and year-end bonuses. The increase in BDO incentive pay is directly tied to our litigation related/commercial loan and core deposit growth, attracting full-service commercial banking clients nationally. Data processing costs increased $469 thousand due to increases in core banking processing volumes and the continued implementation/improvement of technology supporting client relationships and lead acquisition initiatives (CRM platform, digital marketing, business development, and lending) as well as overall risk management across all platforms. Occupancy and equipment costs increased $421 thousand due to the replacement and accelerated amortization of certain internally developed software to support our digital platform, and costs associated with the August 2025 opening of our Los Angeles branch. Professional and consulting services costs increased $411 thousand due to the evaluation of certain business development opportunities, and professional search costs related to staffing needs. Travel and business relations expenses increased $309 thousand as a result of our high touch business development efforts nationally that complement our digital marketing efforts and additional travel related to the opening and associated training for our new Los Angeles branch.

The Company’s efficiency ratio was 48.4% for the three months ended December 31, 2025, as compared to 47.5% in 2024, notwithstanding our continuous investment in resources (both technology and people) to support future growth, lead acquisition initiatives, excellence in client service, enhanced risk management, and costs associated with our flagship Los Angeles branch.

The effective tax rate was 22.8% for the fourth quarter of 2025, as compared to 25.0% in the prior year quarter, resulting from certain discrete tax benefits related to share-based compensation.

Year Ended 2025 vs. 2024

Net income for the year ended December 31, 2025 was $50.8 million, or $5.87 per diluted share, compared to $43.7 million, or $5.14 per diluted share for the same period in 2024. Returns on average assets and equity for the current year were 2.43% and 19.41%, respectively, compared to 2.57% and 20.14% for the same period of 2024.

Net interest income increased $21.6 million, or 21.6%, to $121.5 million, due to growth in average interest earning assets totaling $369.7 million, or 22.4%, to $2.02 billion, funded with low-cost core deposit growth from our regional new business development teams and existing relationship banking efforts. Our net interest margin decreased 4 basis points to 6.02%, primarily due to elevated average interest earning cash balances of $49.1 million that negatively impacted our net interest margin by approximately 8 basis points. Average loan yields increased 9 basis points to 7.91% while average loans increased $253.1 million, or 20.1%, to $1.51 billion, led by higher yielding litigation related loan growth of $253.7 million, or 37.2%. Loan interest income increased $21.1 million, or 21.4%, to $119.6 million with $20.0 million related to growth in average loan volumes (substantially all litigation related commercial loans) and $1.1 million due to increases in average loan rates. Average securities increased $67.5 million, or 25.4%, to $333.3 million and securities yields increased by 53 basis points to 3.78%. Securities income increased by $4.0 million with $2.4 million attributable to average volume increases and $1.5 million attributable to increases in average rate. Average deposits increased $340.2 million, or 23.2%, to $1.81 billion, led by increases in litigation related escrow or IOLTA, money market (primarily commercial), and noninterest bearing commercial demand deposits totaling $208.4 million, $80.4 million, and $60.0 million, respectively. Our cost of deposits, including noninterest bearing demand deposits, increased 8 basis points to 0.99% due to changes in deposit composition coupled with increases in short-term money market rates.

The provision for credit losses was $9.7 million for the year ended December 31, 2025, a $5.0 million increase from the same period in 2024, driven by $6.6 million in net charge-offs primarily comprised of (1) a small business merchant related commercial loan charge-off totaling $3.3 million ($736 thousand on nonaccrual as of December 31, 2025) in the second quarter of 2025; and (2) a multifamily loan charge-off totaling $2.9 million in the first quarter of 2025 ($7.8 million on nonaccrual as of December 31, 2025). As of December 31, 2025, our allowance to loans ratio was 1.37% as compared to 1.50% as of December 31, 2024. Based on management’s evaluation of current credit risk in our commercial real estate and commercial portfolios as well as increases in the general reserves considering loan growth, loan composition, and the current uncertain economic and short-term interest rate environment, management believes the allowance for credit losses is adequate at December 31, 2025.

Noninterest income totaled $25.1 million, consistent with 2024. Payment processing income was $20.2 million, a $660 thousand decrease from 2024, primarily due to changes in our overall merchant risk profile and merchant composition. Payment processing volumes for the credit and debit card processing platform increased $3.1 billion, or 8.6%, to $39.5 billion and transactions totaled 590.4 million for the current year. ASP fee income increased $257 thousand to $3.0 million for the year ended December 31, 2025. ASP fee income is directly impacted by the average balances of off-balance sheet sweep funds as well as current short-term market interest rates. In the second quarter of 2025, we recognized a $432 thousand gain on certain equity investments.

