CXApp (CXAI) Q4 2025 earnings summary

Executive summary

• 2025 marked a strategic transformation, shifting from SaaS to an AI-native platform focused on high-quality, recurring subscription revenue and AI-driven workplace solutions.

• The company operates a global AI workplace experience platform with over 1 million users, 39 patents filed, and 18 granted, emphasizing a defensible competitive moat.

• Transformation focused on recurring revenue, AI-driven cost structure, AI-native platform, and balancing short-term impact with long-term scalability.

• Expanded partnerships, notably with TouchSource, to extend AI capabilities into 11,000+ digital directory deployments.

• Positioned for accelerated growth in 2026 with the launch of the Agentic AI Platform and a robust enterprise pipeline.

Financial highlights

• FY2025 revenue was $4.6M, down from $7.2M in FY2024, reflecting the exit of low-margin contracts and platform transition.

• Subscription revenue rose to 98% of total, up from 87% last year, improving revenue quality and predictability.

• Gross margin expanded to 87% from 82%, driven by disciplined cost management and platform efficiency.

• Cash balance at year-end was $11.1M, providing runway for six quarters.

• Cost of revenues reduced by 55% year-over-year, supporting margin expansion.

Outlook and guidance

• Double-digit revenue growth expected in 2026, driven by agentic AI platform adoption and large enterprise wins.

• Strategic partnerships, especially with TouchSource, are set to expand distribution and addressable market.

• Growth will focus on high-quality, recurring subscription revenue and outcome-based monetization.

• Entering 2026 with improving operating leverage and growing revenue visibility.

• Sky 2.0 platform launches in June 2026, targeting both new and existing clients, with future vision for broader mid-market expansion.