Crexendo Announces Strong Third Quarter 2026 Results
GAAP earnings declined despite revenue growth, while nine-month operating cash flow increased to $9.7 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Crexendo (CXDO) reported third-quarter 2026 revenue of $25.2 million, up 44% from the same quarter a year earlier. GAAP net income fell to $1.1 million, or $0.03 per basic and diluted share, from $1.5 million, or $0.05 per share. Operating expenses rose 49% to $24.1 million. Adjusted EBITDA, a non-GAAP earnings measure, increased to $4.0 million from $2.9 million.
For the nine months ended September 30, revenue rose 41% to $70.5 million, while GAAP net income declined to $2.7 million from $3.9 million. Operating cash flow increased to $9.7 million from $7.0 million. Cash totaled $22.8 million at September 30, versus $31.4 million at December 31, 2025; acquisition spending, net of cash acquired, totaled $26.209 million during the nine months. Management said ESI integration had gone smoothly and that it was evaluating additional acquisitions.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue increased 44% year over year to $25.2 million.
- Moderate pointThird-quarter non-GAAP net income rose to $4.0 million from $3.0 million; basic and diluted EPS reached $0.12 versus $0.10.
- Moderate pointThird-quarter adjusted EBITDA increased to $4.0 million from $2.9 million a year earlier.
- Moderate pointNine-month operating cash flow increased to $9.675 million from $6.950 million a year earlier.
- Moderate pointNine-month note issuance provided $4.853 million in proceeds, net of debt issuance costs. 2.6% of market cap
- Moderate pointNine-month option exercises provided $4.042 million in cash. 2.1% of market cap
14 minor points
- Minor pointThird-quarter service revenue increased 75% year over year to $15.1 million.
- Minor pointThird-quarter software solutions revenue increased 2% year over year to $7.7 million.
- Minor pointThird-quarter product revenue increased 78% year over year to $2.4 million.
- Minor pointThird-quarter EBITDA increased to $3.0 million from $2.0 million a year earlier.
- Minor pointNine-month revenue increased 41% year over year to $70.5 million.
- Minor pointNine-month service revenue increased 61% year over year to $40.5 million.
- Minor pointNine-month software solutions revenue increased 6% year over year to $22.7 million.
- Minor pointNine-month product revenue increased 104% year over year to $7.3 million.
- Minor pointNine-month non-GAAP net income rose to $11.3 million from $8.6 million a year earlier.
- Minor pointNine-month non-GAAP basic/diluted EPS rose to $0.35/$0.34 from $0.29/$0.27 a year earlier.
- Minor pointNine-month EBITDA increased to $7.5 million from $6.0 million a year earlier.
- Minor pointNine-month adjusted EBITDA increased to $11.3 million from $8.4 million a year earlier.
- Minor pointNew platform licensees reached 16 through Q3, including five quarterly additions, versus 14 in all of 2025.
- Minor pointESI integration proceeded smoothly, management said; additional acquisition opportunities are being evaluated.
Negative
- Moderate pointThird-quarter GAAP net income fell to $1.118 million from $1.450 million; basic and diluted EPS fell to $0.03 from $0.05.
- Moderate pointThird-quarter operating expenses increased 49% to $24.1 million from $16.2 million a year earlier.
- Moderate pointCash declined to $22.841 million at September 30, 2026, from $31.378 million at December 31, 2025.
- Moderate pointBusiness acquisition spending, net of cash acquired, used $26.209 million during the first nine months of 2026. 14% of market cap
- Moderate pointLong-term notes payable increased to $4.294 million from zero; current notes rose to $454,000 from $114,000 since year-end.
- Moderate pointCommon shares outstanding increased to 33,368,003 from 31,004,327 between December 31, 2025, and September 30, 2026.
7 minor points
- Minor pointThird-quarter operating income declined to $1.082 million from $1.305 million a year earlier.
- Minor pointNine-month GAAP net income fell to $2.747 million from $3.853 million a year earlier.
