CXAI — CXApp Inc.

Summary of CXAI Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Total Revenue: $950,000 for Q1 2026, down from $1.02 million in Q4 2025, attributed to timing of new deal closures.
• Bookings: $1.4 million, a 12.5% increase year-over-year, including three significant 3-year enterprise deals worth approximately $5 million in total contract value.
• Subscription Revenue: Improved to 98% of total revenue, up from 96% in Q4.
• Gross Margin: 83%, down from 87% in Q4, reflecting investments in infrastructure for the agentic AI rollout.
• Cash Position: Increased to $12.3 million from $11.1 million, indicating better working capital management.
• Earnings Per Share: Improved to negative $0.08 from negative $0.13 in Q4.

2. Strategic Updates and Business Highlights:

• CXAI is transitioning to an AI-driven orchestration layer for enterprises, focusing on integrating people, places, assets, and workflows into a single platform.
• The company has been recognized by Gartner as a visionary in the Enterprise Workplace Magic Quadrant, enhancing its market position.
• The launch of CXAI 2.0 is on track, with new clients already onboarded to this platform, which is designed for scalability and efficiency.
• Partnerships with Google Cloud are being leveraged for analytics and AI capabilities, enhancing product offerings and market reach.
• The company is focusing on both enterprise expansion and mid-market growth through its CXAI (Sky) platform.

3. Forward Guidance and Outlook:

• CXAI is optimistic about future revenue growth driven by increased bookings and new client commitments.
• The management is focused on executing its strategic initiatives, including the rollout of CXAI 2.0 and expanding the CXAI (Sky) platform.
• While no specific revenue or bookings guidance was provided, management expressed confidence in converting current opportunities into revenue.

4. Bad News, Challenges, or Points of Concern:

• The decline in revenue from Q4 to Q1 raises concerns about the timing of deal closures and revenue recognition.
• Gross margin compression due to infrastructure investments may affect profitability in the short term.
• The company faces competitive pressures in the rapidly evolving AI and digital workplace markets.
• There are ongoing compliance concerns that management is actively working to address before the September deadline.

5. Notable Q&A Insights:

• Management believes it is possible to regain compliance organically and is actively pursuing this goal.
• The company is open to licensing its software to competitors, indicating a strategic approach to partnerships and market expansion.
• There is a focus on integrating capabilities for government agencies, although this market has not been a primary focus yet.
• Management emphasized the importance of the Google partnership in enhancing product capabilities and market positioning, with expectations for future growth driven by this collaboration.

In conclusion, CXAI's Q1 2026 results reflect a mix of growth in bookings and strategic advancements, tempered by revenue declines and margin pressures. The company is positioned for future growth through its innovative product offerings and partnerships, while also navigating challenges in compliance and competitive dynamics.