CXApp Inc. (Nasdaq: CXAI) Reports Solid Q2'25 Results and Increased Adoption of Agentic AI based CXAI Platform

Rhea-AI Summary

CXApp Inc. (Nasdaq: CXAI) reported strong Q2 2025 results, highlighting significant progress in its AI-powered workplace experience platform. The company achieved its largest ARR renewal with a Fortune 50 client and expanded its strategic partnership with Google Cloud for Agentic AI technologies.

Key financial metrics include improved subscription revenue mix to 96% (from 87% in Q2'24), increased gross margin to 86% (from 80%), and reduced EPS loss to ($0.16) from ($0.34). The CXAI platform, leveraging Google's Gemini 2.5, focuses on workplace transformation and employee engagement, with customer sites reporting 150%+ usage rates.

The company secured a new patent (US 12,154,332B2) for 3D/AR mapping and launched several products including CXAI Kiosk, CXAI BTS, and CXAI Vu analytics platform. According to Gartner, the market penetration for agentic AI and digital employee experience remains at 5-20%, suggesting significant growth potential.

Positive

• Largest ARR renewal achieved with Fortune 50 client with plans for global expansion
• Subscription revenue mix improved to 96% from 87% year-over-year
• Gross margin increased to 86% from 80% in Q2 2024
• EPS loss reduced by 53% to ($0.16) from ($0.34)
• Strategic partnership with Google Cloud enhancing AI capabilities
• New patent secured for 3D/AR mapping technology
• Customer sites reporting 150%+ usage rates

Negative

• Company still operating at a loss with negative EPS of ($0.16)
• Limited market penetration (5-20%) in digital workplace applications segment
• Heavy dependence on RTO mandates for product adoption

Largest ARR Renewal with Fortune 50 client and expansion of agentic AI based products and solutions

Agentic AI partnership with Google leading to disruptive product offerings

PALO ALTO, CALIFORNIA / ACCESS Newswire / August 12, 2025 / CXApp Inc.(Nasdaq:CXAI), the global technology leader in employee workplace experiences announced its Q2 2025 financial results and update on its state-of-the-art technology platform CXAI ("Sky").

Chairman and CEO Khurram Sheikh commented, "Q2 2025 was a period of strategic execution and deeper customer engagement across our Fortune 1000 base.

Our CXAI platform anchored on agentic AI, is now in deployment accelerating workplace transformation at scale. Key products on the CXAI platform gaining momentum include the CXAI Kiosk allowing employees to do JIT (just-in-time) bookings and connections from an interactive screen, all powered by the CXAI BTS that is the brains managing access, space and content on the system leading to actionable insights and outcomes with the CXAI Vu analytics platform.

During the quarter, we had our largest ARR renewal with a leading Fortune 50 client that is now planning to expand globally to all sites as well as adopt all of the ground-breaking capabilities on the CXAI platform - they want it all as they want all their employees to experience the magic of CXAI. We are seeing more than 150%+ usage at some of their sites primarily driven by their mandate for RTO (Return-to-Office) as well as the ease of use and capabilities of the CXAI platform. They are not unique in their demand for this product, we believe that every large enterprise is grappling with their RTO mandates and the lack of employee engagement. We are committed to being the system of intelligence for the hybrid workplace."

The quarterly financials for the Company in Q2 2025 demonstrated continued progress of customer success metrics towards a highly profitable subscription and consumption platform model anchored on AI:

• ARR Expansion Growth: Renewals for two large Fortune 500 clients with one of them being the largest revenue renewal of our customer base

• Subscription to One time Revenue split: 96% from 87%in Q2 2024 - leading to more recurring revenue

• Gross Margin (GM): 86% from 80% in Q2 2024

• EPS: (.16) from (0.34) Q2 2024

"Our Q2 results reflect disciplined execution of our strategy to drive sustainable, high-margin growth while continuing to invest in the AI-powered capabilities that differentiate our platform. The high gross margins and the high proportion of recurring revenue in our mix underscore the scalability of our model. We remain focused on operational efficiency and strategic capital allocation to support our long-term growth objectives." said Joy Mbanugo, Chief Financial Officer of CXApp. "Looking ahead, CXApp expects continued annual recurring revenue growth, driven by enterprise adoption of its AI-enabled modules, expansion into new markets, and ongoing platform innovation."

The disruptive new products offered by the CXAI platform are a direct result of our partnership with Google Cloud on Agentic AI technologies. Creating intelligent, super- human-like, and proactive personalized experiences at scale is made possible because of this strategic partnership.

Leveraging Gemini 2.5, CXAI is enabling automation of nuanced and multi-turn booking requests, significantly enhancing the employee experience where CXAI agents will complete their daily space booking tasks so employees can be more productive on getting the work done versus scheduling work.

Gemini Data Agents API provides the building blocks to integrate Google's Looker natural language processing and Code Interpreter capabilities directly into CXAI Vu - resulting in more contextual-aware insightful outcomes and allowing users to create unique, engaging and accessible data experiences to meet their specific business needs.

