CXApp 2025 Q3 Earnings Narrowed Losses and Strategic AI Advancements

CXApp (CXAI) reported Q3 2025 results showing improved profitability and strategic AI progress. The company narrowed its net loss by 41.9% year-over-year to -$3.16 million and guided for SaaS-driven growth. Management emphasized cost discipline and ecosystem integrations, while the stock price saw mixed short-term performance.

Revenue

Total revenue declined 41.3% year-over-year to $1.11 million, primarily driven by the phase-out of hardware sales. License & Maintenance Contracts accounted for $1.11 million, while Professional Services and Hardware contributed $4,000 and $2,000, respectively. The shift toward subscription-based revenue now represents 99% of total income, reflecting a strategic pivot to high-margin SaaS.

Earnings/Net Income

CXApp reduced its net loss to -$3.16 million in Q3 2025, a 41.9% improvement from -$5.43 million in Q3 2024. Earnings per share (EPS) improved to -$0.13, up 61.8% from -$0.34 a year earlier. The reduction in losses underscores progress in cost optimization and gross margin expansion, which reached 89%.

Post-Earnings Price Action Review

The stock price of CXApp exhibited mixed short-term performance, rising 3.65% on the day of the earnings report but declining 11.83% during the following week. Month-to-date, it fell 32.92%. A backtested strategy of purchasing shares on the earnings date and holding for 30 days showed an average 12.5% gain, suggesting potential for short-term investors aligned with the company’s revenue trajectory.

CEO Commentary

Khurram Sheikh, CEO, highlighted momentum from customer deployments, product advancements like CXAI 1.0, and partnerships with Noro and Google Cloud. He emphasized scaling the platform, expanding customer modules to boost ARR, and leveraging AI innovation while maintaining cost discipline. The 30 Rock deployment, supporting 6,000 users, was cited as a validation of CXAI’s value proposition.

Guidance

Joy Mbanugo, CFO, outlined Q3 2025 results of $1.1 million revenue, 89% gross margin, and -$0.13 EPS. The company expects to maintain a 99% subscription revenue mix, prioritize cloud cost optimization, and achieve breakeven goals. Strategic priorities include AI-native CXAI 2.0 development, global kiosk deployments, and AI plug-in trials for natural language content creation.

Additional News

CXApp announced a strategic collaboration with Noro to integrate agentic AI and immersive telepresence technology, aiming to transform hybrid work environments. The company was also named a Representative Vendor in Gartner’s 2025 Market Guide for Workplace Experience Applications. Additionally, a 10% ARR increase was driven by two major client renewals, and the 30 Rock campus deployment demonstrated the platform’s scalability.