Executive Summary

Revenue grew 17% year over year to $3.10M with gross margin expanding 500 bps to 75% as mix shifted toward Aware and RTLS components; operating expenses declined 5% YoY, but a deferred tax provision related to the CXApp spin-off widened the continuing-ops net loss to $12.3M .
Adjusted EBITDA loss improved to $(7.73)M from $(8.77)M YoY; pro forma non-GAAP loss per share improved to $(1.01) from $(4.79) YoY, while GAAP EPS was $(1.38) vs $(9.05) YoY .
Balance sheet showed $15.25M cash and cash equivalents at 3/31/23 and $14.97M of short-term debt; working capital was approximately $0.2M surplus .
Strategic actions remain the key stock catalysts: completion of the March 14 spin-off of the enterprise apps business (CXApp) and ongoing diligence on a potential transaction for the remaining RTLS-focused business; no formal numeric guidance provided .
Note: In Q1 2023, INPX reported as “Inpixon”; XTI Aerospace, Inc. references post-date this period .

What Went Well and What Went Wrong

What Went Well
- Mix-driven margin expansion and revenue growth: Revenue +17% YoY to $3.10M; gross margin rose to 75% from 70% on sales mix (Aware and RTLS components) .
- Cost discipline: Operating expenses declined 5% YoY to $10.5M, reflecting lower compensation, professional and legal costs .
- Adjusted profitability improvement: Adjusted EBITDA loss narrowed to $(7.73)M from $(8.77)M YoY; pro forma non-GAAP loss per share improved to $(1.01) from $(4.79) .
- Management quote: “We…achieve[d] a 17% increase in revenue…while effectively reducing our operating expenses…We have reallocated resources and streamlined our operations to focus on the growth of our real-time location system (RTLS) business line.” – CEO Nadir Ali .
What Went Wrong
- Continuing-ops net loss widened: Net loss from continuing operations increased to $(12.32)M vs $(10.78)M, driven primarily by a $2.48M income tax provision tied to the CXApp spin-off .
- Higher interest burden: Interest expense rose materially with $14.97M short-term debt outstanding; interest expense was roughly $1.7M in the quarter .
- Liquidity usage: Operating cash outflow was $(9.50)M for Q1; working capital was roughly breakeven, highlighting reliance on capital markets and exchanges for liquidity .

Financial Results

Metric	Q1 2022	Q1 2023
Revenue ($USD Millions)	$2.649	$3.104
Gross Profit ($USD Millions)	$1.852	$2.313
Gross Profit Margin (%)	70%	75%
Operating Expenses ($USD Millions)	$11.089	$10.495
Loss from Operations ($USD Millions)	$(9.237)	$(8.182)
Net Loss from Continuing Ops ($USD Millions)	$(10.783)	$(12.322)
Net Loss per Share - Basic & Diluted ($)	$(9.05)	$(1.38)
Adjusted EBITDA ($USD Millions)	$(8.769)	$(7.727)

Balance Sheet & Liquidity (period-end)

Cash & Cash Equivalents: $15.254M (3/31/23)
Short-term Debt: $14.971M (3/31/23)
Working Capital Surplus: ~$0.228M (3/31/23)

Segment Breakdown (Revenue and Gross Profit)

Segment	Q1 2022 Revenue ($M)	Q1 2023 Revenue ($M)	Q1 2022 Gross Profit ($M)	Q1 2023 Gross Profit ($M)
Indoor Intelligence	1.397	1.909	0.937	1.293
SAVES	0.734	0.718	0.493	0.619
Shoom	0.518	0.477	0.422	0.401
Total	2.649	3.104	1.852	2.313

KPIs and Revenue Mix

KPI	Q1 2022	Q1 2023
Recurring Software Revenue ($M)	1.051	1.014
Non-Recurring Hardware ($M)	0.820	1.305
Non-Recurring Software ($M)	0.410	0.042
Professional Services ($M)	0.368	0.743
Revenue Recognized at a Point in Time ($M)	1.188	2.049
Revenue Recognized Over Time ($M)	1.461	1.055

Estimates vs. Actuals (Wall Street Consensus via S&P Global)

Metric	Consensus	Actual	Beat/Miss
Revenue ($M)	N/A (S&P Global consensus unavailable for INPX)	$3.104	N/A
EPS (Primary/GAAP)	N/A (S&P Global consensus unavailable for INPX)	$(1.38)	N/A

Note: We attempted to retrieve S&P Global consensus, but no mapping was available for INPX; consensus data were unavailable.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	FY 2023	None disclosed	None disclosed	N/A

No formal numerical guidance was provided in the Q1 2023 press release or 10-Q reviewed –.

