This article first appeared on GuruFocus .
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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CXApp Inc ( NASDAQ:CXAI ) reported $1.4 million in bookings for Q1 2026, including two large renewals and one new client, indicating strong enterprise demand.
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The company added over $5 million in new deals across three enterprise contracts, showcasing significant growth potential.
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CXApp Inc ( NASDAQ:CXAI ) was recognized by Gartner as a visionary leader in the enterprise workplace Magic Quadrant, validating its market position.
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The partnership with Google Cloud enhances CXApp Inc ( NASDAQ:CXAI )'s analytics capabilities, providing a competitive edge in enterprise AI solutions.
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The company's subscription revenue mix improved to 98% of total revenue, demonstrating the strength and predictability of its recurring revenue model.
Negative Points
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Total revenue for Q1 2026 was $950,000, a decline from $1.02 million in Q4, reflecting timing issues with new deal closures.
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Gross margin decreased to 83% from 87% in Q4 due to incremental infrastructure investments.
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Earnings per share remained negative at $0.08, although improved from negative $0.13 in Q4, indicating ongoing financial challenges.
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Operating expenses increased by 6% when excluding a one-time goodwill impairment charge, highlighting rising costs.
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The company does not provide specific guidance for future quarters, creating uncertainty about its financial outlook.
Q & A Highlights
Q: Do you believe it is possible to regain compliance organically? Also, how is Sky 2.0 coming and will cash flow positive come in 2026? A: We believe it's possible to regain compliance organically and are working towards that. Sky 2.0 is progressing well and will be in the marketplace soon. While we aim for positive EBITDA, we can't provide solid guidance on cash flow positivity for 2026. (Answered by CFO, Joan Benugo)
Q: Do the current impending patents granted infringe on already existing businesses? Does the company plan to license the software to competitors in the space? With the June rollout, will the software have capabilities to integrate with government agencies? A: We believe our patents do not infringe on existing businesses. Licensing to competitors is a possibility, and our software is designed to be universal, potentially integrating with government agencies in the future. (Answered by CEO, Karam Sheikh)
Q: Can you detail a little bit about our partnership with Google Cloud? A: Our partnership with Google Cloud involves using their Looker platform for analytics and leveraging their infrastructure for our Agentic AI platform. This collaboration enhances our product differentiation and market reach. (Answered by CEO, Karam Sheikh)
Q: What are your expectations for the upcoming quarter? A: While we don't provide specific guidance, we expect to see results from onboarding new customers and progress with Sky 2.0 and our Agentic platform. (Answered by CFO, Joan Benugo)
Q: Why did customers choose Sky? A: Customers chose Sky for its Agentic AI capabilities, workspace-native integration, consistent experience across platforms, spatial intelligence, and enterprise readiness. These factors make Sky a comprehensive solution for intelligent workplace operations. (Answered by CEO, Karam Sheikh)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
