CXApp (CXAI)·Q3 2025 Earnings Summary
CXAI Q3 2025 Earnings: Mixed Results as AI Platform Scales
CXApp Inc. (NASDAQ: CXAI) reported Q3 2025 results on November 12, 2025, delivering a strong EPS beat but missing revenue estimates. The workplace experience and agentic AI platform company continues its transition to a pure SaaS model while managing operating losses.
Earnings Scorecard
Beat/Miss Summary
Financial Results
Q3 2025 Financial Summary
Key Financial Highlights
- Subscription revenue mix: 99% — up from 88% in Q3 2024, demonstrating successful transition to pure SaaS model
- Gross margin: 89% — improved from 86% last quarter through disciplined cloud cost management
- Cash OpEx: $3.2M — flat vs Q2 and prior year, reflecting operational efficiency
- Cash position: $9M — sufficient runway for at least 2 years per management
Beat/Miss History (Last 6 Quarters)
Revenue has consistently declined since Q3 2024 as the company phases out hardware-related sales to focus on software-led growth.
Stock Price Reaction
Post-Earnings Price Action
The stock initially rallied on EPS beat but sold off the following day as investors digested the revenue miss and ongoing decline in top-line growth.
Strategic Highlights
Key Developments
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Gartner Recognition — Named a Representative Vendor in Gartner's 2025 Market Guide for Workplace Experience Applications
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Noro Partnership — Strategic collaboration announced with Noro for immersive telepresence technology, merging CXAI's agentic AI with life-size presence portals
- Combined offering available Q1 2026
- Enables "distance to disappear" in hybrid work
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30 Rock Deployment — Marquee media client launched across 5 campuses including NYC's iconic 30 Rockefeller Plaza
- 6,000 users on day one
- Expanded to LA, Miami, Connecticut
- Dining feature most popular capability
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Platform Enhancements — Sky 1.0 platform saw major performance gains
- Space booking time reduced by 50%+
- Enhanced colleague visibility through dynamic maps
- 40% reduction in scheduling conflicts at one global client
- Double-digit improvement in employee satisfaction
Management Commentary
What Went Well
"We're not just another AI platform. We're the bridge between billions in corporate AI investment and the actual human experience of work." — Khurram Sheikh, CEO
"Q3 showcased steady discipline performance, improving gross margins, consistent OpEx, and expanding recurring revenue. We're managing growth and profitability in tandem." — Joy Mbanugo, CFO
On Revenue Decline
"The modest revenue decline reflects a shift in revenue mix. We saw lower hardware-related sales this quarter, consistent with our strategy to phase out non-core components and focus on software-led growth." — Joy Mbanugo, CFO
On Agentic AI
"With our Agentic AI, everything can be done within a New York minute. That's game-changing. That's why these clients are staying with us because they see the potential of how Sky 2.0 is really going to be transformative." — Khurram Sheikh, CEO
Q&A Highlights
Jack Vander Aarde (Maxim Group) asked about kiosk updates and deployment status:
- Kiosk deployment progressing: First client in Silicon Valley; planning global rollout to 14+ campuses
- Three additional clients in pilot phase for kiosk deployments
- Q1 2026 broader launch anticipated for kiosk product
- Day one engagement metrics: 6,000 users generated 30,000+ interactions at 30 Rock launch
Management Tone Evolution
Consistent messaging on agentic AI leadership and return-to-office tailwinds. Tone has shifted from visionary to emphasizing proof points and validation.
Guidance & Outlook
No formal guidance provided. Management outlined three priorities for Q4 2025 into 2026:
- Expand within current customer base — Many Fortune 500 clients use only 2-4 modules; opportunity to multiply ARR through module expansion
- Accelerate ecosystem integrations — Partnerships like Noro and Google Cloud extend reach beyond traditional workplace apps
- Maintain cost discipline — Balance growth with responsibility while investing in AI leadership
Analyst Expectations (Consensus)
Key Takeaways
Positives ✅
- Strong EPS beat (+40.9%) demonstrates improving profitability trajectory
- 89% gross margin — highest in company history, showing SaaS model benefits
- 99% subscription mix — nearly complete transition to recurring revenue
- Industry validation — Gartner recognition legitimizes market position
- Customer wins — High-profile 30 Rock deployment proves enterprise scalability
- $9M cash runway — 2+ years of operating runway
Concerns ❌
- Revenue miss (-14.6%) and persistent YoY decline (-41%)
- Declining top line — Six consecutive quarters of sequential or YoY revenue decline
- Small scale — $1.1M quarterly revenue limits near-term profitability potential
- Stock weakness — Down 76% YTD as market questions growth trajectory
- Low analyst coverage — Only 1 analyst with $2-3 price target
Valuation Context
At $0.37/share, CXAI trades at a discount to enterprise value, reflecting market skepticism about revenue stabilization. One analyst maintains a $2-3 price target, implying significant upside if execution improves.