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1. Company Snapshot

1.a. Company Description

Crexendo, Inc.provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally.It operates through two segments, Cloud Telecommunications and Web Services.


The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and resells broadband Internet services.This segment is also involved in the sale and lease of cloud telecommunications equipment.In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name.


The Web Services segment provides website hosting and other professional services.The company was formerly known as iMergent, Inc.and changed its name to Crexendo, Inc.


in May 2011.Crexendo, Inc.was incorporated in 1995 and is headquartered in Tempe, Arizona.

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1.b. Last Insights on CXDO

Crexendo's recent performance was negatively impacted by a lack of significant earnings growth and a decline in revenue. The company's Q4 2024 earnings release highlighted a net income of $1.7 million, which is a decrease from previous quarters. Additionally, the company's revenue growth has been sluggish, with no notable increase in sales. This is concerning, as the company's growth prospects are heavily reliant on its ability to expand its customer base and increase revenue.

1.c. Company Highlights

2. Crexendo's Q3 2025 Earnings: A Strong Performance

Crexendo reported a robust financial performance in Q3 2025, with consolidated revenue reaching $17.5 million, an 8% increase in service revenue, and a 28% increase in software solutions revenue. The company's net income was $1.5 million, or $0.05 per basic and diluted common share, compared to net income of $100,000 in the same period last year. Notably, the actual EPS came out at $0.1, beating estimates of $0.08. The revenue growth was driven by a 12% year-over-year increase, with software solution revenue underscoring the strength of their platform.

Publication Date: Nov -16

📋 Highlights
  • Revenue & Profit Growth: 12% YoY revenue growth, $1.5M GAAP net income, and $3M non-GAAP net income for Q3 2025.
  • Software Solutions Momentum: 28% YoY increase in software revenue, driven by AI-driven tools and next-gen collaboration platforms.
  • User Milestone: Surpassed 7 million end users, validating platform scalability and customer adoption.
  • Backlog Expansion: Remaining performance obligation rose to $88M (14% increase), signaling strong future revenue visibility.
  • Margin Recovery: Product gross margin dipped to high 30s in Q3 but expected to rebound to low 40s by Q4 2026.

Revenue Growth Drivers

The 28% growth in software solution revenue is a significant highlight, driven by Crexendo's investments in AI-driven capabilities, Oracle Cloud infrastructure, and next-generation collaboration and contact center solutions. The company's EVP program has been gaining momentum with 41 official partners, providing products, software, and solutions to the platform, expected to bring in additional revenue streams. Analysts estimate next year's revenue growth at 11.5%, indicating a continued upward trajectory.

Operational Highlights

Crexendo's operational performance was marked by significant milestones, including surpassing 7 million end users on their platform and a 14% increase in remaining performance obligation (backlog) to $88 million. The company also saw strong demand from channel partners and master agent technology service distributors, with a 28% increase in sales bookings year-over-year. According to Doug Gaylor, "the company's unique pricing and support model, robust feature set, and open APIs allow them to differentiate themselves from competitors."

Valuation Metrics

Crexendo's current valuation metrics indicate a premium, with a P/E Ratio of 47.48 and a P/S Ratio of 3.15. The EV/EBITDA ratio stands at 22.96, suggesting that the company's growth prospects are already priced in to some extent. However, with an ROE of 7.71% and an ROIC of 6.28%, the company is generating returns that justify its valuation to some degree. The Free Cash Flow Yield is 4.34%, which is a positive indicator.

Future Outlook

Crexendo is optimistic about its future prospects, driven by its AI-driven capabilities, Oracle Cloud infrastructure, and strategic M&A opportunities. The company expects to migrate to OCI infrastructure by the end of Q1, which is expected to unlock international opportunities. With a strong pipeline of opportunities and a focus on profitably growing the segment, Crexendo is well-positioned for continued growth. As Jeffrey Korn mentioned, the Oracle Cloud migration is "unlocking international opportunities, allowing for deployments in days versus weeks," which is expected to drive future revenue growth.

3. NewsRoom

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Crexendo Takes Home 42 Awards for Platform AI and Contact Center Capabilities in G2 Winter 2026 Reports

Dec -03

Source: accessnewswire.com

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Wall Street Analysts Believe Crexendo (CXDO) Could Rally 27.87%: Here's is How to Trade

Nov -26

Source: zacks.com

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Crexendo Wins Second Consecutive Generative AI Product of the Year Award

Nov -20

Source: accessnewswire.com

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Analysts Set Crexendo Inc. (NASDAQ:CXDO) Target Price at $9.08

Nov -17

Source: defenseworld.net

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Crexendo Inc. (CXDO) Soars to 52-Week High, Time to Cash Out?

