Company: CXAI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006141
Chunk: 46

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s Annual Report on Form 10-K filed with the SEC. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview of Our Business

Executive Overview

At CXApp, we are at the forefront of transforming the modern workplace through AI-powered solutions that enhance employee experience, operational efficiency, and workplace intelligence. As a leader in this evolving market, our strategic focus is to drive sustainable growth, scale our enterprise customer base, and deliver innovative solutions that leverage data and artificial intelligence to optimize workplace experiences.

In fiscal year 2025, we prioritized three strategic pillars:

    1.
    AI-First Product Innovation: During the quarter, we continued to strengthen our competitive differentiation through the development of AI-native workplace intelligence tools. Enhancements to our Generative AI analytics platform enabled improved data ingestion, real-time behavioral insights, and predictive modeling capabilities. These innovations support enterprise decision-makers in optimizing space utilization, workforce engagement, and operational agility. Our investment in proprietary AI infrastructure aligns with market demand for intelligent, scalable solutions that transform the modern hybrid workplace. 

    2.
    Enterprise Penetration and Revenue Quality Expansion:
    Our customer expansion strategy remained focused on high-value enterprise accounts, particularly across the financial services, healthcare,
    and technology sectors. We deepened relationships with existing Fortune 1000 clients through expanded deployments and multi-site
    activations while entering new verticals with strong product-market fit. As a result, recurring SaaS revenue accounted for 99% of
    total revenue in Q2 2025, underscoring the effectiveness of our “land-and-expand” motion and the stickiness of our platform. 

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    3.
    Margin Expansion through Cost Discipline: In Q2 2025,
    we reduced operating costs by streamlining SG&A and rationalizing our services delivery model. Gross profit totaled $1,052 thousand
    for the quarter and $2,126 thousand for the six-month period ended June 30, 2025, compared to $1,413 thousand and $2,904 thousand
    in the same periods of 2024, respectively. While total revenue declined due to the deliberate de-emphasis of non-recurring