- Minor pointNine-month GAAP basic/diluted EPS declined to $0.08/$0.08 from $0.13/$0.12 a year earlier.
- Minor pointNine-month operating expenses increased to $67.961 million from $46.548 million a year earlier.
- Minor pointNine-month operating income declined to $2.577 million from $3.558 million a year earlier.
- Minor pointThird-quarter interest expense increased to $81,000 from $3,000 a year earlier.
- Minor pointNine-month interest expense increased to $143,000 from $18,000 a year earlier.
News Explained
The release reports
Details
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Key Figures
- Q3 total revenue
- $25.2 million, up 44% year-over-year
- Third quarter 2026
- Service revenue
- $15.1 million, up 75%
- Third quarter 2026
- GAAP net income
- $1.1 million, compared to $1.5 million
- Third quarter 2026 versus third quarter 2025
- Non-GAAP net income
- $4.0 million, compared to $3.0 million
- Third quarter 2026 versus third quarter 2025
- Adjusted EBITDA
- $4.0 million, compared to $2.9 million
- Third quarter 2026 versus third quarter 2025
- Nine-month total revenue
- $70.5 million, up 41%
- Nine months ended September 30, 2026
- Operating cash flow
- $9.7 million, compared to $7.0 million
- Nine months ended September 30, 2026 versus 2025
- Cash and cash equivalents
- $22.8 million, compared to $31.4 million
- September 30, 2026 versus December 31, 2025
Previous Earnings Reports
-
Q2 2026 revenue grew 49%, while non-GAAP net income reached $4.1 million.
-
Q3 2025 revenue was $17.5 million, with GAAP net income of $1.5 million.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
ucaas technical
gaap financial
non-gaap financial
ebitda financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
PHOENIX, AZ / ACCESS Newswire / November 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 third quarter ended September 30, 2026.
Third Quarter Financial highlights:
- Total revenue increased
44% year-over-year to$25.2 million - GAAP net income of
$1.1 million , or$0.03 per basic and diluted common share. - Non-GAAP net income of
$4.0 million , or$0.12 per basic and diluted common share. - Adjusted EBITDA of
$4.0 million , compared to$2.9 million for the third quarter of 2025.
Financial Results for the Third Quarter of 2026
Total Revenue: Consolidated total revenue for the third quarter of 2026 increased
Service Revenue: Consolidated service revenue for the third quarter of 2026 increased
Software Solutions Revenue: Consolidated software solutions revenue for the third quarter of 2026 increased
Product Revenue: Consolidated product revenue for the third quarter of 2026 increased
Operating Expenses: Consolidated operating expenses for the third 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 third quarter of 2026 of
Financial Results for the nine months ended September 30, 2026
Total Revenue: Consolidated total revenue for the nine months ended September 30, 2026 increased
Service Revenue: Consolidated service revenue for the nine months ended September 30, 2026 increased
Software Solutions Revenue: Consolidated software solutions revenue for the nine months ended September 30, 2026 increased
Product Revenue: Consolidated product revenue for the nine months ended September 30, 2026 increased
Operating Expenses: Consolidated operating expenses for the nine months ended September 30, 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 nine months ended September 30, 2026 of
Cash and Cash Equivalents: Total cash and cash equivalents at September 30, 2026 was
Cash Flow: Cash provided by operating activities for the nine months ended September 30, 2026 was
Management Commentary
"Crexendo delivered another exceptional and profitable quarter, with total revenue of
"The integration of ESI has gone seamlessly, reinforcing our confidence in our ability to identify and successfully integrate strategic, accretive acquisitions. We are actively evaluating additional opportunities to accelerate growth while remaining focused on maximizing organic growth across our business. The exceptional response to our preview of our new platform software release, NetSapiens Flow, at our largest-ever User Group Meeting last week, together with our expanding AI ecosystem and continued progress with CAIRO, gives me tremendous confidence in our product roadmap and long-term opportunity. By combining innovation, disciplined expense management and selective acquisitions, we believe we are well positioned to deliver sustainable, profitable growth and build lasting and increasing shareholder value."
