Recurring revenue reaches 94% of total revenue, with EngineRoom integration supporting a $12 million-plus annualized revenue run rateCompany advances agentic AI product commercialization and reaffirms target of positive operating cash flow by Q3 2027 PALO ALTO, CA / ACCESS Newswire / November 4, 2026 / CXApp Inc. (Nasdaq:CXAI) ("CXAI" or the "Company"), an enterprise agentic AI platform company, today announced financial and operating results for the third quarter ended September 30, 2026 . The third quarter marked an important step in CXAI's transformation into a larger, highly recurring, capital-efficient AI software business. With a full-quarter contribution from EngineRoom, the Company achieved substantial sequential revenue growth while reducing its underlying operating losses. Third Quarter 2026 Financial Highlights Revenue increased 77% sequentially to $3.005 million , compared with $1.694 million in Q2 2026. Recurring revenue reached $2.815 million , representing 93.68% of total revenue, compared with 91.91% in Q2. Recurring revenue grew approximately 81% quarter over quarter , with recurring revenue mix improving by 177 basis points. Cash EBITDA loss narrowed to approximately $1.7 million , compared with $2.7 million in Q2, representing a $1.0 million , or 37%, improvement. EPS: Loss per share improved by $0.08 , or 80% net reduction in loss, quarter over quarter , declining from $0.10 in Q2 2026 to $0.02 in Q3 2026 Annualized quarterly revenue run rate exceeded $12 million , reflecting the Company's expanded operating scale following the EngineRoom acquisition. "Q3 represents an important operating inflection for CXAI," said Khurram Sheikh , Chairman and Chief Executive Officer of CXAI. "We are generating significantly more revenue while reducing our underlying operating losses. We are not simply building a larger business. We are building a more scalable and financially sustainable AI software company. Our focus is on disciplined execution, with a clear target of achieving positive operating cash flow by the third quarter of 2027 "With EngineRoom now integrated into our business, we have expanded our customer reach from blue-chip enterprises into the mid-market, while strengthening our recurring revenue foundation. "We believe our combination of enterprise customer relationships, vertical-market distribution and agentic AI technology creates meaningful opportunities for growth." Expanding the Agentic AI Opportunity CXAI continues to advance its strategy of building an agentic operating layer that helps organizations move beyond AI experimentation toward measurable business outcomes. The Company's expanded capabilities bring together enterprise workplace intelligence, agentic workflow execution and EngineRoom's established mid-market relationships and specialized vertical-market expertise. CXAI is focused on three complementary growth opportunities: Enterprise expansion: Building on established enterprise customer relationships and recurring software and services revenue. Mid-market and vertical growth: Leveraging EngineRoom's customer relationships and distribution capabilities to pursue specialized AI solutions. Agentic AI commercialization: Extending CXAI's product portfolio through Workplace AI, Flow, Beat and industry-specific solutions designed to improve productivity and automate workflows. The Company continued its customer wins this quarter including two Fortune 500 enterprise renewals and a multi-year, multi-million-dollar financial-services customer agreement this quarter besides strong mid-market customer retention and expansion. CXAI Beat Advances Toward Commercial Launch CXAI Beat has reached beta readiness, with initial user testing started this week after successful customer product demos in October. The product is designed to help software teams and business users identify pending work, prepare next steps and execute actions following human review and approval. The company is targeting commercial go-live in January 2027 , subject to successful testing and launch readiness. Operating Efficiency and Path to Positive Cash Flow CXAI is pursuing a capital-efficient software-led strategy that leverages existing cloud and AI infrastructure rather than requiring substantial investment in proprietary computing infrastructure. Management's operating plan combines continued recurring revenue expansion with AI-enabled automation, shared technology infrastructure, streamlined delivery and disciplined cost management. The Company continues to target positive Cash EBITDA and positive operating cash flow by Q3 2027. Capital Structure and Financial Discipline As previously announced, CXAI's Board authorized a share repurchase program of up to $1 million , and the Company entered into a conditional 90-day standstill agreement with financing partner Avondale Capital, LLC . These initiatives are intended to support disciplined capital allocation and greater financial flexibility as the Company contin