CXApp Inc. Reports 41% Revenue Decline in Q3 2025, Focuses on Subscription Model

CXApp Inc. reported its financial results for the third quarter of 2025, revealing a decline in revenue and an ongoing focus on transitioning to a subscription-based model. For the three months ended September 30, 2025, the company generated revenues of $1.114 million, a decrease of approximately 41% from $1.897 million in the same period last year. For the nine months ended September 30, 2025, total revenue was $3.561 million, down from $5.481 million in 2024. The decline is attributed primarily to a strategic shift away from non-recurring professional services and hardware sales, with subscription revenue now accounting for 99.46% of total revenue.

The company's gross profit for the quarter was $991,000, compared to $1.525 million in Q3 2024, reflecting a gross margin of 88.96%, an improvement from 80.39% year-over-year. Operating expenses totaled $4.816 million, slightly lower than the $5.210 million reported in the prior year, indicating effective cost management despite ongoing investments in research and development. CXApp's net loss for the quarter was $3.157 million, a reduction from a loss of $5.434 million in Q3 2024, while the nine-month net loss narrowed to $7.912 million from $16.072 million in the previous year.

In terms of operational developments, CXApp has focused on enhancing its AI-driven SaaS platform, which aims to optimize workplace experiences. The company has made significant investments in product innovation, particularly in AI-native capabilities, and has expanded its customer base across key sectors such as financial services and healthcare. As of September 30, 2025, CXApp reported a working capital deficiency of approximately $711,000, with cash and cash equivalents totaling $5.088 million.

Strategically, CXApp has entered into financing agreements to bolster its liquidity, including a Securities Purchase Agreement with Avondale Capital, which allows for the issuance of up to $20 million in convertible debt. The company has also filed a shelf registration statement with the SEC to facilitate future capital raises. Looking ahead, CXApp aims to continue its focus on subscription revenue growth, operational efficiency, and market expansion, positioning itself to capitalize on the growing demand for intelligent workplace solutions. Management remains optimistic about the company's ability to achieve long-term profitability and sustainable growth despite current market challenges.