CXApp (CXAI) AI Stock Analysis

• Market Cap: $20.78M
• Dividend Yield: N/A
• Average Volume (3M): 451.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -9.33%
• EPS Growth: 74.24%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.08
• Shares Outstanding: 20,776,997
• 10 Day Avg. Volume: 687,990
• 30 Day Avg. Volume: 451,218
• PEG Ratio: 0.00
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -695.09
• Enterprise Value/Market Cap: 17.17
• Enterprise Value/Revenue: 12.31
• Enterprise Value/Gross Profit: 60.91
• Enterprise Value/Ebitda: -2.25
• 1Y Price Target: $1.00
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• 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 Business Overview & Revenue Model

Company Description

CXApp 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 Money

CXApp 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.14M	7.37M	8.47M	0.00	0.00
Gross Profit	5.86M	5.62M	2.52M	0.00	0.00
EBITDA	-10.54M	-53.58M	-18.67M	-12.13M	0.00
Net Income	-19.41M	-53.62M	-29.18M	9.21M	-4.08M
Balance Sheet
Total Assets	31.80M	36.58M	4.15M	279.37M	280.24M
Cash, Cash Equivalents and Short-Term Investments	4.88M	6.28M	224.49K	406.13K	1.02M
Total Debt	5.59M	3.56M	347.96K	0.00	0.00
Total Liabilities	16.21M	11.18M	3.95M	21.70M	9.87M
Stockholders Equity	15.59M	25.40M	198.88K	257.67M	270.37M
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	-30.00K	9.89M	275.33M	0.00	-278.76M
Financing Cash Flow	5.98M	16.51M	-274.75M	-17.58K	280.29M

CXApp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	66 Neutral	$38.88M	169.38	0.75%	―	9.18%	―
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%
CXAI	48 Neutral	$20.78M	―	-86.92%	―	-9.33%	74.24%
HKIT	48 Neutral	$42.19M	32.63	-2.82%	―	-36.35%	-153.77%
MTC	46 Neutral	$25.94M	―	40.01%	―	―	―
AIXI	42 Neutral	$24.39M	―	544.07%	―	19.01%	44.24%
CNTM	28 Underperform	$8.02M	―	-108.59%	―	―	-85.24%

CXApp Corporate Events

CXApp Reports Strong Q1 2025 Financial Results

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.

CXApp Stockholders Approve Key Proposals at Annual Meeting

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.