CXApp (NASDAQ:CXAI) executives used the company’s fiscal year 2025 earnings call to describe what Chairman and CEO Khurram Sheikh characterized as “a year of deliberate transformation,” positioning fiscal 2026 as a period of “AI-driven acceleration” built around an agentic AI roadmap for its “Sky” workplace experience platform.
Sheikh said the company is shifting “beyond simple workplace apps to an autonomous agentic platform that redefines the employee experience,” and argued that enterprise demand is converging around unified hybrid workplace orchestration, agentic AI requirements in procurement, and indoor intelligence tied to IoT and real-time occupancy data.
Platform positioning and market commentary
In discussing market dynamics, Sheikh outlined three forces he said are driving increased demand:
- Hybrid workplace platform consolidation: Enterprises seeking unified workflows for desk booking, room booking, parking, dining, and attendance, with calendar and HR integrations.
- Agentic AI as a procurement requirement: RFPs requiring conversational assistance, proactive suggestions, and AI roadmaps.
- Indoor intelligence and IoT: Demand for interactive maps, real-time occupancy, wayfinding, colleague finders, and visitor management integrated with physical access control.
Sheikh cited third-party estimates to frame the AI opportunity, including Gartner’s projection that by the end of 2026, “40% of enterprise apps will feature task-specific AI agents, up from less than 5% in 2025.” He also cited a projected expansion in the AI agent market from “$7.8 billion” to “$52 billion by 2030.”
Fiscal 2025 results: revenue decline alongside margin expansion
Chief Financial Officer Joy Mbanugo said fiscal 2025 reflected “an intentional and strategic reset,” including exiting “lower quality revenue,” transitioning the platform “from SaaS to AI,” and building a more durable foundation.
Mbanugo reported total revenue of $4.6 million, down from $7.2 million in the prior year. She attributed the 36% year-over-year decline to three main factors: “the exit of non-core and low-margin contracts and professional services,” “customer churn during our platform transition,” and “reduced bookings during the positioning period.”
At the same time, she emphasized changes in revenue mix and profitability:
- Subscription revenue mix: 98% of total revenue, up from 87% a year earlier.
- Gross margin: 87%, up from 82% in 2024, which she attributed to cloud cost management and platform efficiency gains.
- Cost of revenues: $578,000, down from $1.3 million.
Mbanugo said the company ended the year with $11.1 million in cash as of December 31, supported by capital raises during the year. She said the company has “enough cash to cover our expenses for the next 6 quarters.”
On earnings, Mbanugo said diluted non-GAAP EPS was negative $0.58, improving from negative $1.20 a year earlier.
Expenses, impairment, and EBITDA discussion
Mbanugo reported total operating expenses of $21.6 million, up 10% from $19.6 million, driven primarily by a $2.1 million goodwill impairment that she described as “a non-cash accounting charge” that is “not recurring.” She said excluding that impairment, the operating cost base was “essentially flat.”
She said R&D expense increased 4% as the company invested in AI product development, while sales and marketing expense was reduced 36% through a leaner enterprise go-to-market approach and increased use of AI in marketing. General and administrative expense increased 10%, which she said was partly restructuring-related.
Loss from operations was $17.6 million. Adjusted for the goodwill impairment, she said the “underlying operating loss was approximately $15.4 million,” roughly in line with the prior year.
Mbanugo reported net loss of $13.5 million, improving from $19.4 million in fiscal 2024. She said EBITDA was negative $10.0 million, compared with negative $15.6 million the prior year, calling the change a “35% improvement.”
She also addressed why adjusted EBITDA did not show the same improvement, reporting adjusted EBITDA of negative $9.8 million compared to negative $8.3 million in 2024. She attributed the year-over-year variance to “change in fair value of derivative liabilities” tied to convertible notes, noting it swung from a positive $3.2 million in 2024 to a negative $4.5 million in 2025, a “$7.7 million non-cash swing” that she said had “zero impact” on cash or operations.
Pipeline commentary and 2026 expectations
While the company did not provide formal guidance, Mbanugo said that “directionally, we expect to grow in the double digits,” citing growth in pipeline, expansion within existing customers, new vertical opportunities, and “early signs of acceleration in bookings.” She said Q4 2025 featured “really strong bookings,” which she said continued into the new year.
Sheikh also pointed to customer activity, stating the company had “five large clients renew in the fourth quarter,” adding that “all those clients are also expanding with agentic AI this year.” He also said there are “three in contract” at the time of the call, and described moving additional opportunities from pilots to contracts and scaled deployments.
For 2026, Sheikh outlined four pillars:
- Agentic AI platform growth: BOND and CORTEX as the primary growth engine.
- Large enterprise wins: A pipeline he described as featuring “larger and more strategic” deals driven by C-level decision-making.
- Strategic partnerships: Including vertical AI distribution, highlighting TouchSource.
- Maintaining “high-quality” recurring growth: Emphasis on subscription expansion rather than one-time fees, while noting interest in outcome-based monetization opportunities.
Product roadmap and TouchSource partnership
Sheikh described an upcoming platform evolution, saying “Sky 1.0” remains in production with existing clients, while “Sky 2.0” is planned for release in June 2026. He said Sky 2.0 includes “our One Map engine,” “agentic AI interface powered by BOND and CORTEX,” “full web parity with our mobile experience,” and “zero-touch campus deployment.” He said new customers are expected to adopt Sky 2.0, while existing customers are “wanting to upgrade.”
Sheikh also previewed a longer-term “Sky Sky” vision that he said is in MVP testing in the company’s “Sky Labs,” aimed at a more fully agentic experience and potential mid-market expansion.
On partnerships, Sheikh highlighted a TouchSource relationship, saying CXApp signed an MOU and “a marketing and co-selling agreement” to embed Sky’s agentic AI as the intelligence layer for TouchSource’s base of “over 11,000 digital directory deployments.” He said the partnership targets enterprise office, healthcare, retail, and mixed-use properties, and described it as a “capital-efficient growth channel.”
During Q&A, Mbanugo said the company received a Nasdaq delisting notice but also an extension, with time to regain compliance “until September.” She said management plans to become compliant “before September,” and Sheikh added that the company met all listing requirements except bid price, stating the board is “fully committed” to regaining compliance.
About CXApp (NASDAQ:CXAI)
CXApp Holdings, Inc develops and delivers workplace experience software designed to help enterprises manage hybrid work environments and improve employee engagement. Its flagship platform provides a mobile-first digital workplace companion that integrates space management, wayfinding, service requests, and communications. By combining Internet of Things (IoT) connectivity and data-driven insights, the platform enables organizations to optimize real estate, enhance operational efficiency, and support health and safety protocols.
The CXApp platform offers a suite of features tailored to employees, visitors, and facilities teams.
