CXApp Inc. Reports 31% Revenue Decline and Narrowed Net Loss in Q2 2025

CXApp Inc. reported its financial results for the second quarter of 2025, revealing a decline in revenue and an increase in net loss compared to the same period last year. For the three months ended June 30, 2025, the company generated revenues of $1.223 million, a decrease of approximately 31% from $1.766 million in the prior year. The decline was primarily attributed to a strategic shift away from non-recurring professional services, with subscription-based revenue now accounting for 96% of total revenue, up from 85% in the previous year. Gross profit for the quarter was $1.052 million, resulting in a gross margin of 86%, an improvement from 80% in the same quarter of 2024.

Operating expenses for the second quarter increased slightly to $5.163 million from $5.063 million year-over-year, driven by a rise in research and development costs, which increased by $462,000 as the company focused on enhancing its AI-driven platform. This increase was partially offset by a reduction in sales and marketing expenses. The net loss for the quarter was $3.139 million, compared to a net loss of $5.256 million in the same quarter of 2024, indicating a narrowing of losses despite the revenue decline.

In terms of operational metrics, CXApp's total assets decreased to $29.568 million as of June 30, 2025, down from $31.803 million at the end of 2024. The company reported a working capital deficiency of approximately $1.415 million, with cash and cash equivalents totaling $4.854 million. The company has been actively managing its cash flow, utilizing proceeds from financing activities, including a $3.990 million net cash inflow from a convertible debt issuance during the quarter.

Strategically, CXApp is focusing on expanding its enterprise customer base and enhancing its product offerings. The company is prioritizing AI-first product innovation and has made significant investments in its generative AI analytics platform. Management believes that these initiatives will position CXApp favorably in the growing market for intelligent workplace solutions. Looking ahead, the company aims to balance innovation with financial discipline, with plans to continue optimizing its operational efficiencies and expanding its market presence.

Overall, while CXApp faces challenges in revenue generation, its strategic focus on AI-driven solutions and cost management may provide a pathway to improved financial performance in the future. The company remains committed to leveraging its technology to meet the evolving needs of hybrid workplaces, with a strong emphasis on building a sustainable and predictable revenue model.