TLDR
- CXApp stock jumped 33% in after-hours trading Wednesday after announcing the acquisition of EngineRoom
- The $4.6 million deal is structured as 65% cash, 25% performance earnout, and 10% escrow
- The acquisition is expected to triple CXAI’s annualized revenue run-rate from ~$4 million to over $12 million
- EngineRoom brings ~94% recurring revenue and ~$1.6 million in adjusted EBITDA
- CXApp also issued 12.27 million common stock to Avondale Capital between June 1â3, 2026, in a private placement
CXApp (CXAI) jumped 33% in after-hours trading on Wednesday after announcing it had acquired EngineRoom, an Australia-based AI-powered growth intelligence platform, in a $4.6 million deal.
The stock was trading around $0.159 heading into the announcement, down over 21% on the day in regular trading.
The deal closed on June 3, 2026, through CXAI’s newly formed subsidiary, CXAI Australia, via a Share Sale Deed.
The transaction is structured as approximately $2.99 million cash at closing, a $1.15 million performance-based earnout, and a $0.46 million escrow arrangement.
CXApp said the acquisition is expected to more than triple its annualized revenue run-rate, moving it from roughly $4 million to over $12 million.
EngineRoom is projected to contribute approximately $8.1 million in annualized revenue, with around 94% of that being recurring.
The platform also brings roughly $1.6 million in adjusted EBITDA, which CXApp expects to fold into its own financials.
What EngineRoom Brings to the Table
EngineRoom serves more than 50 mid-market customers and has built its business around customer acquisition intelligence, attribution analytics, and workflow automation.
The platform has deep expertise in Google Ads, Google Analytics, and Google Cloud â tools that slot into CXApp’s existing Agentic AI SKY platform.
Founder Adam Laurie has agreed to stay on for at least three years post-closing and will serve as General Manager of CXAI EngineRoom.
CEO Khurram Sheikh said the company sees AI moving beyond point solutions and into the operating layer of modern organizations, positioning CXAI as that “agentic operating layer.”
CXApp is targeting sectors including healthcare, professional services, financial services, education, and sports and entertainment for future industry-specific AI solutions.
Private Placement Adds Dilution Concerns
Alongside the acquisition news, CXApp disclosed it issued 12,267,843 common stock to Avondale Capital, LLC between June 1 and June 3, 2026.
The stock was issued at prices just above $0.1262 per share under a prepaid purchase arrangement tied to a March 2025 securities purchase agreement.
The private placement avoids a public offering process but does introduce dilution for existing holders.
CXApp’s current market cap sits at approximately $14.23 million.
The most recent analyst rating on CXAI is a Buy with a $2.00 price target.
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