Earnings Call Transcript - CXAI Q4 2025

Operator, Operator

Good day, everyone, and welcome to the CXApp Fourth Quarter 2025 Earnings Call. Operator provided instructions. It is now my pleasure to hand the floor over to your host, Khurram Sheikh. Sir, the floor is yours.

Khurram Sheikh, Chairman and CEO

Thank you, Matthew. Good afternoon, everyone, and thank you for joining CXApp Fiscal Year 2025 Earnings Call. I'm joined today by our Chief Financial Officer, Joy Mbanugo. I am Khurram Sheikh, Chairman and CEO of CXApp. Before we begin, I want to frame today's discussion. 2025 was a year of deliberate transformation. 2026 is a year of AI-driven acceleration. Today, we will walk you through what we accomplished, where the market is heading and why we believe 2026 represents a true inflection point for CXAI, as we know, you pronounce as sky. With CXAI, we are moving beyond simple workplace apps to an autonomous agentic platform where we define the employee experience. Let me start by directing your attention to our safe harbor statement over the next few slides. Please read at your leisure once you have the slide deck. All right. For those newer to the CXAI story, let me give you a quick snapshot of who we are. CXApp trades on NASDAQ under the ticker CXAI. We're headquartered in the San Francisco Bay Area with offices in Toronto and Manila, giving us a global engineering and delivery footprint. CXAI is a global AI-native workplace experience platform deployed across 200-plus cities, 50-plus countries with over 1 million users. We built this with a lean and highly technical team with over 70% focus on R&D, which is critical given our pivot into Agentic AI. Importantly, we now have 39 patents filed, including a new provisional filed on Agentic AI just recently, and we're really proud of that filing because it is a landmark in our space. We also already have 18 granted patents. This patent portfolio is a meaningful competitive moat. This is not just a product company. This is becoming a defensible AI platform company. We maintain enterprise-grade compliance with ISO 27001, SOC 2 and GDPR. This is a global enterprise-ready platform with the security credentials that Fortune 500 procurement teams aspire to. So very proud of that. We're proud of the accomplishment of the team over the last year, and we're going to share with you what this strategic transformation has been about and why this is a really great point for our investors to understand what is really happening in the market. So I want to start with the market. Why is this timing right for CXAI, right? We are seeing a fundamental market shift in enterprise workplace technology. Three forces are converging simultaneously. First, hybrid workplace orchestration. Fortune 500 enterprises are actively procuring unified platforms that consolidate desk booking, room booking, parking, dining and attendance into a single workflow. They want calendar and HR system integration with AI-driven smart bookings. The days of coming together 5- or 6-point solutions are ending. Secondly, AI and specifically Agentic AI have moved from nice-to-have to required or must-have. Enterprise buyers are now mandating AI agents with a 3-year roadmap. They want conversational assistance, proactive suggestions, auto routing and AI-enhanced incident reporting. This is not a future requirement. This is the current RFP today. And this is why we're seeing this good momentum because we've seen a lot of RFPs from large enterprises that are exactly what we've been working on. And thirdly, we have started our journey with indoor intelligence and IoT, the Internet of Things. Enterprises want interactive maps with real-time occupancy data from IoT sensors, wayfinding, colleague finders and visitor management with multimodal physical and access control. That gives us a new advantage in terms of the AI world. It gives us that localization and edge experience. So CXAI sits at the intersection of all these three trends. We're not chasing the market; the market is coming to us now. And that's why we see it as way, way different from 2025. Now what is happening with Agentic AI and the defining trend there? Let me put some numbers behind the AI opportunity. By the end of 2026, Gartner estimates that 40% of enterprise apps will feature task-specific AI agents, up from less than 5% in 2025. This is an 8x increase in a single year, and workplace is identified as a primary deployment domain: booking, service request, contextual suggestions. This is exactly what we built. The AI agent market currently sits at $7.8 billion and is projected to reach $52 billion by 2030. Gen AI model spending alone is growing at north of 80% in 2026. On the adoption side, 88% of organizations now report regular AI use in at least one business function. Enterprise software spending is