CXApp Inc. Reports Strong Q2 2025 Results, Showcasing AI-Driven Workplace Transformation

CXApp Inc. (Nasdaq: CXAI) Reports Solid Q2'25 Results and Increased Adoption of Agentic AI based CXAI Platform

Agentic AI partnership with Google leading to disruptive product offerings PALO ALTO, Calif., August 12, 2025 (Newswire.com) - CXApp Inc.(Nasdaq:CXAI), the global technology leader in employee workplace experiences announced its Q2 2025 financial results and update on its state-of-the-art technology platform CXAI ("Sky"). Chairman and CEO Khurram Sheikh commented, "Q2 2025 was a period of strategic execution and deeper customer engagement across our Fortune 1000 base. Our CXAI platform anchored on agentic AI, is now in deployment accelerating workplace transformation at scale. Key products on the CXAI platform gaining momentum include the CXAI Kiosk allowing employees to do JIT (just-in-time) bookings and connections from an interactive screen, all powered by the CXAI BTS that is the brains managing access, space and content on the system leading to actionable insights and outcomes with the CXAI Vu analytics platform. During the quarter, we had our largest ARR renewal with a leading Fortune 50 client that is now planning to expand globally to all sites as well as adopt all of the ground-breaking capabilities on the CXAI platform - they want it all as they want all their employees to experience the magic of CXAI. We are seeing more than 150%+ usage at some of their sites primarily driven by their mandate for RTO (Return-to-Office) as well as the ease of use and capabilities of the CXAI platform. They are not unique in their demand for this product, we believe that every large enterprise is grappling with their RTO mandates and the lack of employee engagement. We are committed to being the system of intelligence for the hybrid workplace." The quarterly financials for the Company in Q2 2025 demonstrated continued progress of customer success metrics towards a highly profitable subscription and consumption platform model anchored on AI: * ARR Expansion Growth: Renewals for two large Fortune 500 clients with one of them being the largest revenue renewal of our customer base * Subscription to One time Revenue split: 96% from 87%in Q2 2024 - leading to more recurring revenue * Gross Margin (GM): 86% from 80% in Q2 2024 * EPS: (.16) from (0.34) Q2 2024 "Our Q2 results reflect disciplined execution of our strategy to drive sustainable, high-margin growth while continuing to invest in the AI-powered capabilities that differentiate our platform. The high gross margins and the high proportion of recurring revenue in our mix underscore the scalability of our model. We remain focused on operational efficiency and strategic capital allocation to support our long-term growth objectives." said Joy Mbanugo, Chief Financial Officer of CXApp. "Looking ahead, CXApp expects continued annual recurring revenue growth, driven by enterprise adoption of its AI-enabled modules, expansion into new markets, and ongoing platform innovation." The disruptive new products offered by the CXAI platform are a direct result of our partnership with Google Cloud on Agentic AI technologies. Creating intelligent, super- human-like, and proactive personalized experiences at scale is made possible because of this strategic partnership. Leveraging Gemini 2.5, CXAI is enabling automation of nuanced and multi-turn booking requests, significantly enhancing the employee experience where CXAI agents will complete their daily space booking tasks so employees can be more productive on getting the work done versus scheduling work. Gemini Data Agents API provides the building blocks to integrate Google's Looker natural language processing and Code Interpreter capabilities directly into CXAI Vu - resulting in more contextual-aware insightful outcomes and allowing users to create unique, engaging and accessible data experiences to meet their specific business needs. Given our customer base of Fortune 1000 clients, CXAI provides the enterprise-grade governance framework needed to accelerate AI adoption and value while ensuring trust, transparency and security. We are using the Google Threat Intelligence (GTI) module in addition to our GCP platform to provide that trusted and secure experience globally. The Company made amazing progress on existing customer growth, adoption and usage leading to high employee engagement with our large enterprise clients, some key highlights: * Two of our largest customers renewed this quarter and are accelerating the