Company: CXAI
Filing Date: 2025-11-12
Form Type: 424B3
Source: 0001829126-25-009079
Chunk: 49

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 424B3
Chunk 49
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 We deepened relationships    
 with existing Fortune 1000 clients through expanded deployments and multi-site activations As a result, recurring SaaS revenue accounted 
 for 99.46% of total revenue in Q3 2025, underscoring the effectiveness of our recurring business model.                                  |

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| 3. | Margin                                                                                                                                        
 Expansion through Cost Discipline: In Q3 2025, we reduced operating costs by streamlining SG&A and rationalizing our services                 
 delivery model. Gross profit totaled $991 thousand for the quarter and $3,117 thousand for the nine-month period ended September 30, 2025,    
 compared to $1,525 thousand and $4,429 thousand in the same periods of 2024, respectively. While total revenue declined due to the deliberate 
 de-emphasis of non-recurring professional services, gross margin improved to 88.96% as we scaled our high-margin SaaS offerings. These        
 actions demonstrate our ability to manage spend responsibly while building a more predictable, capital-efficient business model.              |

Looking forward, our leadership team remains committed to balancing innovation with financial discipline, ensuring that CXApp is positioned for long-term profitability and strategic growth. By leveraging our AI-driven platform and expanding our enterprise footprint, we aim to deliver scalable, data-driven solutions that address the evolving needs of hybrid workplaces.

Financial Performance Summary

Revenue Growth and Customer Expansion

| ● | Customer                                                                                                                                
 base remained stable and diversified, with continued presence across financial services, healthcare, and technology sectors, supporting 
 our focus on high-value, recurring revenue clients.                                                                                     |

| ● | The                                                                                                                       
 transition to a recurring revenue model has improved revenue predictability and supports our long-term growth objectives. |

Operational Efficiencies and Cost Management

| ● | Operating                                                                                                                                   
 expenses remained largely consistent during the three months ended September 30, 2025, totaling $4,816 thousand compared to $5,210 thousand 
 for the same period in 2024. This stability reflects a balanced approach to strategic investments in research and development, alongside    
 effective cost management initiatives that have supported margin improvements.                                                              |

| ● | Strategic                                                                                
 workforce realignments have ensured resources are allocated to high-impact growth areas. |

| ● | We                                                                                                                                       
 remain focused on optimizing resource allocation, ensuring that investments are targeted toward high-impact areas such as AI development 
 and customer acquisition.                                                                                                                |

Cash Flow and Liquidity Position

For the three months ended September