Crexendo Announces First Quarter 2026 Results
Rhea-AI Summary
Crexendo (NASDAQ:CXDO) reported Q1 2026 results: total revenue $20.7M (+29% YoY), GAAP net income $0.6M ($0.02/sh), and non-GAAP net income $3.3M ($0.10/sh). Operating expenses rose 36% to $20.3M. Cash and equivalents fell to $7.2M at March 31, 2026, and investing used $26.2M due to acquisition activity.
The company noted one month of contributions from the ESI acquisition, early synergies, adjusted EBITDA of $3.2M, and a conference call on May 5, 2026 at 4:30 PM ET.
AI-generated analysis. Not financial advice.
Positive
- Total revenue +29% YoY to $20.7M
- Non-GAAP net income of $3.3M, $0.10 per share
- Product revenue +141% YoY to $2.4M
- Adjusted EBITDA increased to $3.2M
Negative
- Operating expenses +36% YoY to $20.3M
- Cash and cash equivalents declined from $31.4M to $7.2M
- Investing activities used $26.2M in Q1 2026
News Market Reaction – CXDO
On the day this news was published, CXDO gained 17.21%, reflecting a significant positive market reaction. Argus tracked a peak move of +14.4% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $45M to the company's valuation, bringing the market cap to $304.67M at that time. Trading volume was very high at 3.9x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CXDO gained 8.36% while key telecom peers were mixed, with several (RDCM, ATNI, FNGR, UCL) down and only KVHI up 3.69%. Momentum scans show just one other sector name (CCOI) moving up, suggesting today’s strength is company-specific to CXDO’s earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 27 | Earnings call notice | Neutral | -1.2% | Announced timing and access details for Q1 2026 earnings call. |
| Mar 03 | Earnings results | Positive | -0.3% | Reported strong Q4 and FY 2025 growth, profitability, and ESI acquisition. |
| Feb 03 | Earnings call notice | Neutral | -8.6% | Set date and dial-in details for Q4 and FY 2025 results call. |
| Nov 04 | Earnings results | Positive | +5.9% | Posted strong Q3 2025 revenue and income with segment detail. |
| Oct 15 | Earnings call notice | Neutral | +2.5% | Announced schedule and access for Q3 2025 earnings call. |
Earnings-related headlines have historically produced modest moves for CXDO, with an average move of -0.35% and mostly aligned reactions, but occasional negative responses even on strong reported results.
Recent CXDO news shows a steady cadence of earnings and operational updates. Prior earnings releases on Nov 4, 2025 and Mar 3, 2026 highlighted double‑digit revenue growth, ongoing GAAP and non‑GAAP profitability, and the strategic acquisition of ESI. Pre‑announcement press releases on Oct 15, 2025, Feb 3, 2026, and Apr 27, 2026 mainly set expectations for upcoming calls and typically drove small moves. Today’s Q1 2026 report adds detailed revenue and profitability metrics to that trajectory, including early contributions from the ESI acquisition.
Historical Comparison
In the past year, CXDO’s earnings-related headlines moved the stock an average of -0.35%. Today’s +8.36% reaction to Q1 2026 results stands out as a much stronger move than prior earnings events.
Earnings updates progressed from strong Q3 and FY 2025 results, including the ESI acquisition, to Q1 2026 figures that show higher revenue and continued profitability with early ESI contributions now quantified.
Market Pulse Summary
The stock surged +17.2% in the session following this news. A strong positive reaction aligns with CXDO’s Q1 2026 numbers showing 29% revenue growth to $20.7M, positive GAAP and higher non-GAAP earnings, and strong cash from operations. Historically, earnings headlines moved the stock only about -0.35% on average, so a +8.36% move marked an outlier. With volume at 3.97x its 20-day average and price near the 52-week high, investors faced the risk that enthusiasm could fade if integration or expense trends raised concerns in later periods.
Key Terms
gaap financial
non-gaap financial
ebitda financial
adjusted ebitda financial
restricted stock units financial
rsus financial
open-market sales financial
cloud-native technical
AI-generated analysis. Not financial advice.
PHOENIX, AZ / ACCESS Newswire / May 5, 2026 / Crexendo, Inc. (NASDAQ:CXDO), an award-winning software technology company that is a premier provider of cloud communication platform software and unified communications as a service (UCaaS) offerings, including voice, video, contact center, and managed IT services tailored to businesses of all sizes, today announced financial results for the first quarter ended March 31, 2026.
