Company Overview
CXApp Inc. operates within the technology sector, specifically focusing on the software application industry, where it delivers enterprise-grade software solutions and experience tools to organizations in the United States, Canada, and the Philippines. The company's core business involves providing the CXAI Platform, which functions as a comprehensive suite of tools designed to create smarter workplaces, alongside CXAI Apps, a multi-platform suite of applications intended for various operational needs. As of the latest data, the company possesses a market capitalization of $9.04M and generates annual revenue of $5.22M based on trailing twelve-month figures. With an employee count of 41, CXApp Inc. is classified as a micro-cap entity, a designation indicated by its market cap which suggests the company operates with limited resources and a small operational footprint. The revenue figure of $5.22M combined with the small workforce implies that the company relies on high-value software licensing or subscription models to maximize output per employee, although the current market valuation reflects the high risks and limited liquidity typically associated with firms of this size in the software development space.
Financial Health
The company reports a trailing twelve-month revenue of $5.22M, yet this top-line activity is associated with a significant net income loss of $11,248,000 and an EBITDA of $-11,718,000. The substantial gap between the positive revenue of $5.22M and the deeply negative net income reveals a cost structure where operating expenses and likely R&D investments heavily outweigh current earnings, resulting in a profit margin of -215.4%. Furthermore, the company generates a free cash flow of $-7,218,375, which indicates a lack of financial flexibility and suggests that the business is burning through cash reserves to fund its operations or expansion efforts. Despite the negative earnings, the company maintains a cash balance of $5.09M, though this is partially offset by total debt of $6.86M, resulting in a debt-to-equity ratio of 45.04 which characterizes the balance sheet as highly leveraged rather than conservative. Liquidity constraints are further highlighted by a current ratio of 0.89, indicating that the company's current assets are insufficient to cover its current liabilities without relying on external financing or asset liquidation. Return metrics reinforce the financial strain, with a return on equity of -76.2% and a return on assets of -30.1%, revealing that management effectiveness in generating returns for shareholders and utilizing the asset base is currently negative.
Valuation Assessment
Valuation multiples for CXApp Inc. present a complex picture given its unprofitable status, with a trailing P/E ratio listed as N/A and a forward P/E of -0.33. The negative forward P/E implies that the market expects earnings to remain negative or that the current price is based on projected losses rather than expected profitability, creating a divergence from the N/A trailing figure. The price-to-book ratio stands at 0.33, indicating that the stock trades at a significant discount to its book value, suggesting the market prices in substantial risks regarding the company's solvency or future cash flow generation. Additionally, the price-to-sales ratio is 1.73, while the EV/EBITDA multiple is -0.63; these alternative metrics suggest that valuation is being driven by revenue multiples rather than earnings power, a common approach for growth-stage software firms that have not yet achieved profitability. Price volatility is substantial, with the 52-week high at $1.49 and the 52-week low at $0.16, meaning the current price sits significantly below the recent peak, reflecting a downward trend or prolonged period of underperformance relative to the yearly range. The beta value is 1.00, which indicates that the stock's price volatility mirrors the broader market movements, lacking the typical high-beta volatility seen in small-cap technology stocks or the low-beta stability of large-cap utilities.
Growth & Income
The company exhibits a revenue growth rate of -41.3% year-over-year, while earnings growth is marked as N/A due to the continued negative net income position. Since earnings are not positive, the concept of earnings growing faster or slower than revenue is not applicable in a traditional sense, but the contraction in revenue suggests a shrinking customer base or loss of market share. As a non-dividend payer, the company maintains a dividend yield of N/A and a payout ratio of 0.0%, meaning it does not distribute cash to shareholders and theoretically retains all earnings, although in this case, it is retaining losses. This lack of dividend income confirms that the company reinvests its limited resources, or rather its cash burn, into ongoing operations rather than providing income streams for investors. The overall growth and income profile is defined by negative revenue momentum and an absence of cash distributions, painting a picture of a business that requires significant capital infusion to potentially reverse its declining trajectory and achieve profitability in the future.