adoption of all CXAI products as they see incredible usage of our technology platform by their employees. * One of our new clients is launching major iconic campuses across the US in the coming month that signifies their commitment to scale - our teams worked tirelessly to create the most amazing experiences. * We are implementing the OneMap experience across all our customers empowering employees to book, navigate, connect, rate, review - all through a single map view. Some favorite use cases are "colleague booking" and "emergency notifications" that have gained lot of popularity. * We were issued a new patent by the US Patent office Patent No.: US 12,154,332B2 on 3D/Augmented Reality (AR) mapping that is a cornerstone of our multi-dimensional maps strategy of providing contextually aware immersive experiences. * We launched CXAI Vu across all our customer this quarter providing the best-in-class spatial intelligence. We have demonstrated KPIs for increased space planning efficiency, real estate optimization and employee productivity with this tool- these insights are now being transformed to actionable outcomes. * We launched CXAI BTS our access, space and content management system with our newest client who is super happy with the unified experiences and easy to use solution. With NLP based commands in concert with Gemini, we will be now launching this solution across all our clients this quarter. Khurram Sheikh, Founder, Chairman and CEO of CXApp Inc. expressed confidence on the Company's future, "We are excited to have achieved significant milestones in product delivery to meet our customers' expectation. The partnership with Google has been very beneficial in accelerating our product capabilities and delivering amazing experiences." Khurram Sheikh concluded, "The CXAI platform anchored on customer experience (CX) and artificial intelligence (AI) is the most advanced technology solution solving the biggest problems in our industry post the pandemic - the Return to Office (RTO) and Employee Engagement. We're leveraging cutting-edge AI technology to enhance productivity, engagement, and efficiency in the enterprise. According to Gartner's Hype Cycle for Digital Workplace Applications, 2025, agentic AI and digital employee experience are still in the early adoption phase, with market penetration at just 5-20%, suggesting significant runway for growth. The CXAI platform is directly aligned with these transformational trends. Some of the largest brands in the world in the Fortune 1000 are our clients and we are working with them as partners to solve their problems and their commitment to renew and expand significantly with us establishes us as the leader in this emerging market." We invite stakeholders, potential clients, and the media to join us on this exciting journey into the future of work. Sign up for our email list to stay updated on CXAI announcements and discover how our partnerships are setting new standards for employee experience innovation. For more information on how to engage with CXAI, including upcoming events, webinars, or demonstrations, please visit our website www.cxapp.com. The release is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. About CXApp Inc. CXApp Inc., is the global technology leader in employee workplace experiences. The Company is headquartered in the SF Bay Area and operates the CXAI SaaS platform that is anchored on the intersection of customer experience (CX) and artificial intelligence (AI) providing digital transformation for the workplace for enhanced experiences across people, places and things. CXApp's customers include major Fortune 1000 Global Companies in the technology, financial services, consumer, healthcare, and media entertainment verticals. www.cxapp.com CXApp Inc.: [email protected] Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company's auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on our business, operations, results of operations and financial condition, including liquidity for the foreseeable future; the demand for the Company's services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company's services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company's business; difficulties of managing growth profitably; the loss of one or more members of the Company's management team; loss of a major customer and other risks and uncertainties included from time to time in the Company's reports (including all amendments to those reports) filed with the SEC. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication.

