CXApp (NASDAQ:CXAI) said its second-quarter revenue increased 79% sequentially as the company began consolidating results from its EngineRoom acquisition, while management outlined plans to use the Australian growth-marketing business to expand into the mid-market and pursue operating leverage.
Chairman and CEO Khuram Sheikh described the quarter as a turning point for the company’s “SKY” strategy, citing three developments: the EngineRoom transaction, the production deployment of the company’s SKY 2.0 agentic AI platform, and what he characterized as a clearer route from revenue growth to profitability.
Revenue and recurring revenue expand
Interim CFO Melissa Podruzny said quarterly revenue rose to approximately $1.7 million from about $950,000 in the first quarter. Revenue was also up approximately 42% from $1.2 million in the second quarter of 2025.
Annual recurring revenue increased to $11.5 million from $3.6 million in the first quarter and from $4.5 million a year earlier. Net revenue retention improved to approximately 99.3%, compared with about 98% in the prior quarter, Podruzny said.
- Cash EBITDA improved to negative $2.68 million from negative $3 million in the first quarter.
- Earnings per share were approximately negative $0.10, compared with negative $0.09 in the first quarter and negative $0.16 a year earlier.
- Total assets increased to approximately $36 million from about $33 million in the prior quarter.
- Operating expenses rose approximately $275,000, or 5.6%, sequentially, driven primarily by the EngineRoom acquisition and related operating activity.
Podruzny said the company was continuing to invest in integrating the businesses and developing the combined platform. She said management’s focus was to grow revenue faster than expenses through shared functions, productized implementations, automation and a higher contribution from recurring software revenue.
As of June 30, CXApp had $11.7 million in cash, according to Podruzny. Sheikh said 65% of the EngineRoom acquisition consideration was paid in cash, with the remainder structured as a two-year earn-out tied to revenue growth. He said the company had no other EngineRoom-related liabilities beyond the earn-out.
EngineRoom adds mid-market channel
EngineRoom was included in CXApp’s results for only June during the second quarter. Sheikh said the acquired business contributes more than $8 million in revenue, approximately $1.6 million in adjusted EBITDA and relationships with more than 50 mid-market customers. The combined company now has more than $12 million in annualized revenue scale, management said.
Adam Laurie, EngineRoom’s co-founder and CXApp’s general manager of Australia, said the business provides growth-marketing services and technology designed to help customers acquire clients, assess marketing performance and improve business outcomes. Its customers span professional services, home services, manufacturing and industrial sectors, among others.
Laurie said EngineRoom has approximately 93% recurring revenue, an average customer relationship extending beyond four years and average client yield of about AUD 200,000 annually. He said the company has operated for 13 years and has focused on profitable growth.
Management expects EngineRoom to provide a distribution route for CXApp’s AI and workplace products in the mid-market, while CXApp’s enterprise customer base could potentially provide a channel for EngineRoom’s growth capabilities. Sheikh said the company sees possible synergies in cloud infrastructure, shared operations, technology, corporate functions and delivery resources.
Enterprise renewals and product rollouts
CXApp said two major Fortune 500 customers renewed their relationships during the quarter. The company also won a three-year, multimillion-dollar recurring-revenue agreement with a financial-services customer following a competitive request-for-proposal process, Sheikh said.
Chris Wiegand, general manager of North America, said the company had also secured or was closing business with a global asset manager, a leading U.S. insurer and other enterprise customers. He said the insurer is scheduled to go live in September at a new headquarters.
Wiegand said CXApp has shifted from custom development toward configuration of standardized products and connectors, a move intended to shorten deployments and support a more repeatable mid-market sales model. The company is also moving toward per-user software pricing rather than relying on larger upfront campus fees, he said.
The company’s existing Flow product supports workplace functions such as space booking, navigation, communications and access to workplace resources. Its SkyView analytics platform is intended to turn operational data into insights. CXApp plans to make its Events module generally available in September, according to Wiegand, while its Beat personal and team productivity product is expected in the fourth quarter.
Path to break-even remains a directional objective
Sheikh said CXApp aims to pursue double-digit revenue growth, recurring revenue above 95%, gross margin above 70%, software mix above 95% and increasing revenue per customer. He said the company’s customer revenue currently runs at roughly $150,000 to $200,000 per client annually.
Management said it sees a path to break-even in the second half of 2027, followed by profitable growth. Sheikh emphasized that the company’s discussion of valuation multiples, revenue scale and break-even was illustrative and directional rather than financial guidance.
“The acquisition created the scale,” Sheikh said. “SKY 2.0 creates the opportunity for operating leverage. Execution from here determines the value we create.”
About CXApp (NASDAQ:CXAI)
CXApp Holdings, Inc develops and delivers workplace experience software designed to help enterprises manage hybrid work environments and improve employee engagement. Its flagship platform provides a mobile-first digital workplace companion that integrates space management, wayfinding, service requests, and communications. By combining Internet of Things (IoT) connectivity and data-driven insights, the platform enables organizations to optimize real estate, enhance operational efficiency, and support health and safety protocols.
The CXApp platform offers a suite of features tailored to employees, visitors, and facilities teams.