up to around 15% year-over-year, driven primarily by AI investment. The validation from Fortune 500 buyers is clear. They now require AI agents, conversation systems and AI roadmaps in their procurement decisions. They are specifying exactly what CXAI does. And as you all know, we didn't pivot to AI. We've been building towards this for years. The market has now validated our thesis. So what I see is this is really a platform shift: Agentic AI becoming the control layer of enterprise software and CXAI is positioned directly in that layer as the intersection on workflows, data and physical environment. You heard at GTC, Jensen talked about physical AI. We are the physical AI for that workplace environment. So I'm super excited about the direction the market is heading and what we've been accomplishing over the last two years with our Agentic AI platform. It's interesting when I have been working with our sales team on all the different opportunities that come in. It is super interesting to watch that our competition is actually no longer there because with our Agentic platform, our clients are coming to us saying, this is what we actually want. We want you to be successful and build it for us. So all the new clients coming in are asking for Agentic AI as critical, as part of the roadmap. Without it, they will never deploy a solution and the existing customers are naturally evolving to this very rapidly. So let me summarize also what has been the strategic transformation in 2025 and what do we actually do? We executed a comprehensive strategic transformation built on four pillars. First, we focused on high-quality recurring revenue. We made a deliberate decision to prioritize subscription revenue over one-time services and implementation fees. That shows up clearly in the numbers, which our CFO, Joy, will walk through shortly. Secondly, we implemented an AI-driven cost structure. As you know, we have a partnership with Google where we are implementing a lot of the GCP-based solutions. We're a big AI user. We're using Gemini and a range of model providers. It's all driven towards productivity and to drive operational efficiency, reduced cloud cost and automating the processes that previously required manual effort. That AI-driven cost structure spans all our functions, be it engineering, sales or marketing, and that has resulted, as you've seen in the numbers, in a much reduced cost structure for us. Thirdly and most importantly, we built our platform from the ground up as an AI-native CXAI platform. This wasn't a bolt-on. We will talk about BOND and CORTEX. They were our key orchestration and intelligence layer solutions. We had designed them from day one as core platform components, not afterthoughts. And fourth, we balanced short-term impact with long-term scalability. Yes, revenue declined in 2025, and we're through that, but the revenue we have today is dramatically higher quality and the platform we built positions us for sustainable, scalable growth in 2026 and beyond. I'm going to talk a little bit more about the impact of all of that to our clients and to the end market. This slide illustrates the fundamental transformation we made and how our product delivers value. Because a lot of customers ask the question, so what? Why is this so important to me, what's the ROI? Given all the information out there on AI and Agentic AI, all the promises we made, why is our solution relevant? And this is where we want to show you what the legacy systems are and what our system does. We're going to describe those systems in detail later, but I want to show the value and outcome, right? If you look at the legacy world, workplace tools required multiple clicks, manual configuration, fragmenting analytics across different tools. That's what most of our competitors still offer. With our AI platform, we replaced those pain points with four core capabilities. BOND + CORTEX replaces multi-click workflows with instant actions and autonomous workflows. CXAI VU replaces static analytics with real-time insights that produce actionable outcomes. Our One-Map engine and experience engine replaces fragmented tools with a single source for all workplace data and actions. And finally, our Zero-Touch deployment replaces months of manual configuration with site deployments measured in days now versus months. This is an incremental improvement. This is a category shift from SaaS to an intelligent AI platform. And it's the reason enterprises are choosing CXAI over legacy alternatives. And that's being delivered by our design, our capability and how we thought about making this system frictionless for our clients. So I'm going to pause now and turn it over to the CFO, Joy Mbanugo to go through the financial results, and I'll be back with the strategic implications for 2026. Joy, over to you.

