Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 48

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 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 state-of-the-art AI infrastructure in partnership with Google Cloud (GCP)
        is enabling intelligent and scalable solutions that will transform the modern workplace.

    2.
    Subscription
        Revenue Quality Expansion: Our customer expansion strategy remained focused on high-value enterprise accounts, particularly across
        the financial services, healthcare, and technology sectors with subscription based recurring revenue model. 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