CXApp (US:CXAI)2025-11-12 22:11Revenue Performance - For the nine months ended September 30, 2025, total revenue was $3,561 thousand, a decrease of approximately 35% compared to $5,481 thousand for the same period in 2024[202]. - Recurring SaaS revenue accounted for 99.46% of total revenue in Q3 2025, highlighting the effectiveness of the subscription-based model[185]. - Subscription-based revenue comprised approximately 98.12% of total revenue for the nine months ended September 30, 2025, up from 86.70% in the same period of 2024[204]. Profitability - Gross profit for Q3 2025 totaled $991 thousand, with a gross margin of 88.96%, up from 80.39% in Q3 2024[186][191]. - The gross profit margin improved to 87.53% for the nine months ended September 30, 2025, compared to 80.81% for the same period in 2024[205]. - The company reported a net loss of $7,912 thousand for the nine months ended September 30, 2025, compared to a net loss of $16,072 thousand for the same period in 2024[201]. - For the nine months ended September 30, 2025, the company reported a net loss of approximately $7,912 thousand, compared to a net loss of $16,072 thousand for the same period in 2024, indicating a 50% improvement year-over-year[225]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(7,344) thousand, compared to $(6,105) thousand for the same period in 2024, reflecting a decline in operational performance[224]. Cash and Liquidity - Cash and cash equivalents were $5,088 thousand as of September 30, 2025, providing a strategic buffer for continued investment[189]. - The company had cash and cash equivalents of approximately $5,088 thousand as of September 30, 2025, an increase from $4,880 thousand as of December 31, 2024[224]. - Net cash used in operating activities during the nine months ended September 30, 2025, was $6,750 thousand, compared to $4,629 thousand for the same period in 2024, representing a 46% increase in cash outflow[224]. - The company reported a net increase in cash and cash equivalents of $208 thousand for the nine months ended September 30, 2025, compared to a decrease of $1,193 thousand in the same period in 2024[224]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, were $14,798 thousand, a decrease of $553 thousand compared to $15,351 thousand for the same period in 2024[206]. - The company incurred depreciation and amortization expenses of $2,084 thousand for the nine months ended September 30, 2025, slightly down from $2,113 thousand in the same period in 2024[224]. Financing Activities - The company received net proceeds of $3,000 thousand from the Avondale convertible Pre-Paid Purchase 2 on August 7, 2025[196]. - The company raised approximately $6,990 thousand in financing activities during the nine months ended September 30, 2025, primarily from the issuance of convertible debt, compared to $3,480 thousand in the same period in 2024[227]. - The company entered into a Securities Purchase Agreement allowing for the issuance of up to $20,000 thousand in exchange for shares of common stock, with approximately $12,650 thousand remaining available as of September 30, 2025[219]. Working Capital and Obligations - As of September 30, 2025, the company had a working capital deficiency of approximately $711 thousand, an improvement from a deficiency of $4,496 thousand in the previous year[223]. - The total obligation for operating leases as of September 30, 2025, was approximately $324 thousand, with $274 thousand expected to be paid in the next twelve months[229]. Regulatory and Accounting Matters - CXApp will be classified as an "emerging growth company" under the JOBS Act, allowing it to utilize certain reporting exemptions[235]. - The company has not yet decided whether to take advantage of the exemptions available to emerging growth companies, which may affect stock attractiveness[235]. - CXApp has elected to use the extended transition period for complying with new or revised accounting standards, potentially impacting financial statement comparability[236]. - The decision to utilize the extended transition period is irrevocable, meaning the company cannot opt out once chosen[236]. - There have been no significant changes to critical accounting estimates during the three months ended September 30, 2025[234].