Crexendo, Inc. (CXDO) Q2 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 05 2025
0mins
Source: SeekingAlpha
Total Revenue $16.6 million, a 13% increase year-over-year, driven by 31% organic growth in software solutions revenue.
GAAP Net Income $1.2 million, a 212% increase year-over-year, attributed to strong operational performance and cost management.
Adjusted EBITDA $2.8 million, up from $2.2 million in the prior year, reflecting improved profitability and operational efficiency.
Software Solutions Revenue $7 million, a 31% increase year-over-year, driven by strong organic growth and customer acquisition.
Service Revenue $8.4 million, a 4% increase year-over-year, reflecting steady growth in the telecom services segment.
Product Revenue $1.2 million, a 7% decrease year-over-year, due to a strategic reduction in lower-margin product sales.
Operating Margin 7%, up from 4% in the prior year, indicating improved operational efficiency.
Cash and Cash Equivalents $23.5 million as of June 30, 2025, up from $18.2 million at the end of 2024, supported by strong cash flow from operations.
Remaining Performance Obligations $83.5 million, a 17% increase year-over-year, indicating a strong future revenue stream.
Consolidated Gross Margin 63%, flat year-over-year, with software solutions gross margin improving to 74% from 73%.
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Analyst Views on CXDO
Wall Street analysts forecast CXDO stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 6.920
Low
10.00
Averages
10.00
High
10.00
Current: 6.920
Low
10.00
Averages
10.00
High
10.00
About CXDO
Crexendo, Inc. is a software technology company focused on providing cloud communication platform software and unified communications as a service offering, including voice, video, contact center, and managed information technology (IT) services to businesses of all sizes. Its segments include cloud telecommunications services and software solutions. The cloud telecommunications services segment transmits calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud. The cloud telecommunications services segment offering includes hardware, software, and unified IP or cloud technology over any high-speed Internet connection. These services are rendered through a variety of devices and communication solutions for businesses. The software solutions segment offers software licenses, software maintenance support and professional services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Crexendo Shares Surge 5.9% Driven by AI Demand
- Stock Recovery: Crexendo shares surged 5.9% in the last trading session to close at $7.35, with notable trading volume exceeding typical levels, reflecting strong market demand for its AI offerings despite a 25.7% decline over the past four weeks.
- Optimistic Earnings Outlook: The company is expected to report quarterly earnings of $0.11 per share, representing a year-over-year increase of 22.2%, while revenues are projected to reach $24.97 million, up 50.9% from the same quarter last year, indicating benefits from a growing customer base and steady revenue streams.
- Stable Earnings Estimates: Although the consensus EPS estimate has remained unchanged over the past 30 days, empirical research indicates a strong correlation between earnings estimate revisions and short-term stock price movements, prompting investors to monitor CXDO's performance to see if the recent price jump can sustain itself.
- Enhanced Industry Position: Crexendo holds a Zacks Rank of #2 (Buy) within the Zacks Internet - Services industry, reflecting market recognition of its growth potential, while its peer Sprout Social has seen a 12% increase in stock price over the past month.
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Crexendo Reports Strong Q1 2026 Earnings with 29% Revenue Growth
- Significant Revenue Growth: Crexendo achieved $20.7 million in revenue for Q1 2026, representing a 29% year-over-year increase, indicating strong market demand and enhancing its competitive position.
- Improved Profitability: The company reported a GAAP net income of $0.6 million and a non-GAAP income of $3.3 million, reflecting enhanced profitability and management's confidence in sustained future growth.
- Successful Acquisition Integration: The ESI acquisition is exceeding expectations and has made a meaningful contribution to the income statement, with integration progressing ahead of plan, demonstrating the effectiveness of the company's strategic expansion efforts.
- Optimized Financing Strategy: Crexendo secured $5 million in term debt and a $5 million line of credit, not out of necessity but to secure future acquisition opportunities, showcasing the company's proactive approach to growth.
See More
Crexendo Reports Strong Q4 2025 Earnings with Strategic Acquisition
- Significant Profit Growth: Crexendo reported Q4 2025 revenue of $18.1 million, an 11% year-over-year increase, with service and software solutions revenues rising by 8% and 18% respectively, demonstrating the company's strong market performance and sustained profitability.
- Strategic Acquisition Execution: The company acquired Estech Systems for $35 million, expected to contribute approximately $26 million in revenue and significant cost synergies, further enhancing Crexendo's competitive position and product offerings.
