CXApp (CXAI) investor relations material

Executive summary

• Q2 2026 marked a transformative quarter with 79% sequential revenue growth to $1.7 million and 42% year-over-year growth, driven by the EngineRoom acquisition and AI-first product innovation.

• The EngineRoom acquisition expanded scale, mid-market distribution, and recurring revenue, contributing new managed advertising and growth marketing advisory streams from June 3, 2026.

• CXAI 2.0 advanced from strategy to production, broadening platform capabilities for enterprise clients and securing major Fortune 500 renewals and a new multi-million-dollar financial services customer.

• The company operates globally with 70+ team members, serving 60+ customers in 200+ cities, and is positioned for accelerated growth.

• Gross margin declined to 63.22% from 86.02% year-over-year due to a shift in revenue mix and higher direct costs from EngineRoom's services.

Financial highlights

• Q2 revenue grew 79% sequentially to $1.7 million from $950K in Q1; year-over-year revenue rose 42% and ARR increased 156% to $11.5 million.

• Net revenue retention improved to 99.3% from 98% sequentially, reflecting strong customer retention.

• Cash EBITDA improved to $(2.68) million from $(3.0) million in Q1; adjusted EBITDA for the quarter was $(2.9) million.

• Net loss widened to $8.6 million for the quarter, compared to $3.1 million in the prior year period, primarily due to increased non-cash expenses and fair value adjustments.

• Total assets increased to $36 million, up from $33 million in Q1 2026 and $29.6 million in Q2 2025.

Outlook and guidance

• Full EngineRoom integration expected to drive quarterly revenue to $3 million and annualized revenue to $12 million by Q3.

• Targeting double-digit revenue growth and breakeven by H2 2027, with a focus on operating leverage, recurring revenue above 95%, and gross margin above 70%.

• Management remains focused on expanding AI-native capabilities, scaling enterprise and mid-market reach, and maintaining financial discipline.

• The global employee experience market is projected to grow at a 20% CAGR, supporting continued expansion opportunities.

• Prioritizing cross-selling, continued software development, and advancing toward break-even and profitable growth.