Joy Mbanugo, Chief Financial Officer

Thank you, Khurram. Let me walk you through the financial results for fiscal year 2025. I want to start by framing how we think about the past year. As Khurram mentioned, fiscal year 2025 was a year of intentional and strategic reset. We made very deliberate decisions to exit lower-quality revenue, transition the platform from SaaS to AI and build a more durable foundation. Those decisions had a short-term cost, and you'll see that impact on the top line. But the underlying health of the business has improved meaningfully, and I want to walk you through exactly why. Starting with the headline numbers on Slide 10. Total revenue came in at $4.6 million compared to $7.2 million in the prior year. I'll address the decline directly in a moment, but first, let me highlight what moved in the right direction. Subscription revenue now represents 98% of total revenue, up from 87% a year ago. That shift matters because subscription revenue is recurring, predictable and very high margin. It's a foundation that every AI company wants to be built on, and we're essentially there. Gross margin expanded to 87%, up 5 points from 82% in 2024. That improvement came from disciplined cloud cost management and platform efficiency gains. It demonstrates the operating leverage in our model. We ended the year with a healthy cash balance of $11.1 million as of December 31, strengthened by various capital raises throughout the year. That gives us a real runway to execute for the rest of this year. So we have enough cash to cover our expenses for the next six quarters. On a per share non-GAAP basis, our diluted earnings per share was negative $0.58, improving from last year, which was negative $1.20. So yes, revenue declined, but the business that remains is fundamentally stronger than what we started the year with. Can we go to the next slide? So now I go line by line on the P&L, so you have a more robust picture of what happened over the last year. Revenue was $4.6 million, down 36% year-over-year. This reflects three things: the exit of noncore and low-quality contracts and professional services, customer churn during our platform transition and reduced bookings during the positioning period. We expect that some of this decline is the cost of doing the reset correctly. Cost of revenues dropped 55% from $1.3 million to $578,000. That decline significantly outpaced the revenue decline, which is exactly what drove the margin expansion. We became materially more efficient at delivering the product. Gross profit was $4.0 million at 87% gross margin, up five points year-over-year. For context, that puts us in best-in-class with other companies in this area. This is a structural improvement, not a one-time event. Now on to operating expenses. Total OpEx was $21.6 million, up 10% from $19.6 million. I want to be direct about what drove that. R&D modestly increased by 4%, but that was intentional and we'll continue to invest in R&D while we continue to invest in AI and improve the product. We believe that this investment is what's going to position us for double-digit growth in 2026. Sales and marketing was cut by a significant 36% as we used AI in our marketing efforts and made our go-to-market motion leaner, a more targeted enterprise sales approach. G&A increased 10% and part of that is restructuring related; we're actively managing this down this year. The most important part in OpEx is the goodwill impairment of $2.1 million. This is a noncash accounting charge. It does not reflect cash outflow. It does not affect operations, and it's not recurring. It is the primary reason that OpEx increased year-over-year. Excluding that item, our operating cost base was essentially flat. Loss from operations was $17.6 million. Adjusted for the goodwill impairment of $2.1 million, the underlying operating loss was approximately $15.4 million, roughly in line with the prior year even as we continue building this platform. Now let's walk through the EBITDA bridge. If we can go to the next slide, please. Going through EBITDA and adjusted EBITDA, this is really important because this shows where some of the operational improvement comes from. Starting at a net loss of $13.5 million for the year, this is already a meaningful improvement from $19.4 million last year. And after adding back interest, taxes, depreciation, we arrive at negative EBITDA of $10.0 million compared to negative $15.6 million EBITDA in 2024. That is a 35% improvement year-over-year. This is a number I would point you to as the clearest measure of our operational progress in 2025; the trajectory is definitely trending in the right direction. Now adjusted EBITDA came in at negative $9.8 million compared to negative $8.3 million in 2024. I want to address this directly because on the surface, it could look like a step backwards. And I don't want that to go unexplained. The entire difference comes down to one line: our change in fair value of derivative liabilities. If you remember from last year, this is related to our convertible notes. In fiscal year 2024, this line item was a positive $3.2 million and it flattened adjusted EBITDA. In 2025, it moved to a negative $4.5 million. That is a $7.7 million noncash swing driven entirely by mark-to-market accounting on derivative liabilities. This has zero impact on our cash position, zero impact on our operations. It is purely an accounting timing item. If you strip that one item out, adjusted EBITDA improved year-over-year. The other adjustments are pretty straightforward: stock-based comp of $2.8 million, the $2.1 million goodwill impairment we already discussed, and smaller items that net close to zero. The real punchline is that our $11.1 million cash balance more than covers our cash-based operating loss. We have the necessary runway to execute, and the hard part of this transition is behind us. If you remember last year, we ended with a significantly lower cash balance. And so we're starting off 2026 very strong. Now let's talk about pipeline and sales momentum, which is really exciting to discuss. As Khurram mentioned earlier, the pipeline is growing. We are seeing expansion activity within existing enterprise customers. Accounts that have been on the platform are now asking for more. We are seeing new vertical opportunities that we weren't pursuing 12 months ago, and we are seeing early signs of acceleration in bookings. In Q4 2025, we had really strong bookings and that has continued into this year. On the market signal side, three things stand out. First, enterprises are consolidating; they're moving away from point solutions towards unified experience solutions and that is exactly what CXAI is. The procurement conversations we are having today are fundamentally different from a year ago. Buyers are not comparing us to individual tools; they are evaluating us as a complete platform. Second, and very importantly, Agentic AI has become a buying requirement. Executive buyers like CFOs and people that own real estate are now specifying AI agents, conversational agents and a 3-year AI roadmap as a baseline requirement before they sign or even before you have a conversation, and we have built exactly that. The platform spend and rebuilding is what enterprise procurement teams are now asking for by name. Third, and this is the one that gives us the most confidence, customers are telling us that they need our agentic capabilities to make their final buy decision. That is a closing signal; that is pipeline converting. 2025 was a strategic reset; 2026 is where that investment pays off. With that, I'll turn it back to Khurram, who will go through the rest of the presentation.