- AI Investment Outlook: Management emphasized ongoing investments in AI and engineering talent, launching the CAIRO AI receptionist, which is anticipated to boost average revenue per account by over 25%, driving future revenue growth and customer satisfaction.
- Future Growth Targets: Management set a goal to achieve a $100 million revenue run rate by the end of 2026, maintaining optimism for double-digit organic growth despite macroeconomic challenges, reflecting the company's confidence in future development.
See More
Crexendo Reports Q4 and Full Year 2025 Financial Results
- Financial Highlights: Crexendo reported a Q4 Non-GAAP EPS of $0.09, beating estimates by $0.01, although revenue of $18.1 million, growing only 11.7% year-over-year, missed expectations, indicating revenue growth challenges.
- Annual Revenue Growth: Total revenue for FY 2025 reached $68.2 million, a 12% increase of $7.3 million, reflecting strong performance in service and software solutions, despite a 16% decline in product revenue to $4.7 million, impacting overall profitability.
- Net Income Improvement: The company reported a net income of $5.1 million for FY 2025, translating to $0.17 per share, significantly up from $1.7 million in FY 2024, indicating positive progress in cost control and revenue growth.
- Cash Flow Position: As of December 31, 2025, total cash and cash equivalents stood at $31.4 million, a substantial increase from $18.2 million in 2024, enhancing the company's financial flexibility and capacity for future investments.
See More
Crexendo Reports Strong Financial Results for FY 2025
- Annual Revenue Growth: Crexendo's total revenue for FY 2025 reached $68.2 million, reflecting a 12% year-over-year increase, indicating strong growth momentum in the cloud communications market that is expected to enhance competitive positioning.
- Significant Profit Increase: The company reported a net income of $5.1 million for FY 2025, with non-GAAP net income reaching $11.4 million, showcasing sustained improvements in profitability that bolster investor confidence.
- Strong Q4 Performance: In Q4 2025, Crexendo achieved revenues of $18.1 million, an 11% increase year-over-year, with net income of $1.2 million and non-GAAP net income of $2.8 million, demonstrating stable growth in market demand.
- User Base Expansion: The number of users grew from 4 million three years ago to over 7 million today, representing a 75% increase, which not only enhances market share but also lays a solid foundation for future revenue growth.
See More
Crexendo Set to Announce Q4 Earnings on March 3rd
- Earnings Announcement: Crexendo (CXDO) is set to announce its Q4 earnings on March 3rd after market close, with a consensus EPS estimate of $0.08, reflecting a 33.3% year-over-year increase, indicating sustained profitability improvements.
- Revenue Expectations: Analysts project Crexendo's Q4 revenue to reach $18.14 million, marking a 12.0% year-over-year growth, which demonstrates the company's strong sales momentum and effective business expansion strategies.
- Performance Track Record: Over the past two years, Crexendo has beaten EPS and revenue estimates 100% of the time, showcasing exceptional financial management and market forecasting capabilities, thereby boosting investor confidence.
- Growth Drivers: Crexendo is leveraging AI applications and international expansion to drive growth, a strategy that not only enhances the company's competitive position but also lays a solid foundation for sustained future growth.
See More
Crexendo Shares Surge 5.9% Driven by AI Demand
- Stock Recovery: Crexendo shares surged 5.9% in the last trading session to close at $7.35, with notable trading volume exceeding typical levels, reflecting strong market demand for its AI offerings despite a 25.7% decline over the past four weeks.
- Optimistic Earnings Outlook: The company is expected to report quarterly earnings of $0.11 per share, representing a year-over-year increase of 22.2%, while revenues are projected to reach $24.97 million, up 50.9% from the same quarter last year, indicating benefits from a growing customer base and steady revenue streams.
- Stable Earnings Estimates: Although the consensus EPS estimate has remained unchanged over the past 30 days, empirical research indicates a strong correlation between earnings estimate revisions and short-term stock price movements, prompting investors to monitor CXDO's performance to see if the recent price jump can sustain itself.
- Enhanced Industry Position: Crexendo holds a Zacks Rank of #2 (Buy) within the Zacks Internet - Services industry, reflecting market recognition of its growth potential, while its peer Sprout Social has seen a 12% increase in stock price over the past month.
