New York, June 4, 2026, 04:16 (EDT)
- CXApp has picked up Australia-based EngineRoom in a $4.6 million deal and said the move will push annualized revenue run-rate over $12 million.
- CXAI finished Wednesday at 15.92 cents. Webull had premarket trading at 25.94 cents as of 4:11 a.m. EDT.
- New share sales, an upcoming reverse split vote, and Nasdaq’s $1 price deadline are still hanging over the stock for now.
CXApp Inc. shares were up in early premarket trading Thursday after the workplace AI software maker said it bought Australia’s EngineRoom. Management said the deal would more than triple its annualized revenue run-rate. Webull showed CXAI at 25.94 cents as of 4:11 a.m. EDT, a jump of 62.9% from the prior close at 15.92 cents. Benzinga reported CXAI touched 28 cents after hours on the news.
CXApp is thinly traded and its Nasdaq stock is still under the $1 minimum bid. Any deal that brings in revenue helps. Timing also counts. Shareholders will vote June 16 on a reverse split to reduce share count and push the price up, aimed at keeping the listing.
CXApp said EngineRoom will bring about $8.1 million in annualized revenue, with about 94% of that recurring. Adjusted EBITDA from the deal should be around $1.6 million. Adjusted EBITDA takes out interest, tax, depreciation, amortization, and some other expenses; it is different from net income.
CXApp’s Australia arm picked up all of EngineRoom in a deal worth about $4.6 million, a filing showed. The price came to roughly $2.99 million in cash, $1.15 million tied to earnout payments, and $460,000 held in escrow. The agreement was signed and closed June 3.
Khurram Sheikh, chairman and CEO of CXApp, said the deal is “accelerating the next phase of CXAI.” EngineRoom founder Adam Laurie will stay on as GM of CXAI EngineRoom for at least three years. Laurie said the company had been focused on helping customers “make better decisions.” CXApp, Inc
The deal is small in dollars, but it’s a big step for CXApp’s size. CXApp posted about $950,000 in first-quarter revenue, with bookings near $1.4 million. Subscription revenue made up around 98% of the total. The company had $12.3 million in cash at the end of March. CFO Joy Mbanugo called it a “highly recurring revenue base.” CXApp, Inc
On the other side, filings show fresh stock has hit the market. A June 3 disclosure showed CXApp handed 12.27 million shares to Avondale Capital over June 1 to June 3, priced around 12.62 cents each. An earlier May 28 filing showed 26.73 million shares issued to Avondale from May 15 to May 27. Issuing more stock can dilute investors, shrinking each holder’s slice of the company.
The market slid Wednesday. The Dow lost 1.21%, the S&P 500 fell 0.74% and the Nasdaq dropped 0.89%. Reuters said Middle East tensions and higher oil prices kept investors cautious.
Competition stays tough. Eptura, Robin and ServiceNow all say they landed Leader spots in Gartner’s 2026 Magic Quadrant for Workplace Experience Applications. CXApp claims it was named a Visionary in the same report. That comparison helps CXApp show potential customers where it stands but also lays out the gap it faces against bigger rivals.
EngineRoom’s numbers could miss forecasts, or integration costs and cash burn could eat up the gains. CXApp’s 10-Q flagged recurring losses and negative operating cash flow, saying there’s “substantial doubt” about the firm’s ability to keep going. Management pointed to its current liquidity, cost cuts and plans for outside capital, saying that should cover operations for at least a year from the date of the statements. CXApp, Inc
Nasdaq told CXApp it has until Sept. 7 to get back above the $1 minimum bid. The company’s next hurdle is clear: investors need to decide if EngineRoom is genuine scale or just noise ahead of a potential reverse split.
