CXApp (CXAI) Q2 2026 earnings summary

Executive summary

• Q2 2026 was transformative, marked by the EngineRoom acquisition, which expanded scale, mid-market distribution, and recurring revenue streams, and contributed new managed advertising and growth marketing advisory revenue.

• Achieved 79% sequential revenue growth to $1.7 million and 42% year-over-year growth, driven by AI-first product innovation and CXAI 2.0 moving from strategy to production.

• The company operates globally with 70+ team members, serving 60+ customers in 200+ cities, and is positioned for accelerated growth.

• Operating expenses remained flat year-over-year at $5.2 million, reflecting disciplined cost management despite acquisition-related costs.

• Net loss widened to $8.6 million for the quarter, primarily due to increased non-cash expenses and fair value adjustments on derivative liabilities.

Financial highlights

• Q2 revenue grew 79% sequentially to $1.7 million from $950K in Q1; ARR increased from $3.6 million to $11.5 million, and year-over-year revenue rose 42%.

• Gross margin declined to 63.22% from 86.02% year-over-year due to a shift in revenue mix and higher direct costs from EngineRoom's services.

• Net revenue retention was 99.3%, and cash EBITDA improved to $(2.68) million from $(3.0) million in Q1.

• Total assets increased to $36 million, and cash and cash equivalents stood at $11.7 million as of June 30, 2026.

• Net loss per share was $(0.10) for the quarter, compared to $(0.15) year-over-year.

Outlook and guidance

• Full EngineRoom integration is expected to drive quarterly revenue to $3 million and annualized revenue to $12 million by Q3.

• Double-digit revenue growth targeted, with breakeven projected for H2 2027, and focus on growing recurring revenue and disciplined expense management.

• Management is focused on expanding AI-native capabilities, scaling enterprise and mid-market reach, and realizing operating synergies.

• The global employee experience market is projected to grow at a 20% CAGR, supporting continued expansion opportunities.