CXApp (CXAI) AI Stock Analysis

• Market Cap: $22.44M
• Dividend Yield: N/A
• Average Volume (3M): 492.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -9.33%
• EPS Growth: 74.24%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): -0.08
• Shares Outstanding: 20,776,997
• 10 Day Avg. Volume: 546,205
• 30 Day Avg. Volume: 492,219
• PEG Ratio: -0.01
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.74
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: -0.13
• 1Y Price Target: $1.00
• Price Target Upside: -7.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $1.00 ▼(-7.41%Downside)

CXApp's overall stock score is primarily driven by financial challenges, including declining revenues and negative cash flows. While technical analysis and valuation present mixed signals, recent earnings call and corporate events highlight strategic progress and potential for improvement.

Positive Factors

Cloud Partnerships

CXAI signed agreements with all three major cloud providers, indicating strong cloud partnerships.

Customer Renewals

Three large Fortune 500 customers signed renewals, increasing combined annual recurring revenue by over 130%.

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

Price Target Adjustment

The price target is lowered due to slower sales cycles.

Revenue Decline

Total revenue of $1.2M is down 33% year-over-year and below estimates.

Sales Cycles

Sales cycles have been slower than expected, creating temporary 'growing pains' and leading to a push back in the annual recurring revenue forecast by one year.

CXApp Business Overview & Revenue Model

Company Description

CXApp (CXAI) is a technology company specializing in workplace experience solutions designed to enhance employee engagement and productivity. Operating in the software and services sector, the company offers a comprehensive platform that integrates various workplace applications, including employee communication tools, meeting room booking systems, and event management solutions. CXApp aims to streamline office operations and foster a connected workplace environment through innovative digital experiences.

How the Company Makes Money

CXApp generates revenue primarily through subscription-based pricing models for its software-as-a-service (SaaS) platform. Companies pay recurring fees based on the number of users and the specific features they wish to access, ensuring a steady income stream for CXApp. Additionally, CXApp may earn revenue through professional services such as implementation, customization, and support, allowing clients to optimize the use of their platform. Strategic partnerships with other technology providers and enterprise clients also contribute to its revenue, enabling CXApp to expand its market reach and enhance product offerings.

CXApp Financial Statement Overview

Summary

CXApp's financial performance is weak due to declining revenues, substantial net losses, and negative cash flows. While the gross profit margin is healthy, the overall financial health is undermined by operational inefficiencies and high costs relative to revenue.

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: Positive
• Last Price: 1.08
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1.08 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.03, and below the 200-day MA of 1.33, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 67.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXAI.

CXApp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	67 Neutral	$48.59M	198.56	0.75%	―	9.18%	―
Sector *	63 Neutral	$34.27B	4.89	-11.70%	1.94%	5.41%	-20.02%
CXAI	51 Neutral	$22.44M	―	-86.92%	―	-9.33%	74.24%
HKIT	48 Neutral	$40.45M	32.63	-2.82%	―	-36.35%	-153.77%
MTC	44 Neutral	$22.67M	―	40.01%	―	―	―
AIXI	38 Underperform	$19.38M	―	544.07%	―	19.01%	44.24%
CNTM	28 Underperform	$88.76K	―	-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.