Company: CXAI
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001829126-25-006142
Chunk: 48

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 48
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 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 professional 
 services, gross margin improved to 87% 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

| ● | 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