Conference Call
Crexendo management will hold a conference call today, November 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: 495191
Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 550804 and the Crexendo earnings call. A replay of the call will be available until November 17, 2026, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 54653.
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. The Company's solutions currently support over eight million end users globally through its extensive global network of over 250 cloud communication platform software subscribers and its 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) delivering another exceptional quarter; (ii) having very strong EBITDA which is telling as it does not include intangible costs associated with the recent acquisition; (iii) being excited that through the third quarter it has already won more new platform logos than was secured in all of last year; (iv) believing that these wins expand the foundation for future organic growth as providers migrate subscribers to NetSapiens, grow their businesses and purchase additional capacity; (v) having a substantial opportunity to deepen customer relationships and expand recurring revenue; (vi) believing that the integration of ESI has gone seamlessly, reinforcing confidence in the ability to identify and successfully integrate strategic, accretive acquisitions; (vii) being actively evaluating additional opportunities to accelerate growth while remaining focused on maximizing organic growth across the business; (viii) believing the exceptional response to the preview of the new platform software release, NetSapiens Flow, together with the expanding AI ecosystem and continued progress with CAIRO, gives tremendous confidence in the product roadmap and long-term opportunity; and (ix) believing that by combining innovation, disciplined expense management and selective acquisitions that it is well positioned to deliver sustainable, profitable growth and build lasting and increasing shareholder value.
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)
| September 30, 2026 | December 31, 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 22,841 | $ | 31,378 | ||||
Trade receivables, net of allowance of | 6,000 | 4,913 | ||||||
Contract assets, net of allowance of | 106 | - | ||||||
Inventories | 995 | 454 | ||||||
Equipment financing receivables, net of allowance of | 2,861 | 1,416 | ||||||
Contract costs | 4,214 | 2,318 | ||||||
Prepaid expenses | 1,778 | 892 | ||||||
Income tax receivable | 207 | 234 | ||||||
Other current assets | 356 | 292 | ||||||
Total current assets | 39,358 | 41,897 | ||||||
Contract assets, net of current portion, net of allowance of | 859 | 402 | ||||||
Long-term equipment financing receivables, net of allowance of | 5,434 | 3,223 | ||||||
Property and equipment, net | 326 | 195 | ||||||
Operating lease right-of-use assets | 634 | 1,006 | ||||||
Intangible assets, net | 36,468 | 17,860 | ||||||
Goodwill | 14,170 | 9,454 | ||||||
Contract costs, net of current portion | 6,107 | 3,319 | ||||||
Other long-term assets | 471 | 330 | ||||||
Total Assets | $ | 103,827 | $ | 77,686 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,543 | $ | 649 | ||||
Accrued expenses | 11,593 | 8,391 | ||||||
Finance leases | - | 2 | ||||||
Notes payable | 454 | 114 | ||||||
Operating lease liabilities | 521 | 493 | ||||||
Income tax payable | - | 151 | ||||||
Contract liabilities | 3,972 | 2,528 | ||||||
Total current liabilities | 18,083 | 12,328 | ||||||
Contract liabilities, net of current portion | 1,255 | 1,008 | ||||||
Notes payable, net of current portion | 4,294 | - | ||||||
Operating lease liabilities, net of current portion | 135 | 529 | ||||||
Total liabilities | 23,767 | 13,865 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, par value | - | - | ||||||
