This article first appeared on GuruFocus .
Release Date: March 31, 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 ) has transitioned to an AI-native platform, positioning itself at the forefront of the enterprise workplace technology market.
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The company has a strong patent portfolio with 39 patents filed, including a recent provisional on Agentic AI, providing a competitive edge.
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Subscription revenue now represents 98% of total revenue, offering a more predictable and high-margin income stream.
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Gross margin improved to 87%, demonstrating operational efficiency and cost management.
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The company has a healthy cash balance of $11.1 million, providing a runway to execute its strategic plans for the next six quarters.
Negative Points
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Total revenue declined by 36% year-over-year, reflecting the exit of non-core contracts and reduced bookings during the platform transition.
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Operating expenses increased by 10%, driven by a non-cash goodwill impairment charge of $2.1 million.
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The company received a delisting notice from NASDAQ due to bid price issues, although an extension has been granted until September.
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Adjusted EBITDA was negative $9.8 million, impacted by a $7.7 million non-cash swing related to derivative liabilities.
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The company faces competition in a commoditized market, with the need to differentiate its AI platform from other solutions.
Q & A Highlights
Q: Are you in danger of being delisted, and what is your timeline on becoming compliant? A: (Joy Benugo, CFO) We received a delisting notice from NASDAQ but have been granted an extension until September. We plan to become compliant before then through growth. (Koram Sheikh, CEO) We are focused on meeting the bid price requirement, as we have met all other NASDAQ listing requirements. We believe our current undervaluation will be corrected with upcoming results and momentum.
Q: What can investors look forward to from the company in the near future? A: (Joy Benugo, CFO) We expect double-digit growth and are seeing strong momentum with new customer acquisitions for 2026. (Koram Sheikh, CEO) We had five large client renewals in Q4, and these clients are expanding with our Agentic AI this year. We are closing deals and moving from pilots to contracts, which should drive growth.
Q: How do you plan on setting yourself apart from other AI companies? A: (Koram Sheikh, CEO) Our focus is on a vertically integrated solution tied to campus environments and intelligent AI systems inside buildings. Our Bond and Cortex platforms provide a unique agentic interface with the security and privacy needed by our clients, setting us apart from competitors.
Q: Can you contextualize the double-digit growth target relative to the 20-plus customer pipeline? A: (Joy Benugo, CFO) We expect more growth from new logos, but also healthy expansion from existing customers. (Koram Sheikh, CEO) Many clients are making multi-year commitments, which indicates long-term growth potential. Deal sizes vary, but larger clients with more campuses represent significant opportunities.
Q: What is your strategy for sustainable, high-quality revenue growth? A: (Koram Sheikh, CEO) We are committed to subscription expansion rather than one-time fees. Our growth will come from high-quality, recurring revenue, and we are exploring outcome-based monetization opportunities with new clients.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
