CXApp 2025 Q3 Earnings Narrowed Losses as EPS Improves 61.8%

CXApp (CXAI) reported Q3 2025 earnings with a 61.8% reduction in per-share losses compared to the prior year, while revenue fell 41.3% to $1.11 million. The company also announced a strategic partnership with Noro for immersive telepresence and highlighted progress in AI-driven workplace solutions. Investors will closely watch whether the narrowing losses align with management’s breakeven guidance.

Revenue

CXApp’s Q3 revenue totaled $1.11 million, a 41.3% decline from $1.90 million in Q3 2024. License & Maintenance Contracts accounted for the lion’s share at $1.11 million, with Professional services contributing $4,000 and Hardware adding $2,000. The segment breakdown underscores a strategic shift toward high-margin recurring revenue, as 99% of total revenue now comes from subscriptions.

Earnings/Net Income

The company narrowed its net loss to $3.16 million in Q3 2025, a 41.9% improvement from $5.43 million in the prior-year period. Earnings per share (EPS) improved to -$0.13 from -$0.34, reflecting disciplined cost management and margin expansion. The EPS improvement indicates progress toward breakeven, though the net loss remains a concern.

Post-Earnings Price Action Review

CXApp’s stock surged 3.65% on the day of the earnings report but declined 11.83% for the week and 32.92% month-to-date. A historical backtest suggests buying shares on the day of a revenue-positive announcement and holding for 30 days could yield an average 12.5% gain, aligning with the company’s recent product advancements.

CEO Commentary

Khurram Sheikh emphasized CXAI’s role in bridging the “execution gap” for enterprises through AI and Return to Office (RTO) trends. Key highlights included deployments at 30 Rock, collaborations like Noro’s immersive telepresence, and a 70% R&D workforce. Sheikh expressed optimism about the CXAI 2.0 platform and digital assistant innovations.

Guidance

Joy Mbanugo noted Q3 revenue of $1.1 million, 89% gross margin, and $9 million in cash. The company plans to maintain lean operations and target breakeven over time. Q4 priorities include expanding customer module adoption, scaling ecosystem partnerships, and balancing growth with cost discipline.

Additional News

CXApp announced a strategic collaboration with Noro, a leader in immersive telepresence, to integrate life-sized portals with CXAI’s Agentic AI. This partnership aims to redefine hybrid work by enabling real-time, context-aware collaboration across global hubs. Additionally, the company was named a Representative Vendor in Gartner’s 2025 Market Guide for Workplace Experience Applications, validating its AI-driven approach. The Q3 earnings call highlighted momentum in AI product upgrades, including a 50% reduction in booking time and enhanced digital assistant trials.

Post-Earnings Price Action Review (Continued)

The stock’s post-earnings volatility reflects mixed investor sentiment. While the 3.65% intraday gain suggests short-term optimism about the company’s AI roadmap, the 32.92% monthly decline indicates broader market skepticism. Analysts remain divided, with some emphasizing the potential of CXAI’s Agentic AI platform to drive long-term value despite near-term losses.