CXApp Grows ARR and Margins in Q2 2025

CXApp(NASDAQ:CXAI) reported fiscal Q2 2025 (period ended June 30, 2025) earnings on August 11, 2025, highlighting flat revenue of $1.22 million, gross margin improved to 86%, and significant expansion in annual recurring revenue (ARR) from large Fortune 1,000 renewals. This summary analyzes CXApp's operational performance, strategic client adoption trends, and financial discipline driving long-term positioning in the workplace experience software sector.

Subscription revenue as a share of total revenue rose from 87% to 96% year-over-year. The CFO also confirmed a quarter-over-quarter increase in negative EPS and a year-over-year increase in cash on hand, with gross margin at 86% despite higher R expenditure.

A higher proportion of recurring revenue and improving margins, despite increased investment, directly strengthen both CXApp's financial resilience and long-term operating leverage, as evidenced by subscription revenue comprising 96% of total revenue and gross margin improving to 86%.

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Source Fool.com