CXApp (NASDAQ:CXAI) executives said enterprise demand for AI-powered workplace technology is beginning to translate into bookings and multi-year commitments, even as first-quarter revenue declined sequentially due to deal timing and revenue recognition patterns.
On the company’s first-quarter 2026 earnings call, Chairman and CEO Khurram Sheikh said CXAI is positioning itself as “an AI-driven orchestration layer for the modern enterprise,” connecting employees, spaces, assets, services, workflows and data into a single intelligent system.
The company said its platform is deployed across more than 200 cities, more than 50 countries and five continents, reaching more than 1 million users. Sheikh said more than 70% of CXAI’s team is in research and development, reflecting the company’s focus on product and engineering.
Bookings Rise as Revenue Slips Sequentially
Chief Financial Officer Joy Mbanugo said CXAI reported $950,000 in total revenue for the quarter, compared with $1.02 million in the fourth quarter. She said the decline reflected the timing of new deal closures and the revenue recognition pattern of enterprise contracts.
Subscription revenue accounted for 98% of total revenue, up from 96% in the prior quarter. Gross margin was 83%, down from 87% in the fourth quarter, which Mbanugo attributed to incremental infrastructure investments tied to the company’s agentic AI rollout and Google Cloud partnership.
Cash increased to $12.3 million from $11.1 million at the end of the fourth quarter. Earnings per share improved to a loss of $0.08 from a loss of $0.13 in the prior quarter.
Operating expenses declined by $1.87 million, or 27.6%, quarter over quarter. Mbanugo said that comparison included a $2.15 million non-cash goodwill impairment charge in the fourth quarter. Excluding that item, underlying expenses increased by $278,000, or 6%.
Research and development expense was essentially flat at $1.5 million, while sales and marketing expense declined 16% to $413,000. General and administrative expense increased 17.6% to $2.3 million, driven by audit and compliance costs, legal expenses related to strategic partnerships and negotiations, and governance-related investments.
Three-Year Enterprise Deals Add $5 Million in Contract Value
Executives highlighted bookings as a key indicator of future revenue. Q1 bookings totaled $1.4 million, up 12.5% from $1.25 million in the first quarter of 2025. The company said the quarter included one new customer and two large renewals.
Mbanugo also said CXAI closed three enterprise deals with three-year terms representing approximately $5 million in total contract value. She said the deals were “strategic multi-year commitments” rather than transactional wins.
The company’s net revenue retention improved to 98% in Q1, up from 86% in the year-earlier period. Mbanugo said the improvement shows that existing customers are remaining with CXAI and expanding usage of the platform.
She added that CXAI beat its internal bookings forecast by 19% and said the company has five CXAI Sandbox deployments live with enterprise clients. Mbanugo described those deployments as production implementations rather than pilots.
Agentic AI Platform Central to Product Roadmap
Sheikh said the company’s product roadmap centers on three pillars: CXAI 1.0, CXAI 2.0 and CXAI Chi, also referred to during the call as CXAI squared.
CXAI 1.0 remains the company’s core enterprise platform supporting existing customers, renewals and add-on modules. CXAI 2.0 is the company’s agentic AI operating layer, designed for large enterprises through AI assistants, workflow intelligence, AI consumption and expansion.
Sheikh said new enterprise customers are signing up for CXAI 2.0 and that the company remains focused on delivering it in the June timeframe. He said sandboxes have been tested and validated, and the product is being deployed this quarter ahead of broader customer launches.
“All the new clients we have been signing up to CXAI 2.0,” Sheikh said. “They’re day one starting with the 2.0 agentic AI operating layer.”
The company also discussed CXAI Chi as a mid-market expansion platform designed for rapid deployment, channel distribution and marketplace availability. Sheikh said CXAI launched a pilot at its San Ramon campus and is working with channel partners, including Google and AWS, to put the offering on the Google Marketplace and AWS Marketplace this quarter.
Google Cloud Partnership and Gartner Recognition
Executives pointed to the company’s Google Cloud relationship as a key part of its analytics strategy. Sheikh said CXAI is using Google’s Looker platform as part of CXAI VU, the company’s analytics offering, to support conversational analytics and real-time insights.
He said CXAI has also worked with Google Cloud tools including Gemini and Vertex AI, while noting the company is not exclusive to Google. Mbanugo said Google published a case study on CXAI’s Looker integration and that the validation is helping in enterprise sales discussions.
Sheikh said Gartner recognized CXAI as a visionary in the Magic Quadrant for Workplace Experience Applications. He described the recognition as validation of the company’s strategy and its focus on agentic AI in workplace technology.
Management Addresses Compliance and Outlook Questions
During the question-and-answer portion of the call, management was asked whether CXAI could regain compliance organically. Mbanugo said the company believes it is possible and is “feverishly working on that.” Sheikh said the company hopes its results show it is on a path to scale and regain compliance before a September deadline.
Asked about becoming cash-flow positive in 2026, Mbanugo declined to provide guidance, saying the company is working toward positive EBITDA but would not give a firm forecast.
Management also said CXAI’s software is being built as a universal enterprise solution that could eventually be applied to government agencies, though Sheikh said the company has not yet focused on the government market. He added that CXAI is open to licensing opportunities and other verticals, but its immediate priority is delivering the product for current enterprise customers.
For the current quarter, Mbanugo reiterated that the company does not provide revenue or bookings guidance. Sheikh said CXAI is focused on onboarding new customers, executing on CXAI 2.0 and CXAI Chi deliverables, and converting enterprise demand into revenue.
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.
