CXApp Inc. (NASDAQ:CXAI) Q1 Earnings Overview: Meeting Market Expectations

• CXApp Inc. (NASDAQ:CXAI) reported Q1 earnings with an EPS of -$0.24 and revenue of $1.7 million, aligning with estimates.
• The company highlighted a subscription revenue ratio of 99% and a gross margin of 88%, indicating efficient operations and strong customer retention.
• Despite positive operational metrics, CXAI faces financial challenges, including a negative price-to-earnings ratio of -1.13 and a current ratio of 0.61, pointing to potential liquidity concerns.

CXApp Inc. (NASDAQ:CXAI) is a technology company that focuses on providing advanced AI-based solutions to enhance customer experiences. The company is known for its Agentic AI platform, which is designed to address post-pandemic challenges, particularly in Return-to-Office (RTO) initiatives and employee engagement. CXAI competes with other tech firms in the AI and customer experience sectors.

On May 20, 2025, CXAI reported its Q1 earnings, revealing an earnings per share (EPS) of -$0.24, which matched the estimated EPS. The company's revenue also aligned with expectations, coming in at $1.7 million. This consistency in meeting estimates reflects the company's ability to manage market expectations effectively.

During the earnings call, CEO Khurram Sheikh highlighted the success of the CXAI platform, which has seen strong adoption. The company reported a subscription revenue ratio of 99% and a gross margin of 88%, indicating efficient operations and customer retention. Additionally, CXAI secured three significant customer renewals, each exceeding 130%, showcasing its platform's value.

Despite these successes, CXAI faces financial challenges. The company has a negative price-to-earnings ratio of -1.13 and an earnings yield of -0.88%, indicating negative earnings. The enterprise value to operating cash flow ratio is -4.04, highlighting difficulties in generating positive cash flow. The current ratio of 0.61 suggests potential liquidity concerns, as it is below the ideal threshold of 1.

CXAI's financial metrics, such as a price-to-sales ratio of 4.04 and a debt-to-equity ratio of 0.36, provide insight into investor sentiment and the company's financial structure. While the debt level is moderate, the low current ratio and negative cash flow ratios suggest areas that need attention to ensure long-term financial stability.