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Cxapp Inc. (CXAI)
:CXAI
US Market

CXApp (CXAI) AI Stock Analysis

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CXApp

(NASDAQ:CXAI)

Rating:48Neutral
Price Target:
$1.00
▲(0.00%Upside)
CXApp's overall stock score reflects its significant financial challenges, with declining revenues and negative cash flows weighing heavily. Technical analysis indicates a bearish trend, and valuation metrics present concerns due to negative profitability. However, the earnings call provided some optimism, highlighting strategic growth and improved margins, which somewhat offsets the negative factors.
Positive Factors
Customer Retention
The net retention rate increased significantly to 101% from 73%, driven by strong expansion renewal agreements with large enterprise customers.
Strategic Transition
CXAI has continued its strategic transition to a SaaS model with high-margin annual recurring revenues, moving away from legacy project-based sales.
Negative Factors
Revenue Decline
Total revenue of $1.2M, down 33% year-over-year and below estimate.
Sales Cycle Delays
Sales cycles have been slower than expected, creating temporary 'growing pains' and leading to a push back in the ARR forecast by one year and lower 2025 estimates.

CXApp (CXAI) vs. SPDR S&P 500 ETF (SPY)

CXApp Business Overview & Revenue Model

Company DescriptionCXApp Inc. provides a workplace experience platform for enterprise customers. It offers CXApp, a software-as-a-service platform with native mapping, analytics, on-device positioning, and applications technologies for use in various applications, such as workplace experience, employee engagement, desk and meeting room reservations, workplace analytics, occupancy management, content delivery, corporate communications and notifications, event management, live indoor mapping, wayfinding, and navigation. The company was formerly known as KINS Technology Group Inc. and changed its name to CXApp Inc. in March 2023. The company is based in Palo Alto, California.
How the Company Makes MoneyCXApp generates revenue through a subscription-based model, offering its software-as-a-service (SaaS) products to businesses on a recurring basis. Key revenue streams include subscription fees for access to its applications, licensing fees for its software, and service charges for custom integrations and support. The company may also benefit from strategic partnerships with other technology providers, which can enhance its product offerings and broaden its customer base. Additionally, CXApp may engage in enterprise contracts with large organizations, providing tailored solutions that meet specific business needs, thus contributing significantly to its earnings.

CXApp Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q1-2025)
|
% Change Since: -28.06%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong customer renewals and significant improvements in recurring revenue and gross margin, underscoring operational success and strategic focus on subscription models. However, revenue decline due to timing shifts and increased operating expenses present challenges. Despite financial pressures, the call emphasized a positive outlook with several product advancements and expansion opportunities.
Q1-2025 Updates
Positive Updates
Strong Expansion Renewals
CXApp secured 3 large Fortune 500 expansion renewals, which pushed ARR up by 130% of the original contract value, demonstrating platform stickiness and customer success focus.
Increase in Recurring Revenue
Subscription revenue rose from 87% in Q1 2024 to 99% in Q1 2025, showing a strong commitment to recurring revenue models.
Improved Gross Margin
Gross margin increased to 88% from 82% in Q1 2024, attributed to operational efficiencies and cost discipline.
Launch of CXAI VU Analytics
Implemented CXAI VU analytics for all clients, providing comprehensive data insights and enhancing product value.
Successful Sky Kiosk Deployment
First deployment of Sky Kiosk in Silicon Valley led to multiple global engagements, positioning it as a significant expansion opportunity.
Negative Updates
Decline in Revenue
Revenue decline due to timing shifts, with some large customer renewals moved from Q1 to Q4, impacting financial results.
Increase in Operating Expenses
An increase in G&A expenses due to one-time costs for professional services fees and new hires, affecting overall cost structure.
Negative Earnings Per Share
Although improved, EPS remained negative, moving from -$0.34 to -$0.08 year-over-year, indicating ongoing financial challenges.
Company Guidance
In the first quarter of 2025, CXApp reported significant progress and guidance on key metrics indicating strong business performance and strategic direction. The company achieved a notable 130% increase in Annual Recurring Revenue (ARR) from original contract values with three Fortune 500 clients, which reflects the platform's stickiness and customer success focus. Subscription revenue jumped from 87% in Q1 2024 to an impressive 99% this quarter, illustrating a solid commitment to recurring revenue. Gross margins improved to 88% from 82% the previous year, thanks to cost management and partnerships like the one with Google Cloud, which helped save $177,000 in cloud costs year-over-year. Despite absorbing one-time costs, cash operating expenses were reduced by $300,000 year-over-year, leading to an improvement in earnings per share from negative $0.34 to negative $0.08. These metrics underscore CXApp's commitment to driving growth through customer engagement and technological advancements while maintaining fiscal discipline.

