olivLaw · US equity research
Crexendo, Inc. CXDO
Telephone Communications (No Radiotelephone) · SIC 4813 · Vertical: Telephone Communications (No Radiotelephone) (SIC 4813)
Crexendo, Inc. is a software company providing cloud communication platforms and unified communications as a service, covering voice, video, contact center and managed IT services for businesses of all sizes and for service providers that resell its platform. The company reported strong revenue growth in the first half of 2026, during which it integrated the ESI acquisition, which makes its trajectory a topic of interest for the cloud communications market, especially if growth continues.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Crexendo, Inc. (CXDO) stock was 5.24 USD (−9.11% on the day), with market capitalisation 174.7 m USD, P/E 43.6 on diluted EPS of 0.12 USD over the last 12 months, dividend yield 0.00%, beta 1.86, 52-week range 5.24–10.47 USD. Latest reported quarter (Q3 2026): revenue of 25.2 m USD (+43.9% YoY), net income of 1.1 m USD (−22.9% YoY), diluted EPS 0.03 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 35.7
- weak (30–45)
- Bollinger (20, 2)
- 5.33 – 6.21
- below the lower band · %B -0.11 · band width 15.2%
- SMA 50 / 200
- 5.85 / 6.86
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.06 / -0.03
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.0% | −1.1% | −11.9 pp | — |
| 3 months | −21.0% | −0.5% | −20.5 pp | — |
| 6 months | −46.3% | +4.4% | −50.6 pp | — |
| Year to date | −19.1% | +12.3% | −31.4 pp | — |
| 1 year | −19.0% | +13.5% | −32.5 pp | −10.6% |
| 3 years | +227.2% | +76.4% | +150.8 pp | +3.2% |
| 5 years | −7.5% | +63.7% | −71.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 16.2 m | 16.1 m | 16.6 m | 17.5 m | 18.1 m | 20.7 m | 24.6 m | 25.2 m |
| Research & development | 1.5 m | 1.5 m | 1.4 m | 1.4 m | 1.3 m | 1.6 m | 1.8 m | 1.8 m |
| Operating income | 626.0 k | 1.2 m | 1.1 m | 1.3 m | 1.1 m | 440.0 k | 1.1 m | 1.1 m |
| Depreciation & amortisation | 71.0 k | 65.0 k | 55.0 k | 54.0 k | 43.0 k | 45.0 k | 63.0 k | 50.0 k |
| Interest expense | — | 0 | 0 | 3.0 k | — | — | — | 81.0 k |
| Pre-tax income | 619.0 k | 1.2 m | 1.3 m | 1.5 m | 1.4 m | 607.0 k | 1.1 m | 1.1 m |
| Income tax | 112.0 k | 44.0 k | 48.0 k | 43.0 k | 165.0 k | 29.0 k | 25.0 k | 26.0 k |
| Net income | 507.0 k | 1.2 m | 1.2 m | 1.5 m | 1.2 m | 578.0 k | 1.1 m | 1.1 m |
| Diluted EPS | 0.02 | 0.04 | 0.04 | 0.05 | 0.04 | 0.02 | 0.03 | 0.03 |
| Operating cash flow | 2.2 m | 1.2 m | 1.3 m ≈ | 4.4 m ≈ | 2.3 m | 2.0 m | 2.8 m ≈ | 4.9 m ≈ |
| Capex | 27.0 k | 0 | 18.0 k ≈ | 0 ≈ | 0 | — | — | 0 ≈ |
| Dividends paid | 0 | — | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 36 percentile of its own 22-quarter history (min 15.4, median 57.0, max 300.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 11.9 m | 14.4 m | 16.4 m | 28.1 m | 37.6 m | 53.2 m | 60.8 m | 68.2 m |
| Revenue YoY | +16.9% | +21.2% | +13.5% | +71.4% | +33.7% | +41.7% | +14.4% | +12.0% |
| Net income | -223.0 k | 1.1 m | 7.9 m | -2.4 m | -35.4 m | -362.0 k | 1.7 m | 5.1 m |
| Net income YoY | unavailable | unavailable | +597.1% | −130.8% | unavailable | unavailable | unavailable | +202.4% |
| Diluted EPS | -0.02 | 0.07 | 0.46 | -0.12 | -1.54 | -0.01 | 0.06 | 0.16 |
| Diluted EPS YoY | unavailable | unavailable | +557.1% | −126.1% | unavailable | unavailable | unavailable | +166.7% |
| net % | -1.9% | 7.9% | 48.5% | -8.7% | -94.3% | -0.7% | 2.8% | 7.4% |
| Free cash flow | unavailable | unavailable | unavailable | -1.1 m | -700.0 k | 3.4 m | 6.3 m | 9.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 31.4 m USD
- Financial debt
- 114.0 k USD
- Net debt
- -31.3 m USD
- Equity
- 63.8 m USD
- Total assets
- 77.7 m USD
- Debt / equity
- 0.00x
- Current ratio
- 3.40x
- ROE
- 8.8%
- ROA
- 7.1%
- FCF margin
