Summary and Analysis of Key Points

Overview of the Company’s Financial Performance:

• CXApp is a leading provider of AI-powered solutions for enhancing employee experience, operational efficiency, and workplace intelligence in the modern hybrid workplace.
• The company’s strategic focus is on driving sustainable growth, scaling its enterprise customer base, and delivering innovative AI-enabled solutions.
• In Q2 2025, CXApp made progress on three key strategic pillars: AI-first product innovation, enterprise penetration and revenue quality expansion, and margin expansion through cost discipline.

Revenue Growth and Customer Expansion:

• Total revenue declined by 31% year-over-year, primarily due to a decrease in non-recurring professional services revenue as the company transitions to a SaaS-focused model.
• Recurring SaaS revenue now accounts for 96% of total revenue, up from 85% in the prior year period, reflecting the success of the company’s “land-and-expand” strategy with enterprise customers.
• Gross margin improved to 86% in Q2 2025, up from 80% in the prior year, driven by the shift to higher-margin SaaS offerings.

Operational Efficiencies and Cost Management:

• Operating expenses increased by 2% year-over-year, with higher R&D costs offset by reductions in sales/marketing and G&A expenses.
• Strategic workforce realignments and ongoing cost optimization initiatives have contributed to improved profitability.

Cash Flow and Liquidity:

• CXApp ended Q2 2025 with $4.9 million in cash and cash equivalents, providing a strategic buffer for continued investment in growth initiatives.
• The company secured additional financing through a $20 million convertible debt facility, with $15.8 million remaining available as of June 30, 2025.

Strategic Growth Initiatives:

1. Product Innovation: Expanding AI-native capabilities, integrating with key enterprise platforms, and developing advanced analytics and workplace management tools.
2. Market Expansion: Targeting new industry verticals and strengthening partnerships to increase market share and drive cross-selling opportunities.
3. Operational Excellence: Ongoing cost optimization, customer retention strategies, and sales efficiency initiatives to enhance profitability and maintain financial discipline.

Competitive Positioning and Market Outlook:

• The global employee experience and workplace technology market is expected to grow at over 20% CAGR, driven by enterprise demand for hybrid workplace enablement and data-driven decision-making.
• CXApp’s AI-driven platform is positioned to capitalize on this trend, offering differentiated capabilities compared to traditional workplace management systems.
• Despite macroeconomic uncertainty, the company continues to observe strong interest from enterprise clients for intelligent, flexible workplace infrastructure.

Conclusion:

As CXApp executes on its strategic roadmap, the company remains focused on AI-first innovation, financial discipline, and customer-centric solutions to drive sustained growth and value for stakeholders. By leveraging its strong foundation and expanding its enterprise footprint, CXApp is well-positioned to redefine employee experiences in the hybrid workplace.