CXApp Financial Statement Overview

Summary
CXApp faces substantial financial challenges with declining revenues, significant net losses, and negative cash flows, despite a healthy gross margin and manageable debt levels. The company's financial stability is at risk without strategic improvements.
Income Statement
40
Negative
CXApp's income statement reflects significant financial challenges. The company has seen declining revenues over the past two years, with a revenue growth rate of -3.04% from 2023 to 2024. Gross profit margin is relatively healthy at 81.98% for 2024, yet the net profit margin remains highly negative at -271.73%, indicating substantial net losses. EBIT and EBITDA margins are also negative, showcasing operational inefficiencies and high costs relative to revenue.
Balance Sheet
50
Neutral
The balance sheet shows a stable but weak financial position. The debt-to-equity ratio is 0.32 for 2024, indicating a manageable level of debt relative to equity. However, the return on equity is significantly negative at -124.49%, reflecting poor profitability. The equity ratio stands at 49.03%, suggesting a moderate level of equity financing relative to total assets, but the overall financial health is undermined by consistent losses.
Cash Flow
35
Negative
CXApp's cash flow statement indicates severe cash flow issues. The free cash flow growth rate is negative, and both the operating cash flow to net income ratio and the free cash flow to net income ratio are negative, highlighting that the company is not generating sufficient cash from operations to support its losses. The high reliance on financing activities for cash inflows underscores sustainability concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.14M7.37M8.47M0.000.00
Gross Profit5.86M5.62M2.52M0.000.00
EBITDA-10.54M-53.58M-18.67M-12.13M0.00
Net Income-19.41M-53.62M-29.18M9.21M-4.08M
Balance Sheet
Total Assets31.80M36.58M4.15M279.37M280.24M
Cash, Cash Equivalents and Short-Term Investments4.88M6.28M224.49K406.13K1.02M
Total Debt5.59M3.56M347.96K0.000.00
Total Liabilities16.21M11.18M3.95M21.70M9.87M
Stockholders Equity15.59M25.40M198.88K257.67M270.37M
Cash Flow
Free Cash Flow-7.36M-17.98M-1.24M-595.32K-514.70K
Operating Cash Flow-7.33M-17.91M-761.10K-595.32K-514.70K
Investing Cash Flow-30.00K9.89M275.33M0.00-278.76M
Financing Cash Flow5.98M16.51M-274.75M-17.58K280.29M

CXApp Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.00
Price Trends
50DMA
1.05
Negative
100DMA
1.08
Negative
200DMA
1.36
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.88
Neutral
STOCH
52.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXAI, the sentiment is Neutral. The current price of 1 is above the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.05, and below the 200-day MA of 1.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CXAI.

CXApp Risk Analysis

CXApp disclosed 55 risk factors in its most recent earnings report. CXApp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CXApp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$38.88M169.380.75%9.18%
63
Neutral
$33.76B6.14-11.84%1.84%5.29%-18.23%
48
Neutral
$20.78M-86.92%-9.33%74.24%
48
Neutral
$42.19M32.63-2.82%-36.35%-153.77%
MTMTC
46
Neutral
$25.94M40.01%
42
Neutral
$24.39M544.07%19.01%44.24%
28
Underperform
$8.02M-108.59%-85.24%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CXAI
CXApp
1.00
-1.37
-57.81%
NTWK
Netsol Technologies
3.54
0.90
34.09%
MTC
MMTec
1.03
-2.19
-68.01%
HKIT
Hitek Global
1.43
-0.18
-11.18%
CNTM
ConnectM Technology Solutions
0.22
-6.79
-96.86%
AIXI
Xiao-I Corp. ADR
2.32
-3.71
-61.53%

CXApp Corporate Events

Business Operations and StrategyFinancial Disclosures
CXApp Reports Strong Q1 2025 Financial Results
Positive
May 20, 2025

On May 20, 2025, CXApp Inc. reported strong financial results for Q1 2025, highlighting significant progress in customer success metrics and the adoption of its AI-based CXAI platform. The company achieved a 99% subscription revenue ratio and an 88% gross margin, with three large customer renewals exceeding 130% growth. The CXAI platform, including new products like CXAI Kiosk and CXAI VU, is being utilized for Return-to-Office initiatives across large enterprises, positioning CXApp as a leader in the employee experience market. This success is attributed to the company’s shift towards a subscription-based model and focus on customer success, which has led to scalable, recurring revenue and high employee engagement among major clients.

The most recent analyst rating on (CXAI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on CXApp stock, see the CXAI Stock Forecast page.

Executive/Board ChangesPrivate Placements and FinancingShareholder MeetingsStock Split
CXApp Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 20, 2025

At its recent Annual Meeting, CXApp‘s stockholders voted on several key proposals, including the election of directors Camillo Martino and Shanti Priya to serve until 2027. The meeting also saw approval for the issuance of common stock in private placements, an amendment to the 2023 Equity Incentive Plan, and a reverse stock split to maintain Nasdaq listing. Additionally, the compensation of executive officers was approved on a non-binding advisory basis, and WithumSmith+Brown, PC was ratified as the independent accounting firm for 2025.

The most recent analyst rating on (CXAI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on CXApp stock, see the CXAI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025