Given our customer base of Fortune 1000 clients, CXAI provides the enterprise-grade governance framework needed to accelerate AI adoption and value while ensuring trust, transparency and security. We are using the Google Threat Intelligence (GTI) module in addition to our GCP platform to provide that trusted and secure experience globally.

The Company made amazing progress on existing customer growth, adoption and usage leading to high employee engagement with our large enterprise clients, some key highlights:

• Two of our largest customers renewed this quarter and are accelerating the adoption of all CXAI products as they see incredible usage of our technology platform by their employees.

• One of our new clients is launching major iconic campuses across the US in the coming month that signifies their commitment to scale - our teams worked tirelessly to create the most amazing experiences.

• We are implementing the OneMap experience across all our customers empowering employees to book, navigate, connect, rate, review - all through a single map view. Some favorite use cases are "colleague booking" and "emergency notifications" that have gained lot of popularity.

• We were issued a new patent by the US Patent office Patent No.: US 12,154,332B2 on 3D/Augmented Reality (AR) mapping that is a cornerstone of our multi-dimensional maps strategy of providing contextually aware immersive experiences.

• We launched CXAI Vu across all our customer this quarter providing the best-in-class spatial intelligence. We have demonstrated KPIs for increased space planning efficiency, real estate optimization and employee productivity with this tool- these insights are now being transformed to actionable outcomes.

• We launched CXAI BTS our access, space and content management system with our newest client who is super happy with the unified experiences and easy to use solution. With NLP based commands in concert with Gemini, we will be now launching this solution across all our clients this quarter.

Khurram Sheikh, Founder, Chairman and CEO of CXApp Inc. expressed confidence on the Company's future, "We are excited to have achieved significant milestones in product delivery to meet our customers' expectation. The partnership with Google has been very beneficial in accelerating our product capabilities and delivering amazing experiences."

Khurram Sheikh concluded, "The CXAI platform anchored on customer experience (CX) and artificial intelligence (AI) is the most advanced technology solution solving the biggest problems in our industry post the pandemic - the Return to Office (RTO) and Employee Engagement. We're leveraging cutting-edge AI technology to enhance productivity, engagement, and efficiency in the enterprise. According to Gartner's Hype Cycle for Digital Workplace Applications, 2025, agentic AI and digital employee experience are still in the early adoption phase, with market penetration at just 5-20%, suggesting significant runway for growth. The CXAI platform is directly aligned with these transformational trends.

Some of the largest brands in the world in the Fortune 1000 are our clients and we are working with them as partners to solve their problems and their commitment to renew and expand significantly with us establishes us as the leader in this emerging market."

We invite stakeholders, potential clients, and the media to join us on this exciting journey into the future of work. Sign up for our email list to stay updated on CXAI announcements and discover how our partnerships are setting new standards for employee experience innovation. For more information on how to engage with CXAI, including upcoming events, webinars, or demonstrations, please visit our website www.cxapp.com.

The release is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law.

About CXApp Inc.

CXApp Inc., is the global technology leader in employee workplace experiences. The Company is headquartered in the SF Bay Area and operates the CXAI SaaS platform that is anchored on the intersection of customer experience (CX) and artificial intelligence (AI) providing digital transformation for the workplace for enhanced experiences across people, places and things.

CXApp's customers include major Fortune 1000 Global Companies in the technology, financial services, consumer, healthcare, and media entertainment verticals.

www.cxapp.com

CXApp Inc.: marketing@cxapp.com

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company's auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on our business, operations, results of operations and financial condition, including liquidity for the foreseeable future; the demand for the Company's services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company's services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company's business; difficulties of managing growth profitably; the loss of one or more members of the Company's management team; loss of a major customer and other risks and uncertainties included from time to time in the Company's reports (including all amendments to those reports) filed with the SEC. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication.

SOURCE: CXApp Inc.

View the original press release on ACCESS Newswire

FAQ

What were CXApp's (CXAI) key financial results for Q2 2025?

CXApp reported improved metrics with subscription revenue reaching 96% of total revenue, gross margin increasing to 86%, and EPS improving to ($0.16) from ($0.34) year-over-year.

How is CXApp's (CXAI) partnership with Google Cloud enhancing its platform?

The partnership enables CXAI to leverage Gemini 2.5 for automated booking requests, utilize Gemini Data Agents API for natural language processing, and implement Google Threat Intelligence for enhanced security.

What is the market potential for CXApp's (CXAI) workplace solutions?

According to Gartner's Hype Cycle 2025, agentic AI and digital employee experience have only 5-20% market penetration, indicating significant growth potential in the sector.

What new products did CXApp (CXAI) launch in Q2 2025?

CXApp launched CXAI Kiosk for just-in-time bookings, CXAI BTS for access and space management, and CXAI Vu analytics platform for spatial intelligence.

How successful is CXApp's (CXAI) platform adoption among clients?

The company reported 150%+ usage rates at some client sites, secured its largest ARR renewal with a Fortune 50 client, and saw two major Fortune 500 clients renewing their contracts.