- 13.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 16.4 m | 28.1 m | 37.6 m | 53.2 m | 60.8 m | 68.2 m | SEC (XBRL)· 03 Mar 2026verified |
| Cost of revenue | 4.9 m | — | — | — | — | — | SEC (XBRL)· 09 Mar 2021verified |
| Gross profit | 11.4 m ≈ | — | — | — | — | — | SEC (XBRL)· 09 Mar 2021derived |
| Research & development | 1.2 m | 1.4 m | 4.0 m | 4.9 m | 5.6 m | 5.7 m | SEC (XBRL)· 03 Mar 2026verified |
| Operating income | 991.0 k | -2.8 m | -37.4 m | -1.7 m | 1.8 m | 4.7 m | SEC (XBRL)· 03 Mar 2026verified |
| Depreciation & amortisation | 258.0 k | 235.0 m | 311.0 k | 404.0 k | 303.0 k | 217.0 k | SEC (XBRL)· 03 Mar 2026verified |
| EBITDA | 1.2 m ≈ | 232.2 m ≈ | -37.1 m ≈ | -1.3 m ≈ | 2.1 m ≈ | 4.9 m ≈ | SEC (XBRL)· 03 Mar 2026derived |
| Interest expense | 76.0 k | 84.0 k | 78.0 k | 115.0 k | — | — | SEC (XBRL)· 05 Mar 2024verified |
| Pre-tax income | 1.9 m | -2.9 m | -36.2 m | -264.0 k | 1.9 m | 5.4 m | SEC (XBRL)· 03 Mar 2026verified |
| Income tax | 6.0 m | -465.0 k | -762.0 k | 98.0 k | 212.0 k | 300.0 k | SEC (XBRL)· 03 Mar 2026verified |
| Net income | 7.9 m | -2.4 m | -35.4 m | -362.0 k | 1.7 m | 5.1 m | SEC (XBRL)· 03 Mar 2026verified |
| Diluted EPS | 0.46 | -0.12 | -1.54 | -0.01 | 0.06 | 0.16 | SEC (XBRL)· 03 Mar 2026verified |
| Weighted average diluted shares | 17.4 m | 20.3 bn | 22.9 m | 25.9 m | 30.0 m | 31.6 m | SEC (XBRL)· 03 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 17.7 m | 7.5 m | 5.5 m | 10.3 m | 18.2 m | 31.4 m | SEC (XBRL)· 03 Mar 2026verified |
| Receivables | 538.0 k | 2.2 m | 3.3 m | 3.5 m | 4.4 m | 4.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Inventories | 504.0 k | 231.0 k | 679.0 k | 382.0 k | 393.0 k | 454.0 k | SEC (XBRL)· 03 Mar 2026verified |
| Current assets | 19.8 m | 11.6 m | 12.4 m | 16.9 m | 26.9 m | 41.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Property, plant & equipment, net | 2.7 m | 3.0 m | 3.3 m | 670.0 k | 394.0 k | 195.0 k | SEC (XBRL)· 03 Mar 2026verified |
| Goodwill | 272.0 k | 37.0 m | 9.5 m | 9.5 m | 9.5 m | 9.5 m | SEC (XBRL)· 03 Mar 2026verified |
| Intangibles (excl. goodwill) | 252.0 k | 22.2 m | 26.7 m | 23.6 m | 20.5 m | 17.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Total assets | 30.7 m | 77.2 m | 55.6 m | 56.2 m | 64.9 m | 77.7 m | SEC (XBRL)· 03 Mar 2026verified |
| Accounts payable | 56.0 k | 476.0 k | 1.2 m | 769.0 k | 1.0 m | 649.0 k | SEC (XBRL)· 03 Mar 2026verified |
| Long-term debt | 1.9 m | 1.9 m | 1.0 m | — | 592.0 k | 114.0 k | SEC (XBRL)· 03 Mar 2026verified |
| Current liabilities | 2.6 m | 10.6 m | 10.4 m | 10.3 m | 12.1 m | 12.3 m | SEC (XBRL)· 03 Mar 2026verified |
| Total liabilities | 4.9 m | 11.2 m | 14.2 m | 11.5 m | 13.5 m | 13.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Equity | 25.8 m | 65.9 m † | 41.5 m † | 44.6 m † | 51.4 m † | 63.8 m † | SEC (XBRL)· 03 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 647.0 k | -1.0 m | -411.0 k | 3.5 m | 6.3 m | 9.3 m | SEC (XBRL)· 03 Mar 2026verified |
| Capex | — | 101.0 k | 289.0 k | 92.0 k | 27.0 k | 18.0 k | SEC (XBRL)· 03 Mar 2026verified |
| Free cash flow | — | -1.1 m ≈ | -700.0 k ≈ | 3.4 m ≈ | 6.3 m ≈ | 9.3 m ≈ | SEC (XBRL)· 03 Mar 2026derived |
| Investing cash flow | 13.7 m | -9.9 m | -1.7 m | 3.7 m | -27.0 k | -18.0 k | SEC (XBRL)· 03 Mar 2026verified |
| Financing cash flow | -921.0 k | 650.0 k | -54.0 k | -2.3 m | 1.6 m | 3.9 m | SEC (XBRL)· 03 Mar 2026verified |
| Dividends paid | — | 0 | 462.0 k | 130.0 k | 0 | — | SEC (XBRL)· 04 Mar 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 43.8% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 174.7 m USD
Key indicators
Coverage and freshness
Score by group
44% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.83 – 2.04 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E0.83 – 2.04 (Mid 1.41)7 companies used · median multiple 11.8x · quartiles 6.9x – 17.0xATEX, ATNI, IDT, T, TDS, UNIT, VZ
