Crexendo Announces Strong Fourth Quarter and Fiscal Year 2025 Results
Rhea-AI Summary
Crexendo (NASDAQ:CXDO) reported fiscal 2025 results: revenue $68.2M (+12% YoY), net income $5.1M, and non-GAAP net income $11.4M. Fourth-quarter revenue was $18.1M (+11%), with GAAP net income of $1.2M and non-GAAP net income of $2.8M. Cash and cash equivalents rose to $31.4M from $18.2M. Software solutions growth accelerated (+27% full-year), while product revenue declined 16%. Management noted continued profitability streaks and announced the acquisition of ESI to pursue strategic M&A.
Positive
- Revenue +12% year-over-year to $68.2M
- Software solutions revenue +27% to $29.7M
- Net income improved to $5.1M for fiscal 2025
- Cash and cash equivalents increased to $31.4M
Negative
- Product revenue declined 16% to $4.7M
- Operating expenses increased 8% to $63.5M
News Market Reaction – CXDO
In the Mar 4 session, CXDO declined 0.31%, reflecting a mild negative market reaction. Argus tracked a trough of -4.8% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Earnings call scheduled | Neutral | -8.6% | Announcement of Q4 and year-end 2025 results release and conference call timing. |
| Nov 04 | Q3 2025 results | Positive | +5.9% | Strong Q3 2025 results with double-digit revenue growth and solid profitability metrics. |
| Oct 15 | Q3 call scheduled | Neutral | +2.5% | Scheduling of third quarter 2025 financial results release and related conference call. |
| Aug 05 | Q2 2025 results | Positive | +2.6% | Strong Q2 2025 revenue growth, higher software solutions revenue, and improved profitability. |
| Jul 18 | Q2 call scheduled | Neutral | -0.7% | Announcement of timing and access details for the Q2 2025 earnings conference call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings result releases with solid revenue and profitability metrics have generally seen positive price reactions, while scheduling-only earnings announcements have had mixed to negative moves.
Over the past year, Crexendo has delivered a series of earnings-related updates showing steady double-digit revenue growth and recurring profitability. Q2 and Q3 2025 results highlighted rising software solutions revenue, expanding EBITDA, and consecutive GAAP and non-GAAP profitable quarters. Scheduling releases for earnings calls on Jul 18, 2025, Oct 15, 2025, and Feb 3, 2026 preceded later results but themselves saw modest or negative moves. Against this backdrop, today’s reported FY 2025 and Q4 strength continues a pattern of scaling revenue, profitability, and cash balances.
Key Terms
non-gaap financial
ebitda financial
adjusted ebitda financial
ucaas technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
PHOENIX, ARIZONA / ACCESS Newswire / March 3, 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 fourth quarter and fiscal year ended December 31, 2025.
Financial highlights:
Net income for the year of
$5.1 million and non-GAAP net income of$11.4 million .Revenue for the year of
$68.2 million , up12% year-over-year.Fourth quarter net income of
$1.2 million and non-GAAP net income of$2.8 million .Fourth quarter revenue of
$18.1 million , up11% year-over-year.
