Company: CXAI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006141
Chunk: 65

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 65
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 of hybrid workplaces.

Financial Performance Summary

Revenue Growth and Customer Expansion

    ●
    During the three months ended June 30, 2025, the gross margin increased to 86% when compared to 80% in June 30, 2024, driven by moving the company to a SaaS based model focused on AI-enabled services. 

    ●
    Our customer base continues to expand across key industries, including financial services, healthcare, and technology, aligning with our objective to target 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

    ●
    During the three months ended June 30, 2025, operating expenses increased to $5,163 thousand compared to $5,063 thousand for the same period in 2024. This increase reflects strategic investment in ongoing research and development activities, alongside strategic cost management initiatives that have contributed to improved margins. 

    ●
    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 June 30, 2025, cash and cash equivalents was 4,854 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 as the go-to solution for hybrid workplace management. 

    2.
    Market Expansion: By targeting new verticals and strengthening
    partnerships with cloud providers and key technology platforms, we aim to increase market share and drive cross-selling opportunities. 

    3.
    Operational Excellence: Ongoing cost optimization,
    customer retention strategies, and sales efficiency initiatives remain key focus areas as we strive to enhance profitability and
    maintain financial discipline. 

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Competitive Positioning and Market Outlook

    ●
    According to industry research, the global employee experience and workplace technology market is expected to grow at a compound annual growth rate (CAGR) exceeding 20% over the coming years. This trend reflects ongoing enterprise