CXAPP INC (NASDAQ:CXAI) Reports Mixed Q3 2025 Results with Earnings Beat and Revenue Miss

CXAPP INC (NASDAQ:CXAI) reported third-quarter 2025 financial results that presented a mixed picture for investors, with earnings outperforming expectations while revenue fell short of analyst forecasts. The company's stock showed modest after-hours movement following the announcement, reflecting the nuanced market interpretation of these results.

Financial Performance Versus Estimates

The workplace experience platform company reported non-GAAP earnings per share of -$0.13 for the quarter ended September 30, 2025, significantly better than the analyst consensus estimate of -$0.2244. This improvement represents a substantial earnings beat of approximately 42% compared to expectations.

However, the company's revenue performance told a different story:

• Reported Revenue: $1.11 million
• Estimated Revenue: $1.326 million
• Revenue Miss: Approximately 16% below expectations

The divergence between earnings performance and revenue results highlights the company's focus on operational efficiency and cost management despite top-line challenges.

Operational Highlights and Strategic Developments

Beyond the headline financial figures, CXAI demonstrated several positive operational trends during the quarter. The company reported improving gross margins of 89%, up from 86% in the previous quarter, indicating enhanced profitability potential in its business model. Subscription revenue now constitutes 99% of total revenue, reflecting the successful transition to a SaaS-based model that provides more predictable recurring income.

Strategic developments during the quarter included the announcement of a collaboration with Noro, a pioneer in immersive telepresence technology. This partnership aims to combine CXAI's autonomous AI engine with Noro's life-size telepresence portals to create more human-adaptive hybrid work experiences. The company also secured two major customer renewals that drove a 10% increase in annual recurring revenue, signaling strong client retention and expansion within its existing customer base.

Market Reaction and Context

The stock's modest after-hours gain of approximately 1.7% suggests investors are weighing the positive earnings surprise and operational improvements against the revenue shortfall. This reaction occurs against a backdrop of challenging recent performance, with the stock declining over the past month. The market appears to be acknowledging the company's progress toward profitability while remaining cautious about growth trajectory.

Forward Outlook and Analyst Expectations

Looking ahead, analysts project continued challenges for CXAI in the coming quarters. For Q4 2025, the consensus estimates anticipate a loss of $0.2142 per share on revenue of $1.326 million. For the full year 2025, analysts expect a loss of $0.6936 per share with total revenue of $5.1 million.

The company's management emphasized their focus on driving sustainable growth and converting innovation into recurring revenue during the earnings announcement. With global deployments across 200 cities in 50 countries and a research and development-focused team, CXAI appears positioned to capitalize on the growing demand for workplace experience solutions, though execution on revenue growth remains a key challenge.

For detailed earnings estimates and historical performance data, investors can review the earnings and estimates page for CXAI.

Disclaimer: This article presents factual information from company reports and analyst estimates for informational purposes only. It does not constitute investment advice, financial analysis, or recommendation to buy or sell any securities. Investors should conduct their own research and consult with financial advisors before making investment decisions.