- Subscription revenue ratio surged to 99% in Q1 2025, up from 87% year-over-year, reflecting strong recurrent revenue.
- Gross margin improved to 88%, with a significant 130%+ ARR expansion from Fortune 500 client renewals.
- Earnings per share (EPS) increased to ($0.08), demonstrating a loss reduction from ($0.34) in Q1 2024.
CXApp Inc. (CXAI, Financial) reported robust financial results for the first quarter of 2025, underscored by notable improvements in key performance metrics. A substantial shift towards a subscription-based model was evident as the company achieved a 99% subscription revenue ratio, a significant increase from 87% in the previous year.
The company's gross margin rose to 88%, compared to 82% in Q1 2024, aligning CXAI with high-margin SaaS market players. This growth was supported by a remarkable 130%+ ARR expansion among three major Fortune 500 clients who renewed their contracts, suggesting strong customer retention and increased spend within existing accounts.
Furthermore, CXAI's financial health showed positive signs with EPS improving to ($0.08) from a loss of ($0.34) the previous year, indicating a 76% reduction in losses. Enhanced operational expense management and reduced derivative liabilities contributed to these improvements.
CXAI's platform continues to see widespread adoption, particularly in Return-to-Office (RTO) and employee engagement solutions. Products such as the CXAI Kiosk and CXAI VU have seen increased utilization, supported by global deployment plans with a leading financial services client. The company's strategic collaboration with Google Cloud to implement AI-based localization further strengthens its market position.
The company, based in Palo Alto, is poised for further growth as it leverages generative AI to enhance workplace experiences, positioning itself as a leader in the RTO solutions sector. CXApp Inc.'s commitment to innovation and customer-centric solutions underscores its potential for sustainable growth in 2025 and beyond.
