CXApp shares fall 10.52% after-hours as Q3 revenue drops 41.3% despite narrower losses and improved EPS.

CXApp (CXAI) fell 10.52% in after-hours trading following its Q3 2025 earnings report, which revealed a 41.3% revenue decline to $1.11 million and a 41.9% reduction in net loss to $3.16 million. While the company highlighted improved EPS, a strategic shift to 99% subscription revenue, and partnerships like its collaboration with Noro, the sharp drop in hardware sales (from $1.90 million in Q3 2024) and lack of explicit financial guidance raised concerns. The earnings report also noted $9 million in cash reserves, but the significant revenue contraction—driven by reduced hardware sales—sparked investor skepticism about long-term growth and profitability, outweighing positive developments in cost discipline and AI innovation. The post-earnings price action showed a brief 3.65% intraday gain but a 32.92% monthly decline, reflecting mixed sentiment and broader market doubts about the company’s ability to sustain its strategic pivot.