Crexendo (NASDAQ:CXDO) Releases Earnings Results, Beats Expectations By $0.03 EPS

Crexendo (NASDAQ:CXDO) released its earnings results on Tuesday. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $0.03, FiscalAI reports. The company had revenue of $25.18 million during the quarter, compared to analyst estimates of $25.18 million. Crexendo had a return on equity of 14.34% and a net margin of 5.31%.

Here are the key takeaways from Crexendo’s conference call:

• Revenue reached $25.2 million, up 44% year over year, putting Crexendo at its targeted $100 million annualized run rate. Adjusted EBITDA rose to $4.0 million, and the company generated $4.9 million in operating cash flow during the quarter.
• NetSapiens momentum remained strong, with five new licensees in Q3 and 16 year to date—already exceeding all of 2025’s wins. Average initial deal size increased to more than $400,000, while the company cited a solid pipeline and continued conversions from Metaswitch and BroadSoft.
• Consolidated organic revenue growth was 5% in Q3 and 9.1% year to date, below management’s double-digit annual target. Higher interest rates and economic uncertainty are causing licensees to finance smaller upgrade orders, and management declined to provide 2027 organic-growth guidance.
• Management highlighted potential growth from the planned NetSapiens Flow release in the first half of 2027, CAIRO, conversational intelligence, and the 66-vendor Ecosystem Vendor Program, which includes 22 AI providers. However, executives do not expect CAIRO to make a meaningful revenue contribution until the second half of 2027.
• The ESI acquisition continues to exceed initial expectations, while gross margins improved in software solutions to 71% and remained strong in telecom services. Crexendo ended the quarter with $22.8 million in cash and intends to prioritize acquisitions, although it is continuing to manage expenses and hiring cautiously.

Crexendo Stock Down 9.5%

Shares of NASDAQ:CXDO traded down $0.55 during trading on Wednesday, reaching $5.21. 167,240 shares of the company traded hands, compared to its average volume of 350,827. The firm has a fifty day simple moving average of $5.88 and a 200 day simple moving average of $6.86. The company has a quick ratio of 1.98, a current ratio of 2.06 and a debt-to-equity ratio of 0.06. Crexendo has a 1-year low of $5.34 and a 1-year high of $11.23. The firm has a market cap of $173.99 million, a P/E ratio of 37.13 and a beta of 1.23.

Analyst Ratings Changes

Several research firms recently weighed in on CXDO. B. Riley Financial dropped their price target on Crexendo from $10.00 to $9.00 and set a “buy” rating on the stock in a research report on Wednesday, August 5th. Needham & Company LLC restated a “buy” rating on shares of Crexendo in a research report on Wednesday. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Crexendo in a research note on Friday. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $10.50.

Insider Buying and Selling at Crexendo

In related news, CTO David Wang sold 25,000 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $6.50, for a total transaction of $162,500.00. Following the completion of the sale, the chief technology officer directly owned 534,747 shares in the company, valued at approximately $3,475,855.50. This trade represents a 4.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 34.00% of the company’s stock.

Crexendo Company Profile

Crexendo, Inc is a provider of cloud-based communications and technology services. The company offers unified communications as a service, business voice and messaging solutions, video conferencing, contact center capabilities, and related communications tools designed for small and medium-sized businesses, enterprises, and service providers.

Crexendo also provides a communications software platform through its NetSapiens business. The platform supports hosted voice, unified communications, contact center, and application programming interface services, enabling telecommunications providers and channel partners to deliver branded communications solutions to their customers.

Founded in 1995 and headquartered in Arizona, Crexendo serves customers primarily through direct sales, resellers, agents, and other channel partners.