- Dividend discount (DDM)unavailable · the base of the ratio is not positive
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 43.8% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 4.5% | 45 (vs peers) | 14% |
| FCF conversion · Quality | 303.2% | 100 (on a fixed band) | 14% |
| Revenue CAGR 3Y · Growth | 22.0% | 100 (on a fixed band) | 19% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.2x | 100 (on a fixed band) | 10% |
| P/E (TTM) · Valuation | 43.6x | 13 (vs peers) | 24% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.9% | 86 (on a fixed band) | 19% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality73/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation45/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Crexendo, Inc. (CXDO). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 68.2 m USD in 2025; YoY growth 12.0%; net margin 4.5%; ROE 5.6%.
The estimated value range is 0.83–2.04 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 1.41 USD, the price of 5.24 USD leaves a potential of -73.0% (value / price − 1) and a margin of safety of -270.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 303.2%
- Revenue CAGR 3Y: 22.0%
- Current ratio: 2.2x
- FCF yield: 6.9%
What contradicts it
- P/E (TTM): 43.6x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Telephone Communications (No Radiotelephone) (SIC 4813) · same industry (4-digit SIC) · compared with 20 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AMXAmerica Movil Sab De Cv | 1,508.4 bn | 1,107.5 | 6.8% | 3.2% | −11.2% | +8% / +38% |
| VZVerizon Communications Inc. | 191.4 bn | 11.8 | 15.4% | 11.8% | +2.5% | +12% / +20% |
| TAt&T Inc. | 147.1 bn | 11.8 | 10.5% | 10.2% | +2.7% | −16% / +32% |
| LUMNLumen Technologies, Inc. | 4.6 bn | — | — | -5.8% | −5.4% | −45% / +241% |
| TDSTelephone And Data Systems, Inc. | 4.1 bn | 11.4 | 8.2% | 33.2% | −5.3% | −11% / +83% |
| ATEXAnterix Inc. | 1.5 bn | 22.2 | 27.9% | 933.0% | +7.8% | +278% / +138% |
| UNITUniti Group Inc. | 1.3 bn | 1.7 | 666.9% | 30.4% | +91.5% | −14% / −41% |
| SHENShenandoah Telecommunications Company | 575.2 m | — | -4.4% | -10.2% | +9.1% | −5% / −53% |
| ATNIAtn International, Inc. | 397.3 m | 2.4 | 32.2% | 23.2% | −0.2% | +22% / −15% |
| CXDOCrexendo, Inc. | 174.7 m | 43.6 | 5.6% | 4.5% | +12.0% | −19% / +227% |
| NXPLNextPlat Corp | 21.8 m | — | -43.1% | -17.8% | −17.8% | +34% / −47% |
| IQSTIQSTEL Inc. | 9.0 m | — | -56.0% | -2.2% | +11.9% | −80% / −94% |
| SURGSurgepays, Inc. | 8.2 m | — | — | -47.9% | −6.4% | −92% / −98% |
| CTGGQwest Corp | 0 | — | -15.8% | -40.1% | −13.8% | unavailable / unavailable |
| IDTIDT Corporation | — | 24.3 | 25.4% | 6.7% | +5.4% | +69% / +186% |
| BCEBce Inc. | — | — | 32.5% | 26.6% | +0.2% | −10% / −46% |
| TEOTelecom Argentina SA | — | — | -2.4% | -2.0% | +53.0% | −17% / +26% |
| TKCTurkcell Iletisim Hizmetleri A S | — | — | 10.8% | 11.7% | +14.6% | −15% / −5% |
| TIMBTim S.A. | — | — | 17.1% | 16.2% | +4.6% | −22% / +3% |
| PHIPLDT Inc. | — | — | 29.3% | 14.9% | +2.8% | −19% / −22% |
| KTKT Corporation | — | — | 2.8% | 1.7% | +0.4% | +1% / +41% |
1- and 3-year price returns: for CXDO from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 3.39 Total return -35% · Per year -35% | 5.96 Total return 14% · Per year 14% | 8.94 Total return 71% · Per year 71% |
| 3 years | 4.02 Total return -23% · Per year -8% | 7.88 Total return 51% · Per year 15% | 12.87 Total return 146% · Per year 35% |
| 5 years | 4.76 Total return -9% · Per year -2% | 10.42 Total return 99% · Per year 15% | 18.54 Total return 254% · Per year 29% |
- Exit P/E± 1.97
- Net margin± 1.38
- Annual revenue growth± 1.03
- Annual dilution± 0.12
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
In brief