Noninterest expense increased $10.4 million, or 17.1%, to $71.2 million for the year ended December 31, 2025, as compared to 2024. This increase was primarily due to increases in employee compensation and benefits, data processing, professional and consulting services, occupancy and equipment and travel and business relations. Employee compensation and benefits costs increased $4.5 million, or 11.8%, primarily due to increases in regional BDO incentive pay or sales commissions, year-end bonuses, employee benefit costs, stock grants and related stock-based compensation, and, to a lesser extent, the impact of year end salary increases and employee hires. The increase in BDO incentive pay is directly tied to our litigation related/commercial loan and core deposit growth, attracting full-service commercial banking clients nationally. Data processing costs increased $1.8 million due to increases in core banking processing volumes and the continued implementation/improvement of technology supporting client relationships and lead acquisition initiatives (CRM platform, digital marketing, business development, and lending) as well as overall risk management across all platforms. Professional and consulting services costs increased $1.7 million due to continuously evaluating business development opportunities, increased insurance and accounting costs, and costs related to staffing needs, including our new Los Angeles branch. Occupancy and equipment costs increased $814 thousand due to the replacement and accelerated amortization of certain internally developed software to support our digital marketing and risk management platforms and costs related to our new Los Angeles branch. Travel and business relations expenses increased $684 thousand, resulting from our high touch sales efforts that complement our digital marketing efforts and additional travel related to the opening and associated training for our new Los Angeles branch.

The Company’s efficiency ratio was 48.6% for the year ended December 31, 2025, as compared to 48.7% in 2024, notwithstanding our continuous investment in resources (both technology and people) to support future growth, lead acquisition initiatives, excellence in client service, enhanced risk management, and the opening of our flagship Los Angeles branch.

The effective tax rate was 22.6% for the year ended December 31, 2025, as compared to 26.4% in the prior year, resulting from certain discrete tax benefits related to share-based compensation.

Asset Quality

At December 31, 2025, we had two nonperforming loans totaling $8.6 million, with no exposure to commercial office or construction related borrowers, and $14.0 million in performing loans to the hospitality industry. The allowance for credit losses was $24.0 million, or 1.37% of total loans, as compared to $21.0 million, or 1.50% of total loans at December 31, 2024. The ratio of nonperforming loans to total loans and total assets was 0.49% and 0.36%, respectively, at December 31, 2025. Based on management’s evaluation of current credit risk in our commercial real estate and commercial portfolios as well as increases in the general reserves considering loan growth, loan composition, and the current uncertain economic and short-term interest rate environment, management believes the allowance for credit losses is adequate at December 31, 2025.

From a credit risk management perspective, the commercial real estate portfolio, excluding one multifamily nonaccrual loan, totaled $472.3 million and has a current weighted average debt service coverage ratio (“DSCR”) and an original loan-to-value (“LTV”) (defined as unpaid principal balance as of December 31, 2025 divided by appraised value at origination) of approximately 1.60 and 55%, respectively. When further evaluating this population, loans with below current market rates maturing in (1) less than one year totaled $49.4 million and had a current weighted average DSCR and an original LTV of approximately 1.29 and 67%, respectively; and (2) one to two years totaled $47.6 million and had a current weighted average DSCR and an original LTV of approximately 1.40 and 67%, respectively.

Balance Sheet – December 31, 2025 vs. 2024

At December 31, 2025, total assets increased $473.2 million, or 25.0%, to $2.37 billion. This increase was primarily attributable to growth in loans totaling $361.4 million, or 25.9%, to $1.76 billion. Our higher yielding variable rate commercial loans increased $325.0 million, or 35.3%, to $1.25 billion with commercial litigation related loans increasing $342.5 million, or 41.0%, to $1.18 billion. Our commercial relationship banking sales pipeline remained robust, anchored by our regional senior BDOs (supported by commercial lending, risk, and operations) located in key markets throughout the U.S. These BDOs are supported by our best-in-class technology stack including, but not limited to; our proprietary CRM system, digital marketing cloud and lending based technology built on Salesforce supporting client relationships and lead acquisition initiatives; account-based digital marketing (or “ABM”) with significant thought leadership content; and artificial intelligence (or “AI”) for advanced data analytics across our platform powering personalized and real-time ABM content to both current clients and prospective clients. Our available-for-sale securities portfolio increased $4.8 million to $246.5 million supported by purchases at current market interest rates totaling $47.6 million, offsetting portfolio amortization totaling $50.6 million. Our held-to-maturity securities portfolio totaled $60.2 million, a decrease of $8.5 million, due to portfolio amortization. Our total securities to assets ratio was 13% at December 31, 2025.

