CXApp Inc. reported 79% sequential revenue growth in the second quarter of 2026 [1].
The results signal a pivot for the Palo Alto-based company as it attempts to offset previous losses through AI integration and strategic acquisitions.
During a recent investor forum and earnings call, Chairman and CEO Khurram Sheikh said, "Q2 fundamentally changed the trajectory of CXAI" [5]. The company reported annual recurring revenue of $11.5 million [1] and a net revenue retention rate of 99.3% [2].
A primary driver of this growth is the acquisition of EngineRoom, which provided a platform with more than $12 million in annualized revenue [1]. This acquisition coincides with the launch of CXAI 2.0, a new iteration of the company's AI offerings designed to accelerate its market transformation [1].
These gains follow a difficult period for the firm. The company previously saw a 36% drop in sales compared with the prior year [6]. Management is now focusing on a path to profitability by leveraging these new AI-fueled assets.
The company released its financial results on Aug. 10 [7] and held its formal earnings call and investor forum on Aug. 13 [1]. The events were delivered via webcast from the company's headquarters in California [1].
“"Q2 fundamentally changed the trajectory of CXAI."”
CXApp is attempting a rapid recovery from a significant year-over-year sales decline by shifting its business model toward AI-driven recurring revenue. The high net revenue retention suggests strong customer loyalty, but the company's long-term viability depends on whether the EngineRoom acquisition and CXAI 2.0 can sustain this sequential growth and lead to actual profitability.
