CXApp (NASDAQ:CXAI) reported approximately $3 million in third-quarter 2026 revenue, up 77% from the prior quarter, as the company benefited from a full quarter of contributions from its EngineRoom acquisition.
Chairman and CEO Khurram Sheikh said on the earnings call that CXApp also reduced its cash EBITDA loss to approximately $1.7 million from $2.7 million in the second quarter. He said the company is targeting positive cash EBITDA and operating cash flow by the third quarter of 2027.
“We are generating significantly more revenue while reducing our underlying operating losses,” Sheikh said. He described cash EBITDA as a measure the company uses to assess operating performance, excluding certain financing, accounting and non-cash items.
Recurring Revenue and EngineRoom
Revenue rose from approximately $950,000 in the first quarter to $1.69 million in the second quarter and about $3 million in the third. Sheikh attributed the latest increase in part to the timing of the EngineRoom acquisition, which closed in early June.
Recurring revenue accounted for approximately 94% of third-quarter revenue, compared with 91.91% in the second quarter. Sheikh said recurring revenue grew about 81% sequentially, providing a foundation for expanding product adoption and cross-selling AI services.
He said the combined company had an annualized revenue run rate above $12 million. EngineRoom brings mid-market customers, vertical-market expertise and distribution capabilities, while CXApp continues to integrate technology, infrastructure and operations. Some expected operating synergies have yet to be realized, he said.
On a pre-reverse-split share basis shown in the company’s presentation, loss per share improved to $0.02 from $0.10 in the second quarter, according to Sheikh.
CXApp secured two annual renewals with Fortune 500 customers and added a financial services investment management customer under a multimillion-dollar, three-year contract, Sheikh said.
Cash Flow Target and Capital Plans
To reach its 2027 target, CXApp is aiming for approximately $4 million in quarterly revenue by the third quarter of next year, about 33% above the latest quarter. Sheikh said the company expects growth from existing enterprise customers, cross-selling AI products and using EngineRoom’s mid-market distribution.
The company also is targeting more than $700,000 in additional cost efficiencies through AI automation, shared infrastructure, streamlined delivery and operating discipline. Sheikh said CXApp has identified efficiencies while working with Google on its cloud and software costs.
During the question-and-answer session, Sheikh said CXApp had more than $9 million in cash and enough runway for up to six quarters. Based on the current operating plan, he said he believes the company can reach its cash flow target without additional financing or shareholder dilution, while continuing to consider growth opportunities.
Sheikh also discussed a conditional 90-day standstill agreement announced in October with investor Avondale Capital. He said the agreement is temporary and the underlying financing obligations remain outstanding.
CXApp’s board has authorized up to $1 million in share repurchases, but the authorization does not commit the company to buy a fixed number of shares. Sheikh said purchases would be evaluated against liquidity, operating needs, market conditions and applicable restrictions.
Beat Product Nears Beta Testing
CXApp is preparing to test Beat, an agentic AI product initially aimed at software developers and project managers, with a planned commercial launch in January 2027. Sheikh said the product is designed to prepare next steps for tasks such as code reviews, tickets and follow-ups within existing workplace tools.
Users must review and approve actions before anything is posted, sent or changed, he said. After testing Beat internally, CXApp is making it available to a limited group of beta users.
Sheikh said the company’s broader strategy is to combine enterprise workplace software with EngineRoom’s mid-market reach and specialized AI workflows. He cautioned that quarterly results may not move in a straight line, and said the cash flow target depends on continued revenue growth, efficiency initiatives and disciplined cash use.
About CXApp (NASDAQ:CXAI)
CXApp Inc (NASDAQ: CXAI) provides an enterprise workplace experience platform designed to help organizations connect employees with people, information and physical workspaces. Its software supports employee communications, workplace engagement and collaboration through branded mobile and digital experiences.
The CXApp platform includes features such as workplace navigation and wayfinding, desk and room booking, event and community engagement, internal communications, service requests and workplace analytics.