CXApp Grows ARR and Margins in Q2 2025 | The Motley Fool

CXApp(CXAI 1.00%) reported fiscal Q2 2025 (period ended June 30, 2025) earnings on August 11, 2025, highlighting flat revenue of $1.22 million, gross margin improved to 86%, and significant expansion in annual recurring revenue (ARR) from large Fortune 1,000 renewals. This summary analyzes CXApp's operational performance, strategic client adoption trends, and financial discipline driving long-term positioning in the workplace experience software sector. Subscription revenue as a share of total revenue rose from 87% to 96% year-over-year. The CFO also confirmed a quarter-over-quarter increase in negative EPS and a year-over-year increase in cash on hand, with gross margin at 86% despite higher R&D expenditure. "Subscription revenue made up 96% of total revenue compared to 87% just a year ago, showing our progress toward a higher margin recurring model. Gross margin improved to 86% from 80% last year even as we invested heavily in R&D to accelerate ARR growth. EPS also increased from last quarter and from last year up to negative 16¢ per share, but that's an increase quarter over quarter and year over year. We're also happy to report that cash on hand as of today, year over year, has increased." -- Joy Mbanugo, CFO A higher proportion of recurring revenue and improving margins, despite increased investment, directly strengthen both CXApp's financial resilience and long-term operating leverage, as evidenced by subscription revenue comprising 96% of total revenue and gross margin improving to 86%. Two major enterprise renewals included the largest ARR renewal in company history, with a Fortune 50 customer piloting global platform expansion and full adoption of CXApp's advanced features. Management noted site usage exceeding 150% at some deployments, a phenomenon attributed to both RTO (return-to-office) mandates and the platform's role as a draw for offsite employees. "We had our largest ARR renewal with a leading Fortune 50 client who is now planning to expand globally to all sites as well as adopt all of the groundbreaking capabilities on the Sky platform. They want it all as they want all the employees to experience the magic of Sky. We are seeing more than a 150% plus usage at some of their sites, primarily driven by the mandate for RTO as well as the ease of using capabilities of the Sky platform. You may ask, can you have a 150% plus usage? Well, it's pretty simple. Not only everybody who's supposed to come to the office comes to the office, but also they're getting people from out of site, out of state, or out of city coming in because the headquarters is an important place to be." -- Khurram Sheikh, Chairman & CEO The ability to drive both global platform adoption and elevated site engagement among blue-chip enterprises substantiates CXApp's strategic value proposition and stickiness among high-value clients. The company deployed a new predictive model leveraging Google AI infrastructure, with early deployment at client campuses enabling real estate cost savings, such as $300,000 for one campus, increased employee productivity, and up to 75% savings on underutilized spaces for a client case study. These capabilities are layered atop existing spatial analytics and automation tools. "Looking at that, we've created this very accurate prediction model. We think it's more than 90% accuracy on it, but we've been able to showcase to our client really three major business impacts. Number one is real estate optimization. If you look at the number of desks that were wasted or were never ever utilized, we've got a metric on what the cost per desk per day is. We've realized that for that campus alone, there's a $300,000 cost savings in there, which is significant for a campus. If you can predict or know that these desks were going to get canceled anyway or these rooms were not going to get booked, you don't need to, you need to give it to somebody else to use, or you don't need to even have those rooms or desks. Technically, employee productivity, we've seen that the number of hours that we can save an employer, the team, it's in the thousands of hours per year that we can save in terms of their lack of productivity because they're spending time trying to book and rebook and cancel. The auto release feature enables that easily for them. Lastly, when you have these cancellations late in the time before the day comes, people are not utilizing those resources because it's too late to come back. Given that our algorithm can show you that these things will be released sooner, could be canceled sooner, we've shown that you can have a 75% savings of the underutilized spaces, which is significant because this means that somebody who wanted to come to the office can now be at the office and somebody who wasn't going to come was actually let go earlier. Very interesting model that we built with our team. We're building these kinds of models on top of the Google AI infrastructure that will allow really value-based insights and outcomes to our clients, which is exactly what they're looking for. Super excited about this development." -- Khurram Sheikh, Chairman & CEO Delivering tangible cost and efficiency metrics by operationalizing AI-driven predictive analytics enhances CXApp's differentiation in a contracting, competitive enterprise real estate technology market. Management did not provide formal quantitative revenue or profitability guidance for upcoming quarters. However, the company confirmed the rollout of SkyBTS and SkyView analytics features across all clients next quarter, in addition to expanded strategic partnerships with cloud providers and ecosystem integrators targeting further Fortune 1,000 adoption. Leadership highlighted ongoing innovation investments and referenced an upcoming Q3 earnings call in November for further strategic and financial updates.