First Quarter Financial highlights:
Total revenue increased
29% year-over-year to$20.7 million GAAP net income of
$0.6 million , or$0.02 per basic and diluted common share.Non-GAAP net income of
$3.3 million , or$0.10 per basic and diluted common share.
Financial Results for the First Quarter of 2026
Total Revenue: Consolidated total revenue for the first quarter of 2026 increased
Service Revenue: Consolidated service revenue for the first quarter of 2026 increased
Software Solutions Revenue: Consolidated software solutions revenue for the first quarter of 2026 increased
Product Revenue: Consolidated product revenue for the first quarter of 2026 increased
Operating Expenses: Consolidated operating expenses for the first quarter of 2026 increased
Net Income/(Loss): The Company reported net income of
Non-GAAP: Non-GAAP net income of
EBITDA and Adjusted EBITDA: EBITDA for the first quarter of 2026 of
Cash and Cash Equivalents: Total cash and cash equivalents at March 31, 2026 was
Cash Flow: Cash provided by operating activities for the first quarter of 2026 was
Management Commentary
"Our first quarter results reflect continued strong execution and further validate the scalability of our operating model. Total revenue increased
Korn added "From a profitability standpoint, our strong non-GAAP results better reflect the underlying performance of the business by excluding items such as share based compensation, acquisition related expenses, and depreciation and amortization including Acquisition related costs of
Conference Call
Crexendo management will hold a conference call today, May 5, 2026, at 4:30 PM Eastern time to discuss these results. Company CEO Jeff Korn, CFO Ron Vincent, and President and COO Doug Gaylor will host the call, followed by a question-and-answer period.
Dial-in Numbers:
Domestic Participants: 877-545-0320
International Participants: 973-528-0002
Participant Access Code: 805100
Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 805100 and the Crexendo earnings call. A replay of the call will be available until May 19, 2026, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 53939.
About Crexendo
Crexendo, Inc. is an award-winning software technology company that is a premier provider of cloud communication platform and services, video collaboration and managed IT services tailored to businesses of all sizes. Our solutions currently support over seven million end users globally, through our extensive global network of over 245 cloud communication platform software subscribers and our direct retail offering.
Safe Harbor Statement
This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. Specific forward-looking statements in this press release include Crexendo (i) believing that the first quarter results reflect continued strong execution and further validate the scalability of the operating model; (ii) believing that it is a positive development that the Company extended the streak of GAAP profitability despite absorbing acquisition related expenses and additional amortization expenses related to the intangible assets recorded in connection with the Estech Systems ("ESI") acquisition; (iii) believing the ESI acquisition is performing ahead of our expectations and is already contributing meaningfully to both revenue and operational momentum and that integration is progressing well, with strong alignment across sales, operations, and engineering; (iv) the Company beginning to see early synergies that it expects to build on overtime; (v) being excited about the impact it will see going forward from this significant acquisition; (vi) believing that from a profitability standpoint, the strong non-GAAP results better reflect the underlying performance of the business by excluding items such as share based compensation, acquisition related expenses, and depreciation and amortization; (vii) being very pleased with the early response in the market of Crexendo AI Receptionist/Orchestrator (CAIRO), with expecting to be introducing further AI enhancements; (viii) believing the results highlight the strength of the core operations and the ability to scale efficiently while continuing to invest in growth initiatives; (ix) having continued to enhance the platform during the quarter, improving functionality, user experience, and overall competitiveness which combined with increasing traction in its marketplace and broader ecosystem strengthening the position as a long-term platform provider and expanding the opportunity set; (x) believing the combination of sustained double-digit growth, consistent profitability, and successful integration of acquisitions positions the Company well as it continues to scale; (xi) believing these dynamics, together with improving operating leverage over time, create a compelling framework for long term value creation; and (xii) clearly being on a trajectory toward
For a more detailed discussion of risk factors that may affect Crexendo's operations and results, please refer to the company's Form 10-K for the year ended December 31, 2025, quarterly Form 10-Qs as filed with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the company undertakes no obligation to update such forward-looking statements, except as required by law.
Company Contact
Crexendo, Inc.