Khurram Sheikh, Chairman and CEO

Thank you, Joy. So let's talk about 2026 outlook. Looking ahead to 2026, we expect AI-driven acceleration to deliver double-digit growth. Let me outline the four pillars of our outlook. First, our Agentic AI platform, BOND + CORTEX, is in market now and it's generating a lot of enterprise interest. As I said, all the RFPs we've responded to and all the wins that we're getting in this quarter and the coming quarter are all driven because customers have tested, evaluated and understood that what we have, our roadmap, is the right thing. This is our primary growth engine for 2026 because of that differentiation. Secondly, we expect large enterprise wins and strong pipeline conversion as Joy mentioned. We've been involved with a lot of these RFPs for a while. I think it's very competitive. And the competition is not just smaller companies. They're also looking at much larger enterprises that are evaluating solutions in our space. The good news is we are winning. And we're winning big in terms of these client opportunities. So I'm very hopeful on that. These deals in our funnel today are larger and more strategic than they were ever before. The reason is Agentic AI is so critical to an enterprise. It is not a senior manager level decision. This is a C-level decision: the CIO, the CTO, the CHRO, the Head of Real Estate and even the CEO. This is sacrosanct for them. So that's why they're deliberately taking the time to test it, to validate. They do the RFP and then they show up in our labs, CXAI labs here in the Bay Area and they're impressed by our engineers and our team, and they go back and tell their procurement teams, we need to get CXAI. And that's what's happening. And so I'm super excited about that. So we're confident we're going to achieve those large enterprise wins. They take a little longer, but they are for the long run. Third, strategic partnerships, particularly in vertical AI, are creating new distribution channels for us. We'll talk about our TouchSource partnership — that alone gives us access to over 11,000 digital directory deployments. Huge opportunity for us to partner with them and scale our business through those distribution channels. We'll talk more in the coming weeks and months, but that is an exciting opportunity for us right now. And fourth, we are committed to sustainable, high-quality revenue growth. We will not sacrifice the quality of our revenue base to chase top-line numbers. Growth will come from subscription expansion, not one-time fees. We stick with that philosophy. I think with the Agentic AI world, the monetization mechanism is changing too — not just pure subscription, but also outcome-based models — and I think we're super excited about those opportunities, especially with the new clients who are coming in with a fresh perspective on the market. The 2025 reset is behind us. We entered 2026 with a stronger product, cleaner revenue, better margins and validated market demand. That gives me confidence and hope that we're going to be successful in 2026. So let me talk about some of these elements in more detail. I'll start with the product roadmap. This is a clear evolution and revolution from CXAI. CXAI 1.0 is our current platform. That's where all our current clients are. It's a single code base, delivering space booking, navigation, enterprise SSO integrations and the full mobile app experience. This is what's in production with everybody, and this will be around for a long time because it's the basis. It gives us strong leverage to build CXAI 2.0, which is our major evolution, and it's going to be released in June 2026 with our new clients as well as existing clients who are upgrading. This includes our behind-the-scenes access control and Agentic system, plus our One Mapping engine, delivering a unified One Map experience. It has the Agentic AI interface powered by BOND and CORTEX. It achieves full web parity with our mobile experience and enables Zero-Touch campus deployment. CXAI 2.0 is the version that unlocks our next phase of enterprise adoption. All the new clients I talk about are getting CXAI 2.0. They're already having their sandboxes and doing their first MVP deployments. By June, they will be launching their campus deployments, and this will be the growth engine for new clients and the existing clients upgrading to CXAI 2.0. So a huge opportunity for us, and this has been in the making over the last 12 months. Looking further ahead, our future vision is CXAI Sky. What I mean by that is, tongue-in-cheek, the full Agentic AI-driven user experience with predictive intelligence. It includes reactive and generative UIs, zero-friction onboarding and enables mid-market expansion in addition to large enterprise. This is where the platform really goes, and this is where opportunities with distribution partners like TouchSource come in for certain vertical markets. This is now an MVP in our labs. If you're in the Bay Area and you want to experience CXAI Sky, come talk to us and we'll give you access. We're testing it in all labs and we'll move to initial client pilots locally, but we think this is a big opportunity in both 2026 and 2027. So we're building for the future already. And by the way, we're not just building features. We're building a platform that gets smarter and more autonomous with every single deployment. This platform is solid and very exciting. We just also filed a provisional patent, a broad patent on Agentic AI. I've got the number in the deck; it's a landmark in our industry and we're very excited about