CXApp's Q3 2025: Contradictions Emerge on Kiosk Expansion, Strategic Partnerships, and Subscription Model Shifts

Date of Call: November 12, 2025

Financials Results

• Revenue: $1.1M, down from $1.2M in Q2 2025
• EPS: −$0.13 per share, improved from −$0.34 in Q3 2024
• Gross Margin: 89%, compared to 88% in Q3 2024 and 86% in Q2 2025

Guidance:

• Noro partnership combined offering to be available to clients beginning in Q1 (internal testing underway).
• BTS AI plug‑in migrations beginning in Q4, compatible with legacy apps and aimed at faster admin workflows.
• Priorities into Q4/2026: expand within existing customers, accelerate ecosystem integrations, and maintain cost discipline while investing in AI.
• Cash runway: ~$9M on hand plus access to equity/debt expected to provide at least a two‑year runway.

Business Commentary:

* Revenue and Financial Performance: - CXApp Inc. reported $1.1 million in revenue for Q3, experiencing a modest decline from the previous quarter's $1.2 million. - The decrease was primarily due to a shift in revenue mix, with lower hardware-related sales as their focus shifted to software-led growth.

• Operational Efficiency and Profitability:
• The company improved its gross margin to 89%, up from 88% in Q3 of the previous year, and 86% in the previous quarter.

• This improvement was driven by disciplined cloud cost management and efficient infrastructure scaling, leading to leveraging in cost delivery.

• Product Innovations and Customer Impact:

• CXAI introduced significant performance enhancements in Q3, reducing space booking time by over 50% and enhancing colleague visibility.

• This innovation improved employee satisfaction and reduced scheduling conflicts, contributing to successful client deployments like at 30 Rock.

• Strategic Partnerships and Market Presence:

• A strategic collaboration with Noro was announced, merging CXAI's autonomous AI engine with Noro's immersive telepresence technology.

• This partnership aims to enhance hybrid work experiences, with initial units to be installed in CXAI offices starting in Q1 2026.

• AI Ecosystem and Market Trends:

• Gartner named CXAI as a representative vendor in the 2025 Market Guide for Workplace Experience applications, recognizing the innovative combination of agentic AI and spatial intelligence.
• The market trend shows that AI in the workplace is now a Board-level imperative, with CXAI positioned as a leader in defining the intelligent experience layer for the modern enterprise.

Sentiment Analysis:

Overall Tone: Positive

• Management repeatedly described 'momentum' across product and AI adoption, called Q3 'a really good quarter' and 'solid quarter of execution and operating discipline.' CFO highlighted improved EPS (−$0.13 vs −$0.34 prior year), rising gross margin (89%), controlled OpEx and $9M cash balance, signaling operational progress and a constructive outlook.

Q&A:

• Question from Jack Vander Aarde (Maxim): Kiosk update, customer feedback and usage set, how many units deployed today versus pipeline growth and expansion progress with largest existing customers, status of testing before expanding deployments to all locations, and more information on the 30 Rock deployment and how we did that.
  Response: Kiosk piloted successfully in San Jose with one client; three additional client pilots underway and expecting scale (those pilots to drive the next ~10 deployments); no exact unit count provided. 30 Rock launched as a marquee site with ~6,000 day‑one users and 30,000+ interactions, demonstrating strong adoption and a path to broader rollouts.

Contradiction Point 1

Kiosk Deployment and Expansion Strategy

It involves differing statements about the extent and pace of kiosk deployment, which could impact expectations related to market penetration and revenue growth.