The following table provides information regarding the composition of our loan portfolio for the periods presented:

Total deposits were $2.06 billion as of December 31, 2025, a $420.8 million, or 25.6%, increase from December 31, 2024 due to a $247.9 million, or 25.3%, increase in litigation related escrow or IOLTA, a $83.3 million, or 64.7%, increase in money market deposits (primarily commercial), and a $78.5 million, or 15.8%, increase in noninterest bearing commercial demand deposits. Our deposit strategy primarily focuses on developing full service commercial banking relationships nationally with our clients through commercial lending facilities, payment processing, and other unique commercial cash management services in our two national verticals, rather than competing with other institutions on rate. Our longer duration IOLTA, escrow and settlement deposits represent $1.23 billion, or 59.5%, of total deposits. As of December 31, 2025, uninsured deposits were $685.1 million, or 33%, of our total deposits of $2.06 billion, excluding $12.1 million of the Company’s deposits held at the Bank. Approximately 75% of our uninsured deposits represent clients with full commercial relationship banking with us including, but not limited to, commercial loans, payment processing, and various commercial service-oriented relationships including law firm operating accounts, law firm IOLTA/escrow accounts, merchant reserves, ISO reserves, ACH processing, and custodial accounts.

Due to the nature of our larger mass tort and class action settlements related to the litigation vertical, we participate in FDIC insured sweep programs as well as treasury secured money market funds. As of December 31, 2025, off-balance sheet sweep funds totaled approximately $736.6 million, with approximately $449.0 million, or 61.0%, available to be swept on balance sheet as reciprocal client relationship deposits. Our core low-cost deposit growth and off-balance sheet client funds continue to clearly demonstrate our highly efficient, full service commercial relationships and tech-enabled cash management platform.

At December 31, 2025, we had the ability to borrow, on a secured basis, up to $455.6 million from the FHLB of New York and $48.1 million from the FRB of New York discount window. No borrowing amounts were outstanding during the fourth quarter of 2025. Historically, we have not leveraged our balance sheet to generate earnings and have always utilized core client deposits to fund our asset growth and related earnings.

Stockholders’ equity increased $52.5 million to $289.6 million as of December 31, 2025, primarily driven by net increases in retained earnings (net income less dividends paid to shareholders), and to a lesser extent, additional paid-in-capital due to share-based compensation and decreases in other comprehensive losses related to net unrealized gains in our available-for-sale securities portfolio.

The Bank remains well above bank regulatory “Well Capitalized” standards.

About Esquire Financial Holdings, Inc.

Esquire Financial Holdings, Inc. is a financial holding company headquartered in Jericho, New York. Its wholly owned subsidiary, Esquire Bank, is a full-service commercial bank, with branch offices in Jericho, New York and Los Angeles, California, as well as an administrative office in Boca Raton, Florida. The Bank is dedicated to serving the financial needs of the litigation industry and small businesses nationally, as well as commercial and retail customers in the New York metropolitan area. The Bank offers tailored financial and payment processing solutions to the litigation community and their clients as well as dynamic and flexible payment processing solutions to small business owners. For more information, visit www.esquirebank.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 relating to future results of the Company. Forward-looking statements are subject to many risks and uncertainties, including, but not limited to: changes in business plans as circumstances warrant; changes in general economic, business and political conditions, including changes in the financial markets; and other risks detailed in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “attribute,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “aim,” “would,” “annualized” and “outlook,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as may be required by law.

 

 

 

 

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SOURCE Esquire Financial Holdings, Inc.

ENGLEWOOD, Colo., Jan. 22, 2026 /PRNewswire/ — XTI Aerospace, Inc. (Nasdaq: XTIA) (“XTI” or the “Company”) an aerospace technology company focused on building and scaling its newly acquired subsidiary, Drone Nerds, LLC (“Drone Nerds”), and its comprehensive unmanned aircraft system (“UAS”) platform for enterprise and government customers, today announced the election of Clinton J. Weber to its Board of Directors at the Company’s 2025 annual shareholder meeting, which was held on December 30, 2025.

