CXApp Inc. (CXAI) Q4 2025 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call reveals a significant revenue decline and ongoing losses, despite some margin improvements. The Q&A section highlights potential delisting risk and vague growth projections, which could undermine investor confidence. Although management expresses optimism about future growth and compliance, the lack of specific guidance and continued financial challenges suggest a negative sentiment overall.

Key Financial Performance

Total Revenue $4.6 million, down 36% year-over-year from $7.2 million. The decline was due to exiting noncore contracts, customer churn during platform transition, and reduced bookings during the positioning period.

Subscription Revenue Represents 98% of total revenue, up from 87% a year ago. This shift to recurring, predictable, and high-margin revenue was intentional to prioritize subscription over one-time services.

Gross Margin 87%, up 5 points from 82% in 2024. The improvement was driven by disciplined cloud cost management and platform efficiency gains.

Cash Balance $11.1 million as of December 31, strengthened by capital raises throughout the year. This provides a runway to cover expenses for the next 6 quarters.

Diluted Earnings Per Share (Non-GAAP) Negative 58%, an improvement from negative $1.2 last year.

Cost of Revenues Dropped 55% from $1.3 million to $578,000, significantly outpacing the revenue decline and contributing to margin expansion.

Operating Expenses (OpEx) $21.6 million, up 10% from $19.6 million. The increase was driven by a 4% rise in R&D, a 36% cut in sales and marketing, a 10% increase in G&A (partly due to restructuring), and a $2.1 million goodwill impairment (noncash).

Loss from Operations $17.6 million. Adjusted for the $2.1 million goodwill impairment, the underlying operating loss was approximately $15.4 million, roughly in line with the prior year.

Net Loss $13.5 million, an improvement from $19.4 million last year.

EBITDA Negative $10 million, compared to negative $15.6 million in 2024, showing a 35% improvement year-over-year.

Adjusted EBITDA Negative $9.8 million, compared to negative $8.3 million in 2024. The difference was due to a $7.7 million noncash swing related to the change in fair value of derivative liabilities.

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Operating Highlights

Agentic AI Platform: CXAI has developed an AI-native workplace experience platform, pivoting from SaaS to Agentic AI. The platform includes BOND and CORTEX, which enable autonomous workflows, real-time insights, and zero-touch deployment. CXAI 2.0 is set to launch in June 2026, offering enhanced features like unified mapping and predictive intelligence.

Patent Portfolio: CXAI has filed 39 patents, including a new provisional patent for Agentic AI, and has 18 granted patents, creating a competitive moat in the AI platform space.

Market Trends: The enterprise workplace technology market is shifting towards hybrid workplace orchestration, AI-driven smart bookings, and IoT-enabled solutions. CXAI is positioned at the intersection of these trends.

Market Opportunity: The AI agent market is projected to grow from $7.8 billion in 2025 to $52 billion by 2030. CXAI's platform aligns with enterprise demands for AI agents and unified workplace solutions.

Revenue Model Shift: CXAI transitioned to a subscription-based revenue model, with subscription revenue now representing 98% of total revenue, up from 87% in the prior year.

Operational Efficiency: Gross margin improved to 87% due to disciplined cloud cost management and platform efficiency gains. Sales and marketing expenses were reduced by 36% through AI-driven strategies.

Strategic Reset: In 2025, CXAI exited non-core contracts and professional services, focusing on high-quality recurring revenue and building an AI-native platform.

Partnerships: CXAI formed a strategic partnership with TouchSource, integrating its Agentic AI into over 11,000 digital directory deployments, expanding its market reach into commercial real estate and other verticals.

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Risk or Challenges

Revenue Decline: The company experienced a 36% year-over-year revenue decline in 2025, attributed to exiting non-core contracts, customer churn during platform transition, and reduced bookings during the repositioning period.

Customer Churn: Customer churn occurred during the platform transition, impacting revenue and highlighting challenges in retaining clients during strategic shifts.

Operational Costs: Operating expenses increased by 10% year-over-year, driven by R&D investments, restructuring costs, and a $2.1 million goodwill impairment, which, while non-cash, reflects challenges in managing operational efficiency.

Market Competition: The company faces competition from larger enterprises and other players in the AI and workplace technology space, requiring differentiation and innovation to secure enterprise clients.

Enterprise Sales Cycle: Large enterprise deals take longer to close due to the need for extensive validation and testing, potentially delaying revenue realization.

Economic Uncertainty: The company operates in a market influenced by economic conditions, which could impact enterprise software spending and adoption of new technologies.

Strategic Reset Costs: The strategic reset in 2025 involved short-term costs, including revenue decline and operational adjustments, to position for long-term growth.

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Guidance & Outlook

AI-driven acceleration in 2026: The company expects double-digit growth in 2026 driven by its Agentic AI platform, BOND + CORTEX, which is generating significant enterprise interest.