Nov -12

Source: zacks.com

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Crexendo CFO Ron Vincent honored with Arizona CFO of the Year Award

Nov -11

Source: accessnewswire.com

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3 Breakout Stocks Active Investors Should Buy for a Strong Portfolio

Nov -10

Source: zacks.com

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Does Crexendo (CXDO) Have the Potential to Rally 33.63% as Wall Street Analysts Expect?

Nov -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.84%)

6. Segments

Cloud Telecommunications Service

Expected Growth: 8.5%

Crexendo's Cloud Telecommunications Service growth is driven by increasing demand for cloud-based communication solutions, expansion into new markets, strategic partnerships, and innovative product offerings. Additionally, the shift towards remote work and digital transformation across industries has accelerated adoption, contributing to the 8.5% growth rate.

Software Solutions

Expected Growth: 9.5%

Crexendo's 9.5% growth in Software Solutions is driven by increasing demand for cloud-based unified communications, expansion into new markets, and strategic partnerships. The company's focus on innovation, customer acquisition, and retention also contribute to its growth. Additionally, the rising need for digital transformation and remote work solutions amid the pandemic has accelerated adoption of Crexendo's software solutions.

7. Detailed Products

Crexendo Cloud Communication Platform

A cloud-based communication platform that provides a suite of communication and collaboration tools, including video conferencing, screen sharing, and instant messaging.

SIP Trunking

A VoIP-based SIP trunking solution that enables businesses to make and receive calls over the internet, reducing communication costs and increasing scalability.

Hosted Call Center

A cloud-based call center solution that provides advanced call management features, including IVR, ACD, and call recording.

Unified Communications as a Service (UCaaS)

A cloud-based unified communication platform that integrates voice, video, messaging, and collaboration tools.

WebRTC

A real-time communication platform that enables businesses to build custom communication applications with video, voice, and messaging capabilities.

Cloud Contact Center

A cloud-based contact center solution that provides advanced features for customer service, sales, and marketing teams.

8. Crexendo, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Crexendo, Inc. operates in the technology industry, which is highly competitive. However, the company's focus on cloud-based communication and collaboration solutions provides some level of differentiation, reducing the threat of substitutes.

Bargaining Power Of Customers

Crexendo, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's solutions are often customized to meet specific customer needs, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Crexendo, Inc. relies on a few key suppliers for its technology infrastructure and services. While the company has some negotiating power due to its size, suppliers may still have some bargaining power due to the specialized nature of their products and services.

Threat Of New Entrants

The technology industry is highly competitive, and new entrants can easily disrupt the market with innovative solutions. Crexendo, Inc. must continually innovate and improve its offerings to stay ahead of new competitors.

Intensity Of Rivalry

The technology industry is highly competitive, with many established players and new entrants vying for market share. Crexendo, Inc. must differentiate its offerings and focus on customer retention to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.88%
Debt Cost 3.95%
Equity Weight 96.12%
Equity Cost 9.70%
WACC 9.48%
Leverage 4.04%

11. Quality Control: Crexendo, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TDS

A-Score: 5.4/10

Value: 8.1

Growth: 3.2

Quality: 3.1

Yield: 4.0

Momentum: 9.0

Volatility: 4.7

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Shentel

A-Score: 5.3/10

Value: 7.2

Growth: 5.1

Quality: 2.6

Yield: 6.0

Momentum: 6.0

Volatility: 4.7

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ATN International

A-Score: 4.5/10

Value: 8.8

Growth: 4.6

Quality: 2.7

Yield: 7.0

Momentum: 0.0

Volatility: 3.7

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Crexendo

A-Score: 4.4/10

Value: 1.7

Growth: 7.7

Quality: 7.0

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

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Cable One

A-Score: 3.6/10

Value: 7.6

Growth: 4.1

Quality: 2.8

Yield: 5.0

Momentum: 0.0

Volatility: 2.3

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Consolidated Communications Holdings

A-Score: 3.2/10

Value: 7.2

Growth: 0.7

Quality: 1.1

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.64$

Current Price

6.64$

Potential

-0.00%

Expected Cash-Flows