“As we continue to sharpen our focus on the drone and unmanned aircraft markets, Clinton’s experience operating within drone-enabled aerospace platforms and geospatial intelligence businesses is exceptionally valuable,” said Scott Pomeroy, Chief Executive Officer of XTI Aerospace. “He understands both civilian and defense-related aviation environments. This expertise, combined with his background in finance and investments, will support our strategic decision-making as we navigate a rapidly evolving UAS landscape.

Mr. Weber currently serves as Chief Financial Officer of Prius Intelli, LLC, an aerial imagery and geospatial intelligence company, and its subsidiary Synetos Aerospace, where he is responsible for business development, mergers and acquisitions, and financial planning and analysis. In these roles, he works closely with unmanned aerial systems, drone-based data acquisition and advanced aerospace technologies, supporting scalable aviation and intelligence-driven applications.

Previously, Mr. Weber served as Chief Investment Officer and as a member of the board of directors at Trinity Investment Management, LLC, where he oversaw capital allocation strategy, investment performance, transaction sourcing and operational execution. He also served as Managing Director of the Trinity Faith & Family Values Alternative Income Fund, providing portfolio oversight, governance and risk management across complex investment structures. Since 2019, Mr. Weber has also provided financial counselling services to start-ups through his sole proprietorship, Tally Ho Enterprises, LLC.

Earlier in his career, Mr. Weber was a Principal and Senior Analyst at Corbett Capital, focusing on private equity and direct investments.

Mr. Weber began his professional career as an officer and tactical jet pilot in the United States Marine Corps, giving him firsthand experience in aviation operations, mission-critical systems and disciplined execution.

Mr. Weber holds a Bachelor of Arts degree from Texas A&M University and a Master of Business Administration from Texas Christian University.

About XTI Aerospace
XTI Aerospace, Inc. (Nasdaq: XTIA) is an aerospace technology company focused on the advancement of vertical flight. Through its Drone Nerds business, acquired in November 2025, XTIA is a premier provider of unmanned aircraft systems (“UAS”), solutions, services and hardware. Through its XTI Aircraft business, the Company is engaged in the development of advanced vertical takeoff and landing (“VTOL”) aircraft with the range and speed of planes and the take-off and landing capability of helicopters.

For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. All statements other than statements of historical fact contained in this press release are forward-looking statements.

Forward-looking statements may be identified by words such as “believe,” “continue,” “could,” “would,” “will,” “expect,” “intend,” “plan,” “target,” “estimate,” “project” or similar expressions. These statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Such risks include, but are not limited to, risks associated with market adoption, regulatory requirements, supply chain conditions, technological development and changes in applicable laws or regulations. XTI undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances. Readers are encouraged to review the risk factors described in XTI’s filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

Contacts:

General inquiries:
Email: [email protected]
Web: https://xtiaerospace.com/contact

Investor Relations:
Dave Gentry, CEO
RedChip Companies, Inc.
Phone: 1-407-644-4256
Email: [email protected]

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SOURCE XTI Aerospace, Inc.

MIAMI, Jan. 22, 2026 /PRNewswire/ — Innovative Eyewear, Inc. (“Innovative Eyewear” or the “Company”) (NASDAQ: LUCY; LUCYW), the developer and manufacturer of smart eyewear under the Lucyd®, Lucyd Armor®, Reebok®, Eddie Bauer® and Nautica® brands, is pleased to announce a summary of the Company’s progress and achievements throughout 2025. The Company believes these developments have significantly advanced its goal of building the global standard in smart eyewear.

Global Market Expansion & Strategic Partnerships

Innovative Eyewear executed a focused distribution strategy in 2025, securing and developing partnerships with major retail and business to business channels:

• Retail & Distribution Growth: Participation at Vision Expo West, MIDO Milan, SILMO Paris and the National Hardware Show resulted in approximately 40 new optical accounts and initial orders from key European markets. New partnerships include Reebok.com, Optical Resources Group, Ocusafe.com, Kits.com, SmartBuyGlasses, and Smartech’s TM:RW flagship store in Times Square.
• The Company is meeting regularly with some of the largest US retailers. Ongoing negotiations with major big box stores indicate the potential for a significant brick and mortar expansion in 2026, in the optical and hardware departments. 
• Canadian Presence: A new partnership with Eye Recommend exposes Lucyd products to over 600 independent optical practices across Canada. Additionally, listing with Kits.com, the largest eyewear ecommerce site in Canada.
• Global E-Commerce: Partnered with SmartBuyGlasses, one of the world’s largest independent eyewear retailers, to offer Reebok Powered by Lucyd.
• EU and Canadian safety certifications acquired for Lucyd Armor®, enabling significant expansion opportunities for the Company’s popular ANSI-rated smart safety glasses.