Large enterprise wins and pipeline conversion: CXAI anticipates securing large enterprise deals and converting a strong pipeline of opportunities. These deals are expected to be larger and more strategic, involving C-level decision-makers.

Strategic partnerships: The partnership with TouchSource is expected to expand CXAI's market reach, leveraging TouchSource's 11,000+ digital directory deployments to enter new verticals such as healthcare, retail, and mixed-use properties.

Sustainable revenue growth: The company is committed to high-quality, subscription-based revenue growth rather than one-time fees, ensuring long-term scalability.

Product roadmap for 2026: The release of CXAI 2.0 in June 2026 will include advanced features like Agentic AI interface, unified One Map experience, and Zero-Touch campus deployment, targeting both new and existing clients.

Future vision with CXAI Sky: The company is developing CXAI Sky, a fully Agentic AI-driven user experience aimed at mid-market expansion and predictive intelligence, expected to launch in 2026-2027.

Market trends and adoption: By 2026, 40% of enterprise apps are expected to feature task-specific AI agents, with the AI agent market projected to grow from $7.8 billion to $52 billion by 2030. Hybrid work and platform consolidation are accelerating.

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Shareholder Return Plan

The selected topic was not discussed during the call.

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Key Q&A

Q:Are you in danger of being delisted and what is your timeline on becoming compliant?

A:The company received a delisting notice from NASDAQ but was granted an extension until September. They plan to become compliant before September, primarily through growth. The only unmet requirement is the bid price, and they believe their undervaluation and upcoming results will help meet this requirement. The Board is fully committed to achieving compliance before the deadline.

Q:What can investors look forward to from the company in the near future?

A:The company expects double-digit growth, driven by momentum in landing new customers and logos for 2026. They have 20+ deals in the pipeline, with some already in contract. They are focused on moving customers from pilots to contracts and scale deployments, which they believe will help achieve their growth targets.

Q:How do you plan on setting yourself apart from other AI companies?

A:The company differentiates itself by offering a vertically integrated solution focused on campus intelligence and AI systems inside buildings, unlike competitors who focus on commoditized or horizontal solutions. Their products, BOND and CORTEX, provide integrated, secure, and private solutions tailored to large financial clients. They emphasize their competitive advantage in winning RFPs and their ability to meet client requirements better than larger competitors.

Q:Can you contextualize the double-digit growth target relative to the 20+ customer pipeline? How much conversion does that imply, and how much is new customers versus expected expansion?

A:The company expects more growth from new logos but also anticipates healthy expansion from existing customers. They have had more than 5 renewals in 2025, with renewal contracts varying in size. Many deals are multi-year commitments, with starting points in the hundreds of thousands and potential to grow into multimillion-dollar contracts over time. The Agentic AI platform offers opportunities across various functions, including space management, event management, and food ordering, which could drive significant revenue growth.

Q:Review of Unclear Management Responses

A:The management avoided providing specific guidance on revenue growth and ARR increases for renewal contracts, citing a lack of exact figures at the moment. They also used vague language when discussing the potential size of deals and the timeline for achieving double-digit growth.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

CXAI Transcript

CXApp Inc. (CXAI) Q4 2025 Earnings Call Transcript

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CXApp Inc. (CXAI) Q3 2025 Earnings Call Transcript

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CXAI's earnings call shows strong financial performance with improved gross margins and EPS, along with high customer retention and expansion plans. The Q&A section reveals positive adoption and interest in their kiosk product, despite some lack of specifics. The strategic plan highlights partnerships and product enhancements, likely boosting sentiment. While competitive pressures and economic uncertainties exist, the overall sentiment is positive due to solid financials, strategic growth, and customer confidence. The lack of market cap data suggests a neutral to positive reaction, but not extreme, thus predicting a 'Positive' stock movement.

CXApp, Inc. (CXAI) Q2 2025 Earnings Call Transcript

Positive8-12

The earnings call highlighted strong financial metrics with improved gross margins and a shift towards higher-margin subscription revenue. The company has successfully renewed contracts with major clients, indicating trust and stability. Product development and strategic partnerships are emphasized, particularly with Google Cloud, which could enhance market penetration. While risks exist, such as market conditions and economic uncertainties, the overall sentiment is positive due to strategic investments, client renewals, and financial improvements. The Q&A section did not reveal any major concerns, further supporting a positive outlook.

CXApp Inc. (NASDAQ:CXAI) Q1 2025 Earnings Call Transcript

Unknown5-21

The earnings call presents a mixed outlook. While the company is focusing on strategic initiatives like workplace transformation and AI platform development, competitive pressures and lack of revenue guidance are concerns. The Q&A reveals management's reluctance to provide revenue growth expectations, which may worry investors. Despite a focus on customer success and a solid patent portfolio, the EPS of -0.24 and revenue decline due to delayed renewals offset positive elements. Without a clear market cap, the stock is likely to see a neutral reaction, ranging between -2% and 2%.

CXAI Report

Frequently Asked Questions

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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.