How did CXApp (CXAI) regain Nasdaq compliance after its 1-for-50 reverse split?

Sonal Goyal

28 October 2026 05:16 PM AEDT

How did CXApp (CXAI) regain Nasdaq compliance after its 1-for-50 reverse split?

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Key Highlights

CXApp effected a 1-for-50 Reverse Stock Split on 18 August 2026 and Nasdaq confirmed on 2 September that it had regained compliance with the minimum bid-price rule.
The company reported first-quarter 2026 Revenue of about $0.95 million and, according to its second-quarter release, revenue of $1.7 million with a first-half net loss of $12.6 million.
Shares outstanding rose from 33.8 million at the end of 2025 to 109.2 million at 30 June 2026, before the reverse split.

Compliance regained

CXApp Inc. (NASDAQ:CXAI), a workplace software company, effected a 1-for-50 reverse stock split at 12:01 a.m. Eastern Time on 18 August 2026. The board announced the split on 14 August. Its stated aim was to lift the per-share price and support compliance with Nasdaq's minimum bid-price rule.

In an 8-K dated 3 September 2026, the company said a Nasdaq letter of 2 September confirmed it had regained compliance with Listing Rule 5550(a)(2). The stock had closed at or above $1.00 for ten consecutive Business days from 19 August to 1 September. Nasdaq considered the matter closed.

The deficiency was long-running. Nasdaq first notified the company on 11 September 2025 that the stock had closed below $1.00 for 30 consecutive business days, giving it until 10 March 2026. On 11 March 2026 Nasdaq extended the deadline to 7 September 2026, and the reverse split was executed within that window.

Share count after the split

The listing was restored by a mechanical change to the share count. A share base that small means further issuance could change ownership percentages quickly, although the current share count should be checked in the company's filings.

Operating results

The company's first-quarter 2026 release, dated 13 May 2026, reported revenue of about $0.95 million, a gross Margin of about 83 per cent and cash of about $12.3 million at 31 March. Subscription revenue was about 98 per cent of the total, and quarterly bookings were about $1.4 million.

For the second quarter, the company's release of 14 August 2026 put revenue at $1.7 million, up about 38 per cent year on year, linked to the EngineRoom acquisition. Gross margin was reported as 63 per cent, against 86 per cent a year earlier, indicating a more service-heavy mix. Cash was reported at $11.7 million.

Dilution and going-concern language

The second-quarter report showed a first-half net loss of $12.6 million, against $4.8 million a year earlier, and management disclosed substantial doubt about the company's ability to continue as a going concern. Shares outstanding rose from 33.8 million at the end of 2025 to 109.2 million at 30 June 2026, before the reverse split, with about 67.3 million shares issued to settle convertible debt.

The financing arrangements reportedly depend on convertible pre-paid purchases and at-the-market sales. Further issuance under such arrangements would add to the share count again. That is a risk to flag rather than a prediction.

What to watch

Items to follow include the third-quarter results, which are expected around 11 November 2026 on an estimated basis, the pace of any further share issuance, gross margin as the acquired business is integrated, and the cash balance in relation to the rate of loss.

FAQs

Q: When did CXApp carry out its reverse stock split?

A: CXApp effected a 1-for-50 reverse stock split at 12:01 a.m. Eastern Time on 18 August 2026, after the board announced it on 14 August.

Q: Has CXApp regained compliance with Nasdaq's bid-price rule?

A: Yes. In an 8-K dated 3 September 2026 the company said Nasdaq confirmed on 2 September that it had regained compliance with Listing Rule 5550(a)(2) after ten consecutive business days at or above $1.00.

Q: What going-concern language has CXApp disclosed?

A: Management disclosed substantial doubt about the company's ability to continue as a going concern, alongside a first-half net loss of $12.6 million.

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