Doug Gaylor
President and Chief Operating Officer
602-732-7990
dgaylor@crexendo.com
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value and share data)
March 31, 2026 | December 31, 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 7,249 | $ | 31,378 | ||||
Trade receivables, net of allowance of | 6,374 | 4,913 | ||||||
Contract assets, net of allowance of | 122 | - | ||||||
Inventories | 1,170 | 454 | ||||||
Equipment financing receivables, net of allowance of | 2,645 | 1,416 | ||||||
Contract costs | 3,894 | 2,318 | ||||||
Prepaid expenses | 1,332 | 892 | ||||||
Income tax receivable | 204 | 234 | ||||||
Other current assets | 36 | 292 | ||||||
Total current assets | 23,026 | 41,897 | ||||||
Contract assets, net of current position, net of allowance of | 665 | 402 | ||||||
Long-term equipment financing receivables, net of allowance of | 5,517 | 3,223 | ||||||
Property and equipment, net | 439 | 195 | ||||||
Operating lease right-of-use assets | 865 | 1,006 | ||||||
Intangible assets, net | 40,136 | 17,860 | ||||||
Goodwill | 14,215 | 9,454 | ||||||
Contract costs, net of current portion | 6,075 | 3,319 | ||||||
Other long-term assets | 343 | 330 | ||||||
Total Assets | $ | 91,281 | $ | 77,686 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,644 | $ | 649 | ||||
Accrued expenses | 9,891 | 8,391 | ||||||
Finance leases | 2 | 2 | ||||||
Notes payable | - | 114 | ||||||
Operating lease liabilities | 503 | 493 | ||||||
Income tax payable | 147 | 151 | ||||||
Contract liabilities | 3,601 | 2,528 | ||||||
Total current liabilities | 16,788 | 12,328 | ||||||
Contract liabilities, net of current portion | 1,382 | 1,008 | ||||||
Operating lease liabilities, net of current portion | 400 | 529 | ||||||
Total liabilities | 18,570 | 13,865 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, par value | - | - | ||||||
Common stock, par value | ||||||||
shares issued and outstanding as of March 31, 2025 and 31,004,327 shares issued | ||||||||
and outstanding as of December 31, 2025 | 32 | 31 | ||||||
Additional paid-in capital | 153,653 | 145,325 | ||||||
Accumulated deficit | (81,141 | ) | (81,719 | ) | ||||
Accumulated other comprehensive income | 167 | 184 | ||||||
Total stockholders' equity | 72,711 | 63,821 | ||||||
Total Liabilities and Stockholders' Equity | $ | 91,281 | $ | 77,686 | ||||
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share and share data)
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Service revenue | $ | 10,561 | $ | 8,182 | ||||
Software solutions revenue | 7,723 | 6,868 | ||||||
Product revenue | 2,426 | 1,007 | ||||||
Total revenue | 20,710 | 16,057 | ||||||
Operating expenses: | ||||||||
Cost of service revenue | 3,884 | 3,487 | ||||||
Cost of software solutions revenue | 2,436 | 1,490 | ||||||
Cost of product revenue | 1,673 | 599 | ||||||
Selling and marketing | 5,654 | 4,289 | ||||||
General and administrative | 5,056 | 3,519 | ||||||
Research and development | 1,567 | 1,523 | ||||||
Total operating expenses | 20,270 | 14,907 | ||||||
Income/(loss) from operations | 440 | 1,150 | ||||||
Other income/(expense): | ||||||||
Interest income | 159 | 84 | ||||||
Interest expense | - | (9 | ) | |||||
Other income/(expense), net | 8 | (10 | ) | |||||
Total other income/(expense), net | 167 | 65 | ||||||
Income/(loss) before income tax | 607 | 1,215 | ||||||
Income tax (provision)/benefit | (29 | ) | (44 | ) | ||||
Net income/(loss) | $ | 578 | $ | 1,171 | ||||
Earnings per common share: | ||||||||
Basic | $ | 0.02 | $ | 0.04 | ||||
Diluted | $ | 0.02 | $ | 0.04 | ||||
Weighted-average common shares outstanding: | ||||||||
Basic | 31,533,566 | 28,024,280 | ||||||
Diluted | 32,683,949 | 31,092,775 | ||||||
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income/(loss) | $ | 578 | $ | 1,171 | ||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities: | ||||||||
Depreciation and amortization | 1,169 | 771 | ||||||
Allowance for credit losses | (6 | ) | (112 | ) | ||||
Share-based compensation | 721 | 726 | ||||||
Non-cash operating lease amortization | 22 | 24 | ||||||
Changes in assets and liabilities: | ||||||||
Trade receivables | (1,195 | ) | 273 | |||||
Contract assets | 155 | (8 | ) | |||||
Equipment financing receivables | 156 | (115 | ) | |||||
Inventories | 186 | (183 | ) | |||||
Contract costs | (319 | ) | (192 | ) | ||||
Prepaid expenses | (180 | ) | (117 | ) | ||||
Income tax receivable | 30 | 33 | ||||||
Other assets | 255 | (4 | ) | |||||
Accounts payable and accrued expenses | 248 | (695 | ) | |||||
Income tax payable | (4 | ) | - | |||||
Contract liabilities | 221 | (334 | ) | |||||
Net cash provided by/(used for) operating activities | 2,037 | 1,238 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisition of a business, net of cash acquired | (26,210 | ) | - | |||||
Net cash provided by/(used for) investing activities | (26,210 | ) | - | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Repayments made on finance leases | - | (19 | ) | |||||
