CXApp Inc.

What they do

CXApp sells subscription licenses to the CXAI Platform (pronounced 'Sky'), a cloud-based, mobile-first workplace system delivered across iOS, Android, kiosk and web. The platform includes CXAI Applications, the CXAI BTS infrastructure layer, the CXAI-VU analytics and natural language insights module, and agentic AI capabilities for task execution and self-service. It is hosted on AWS, Google Cloud Platform and Microsoft Azure, and the company also charges professional service fees for setup and deployment of new locations or campuses, including digitized maps. Target industries are technology, financial services, healthcare and corporate real estate.

Revenue drivers

• CXAI Platform subscriptions — Recurring software fees for the flagship employee experience platform, historically the core of revenue; this subscription base produced the 2024 revenue of $7.1M and 2025 revenue of $4.6M.
• Professional services and deployments — One-time fees to set up and deploy a new location or campus, including digitized maps and global or regional configuration, sold alongside subscription licenses.
• EngineRoom managed advertising and growth marketing — Revenue from the EngineRoom acquisition completed June 3, 2026, contributing less than one month of operations in Q2 2026; it carries a higher direct-cost profile than subscription revenue and drove the reported gross margin decline.

Recent performance

Q2 2026 (three months ended June 30, 2026) revenue was $1.7M, with gross profit of $1,071 thousand and gross margin of 63.22%, versus gross profit of $1,052 thousand and 86.02% margin in Q2 2025. For the six months ended June 30, 2026, gross profit was $1,861 thousand at 70.39% margin versus $2,126 thousand at 86.88% in the prior-year period. The company reported 38.5% year-over-year revenue growth in the quarter, though EngineRoom contributed less than one month of operations beginning June 3, 2026. Full-year revenue declined from $7.1M in 2024 to $4.6M in 2025, and operating cash flow was negative $7.3M in 2024 and negative $10.4M in 2025. At June 30, 2026, total assets were $36.5M, total liabilities $18.5M, shareholder equity $18.1M, and cash and equivalents $11.7M.

Strategy

Management states three priorities for the first half of 2026: AI-first product innovation, scaling through the EngineRoom acquisition, and cost discipline. It says it strengthened its generative AI analytics platform for data ingestion, real-time behavioral insights and predictive modeling, and is investing in AI infrastructure in partnership with Google Cloud. The stated goal of the EngineRoom combination is to increase recurring and contractual technology revenue and expand adoption of higher-margin platform offerings across the customer base. The company says it is balancing innovation with financial discipline to position itself for long-term profitability. Forward-looking statements in the filings are qualified by risks including the need for additional financing and possible Nasdaq delisting.

Risks

• History of operating losses — The 10-K risk summary states the company has a history of operating losses and no assurance it will earn sufficient revenue to achieve profitability or raise additional financing to operate its business plan.
• Nasdaq listing standards — The risk factors cite possible delisting if continued listing standards are not met, and on September 3, 2026 the company disclosed a delisting notice or listing-rule failure with Regulation FD disclosure.
• Gross margin compression from acquisition mix — Gross margin fell to 63.22% in Q2 2026 from 86.02% a year earlier because EngineRoom's managed advertising and growth marketing advisory services carry a higher direct-cost profile than subscription revenue.
• Integration and growth execution — The risk summary states that integrating acquisitions or new offerings strains infrastructure and may not generate expected benefits, and that growth depends on scaling operations and expanding sales to new and existing customers.

Outlook

Management says it intends to leverage the combined platform to raise recurring and contractual technology revenue and expand higher-margin platform offerings, and to balance innovation with financial discipline for long-term profitability. It cites the AI infrastructure partnership with Google Cloud as enabling scalable workplace intelligence products. The filings do not provide specific revenue or earnings guidance, and the forward-looking statement language disclaims any obligation to update projections.