it. We'll have multiple filings beyond this. But I want to go under the hood since we filed the IP; I want to tell the world what we actually have done and what our strong technology team in CXAI labs has accomplished. One of the things on the left you see is our Unified Data Fabric. This is the ingestion layer that connects IoT sensors for occupancy data, calendar systems for scheduling, enterprise systems like HRIS and IT, and spatial data from maps and navigation. This connects all the integrations we do. That data flows into our Intelligence and Orchestration layer, which has two engines. CORTEX is our intelligence engine. It handles predictive analytics, natural language processing, context understanding and intelligence extraction. BOND is our Agentic partner. It provides autonomous orchestration, proactive recommendations, task execution and multisystem control. Think of BOND as a multi-agent solution that allows multiple agents to work together, orchestrate and then, with CORTEX knowing personal preferences and contextual factors, make the right decision. What we do is unique because we take into account what's really happening in the campus and the enterprise and we keep that within the enterprise. That is the core of our IP and patents and what we believe will unlock shareholder value. On the right, you see the actual outcomes this produces, and this is what our clients want and what our users want: smart navigation and wayfinding, instant booking of rooms, desks and services, workforce analytics for real-time decision support, space optimization with automated utilization management and proactive context-aware alerts. This is where the world is headed and this is what we will deliver soon to our clients. The key insight here is that we are transforming passive data into proactive operational force multipliers. This is not a dashboard. It's a system that takes action on behalf of the enterprise, and that's the core of Agentic AI. Now let me talk about another pillar, which is our strategic partnerships. We believe this will be transformative for our distribution. Our partnership with TouchSource is a joint marketing, sales and product strategy that embeds CXAI's Agentic AI as the intelligence layer for TouchSource's existing base of over 11,000 digital directory deployments. We signed an MOU and a marketing and co-selling agreement with them. We're excited working with the team, and we already have key targets lined up. This partnership extends our workplace AI capabilities from enterprise offices into physical commercial real estate, lobbies, common areas, healthcare facilities, retail spaces and mixed-use properties. The verticals we're tackling together include enterprise office, healthcare, retail and mixed-use properties. Each of these represents a significant expansion of our addressable market. What makes this partner compelling is the math. TouchSource already has 11,000-plus deployed screens. We're providing the AI intelligence layer that makes those screens dramatically more valuable. This is a capital-efficient growth channel. As you recall, we also have a product, the CXAI Kiosk, that we're selling into our enterprise clients. All of them are wanting the ability to scale that and know that we're the software layer. TouchSource already has kiosk capabilities in different form factors with hardware sizes and media players. So it's a great partnership, and we hope to sell both ways: enable the Agentic AI orchestration layer to those kiosks, and vice versa, partner with them to deploy their kiosks in our enterprise environments where multiple kiosks are needed per floor. So there's a huge expansion opportunity. The teams are working closely. We'll start giving updates from this partnership; it's a very interesting model for us and it allows us to go beyond indoor campus environments to a larger piece of the puzzle. And with the CORTEX and BOND-based Agentic AI platform, this will be simpler and easier to deploy than what legacy vendors offer. All right. So let me bring it all together. When you think of the bigger picture, product-market fit is confirmed now. Fortune 500 enterprise requirements now match CXAI's capabilities precisely. AI and Agentic AI moved from optional to mandatory in procurement. So it's no longer, 'maybe we'll check this out'; it is becoming the standard and critical. Anyone who doesn't have it will not be part of these discussions. We see ourselves ahead of the competition in our space and even larger players in the space do not have the capability we have. Secondly, our addressable market exceeds $100 billion, spanning digital workplace platforms at $77 billion with a 20% CAGR and AI assistance at $3.35 billion growing to $21 billion at a 45% plus CAGR. The timing could not be better. Gartner expects 40% of enterprise apps to add AI agents in 2026. Enterprise software spending is increasing north of 15% year-over-year. Hybrid work is permanent now; it's not a transition. Platform consolidation is accelerating. So in a nutshell, the 2025 reset is complete. 2026 is about scaling the platform and capturing the opportunity. We believe CXAI is positioned at the center of Agentic AI, enterprise workflows and physical space, and we're excited about what's ahead. Our foundation is stronger than it has ever been. We have a differentiated AI platform, and we are entering the next phase of growth. This is the right company in the right market at the right time. Okay. Let me go to some Q&A. Joy, do you want to check if there are any questions from the audience?

