Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 49

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 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

    ●
    During
        the three months ended September 30, 2025, the gross margin remained strong reaching, 88.96%, when compared to 80.39% in September 30,
        2024, driven by moving the company to a SaaS based model focused on AI-enabled services.

    ●
    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 30, 2025, cash and cash equivalents was $5,088 thousand.

    ●
    This
        liquidity provides a strategic buffer for continued investment in AI product enhancements and market expansion initiatives.

Strategic
Growth Initiatives

    1.
    Product
        Innovation: We are expanding our AI-native capabilities, integrating agentic AI for desk booking, advanced analytics, and developing
        seamless integrations with key enterprise platforms to position CXApp