Key Highlights

• Revenue increased 77% sequentially to $3.005 million in Q3 2026, from $1.694 million in Q2

• Recurring Revenue reached $2.815 million, representing 93.7% of total revenue, up from 91.9% in Q2

• Cash EBITDA loss narrowed 37% quarter-over-quarter to approximately $1.7 million

• Loss per share improved 80% sequentially, declining from $0.10 in Q2 to $0.02 in Q3

CXApp Inc(NASDAQ:CXAI), a Palo Alto-based enterprise agentic AI platform company, reported its third quarter 2026 financial results on November 4, 2026, posting material sequential revenue growth following its Acquisition of EngineRoom. The company, which provides AI-powered workplace intelligence and workflow automation solutions for enterprise and mid-market customers, described the quarter as an important operating inflection point.

Sequential Growth Metrics

Revenue for Q3 2026 was $3.005 million, a 77% increase from $1.694 million in Q2 2026, reflecting the first full-quarter contribution from the EngineRoom acquisition. Recurring revenue reached $2.815 million, accounting for 93.7% of total revenue, up from 91.9% in Q2. The improvement in recurring revenue mix — a 177-basis-point quarter-over-quarter gain — signals deepening customer engagement and the transition toward more predictable revenue streams.

The annualized quarterly revenue run rate exceeded $12 million, reflecting the company's expanded operating scale post-acquisition.

Narrowing Losses and Path to Cash Flow Breakeven

Cash EBITDA loss narrowed to approximately $1.7 million in Q3, compared to $2.7 million in Q2, representing a $1.0 million, or 37%, improvement. Loss per share improved by $0.08, or 80%, declining from $0.10 in Q2 to $0.02 in Q3. Chairman and CEO Khurram Sheikh stated the company is targeting positive Operating Cash Flow by the third quarter of 2027.

Sheikh emphasized that CXAI is building a more scalable and financially sustainable AI software company rather than simply pursuing topline growth. The focus on disciplined execution is evident in the simultaneous revenue expansion and loss reduction during the quarter.

EngineRoom Integration and Strategic Direction

With EngineRoom now integrated into the business, CXAI has expanded its addressable market from Blue-Chip enterprise customers into the mid-market segment while adding vertical-market distribution capabilities. The company is pursuing three complementary growth vectors: expanding enterprise customer relationships, leveraging EngineRoom's mid-market presence for specialized AI solutions, and commercializing its agentic AI capabilities across both segments.

The company's strategy centers on building what it describes as an agentic operating layer — a platform that moves organizations beyond AI experimentation toward measurable Business outcomes. The platform combines enterprise workplace intelligence, agentic workflow execution, and EngineRoom's established mid-market distribution.

Looking Ahead

CXAI's Q3 results represent a transitional quarter for a company in the early stages of scaling its combined platform. While the absolute revenue figures remain modest at $3 million, the direction of the operating metrics — rising recurring revenue, narrowing losses, and a defined cash flow breakeven timeline — suggest the business is moving toward a more sustainable operating model. The company's ability to convert its enterprise and mid-market pipeline into recurring contracts while maintaining cost discipline will be the central test in the quarters ahead.