See More
Crexendo Reports Strong Q1 2026 Earnings with 29% Revenue Growth
- Significant Revenue Growth: Crexendo achieved $20.7 million in revenue for Q1 2026, representing a 29% year-over-year increase, indicating strong market demand and enhancing its competitive position.
- Improved Profitability: The company reported a GAAP net income of $0.6 million and a non-GAAP income of $3.3 million, reflecting enhanced profitability and management's confidence in sustained future growth.
- Successful Acquisition Integration: The ESI acquisition is exceeding expectations and has made a meaningful contribution to the income statement, with integration progressing ahead of plan, demonstrating the effectiveness of the company's strategic expansion efforts.
- Optimized Financing Strategy: Crexendo secured $5 million in term debt and a $5 million line of credit, not out of necessity but to secure future acquisition opportunities, showcasing the company's proactive approach to growth.
See More
Crexendo Reports Strong Q4 2025 Earnings with Strategic Acquisition
- Significant Profit Growth: Crexendo reported Q4 2025 revenue of $18.1 million, an 11% year-over-year increase, with service and software solutions revenues rising by 8% and 18% respectively, demonstrating the company's strong market performance and sustained profitability.
- Strategic Acquisition Execution: The company acquired Estech Systems for $35 million, expected to contribute approximately $26 million in revenue and significant cost synergies, further enhancing Crexendo's competitive position and product offerings.
- AI Investment Outlook: Management emphasized ongoing investments in AI and engineering talent, launching the CAIRO AI receptionist, which is anticipated to boost average revenue per account by over 25%, driving future revenue growth and customer satisfaction.
- Future Growth Targets: Management set a goal to achieve a $100 million revenue run rate by the end of 2026, maintaining optimism for double-digit organic growth despite macroeconomic challenges, reflecting the company's confidence in future development.
See More
Crexendo Reports Q4 and Full Year 2025 Financial Results
- Financial Highlights: Crexendo reported a Q4 Non-GAAP EPS of $0.09, beating estimates by $0.01, although revenue of $18.1 million, growing only 11.7% year-over-year, missed expectations, indicating revenue growth challenges.
- Annual Revenue Growth: Total revenue for FY 2025 reached $68.2 million, a 12% increase of $7.3 million, reflecting strong performance in service and software solutions, despite a 16% decline in product revenue to $4.7 million, impacting overall profitability.
- Net Income Improvement: The company reported a net income of $5.1 million for FY 2025, translating to $0.17 per share, significantly up from $1.7 million in FY 2024, indicating positive progress in cost control and revenue growth.
- Cash Flow Position: As of December 31, 2025, total cash and cash equivalents stood at $31.4 million, a substantial increase from $18.2 million in 2024, enhancing the company's financial flexibility and capacity for future investments.
See More
Crexendo Reports Strong Financial Results for FY 2025
- Annual Revenue Growth: Crexendo's total revenue for FY 2025 reached $68.2 million, reflecting a 12% year-over-year increase, indicating strong growth momentum in the cloud communications market that is expected to enhance competitive positioning.
- Significant Profit Increase: The company reported a net income of $5.1 million for FY 2025, with non-GAAP net income reaching $11.4 million, showcasing sustained improvements in profitability that bolster investor confidence.
- Strong Q4 Performance: In Q4 2025, Crexendo achieved revenues of $18.1 million, an 11% increase year-over-year, with net income of $1.2 million and non-GAAP net income of $2.8 million, demonstrating stable growth in market demand.
- User Base Expansion: The number of users grew from 4 million three years ago to over 7 million today, representing a 75% increase, which not only enhances market share but also lays a solid foundation for future revenue growth.
See More
Crexendo Set to Announce Q4 Earnings on March 3rd
- Earnings Announcement: Crexendo (CXDO) is set to announce its Q4 earnings on March 3rd after market close, with a consensus EPS estimate of $0.08, reflecting a 33.3% year-over-year increase, indicating sustained profitability improvements.
- Revenue Expectations: Analysts project Crexendo's Q4 revenue to reach $18.14 million, marking a 12.0% year-over-year growth, which demonstrates the company's strong sales momentum and effective business expansion strategies.
- Performance Track Record: Over the past two years, Crexendo has beaten EPS and revenue estimates 100% of the time, showcasing exceptional financial management and market forecasting capabilities, thereby boosting investor confidence.
- Growth Drivers: Crexendo is leveraging AI applications and international expansion to drive growth, a strategy that not only enhances the company's competitive position but also lays a solid foundation for sustained future growth.
See More