Common stock, par value | ||||||||
shares issued and outstanding as of September 30, 2026 and 31,004,327 shares issued | ||||||||
and outstanding as of December 31, 2025 | 33 | 31 | ||||||
Additional paid-in capital | 158,829 | 145,325 | ||||||
Accumulated deficit | (78,972 | ) | (81,719 | ) | ||||
Accumulated other comprehensive income | 170 | 184 | ||||||
Total stockholders' equity | 80,060 | 63,821 | ||||||
Total Liabilities and Stockholders' Equity | $ | 103,827 | $ | 77,686 | ||||
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share and share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
Service revenue | $ | 15,052 | $ | 8,607 | $ | 40,481 | $ | 25,163 | ||||||||
Software solutions revenue | 7,695 | 7,521 | 22,745 | 21,364 | ||||||||||||
Product revenue | 2,435 | 1,369 | 7,312 | 3,579 | ||||||||||||
Total revenue | 25,182 | 17,497 | 70,538 | 50,106 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of service revenue | 4,910 | 3,664 | 13,663 | 10,707 | ||||||||||||
Cost of software solutions revenue | 2,226 | 1,924 | 6,889 | 5,227 | ||||||||||||
Cost of product revenue | 1,441 | 888 | 4,475 | 2,174 | ||||||||||||
Selling and marketing | 8,372 | 4,522 | 21,994 | 13,182 | ||||||||||||
General and administrative | 5,324 | 3,780 | 15,716 | 10,884 | ||||||||||||
Research and development | 1,827 | 1,414 | 5,224 | 4,374 | ||||||||||||
Total operating expenses | 24,100 | 16,192 | 67,961 | 46,548 | ||||||||||||
Income/(loss) from operations | 1,082 | 1,305 | 2,577 | 3,558 | ||||||||||||
Other income/(expense): | ||||||||||||||||
Interest income | 124 | 199 | 352 | 409 | ||||||||||||
Interest expense | (81 | ) | (3 | ) | (143 | ) | (18 | ) | ||||||||
Other income/(expense), net | 19 | (8 | ) | 41 | 39 | |||||||||||
Total other income/(expense), net | 62 | 188 | 250 | 430 | ||||||||||||
Income/(loss) before income tax | 1,144 | 1,493 | 2,827 | 3,988 | ||||||||||||
Income tax (provision)/benefit | (26 | ) | (43 | ) | (80 | ) | (135 | ) | ||||||||
Net income/(loss) | $ | 1,118 | $ | 1,450 | $ | 2,747 | $ | 3,853 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.03 | $ | 0.05 | $ | 0.08 | $ | 0.13 | ||||||||
Diluted | $ | 0.03 | $ | 0.05 | $ | 0.08 | $ | 0.12 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 33,281,303 | 30,397,144 | 32,535,272 | 29,292,516 | ||||||||||||
Diluted | 34,233,646 | 31,818,738 | 33,768,539 | 31,418,659 | ||||||||||||
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
| Nine Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income/(loss) | $ | 2,747 | $ | 3,853 | ||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities: | ||||||||
Depreciation and amortization | 4,950 | 2,466 | ||||||
Allowance for credit losses | 66 | (82 | ) | |||||
Share-based compensation | 2,674 | 2,254 | ||||||
Non-cash operating lease amortization | 6 | 13 | ||||||
Amortization of debt discount | 20 | - | ||||||
Changes in assets and liabilities: | ||||||||
Trade receivables | (754 | ) | (394 | ) | ||||
Contract assets | (44 | ) | (67 | ) | ||||
Equipment financing receivables | (53 | ) | (932 | ) | ||||
Inventories | 361 | (247 | ) | |||||
Contract costs | (671 | ) | (591 | ) | ||||
Prepaid expenses | (668 | ) | (596 | ) | ||||
Income tax receivable | 27 | (181 | ) | |||||
Other assets | (193 | ) | (374 | ) | ||||
Accounts payable and accrued expenses | 893 | 799 | ||||||
Income tax payable | (151 | ) | 3 | |||||
Contract liabilities | 465 | 1,026 | ||||||
Net cash provided by/(used for) operating activities | 9,675 | 6,950 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisition of a business, net of cash acquired | (26,209 | ) | - | |||||
Purchase of property and equipment | - | (18 | ) | |||||
Net cash provided by/(used for) investing activities | (26,209 | ) | (18 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Repayments made on finance leases | (2 | ) | (20 | ) | ||||