Financial Results for the Fourth Quarter of 2025
Total Revenue: Consolidated total revenue for the fourth quarter of 2025 increased
Service Revenue: Consolidated service revenue for the fourth quarter of 2025 increased
Software Solutions Revenue: Consolidated software solutions revenue for the fourth quarter of 2025 increased
Product Revenue: Consolidated product revenue for the fourth quarter of 2025 decreased
Operating Expenses: Consolidated operating expenses for the fourth quarter of 2025 increased
Net Income/(Loss): The Company reported net income of
Non-GAAP: Non-GAAP net income of
EBITDA and Adjusted EBITDA: EBITDA for the fourth quarter of 2025 of
Financial Results for the Full Year 2025
Total Revenue: Consolidated total revenue for the year ended December 31, 2025 increased
Service Revenue: Consolidated service revenue for the year ended December 31, 2025 increased
Software Solutions Revenue: Consolidated software solutions revenue for the year ended December 31, 2025 increased
Product Revenue: Consolidated product revenue for the year ended December 31, 2025 decreased
Operating Expenses: Consolidated operating expenses for the year ended December 31, 2025 increased
Net Income/(Loss): The Company reported net income of
Non-GAAP: Non-GAAP net income of
EBITDA and Adjusted EBITDA: EBITDA for the year ended December 31, 2025 of
Cash and Cash Equivalents: Total cash and cash equivalents at December 31, 2025 was
Cash Flow: Cash provided by operating activities for the year ended December 31, 2025 was
Management Commentary
"I am extremely pleased with our 2025 performance and proud of the team that delivered on our commitments of profitable double digit organic growth," said Jeff Korn, Chairman and CEO. "We generated full-year net income of
Korn added "Customer service remains a core differentiator. We continue to lead the industry in G2 customer satisfaction rankings based on verified reviews. At the same time, we are aggressively advancing our AI strategy. Early feedback on CAIRO, our AI operator, has been highly encouraging, and we believe it has the potential to transform the SMB market by enabling small businesses to operate with enterprise-grade capabilities. Our innovation was recognized for the second consecutive year with the Generative AI Product of the Year award, along with 42 additional G2 Winter 2026 awards across Platform AI and Contact Center categories. We also launched our Marketplace, which we believe will accelerate partner deployment of certified solutions, shorten time to value, expand ecosystem monetization, and create incremental revenue share opportunities. I highlight these results not as a reflection of past success, but as evidence of consistent execution. We have strengthened profitability, accelerated growth, expanded our platform, and invested in innovation. Based on this track record, I am confident we will continue to deliver and believe our most significant opportunities remain ahead of us."
Conference Call
Crexendo management will hold a conference call today, March 3, 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: 888-506-0062
International Participants: 973-528-0011
Participant Access Code: 146313
Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 146313 and the Crexendo earnings call. A replay of the call will be available until March 17, 2026, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 53594.
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 240 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) results reflecting disciplined execution and sustained profitability; (ii) being consistently cash flow positive and expanded both profitability and EBITDA with the platform having scaled meaningfully; (iii) platform scale underscoring product leadership, operational discipline, and partner-first strategy; (iv) being committed to a disciplined strategy of driving profitable organic growth while pursuing accretive acquisitions and having successfully delivered on the organic component with the acquisition of ESI accelerating that growth through strategic M&A; (v) customer service remains a core differentiator; (vi) aggressively advancing AI strategy with early feedback on CAIRO, being highly encouraging, and believing it has the potential to transform the SMB market by enabling small businesses to operate with enterprise-grade capabilities; (vii) innovation being recognized; (viii) believing the Marketplace will accelerate partner deployment of certified solutions, shorten time to value, expand ecosystem monetization, and create incremental revenue share opportunities and (ix) being confident it will continue to deliver and believe the most significant opportunities remain ahead.