Joy Mbanugo, Chief Financial Officer

Yes. Absolutely. I think we have a good handful of questions. I'll start with questions around our stock because there seem to be quite a few. There's one on whether you are in danger of being delisted and the second related to the stock is, what is your timeline on becoming compliant and what is the action plan? I'll take the first part of it, Khurram, and you can take the second part. So first, we did receive a delisting notice from NASDAQ, but we received an extension and we have until September, and we do plan on being compliant before September and there are multiple ways we can get there, but we believe we'll get there through growth. Khurram, do you want to add anything?

Khurram Sheikh, Chairman and CEO

Absolutely. Look, we are very focused on that. When NASDAQ gave us the extension, they understood that we have met all the requirements for listing except the bid price, so all the other requirements are met in terms of shareholder equity, in terms of market cap and other requirements that NASDAQ has. The only requirement is the bid price. We believe that given we are severely undervalued and with the results we're going to demonstrate to the market in the coming months and the momentum we have with our wins as well as our Agentic AI platform, we can meet that level. We also have mitigating factors. Our goal is to be compliant well before our September date. The Board is fully committed to that.

Joy Mbanugo, Chief Financial Officer

Okay. Next question. What can investors look forward to from the company in the near future? I'll take the first part of it again, and Khurram, if you want to take the second part. From a growth standpoint, like we mentioned, we're not giving specific guidance, but directionally, we expect to grow in the double digits, and we're already seeing great momentum with landing new customers and new logos for 2026.

Khurram Sheikh, Chairman and CEO

No, absolutely. We made the press release: in Q4 we had five large clients renew. All those clients are also expanding with Agentic AI this year. As Joy mentioned, we've got 20-plus in the pipeline. We believe we're closing deals. There are things in contract right now and other deals coming our way. We're excited about moving them from pilots and initial discussions to contracts and, hopefully, scale deployments in 2026. So it's an exciting time at the company and our team is fully focused on executing those contracts and making sure we deliver. I think if we deliver even a small percent of those, we'll hit the double-digit growth target. We believe that is very realistic and expect more activity in the coming weeks and months as customers go from pilots to first deployments.