Repayments made on notes payable | (239 | ) | (356 | ) | ||||
Proceeds from exercise of options | 4,042 | 4,137 | ||||||
Taxes paid on the net settlement of stock options and RSUs | (643 | ) | (340 | ) | ||||
Proceeds from issuance of note payable, net of debt issuance costs | 4,853 | - | ||||||
Net cash provided by/(used for) financing activities | 8,011 | 3,421 | ||||||
Effect of exchange rate changes on cash | (14 | ) | 27 | |||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (8,537 | ) | 10,380 | |||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 31,378 | 18,193 | ||||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ | 22,841 | $ | 28,573 | ||||
Cash used during the year for: | ||||||||
Income taxes, net | $ | (202 | ) | $ | (315 | ) | ||
Interest expense | $ | (124 | ) | $ | (16 | ) | ||
Supplemental disclosure of non-cash investing and financing information: | ||||||||
Capitalized software development costs | $ | - | $ | 411 | ||||
Stock issued for the acquisition of a business | $ | 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, 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 November 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/(Loss) to Non-GAAP Net Income
(Unaudited, in thousands, except for per share and share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
U.S. GAAP net income/(loss) | $ | 1,118 | $ | 1,450 | $ | 2,747 | $ | 3,853 | ||||||||
Share-based compensation and related taxes (1) | 1,048 | 799 | 2,769 | 2,422 | ||||||||||||
Acquisition related expenses | - | - | 1,019 | - | ||||||||||||
Amortization of intangible assets | 1,834 | 785 | 4,792 | 2,292 | ||||||||||||
Non-GAAP net income | $ | 4,000 | $ | 3,034 | $ | 11,327 | $ | 8,567 | ||||||||
Non-GAAP earnings per common share: | ||||||||||||||||
Basic | $ | 0.12 | $ | 0.10 | $ | 0.35 | $ | 0.29 | ||||||||
Diluted | $ | 0.12 | $ | 0.10 | $ | 0.34 | $ | 0.27 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 33,281,303 | 30,397,144 | 32,535,272 | 29,292,516 | ||||||||||||
Diluted | 34,233,646 | 31,818,738 | 33,768,539 | 31,418,659 | ||||||||||||
Reconciliation of U.S. GAAP Net Income/(Loss) to EBITDA to Adjusted EBITDA
(Unaudited, in thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
U.S. GAAP net income/(loss) | $ | 1,118 | $ | 1,450 | $ | 2,747 | $ | 3,853 | ||||||||
Depreciation and amortization | 1,884 | 839 | 4,950 | 2,466 | ||||||||||||
Interest expense | 81 | 3 | 143 | 18 | ||||||||||||
Gain on the sale of property and equipment | (11 | ) | - | (11 | ) | - | ||||||||||
Other, net | (132 | ) | (191 | ) | (382 | ) | (448 | ) | ||||||||
Income tax provision | 26 | 43 | 80 | 135 | ||||||||||||
EBITDA | 2,966 | 2,144 | 7,527 | 6,024 | ||||||||||||
Acquisition related expenses | - | - | 1,019 | - | ||||||||||||
Share-based compensation and related taxes (1) | 1,048 | 799 | 2,769 | 2,422 | ||||||||||||
Adjusted EBITDA | $ | 4,014 | $ | 2,943 | $ | 11,315 | $ | 8,446 | ||||||||
(1) For the three months ended September 30, 2026 and 2025, employer payroll tax expense related to share-based compensation was
SOURCE: Crexendo, Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Crexendo's third-quarter 2026 revenue and GAAP earnings?
Crexendo reported $25.2 million in revenue, up 44% year over year, and GAAP net income of $1.1 million. Basic and diluted earnings per share were $0.03, compared with $0.05 in the third quarter of 2025.
How did Crexendo's adjusted EBITDA change in the third quarter of 2026?
Crexendo's adjusted EBITDA increased to $4.0 million from $2.9 million in the third quarter of 2025. Adjusted EBITDA is a non-GAAP earnings measure.
How many new platform licensees did Crexendo add through the third quarter of 2026?
Crexendo secured 16 new platform licensees through the third quarter of 2026, including five added during the quarter. That compared with 14 in all of 2025.