Earnings Call Themes & Trends

Note: The Q1 2023 earnings call transcript could not be retrieved due to a database inconsistency. The themes below reflect the press release and 10-Q narrative.

Topic	Previous Mentions (Q-2: Q3 2022)	Previous Mentions (Q-1: FY 2022 release)	Current Period (Q1 2023)	Trend
RTLS focus and product mix	Demand within Indoor Intelligence; streamlining and cost actions; spinoff plan progressing –	Focus on RTLS growth; recognized as Leader in Gartner ILS; RTLS market projected $12.7B by 2026 –	Reallocation to RTLS; revenue +17% YoY; higher GM% due to mix	Strengthening RTLS focus
Strategic transactions	Spinoff/sale of enterprise apps with KINS (approx. $69M)	Spin-off completed in March; shareholders to benefit from two companies	CXApp spin-off closed Mar 14; diligence advancing for a potential transaction for remaining business	Portfolio restructuring continues
Cost actions/OpEx	Streamlining operations; reduced costs	Implemented initiatives to reduce OpEx/overhead	OpEx down 5% YoY	Continued discipline
Macro/supply chain	Macroeconomic challenges; delayed shipments in IIoT	Ongoing supply chain constraints and inflation highlighted	Ongoing supply-chain, inflation headwinds noted; going-concern mitigants discussed	Persistent headwinds
Capital & liquidity	Cash $63.2M at Q3-22; financing activities	2022 financing (preferred, ATM); baby-shelf constraints	$15.25M cash; ATM usage in Q2; short-term debt $14.97M	Tighter liquidity, active financing
Listing compliance	—	—	Nasdaq minimum bid price deficiency notice (April 2023)	Monitoring; potential corporate actions

Management Commentary

Strategic pivot and growth emphasis: “We…streamlined our operations to focus on the growth of our real-time location system (RTLS) business line…[enabling] customers to digitally track the real-time location and movement of physical things… and deliver actionable data.” – CEO Nadir Ali .
Balance sheet positioning: “We have maintained a solid balance sheet with over $15 million in cash and cash equivalents as of March 31, 2023.” – CEO Nadir Ali .
Spin-off context: The CXApp enterprise apps business was spun off and merged via a Reverse Morris Trust on March 14, 2023; results for CXApp are presented as discontinued operations .

Q&A Highlights

We attempted to read the full Q1 2023 earnings call transcript, but it could not be retrieved due to a database inconsistency. As a result, Q&A highlights are unavailable. Call logistics (dial-in/webcast) were provided in the press release .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2023 revenue and EPS was unavailable for INPX; we attempted to fetch, but no CIQ mapping exists for this ticker in the S&P Global dataset. Actual revenue was $3.104M; GAAP EPS was $(1.38) .

Key Takeaways for Investors

Mix-led improvement: Gross margin expanded to 75% on RTLS/Aware mix; sustaining mix is key to margin durability and a path toward breakeven adjusted EBITDA .
Operating leverage potential: OpEx fell 5% YoY with Adjusted EBITDA loss narrowing; incremental revenue should drop through at higher margins if mix persists .
Liquidity watch: ~$15.3M cash vs. ~$15.0M short-term debt and $(9.5)M operating cash outflow in Q1; further ATM usage and exchanges post-quarter underscore ongoing financing needs .
Corporate actions drive narrative: The CXApp spin-off is complete; management is advancing diligence on a potential transaction for the remaining business—these are likely to be stock catalysts .
Macro/supply chain still a factor: Management continues to flag supply chain and inflation pressures; execution on deliveries and pipeline remains a watch item .
No guidance: Lack of formal guidance shifts focus to bookings, mix, and operating cash burn as near-term indicators –.
Listing compliance: Nasdaq minimum bid price deficiency notice adds execution pressure; corporate actions (including potential reverse split) remain a background risk to track .

XTI Aerospace, Inc. (INPX)·Q1 2023 Earnings Summary