CXAI launches $1 million buyback and Avondale standstill

CXApp Inc. (Nasdaq: CXAI) has authorized a share repurchase program of up to $1 million and entered into a conditional 90-day standstill agreement with financing partner Avondale Capital, LLC. The company, an enterprise agentic AI platform provider based in Palo Alto, California, announced these strategic initiatives on October 22, 2026, aiming to strengthen its capital structure and enhance financial discipline.

The Board of Directors granted management the flexibility to repurchase outstanding common stock opportunistically through open-market transactions or other legally permissible methods. These purchases will be subject to market conditions, applicable securities laws, and the company's financing arrangements. Management stated that the program reflects confidence in the company's long-term business prospects and a commitment to disciplined capital allocation.

Simultaneously, CXAI has agreed to a standstill arrangement with Avondale Capital concerning its outstanding Pre-Paid Purchase financing instruments. Under this agreement, Avondale has agreed to restrict specified purchase and conversion-related activity for 90 days unless defined stock-price and trading-volume conditions are satisfied. If those conditions are met, Avondale may resume purchases and conversions, which could result in the issuance of additional shares and potential dilution to existing stockholders. The company described the agreement as a step toward providing greater predictability regarding future equity issuances.

CXApp Inc. is targeting positive operating cash flow by the third quarter of 2027. To achieve this goal, management is implementing a comprehensive operating efficiency initiative focused on AI-driven automation to streamline operations and optimize external expenditures. The company intends to maintain investment in its enterprise AI platform and customer deployments while improving operating leverage. Management noted that achieving positive cash flow depends on growing recurring revenue, realizing anticipated cost optimization, and continuing commercial execution.

These initiatives follow CXApp Inc.'s acquisition of EngineRoom, which expanded its global operating platform. The company reported a pro-forma annualized revenue run-rate exceeding $12 million following the acquisition. Khurram Sheikh, Chairman and Chief Executive Officer, stated that the board's authorization of the repurchase program reflects confidence in CXAI's long-term prospects.

Recent commercial milestones supporting this strategy include over $4 million in total value from signed deals with global financial services enterprises. The company also launched Beat, an agentic AI solution designed for intelligent enterprise workflow automation. Sheikh concluded that the company is entering a new phase of growth, with a focus on translating current momentum into sustainable financial performance.

CXApp Inc. operates the CXAI 2.0 platform, which combines agentic AI, enterprise integrations, spatial intelligence, and operational analytics to automate enterprise workflows. The company includes forward-looking statements in its disclosures, noting that actual results may differ from projections due to various risks and uncertainties.