Repayments made on notes payable | (114 | ) | (117 | ) | ||||
Proceeds from exercise of options | 307 | 1,979 | ||||||
Taxes paid on the net settlement of stock options and RSUs | (132 | ) | (80 | ) | ||||
Net cash provided by/(used for) financing activities | 61 | 1,763 | ||||||
Effect of exchange rate changes on cash | (17 | ) | 13 | |||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (24,129 | ) | 3,014 | |||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 31,378 | 18,193 | ||||||
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | $ | 7,249 | $ | 21,207 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash used during the year for: | ||||||||
Income taxes, net | $ | - | $ | (10 | ) | |||
Interest expense | $ | (1 | ) | $ | (8 | ) | ||
Supplemental disclosure of non-cash investing and financing information: | ||||||||
Stock issued for the acquisition of ESI | $ | 7,433 | $ | - | ||||
Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally accepted accounting principles ("Non-GAAP") net income and Adjusted EBITDA as a supplemental measure of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to evaluate results without the effects of share-based compensation and related taxes, acquisition related expenses, changes in fair value of contingent consideration, amortization of intangibles, and goodwill and long-lived asset impairment. We define EBITDA as U.S. GAAP net income/(loss) before interest expense, interest income and other expense/(income), the gain/(loss) on the sale of property and equipment, goodwill and long-lived asset impairments, provision/(benefit) for income taxes, and depreciation and amortization. We believe EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define Adjusted EBITDA as EBITDA adjusted for acquisition related expenses, changes in fair value of contingent consideration and share-based compensation and related taxes. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We also believe use of Adjusted EBITDA facilitates investors' use of operating performance comparisons from period to period, as well as across companies.
In our May 5, 2026 earnings press release, as furnished on Form 8-K, we included Non-GAAP net income, EBITDA and Adjusted EBITDA. The terms Non-GAAP net income, EBITDA, and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA, and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income/(loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:
EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
they do not reflect changes in, or cash requirements for, our working capital needs;
they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;
they do not reflect income taxes or the cash requirements for any tax payments;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
while share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and
other companies may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income, EBITDA, and Adjusted EBITDA only as supplemental support for management's analysis of business performance. Non-GAAP net income, EBITDA and Adjusted EBITDA are calculated as follows for the periods presented.
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Regulation G issued by the SEC, we are presenting the most directly comparable U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures.
Reconciliation of U.S. GAAP Net Income/(Loss) to Non-GAAP Net Income | ||||||||
(Unaudited, in thousands, except for per share and share data) | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
U.S. GAAP net income/(loss) | $ | 578 | $ | 1,171 | ||||
Share-based compensation and related taxes (1) | 727 | 798 | ||||||
Acquisition related expenses | 839 | - | ||||||
Amortization of intangible assets | 1,124 | 706 | ||||||
Non-GAAP net income | $ | 3,268 | $ | 2,675 | ||||
Non-GAAP earnings per common share: | ||||||||
Basic | $ | 0.10 | $ | 0.10 | ||||
Diluted | $ | 0.10 | $ | 0.09 | ||||
Weighted-average common shares outstanding: | ||||||||
Basic | 31,533,566 | 28,024,280 | ||||||
Diluted | 32,392,643 | 31,092,775 | ||||||
Reconciliation of U.S. GAAP Net Income/(Loss) to EBITDA to Adjusted EBITDA | ||||||||
(Unaudited, in thousands) | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
U.S. GAAP net income/(loss) | $ | 578 | $ | 1,171 | ||||
Depreciation and amortization | 1,169 | 771 | ||||||
Interest expense | - | 9 | ||||||
Other, net | (167 | ) | (74 | ) | ||||
Income tax provision | 29 | 44 | ||||||
EBITDA | 1,609 | 1,921 | ||||||
Share-based compensation and related taxes (1) | 727 | 798 | ||||||
Acquisition related expenses | 839 | - | ||||||
Adjusted EBITDA | $ | 3,175 | $ | 2,719 | ||||
(1) For the three months ended March 31, 2026 and 2025, employer payroll tax expense related to share-based compensation was
SOURCE: Crexendo, Inc.
View the original press release on ACCESS Newswire