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
Consolidated Balance Sheets
(In thousands, except par value and share data)
December 31, | ||||||||
2025 | 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 31,378 | $ | 18,193 | ||||
Trade receivables, net of allowance of | 4,913 | 4,352 | ||||||
Inventories | 454 | 393 | ||||||
Equipment financing receivables, net of allowance of | 1,416 | 1,049 | ||||||
Contract costs | 2,318 | 1,931 | ||||||
Prepaid expenses | 892 | 876 | ||||||
Income tax receivable | 234 | 75 | ||||||
Other current assets | 292 | 13 | ||||||
Total current assets | 41,897 | 26,882 | ||||||
Contract assets, net of allowance of | 402 | 406 | ||||||
Long-term equipment financing receivables, net of allowance of | 3,223 | 2,397 | ||||||
Property and equipment, net | 195 | 394 | ||||||
Operating lease right-of-use assets | 1,006 | 1,491 | ||||||
Intangible assets, net | 17,860 | 20,528 | ||||||
Goodwill | 9,454 | 9,454 | ||||||
Contract costs, net of current portion | 3,319 | 2,879 | ||||||
Other long-term assets | 330 | 507 | ||||||
Total Assets | $ | 77,686 | $ | 64,938 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 649 | $ | 1,003 | ||||
Accrued expenses | 8,391 | 6,992 | ||||||
Finance leases | 2 | 21 | ||||||
Notes payable | 114 | 478 | ||||||
Operating lease liabilities | 493 | 481 | ||||||
Income tax payable | 151 | 40 | ||||||
Contract liabilities | 2,528 | 3,079 | ||||||
Total current liabilities | 12,328 | 12,094 | ||||||
Contract liabilities, net of current portion | 1,008 | 293 | ||||||
Finance leases, net of current portion | - | 2 | ||||||
Notes payable, net of current portion | - | 114 | ||||||
Operating lease liabilities, net of current portion | 529 | 1,022 | ||||||
Total liabilities | 13,865 | 13,525 | ||||||
Commitments and contingencies (Note 17) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, par value | - | - | ||||||
Common stock, par value | ||||||||
shares issued and outstanding as of December 31, 2025 and 27,621,557 shares issued | ||||||||
and outstanding as of December 31, 2024 | 31 | 28 | ||||||
Additional paid-in capital | 145,325 | 138,015 | ||||||
Accumulated deficit | (81,719 | ) | (86,790 | ) | ||||
Accumulated other comprehensive income | 184 | 160 | ||||||
Total stockholders' equity | 63,821 | 51,413 | ||||||
Total Liabilities and Stockholders' Equity | $ | 77,686 | $ | 64,938 | ||||
CREXENDO, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share and share data)
Year Ended December 31, | ||||||||
2025 | 2024 | |||||||
Service revenue | $ | 33,782 | $ | 31,849 | ||||
Software solutions revenue | 29,664 | 23,374 | ||||||
Product revenue | 4,721 | 5,615 | ||||||
Total revenue | 68,167 | 60,838 | ||||||
Operating expenses: | ||||||||
Cost of service revenue | 14,153 | 13,087 | ||||||
Cost of software solutions revenue | 8,275 | 6,793 | ||||||
Cost of product revenue | 2,835 | 3,215 | ||||||
Selling and marketing | 17,771 | 16,538 | ||||||
General and administrative | 14,723 | 13,829 | ||||||
Research and development | 5,720 | 5,552 | ||||||
Total operating expenses | 63,477 | 59,014 | ||||||
Income/(loss) from operations | 4,690 | 1,824 | ||||||
Other income/(expense): | ||||||||
Interest income | 637 | 191 | ||||||
Interest expense | (19 | ) | (42 | ) | ||||
Other income/(expense) | 63 | (84 | ) | |||||
Total other income/(expense), net | 681 | 65 | ||||||
Income/(loss) before income tax | 5,371 | 1,889 | ||||||
Income tax benefit/(provision) | (300 | ) | (212 | ) | ||||
Net income/(loss) | $ | 5,071 | $ | 1,677 | ||||
Earnings per common share: | ||||||||
Basic | $ | 0.17 | $ | 0.06 | ||||
Diluted | $ | 0.16 | $ | 0.06 | ||||
Weighted-average common shares outstanding: | ||||||||
Basic | 29,681,847 | 26,757,242 | ||||||
Diluted | 31,641,294 | 30,019,359 | ||||||
CREXENDO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31, | ||||||||
2025 | 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income/(loss) | $ | 5,071 | $ | 1,677 | ||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||
Depreciation and amortization | 3,295 | 3,331 | ||||||