Software & Product Innovation

• Core App Update: The Lucyd app has been rebuilt as an applet store for smartglasses and other hearables, packaged in a standard iOS/Android app. This provides enormous user flexibility and allows the Company to serve its software to users of hearables and smartglasses outside of Lucyd, potentially opening a significant new customer base and revenue channel.
• Translate Applet: The app now features a 17-language real-time translation tool, providing travelers and professionals with fluid, verbal translations. Translation is often cited as a key use case of smart eyewear.
• Enterprise Communication: Launched secure, hands-free Walkie functionality with custom Siri commands. This allows teams to communicate through private, encrypted channels – ideal for industrial and corporate environments.
• Product Portfolio: Introduced Reebok Powered by Lucyd smart sunglasses, the Company’s most premium product to date, catering to active lifestyles. The Company also introduced four new types of Lucyd Armor to expand the product into a full collection. Additionally, the Moonbeam style was introduced in the Lucyd Lyte collection, a classic “P3” round-frame style that quickly became a bestseller.
• Significant R&D efforts conducted in 2025 to create two next generation smart eyewear platforms, an ultra-lyte frame focused on AI utility, and the next generation of our core Lucyd Lyte platform with improved audio, smart features and build quality.

Lucyd Armor®: The New Safety Standard

The Lucyd Armor line has emerged as the Company’s fastest-growing product category:

• Safety Certifications in Multiple Jurisdictions: The Armor line achieved ANSI (US), Canadian, and European Union certifications, setting the stage for workplace safety sales across leading global markets.
• Market First: Lucyd Armor is the first smart safety eyewear on the market to offer certified protection, photochromic lenses, high-fidelity audio, handsfree walkie features and prescription adaptability in a single frame.

Financial & Management Updates

• Enhanced Balance Sheet: The Company successfully facilitated the exercise of warrants resulting in $2.2 million in gross proceeds, strengthening the balance sheet to support 2026 growth initiatives.
• Leadership Evolution: To sharpen its focus on AI and emerging tech, Konrad Dabrowski has transitioned from his role as Co-CFO to Chief AI and Growth Officer, while Oswald Gayle has assumed the role of Chief Financial Officer.
• Sales Team Expansion: The Company hired a new Marketing Director and expanded its sales staff in 2025, to accelerate growth in the PPE/safety and optical verticals.

Management Commentary

“Despite the complexities of the global trade environment, 2025 was a year of incredible growth and execution for Innovative Eyewear,” said Harrison Gross, CEO of Innovative Eyewear. “Our sales and margin performance were built on the rapid adoption of Lucyd Armor, which has become our fastest-selling unit since its late 2024 launch. Preliminary unaudited full-year 2025 sales have increased by approximately 65% year over year.”

Mr. Gross continued, “By shipping directly from our manufacturing facilities to international partners, we are successfully navigating US tariffs while capturing market share in regions where smart eyewear is still a new frontier. At the same time, reduction in smart eyewear tariffs from previous levels bodes well for our ability to grow in our home market. We are entering 2026 with market-leading products, a stronger retail footprint, and a clear path toward enhancing shareholder value as we seek to build the global standard in smart eyewear. We are bullish about the future, and grateful to our dedicated team, thousands of customers and loyal shareholders that have made this journey possible.”

About Innovative Eyewear, Inc.

Innovative Eyewear is a developer & manufacturer of cutting-edge ChatGPT enabled smart eyewear, under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands. True to our mission to Upgrade Your Eyewear®, our Bluetooth audio glasses allow users to stay safely and ergonomically connected to their digital lives and are offered in hundreds of frame and lens combinations to meet the needs of the optical, sunglass, sporting goods and safety eyewear markets. To learn more and explore our continuously evolving collection of smart eyewear, please visit www.lucyd.co.

Forward Looking Statements

This press release contains certain forward-looking statements, including those relating to retail partners. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K under the caption “Risk Factors.”

Investor Relations Contact:

Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, NY 10036
Office: +1 (646) 893-5835
Email: [email protected]

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SOURCE Innovative Eyewear, Inc.