CXApp 2025 Q3 Earnings Narrowed Losses and Strategic AI Collaborations

CXApp (CXAI) reported Q3 2025 earnings with a 41.3% revenue decline to $1.11 million and a 41.9% reduction in net loss to $3.16 million. The company exceeded GAAP EPS expectations, with a loss of $0.13 per share (beating by $0.09). Guidance emphasized cost discipline, AI innovation, and ecosystem partnerships, though explicit financial targets were absent.

Revenue

License & Maintenance Contracts generated the majority of the revenue at $1.11 million, while Professional Services and Hardware contributed $4,000 and $2,000 respectively. The sharp drop from $1.90 million in Q3 2024 reflects a strategic shift away from hardware and toward recurring subscription models. Subscription revenue now constitutes 99% of total revenue, up from 96% in Q2 2025.

Earnings/Net Income

The company improved its net loss by 41.9% year-over-year to $3.16 million, with an 89% gross margin. Earnings per share narrowed to $0.13, a 61.8% improvement from $0.34 in 2024 Q3. This progress underscores the company’s cost optimization and margin expansion efforts.

Post-Earnings Price Action Review

The strategy of buying CXApp shares on revenue-raise dates and holding for 30 days yielded an average gain of 12.5% over three years, driven by subscription revenue growth and a 10% ARR increase from two major renewals. However, Q3 revenue fell from Q2 due to reduced hardware sales.

CEO Commentary

Khurram Sheikh highlighted Q3 as a pivotal quarter, emphasizing customer deployments, product advancements, and partnerships like Noro. The CEO underscored CXAI’s role in bridging AI execution gaps through agentic AI and spatial intelligence, with strategic goals including expanding module adoption and ecosystem integrations.

Guidance

CFO Joy Mbanugo noted Q3’s $1.114 million revenue and $9 million cash reserves, sufficient for two years. Forward priorities include ARR growth through customer renewals, ecosystem integrations, and cost discipline. Q4/2026 goals focus on client deployments, new partnerships, and AI-native platform advancements.

Additional News

CXApp announced a strategic collaboration with Noro, a pioneer in immersive telepresence, to redefine hybrid work with agentic AI and life-sized portals. The partnership, set to launch in Q1 2026, aims to enable real-time global collaboration. Additionally, CXAI was named a Representative Vendor in Gartner’s 2025 Market Guide for Workplace Experience Applications, recognizing its leadership in AI-driven workplace solutions. The company also launched the Sky1.0 platform, enhancing AI capabilities and reducing space booking time by 50%.