Share-based compensation | 2,932 | 3,002 | ||||||
Non-cash operating lease amortization | 4 | (18 | ) | |||||
Allowance for credit losses | (73 | ) | 127 | |||||
Changes in assets and liabilities: | ||||||||
Trade receivables | (539 | ) | (906 | ) | ||||
Contract assets | (14 | ) | (106 | ) | ||||
Equipment financing receivables | (1,124 | ) | (877 | ) | ||||
Inventories | (61 | ) | (11 | ) | ||||
Contract costs | (827 | ) | (1,192 | ) | ||||
Prepaid expenses | (16 | ) | (368 | ) | ||||
Income tax receivable | (159 | ) | (75 | ) | ||||
Other assets | (512 | ) | (346 | ) | ||||
Accounts payable and accrued expenses | 1,045 | 1,275 | ||||||
Income tax payable | 111 | (13 | ) | |||||
Contract liabilities | 164 | 784 | ||||||
Net cash provided by/(used in) operating activities | 9,297 | 6,284 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property and equipment | (18 | ) | (27 | ) | ||||
Net cash provided by/(used in) investing activities | (18 | ) | (27 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Repayments made on finance leases | (21 | ) | (75 | ) | ||||
Repayments made on notes payable | (478 | ) | (457 | ) | ||||
Proceeds from exercise of options | 4,870 | 2,370 | ||||||
Taxes paid on the net settlement of stock options and RSUs | (489 | ) | (243 | ) | ||||
Net cash provided by/(used for) financing activities | 3,882 | 1,595 | ||||||
Effect of exchange rate changes on cash | 24 | (6 | ) | |||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 13,185 | 7,846 | ||||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 18,193 | 10,347 | ||||||
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | $ | 31,378 | $ | 18,193 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash used during the year for: | ||||||||
Income taxes, net | $ | (314 | ) | $ | (300 | ) | ||
Interest expense | $ | (17 | ) | $ | (32 | ) | ||
Supplemental disclosure of non-cash investing and financing information: | ||||||||
Capitalized software development costs | $ | 410 | $ | - |
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, benefit/(provision) for income tax, 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 March 3, 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 to Non-GAAP Net Income
(Unaudited, in thousands, except per share and share data)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
U.S. GAAP net income/(loss) | $ | 1,218 | $ | 507 | $ | 5,071 | $ | 1,677 | ||||||||
Share-based compensation and related taxes (1) | 747 | 709 | 3,169 | 3,002 | ||||||||||||
Acquisition related expenses | 51 | - | 51 | - | ||||||||||||
Amortization of intangible assets | 786 | 755 | 3,078 | 3,028 | ||||||||||||
Non-GAAP net income | $ | 2,802 | $ | 1,971 | $ | 11,369 | $ | 7,707 | ||||||||
Non-GAAP earnings per common share: | ||||||||||||||||
Basic | $ | 0.09 | $ | 0.07 | $ | 0.38 | $ | 0.29 | ||||||||
Diluted | $ | 0.09 | $ | 0.06 | $ | 0.36 | $ | 0.26 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 30,837,145 | 27,195,382 | 29,681,847 | 26,757,242 | ||||||||||||
Diluted | 32,151,192 | 30,547,245 | 31,641,294 | 30,019,359 | ||||||||||||
Reconciliation of U.S. GAAP Net Income to EBITDA to Adjusted EBITDA
(Unaudited, in thousands)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
U.S. GAAP net income/(loss) | $ | 1,218 | $ | 507 | $ | 5,071 | $ | 1,677 | ||||||||
Depreciation and amortization | 829 | 826 | 3,295 | 3,331 | ||||||||||||
Interest expense | 1 | 11 | 19 | 42 | ||||||||||||
Other, net | (252 | ) | (4 | ) | (700 | ) | (107 | ) | ||||||||
Income tax provision | 165 | 112 | 300 | 212 | ||||||||||||
EBITDA | 1,961 | 1,452 | 7,985 | 5,155 | ||||||||||||
Acquisition related expenses | 51 | - | 51 | - | ||||||||||||
Share-based compensation and related taxes (1) | 747 | 709 | 3,169 | 3,032 | ||||||||||||
Adjusted EBITDA | $ | 2,759 | $ | 2,161 | $ | 11,205 | $ | 8,187 | ||||||||
(1) For the three months ended December 31, 2025 and 2024, employer payroll tax expense related to share-based compensation was
SOURCE: Crexendo, Inc.
View the original press release on ACCESS Newswire