CXApp Inc. SEC 10-Q Report

CXApp Inc., a leading provider of workplace experience solutions, has released its Form 10-Q report for the first quarter of 2025. The report outlines the company's financial performance, including a notable decline in revenue and gross profit, as well as an increase in operating losses. Despite these challenges, the company has shown a significant improvement in net loss and is focused on strategic initiatives to enhance operational efficiency and drive future growth.

Financial Highlights

• Revenues: $1.224 million, reflecting a decrease from the previous year's $1.818 million, indicating a decline in sales performance.
• Gross Profit: $1.074 million, down from $1.491 million, suggesting a reduction in profitability.
• Loss from Operations: $(3.745) million, compared to $(3.587) million in the prior year, indicating an increase in operating losses.
• Net Loss: $(1.616) million, a significant improvement from the $(5.170) million loss in the previous year, primarily due to a favorable change in the fair value of derivative liabilities.
• Basic and diluted net loss per share, Class A common stock: $(0.08), improved from $(0.34) in the prior year, reflecting a reduced net loss per share.

Business Highlights

• Revenue Segments: The company derives its revenue from two main segments: subscription revenue, which includes software and license & maintenance contracts, and non-subscription revenue, which includes professional services. For the three months ended March 31, 2025, subscription revenue was primarily driven by license agreements, while professional services contributed a smaller portion.
• Geographical Performance: The United States remains the primary market for the company, contributing the majority of the revenue. Canada and the Philippines also contribute to the revenue, with the Philippines showing a positive net income contribution. The company continues to focus on expanding its presence in these regions.
• Future Outlook: Management is focused on executing cost management strategies to optimize the company's expense structure and enhance operational efficiency. The company is committed to expanding its customer base, introducing monetizable features, and driving recurring revenue growth in fiscal year 2025. By leveraging its current cash position, financing agreements, and strategic initiatives, management is confident in the company's ability to meet its obligations and support its operations for at least the next 12 months.

SEC Filing: CXApp Inc. [ CXAI ] - 10-Q - May. 20, 2025