Kiosk update: customer feedback, usage stats, current deployed units vs. pipeline growth, expansion progress with largest customers, testing status before full deployment, and 30 Rock deployment details? - Jack Vander Aarde (Maxim)

2025Q3: Kiosk deployment in Silicon Valley campus was successful with plans to expand globally. Three more clients are in pilot phase. The 30 Rock deployment was a success, leading to similar launches in LA, Miami, and Connecticut. The key success metric is employee adoption and interaction. - Khurram Sheikh(CEO)

Can you provide an update on kiosk deployment progress this quarter, including current deployment numbers versus full-scale plans, whether full scale has been achieved, and the customer mix between pilots and full deployments, as well as new versus existing customers? - Mike Latimore (Northland Securities)

2025Q2: Our current approach is to deploy these in a more measured and controlled way that provides better visibility into how they perform and allows us to refine and improve them as we go. So while we could deploy many more than that today, I wouldn't expect to see that type of scale until potentially next year. - Khurram Sheikh(CEO)

Contradiction Point 2

Strategic Partnerships and Integrations

It reflects differing views on the role and timeline of strategic partnerships in market penetration, which could influence investment decisions and growth strategies.

What are the future priorities for CXAI? - Jack Vander Aarde (Maxim)

2025Q3: Future priorities include expanding within the current customer base, accelerating ecosystem integrations, and maintaining cost discipline while investing in AI leadership. The focus is on building not just another AI company, but a category-defining enterprise platform. - Khurram Sheikh(CEO)

Are there strategic partnerships or integrations in the pipeline that could meaningfully accelerate market penetration in the next 12 months? - Questioner's Name (Company Name)

2025Q2: CXAI is partnering with design build firms, business process automation providers, global real estate firms, and technology ecosystem partners. Our existing client references are crucial, with senior executives engaged at the C-level. These partnerships help CXAI integrate with various workflows and enhance market presence. Additionally, our technology differentiates us, with strategic partnerships supporting access to clients and advanced technologies. - Joy Mbanugo(CFO), Khurram Parviz Sheikh(CEO)

Contradiction Point 3

CXAI Kiosk Deployment and Success Metrics

It pertains to the deployment and success metrics of CXAI Kiosks, which are critical for understanding the company's product adoption and market penetration.

Can you provide a kiosk deployment update, including customer feedback, current unit deployments versus pipeline growth, expansion progress with top customers, testing status for full deployment with key clients, and details on the 30 Rock deployment execution approach? - Jack Vander Aarde (Maxim)

2025Q3: Kiosk deployment in Silicon Valley campus was successful with plans to expand globally [...] CXAI View Analytics showed 30,000+ interactions with 6,000 day 1 users. - Khurram Sheikh(CEO)

How will CXAI shape post-pandemic workplaces and the future of hybrid work? - Questioner

2025Q1: Our CXAI Kiosks were deployed in the office lobbies of all 30 Rock clients. - Khurram Sheikh(CEO)

Contradiction Point 4

Customer Revenue and Subscription Model

It highlights changes in the company's revenue model and customer engagement, which are crucial for financial projections and strategic planning.

What are the future priorities for CXAI? - Jack Vander Aarde (Maxim)

2025Q3: The 99% subscription revenue demonstrates a significant shift towards recurring revenue models. - Khurram Sheikh(CEO)

Can you elaborate on your Q1 2025 financial results and subscription revenue trends? - Questioner

2025Q1: We remain committed to driving recurring revenue growth and maintaining strong financial discipline. - Joy Mbanugo(CFO)

Contradiction Point 5

Kiosk Deployment and Customer Feedback

It involves the progress and feedback on the kiosk deployment, which is a significant aspect of the company's product strategy and customer satisfaction.

Can you provide an update on kiosk deployment, including customer feedback, usage metrics, current unit count versus pipeline growth, expansion progress with top customers, testing status before full deployment, and details on the 30 Rock deployment? - Jack Vander Aarde (Maxim)

2025Q3: Kiosk deployment in Silicon Valley campus was successful with plans to expand globally. Three more clients are in pilot phase. The 30 Rock deployment was a success, leading to similar launches in LA, Miami, and Connecticut. - Khurram Sheikh(CEO)

Can you provide updates on year-over-year or sequential booking growth in the pipeline? - [Questioner's Name](Company Name)

2024Q4: We have anchor customers with large budgets and campuses. Feedback is positive, and we're working on adoption and usage. - Khurram Sheikh(CEO)