Joy Mbanugo, Chief Financial Officer

Next question — and Khurram I'll have to punt this over to you: How do you plan on setting yourself apart from other AI companies?

Khurram Sheikh, Chairman and CEO

That's a great question. In our space, if you look at the landscape, there are many companies that have been around for a while in space management and other related fields. That market is getting commoditized and those companies are at very low margins. Secondly, you see people that have built apps, and the SaaS model is under threat. When you think about Agentic AI, there are only a handful of companies that can do it. Large AI companies are focused on horizontal solutions. We believe we are a vertically integrated solution tied to the campus environment, campus intelligence and intelligent AI systems inside buildings. That's where we have the big moat. Our BOND and CORTEX are designed to provide the same level of Agentic interface as horizontal apps but in a more tightly integrated way with the security and privacy that our clients require. As a reminder, most of our clients are large financial firms and they do not compromise on security and privacy. That is a core part of our offering and our IP. That sets us apart. When I look at the competition, I see a significant advantage for us. Even when competing in RFPs, we're facing very large companies that don't have the depth of capability required by the client. Competition will be intense, but the market is growing because clients are looking for full enterprise transformation. They are not just looking for space booking or desk booking. They're looking at everything they do inside the enterprise in a hybrid fashion. We provide that solution today and will continue growing that capability over time.

Joy Mbanugo, Chief Financial Officer

Okay. The last two questions are related to deal size and revenue growth. So I'll ask the longer one: Can you contextualize the double-digit growth target relative to the 20-plus customer pipeline? How much conversion would that imply; how much is new customers versus expected expansion? There were more than five major customer renewals in 2025. For renewal contracts, how much do you see ARR increasing on average? I'll take some of this, and Khurram, if you want to take the second half. So there were more than five renewals in 2025. How much is new versus expected expansions? We expect more growth on the new-logo side just because we haven't seen it yet, but we expect healthy expansion as well. Regarding renewal contracts, it's hard to give an exact figure at the moment. We have large renewals to happen in Q1 and more throughout the year, so I don't have that exact figure right now.

Khurram Sheikh, Chairman and CEO

Yes, absolutely. As Joy said, there were more than five renewals in Q4. Deal size depends on the client. Many clients start with a couple hundred thousand dollars and then scale up. Think of that as a baseline. A lot of our clients view this as a strategic move done through RFPs and significant diligence, so these are multiyear opportunities. From their perspective, these are multimillion-dollar total contract values, but spread over multiple years. So these are typically three-year deals. The starting point is there and clients are making long-term decisions. On deal size, it depends on the client's footprint. A client with 100-plus campuses will be a much larger deal than one with 10 campuses. There's also module-driven expansion. For example, a client with around 10,000 employees that runs 10,000 events is very excited about our Agentic AI event module because it enables on-demand events and automations. From that customer, event-related revenue could outpace employee engagement module revenue. There's a lot of opportunity across modules — space management, event management, food ordering — because Agentic AI can be applied across all those functions. We're starting from a solid base and now we need to execute and deliver to get these customers onboarded quickly. I see a very bright future for Agentic AI across different dimensions of our space.

Joy Mbanugo, Chief Financial Officer

That was the last question.

Khurram Sheikh, Chairman and CEO

Okay. Great. Well, thank you, everybody, for joining our call. Joy and I are super excited to be hosting you today. We look forward to future discussions. We will have our Q1 earnings call coming up, we will hold our Annual Shareholder Meeting and we'll be proactive in the market. We were a little under the radar because the 10-K had to be filed and we were securing our IP and patents. Now that the 10-K is filed and available, you can read it. The patent provisional has been filed. We're going to be more vocal in the market and we look forward to sharing positive news on our upcoming deployments. We look forward to hosting the next earnings call in the next 30 to 45 days, and we'll keep you posted. Thank you, everybody.