Crexendo, Inc. is a software company providing cloud communication platforms and unified communications as a service, covering voice, video, contact center and managed IT services for businesses of all sizes and for service providers that resell its platform. The company reported strong revenue growth in the first half of 2026, during which it integrated the ESI acquisition, which makes its trajectory a topic of interest for the cloud communications market, especially if growth continues.
SWOT
Strengths
- The recurring revenue base, built on multi-year contracts and monthly subscriptions, offers predictability. Rapid revenue growth and improving margins support the financial position.
- The platform licensed per concurrent session lets providers expand their networks efficiently. The large number of end users supported indicates a significant installed base.
- Operating cash flow improved significantly in 2026, giving more flexibility for acquisitions.
Weaknesses
- The company has had operating losses in the past, and GAAP profitability remains modest relative to the pace of revenue growth.
- Product revenue from hardware declined in 2025, showing dependence on equipment sales cycles.
- Quarterly results can fluctuate considerably, and many operating costs are fixed, which magnifies the effect of revenue shortfalls.
Opportunities
- Providers moving to the NetSapiens platform can convert their existing subscribers, which could expand recurring revenue.
- The artificial intelligence offering could become a growth factor if adoption expands, according to management's expectations for 2027.
- International expansion, especially in English-speaking areas, could become significant during 2026.
Threats
- Competitive pressure and price cuts by rivals could limit growth and margins.
- Trade tariffs and restrictions on equipment from certain countries could raise costs and disrupt supply.
- Sanctions, export controls and lawful intercept obligations could lead to fines if not fully complied with.
Risks
- Dependence on acquisitionsmedium
The growth strategy relies on acquisitions, which can bring integration costs, impairment and dilution of shareholders if financed with new equity.
- Volatile resultsmedium
Quarterly results vary for many reasons, and a large share of costs is fixed, so a drop in revenue could quickly affect profitability.
- Macroeconomic conditionshigh
Inflation, interest rates and recession could reduce customer spending, and fixed-price contracts may limit passing costs on to customers.
- International compliancemedium
Expansion into other countries exposes the company to different telecommunications laws, taxes and sanctions, and compliance errors could bring significant fines.
- Tariffs and supplylow
Trade restrictions on equipment could raise costs or limit access to the phones and devices needed for the services.
Investment thesis
What would need to be true (bull case)
- If the number of providers moving onto the company's platform keeps growing, recurring revenue could accelerate further.
- Improving margins and cash flow give the company room for acquisitions and investment without excessive pressure on its balance sheet.
- If AI offerings come to contribute meaningfully to revenue, they could open a new growth cycle, as management suggests.
What would break the thesis
- If acquisitions do not integrate well or lead to impairment, reported results could be weaker than revenue growth suggests.
- GAAP profitability remains modest, and a fall in demand could quickly turn gains into losses given the high fixed costs.
- AI offerings do not yet bring significant revenue, so if adoption is slower than expected, growth could slow.
What to watch
- Evolution of revenue and margins in coming quarters, including the contribution of the ESI acquisitionQ3 2026
- Number of new platform logos won and conversion of existing provider subscribers2026
- Contribution of AI offering revenue, which management expects could become meaningful2027
- Dividend policy and any capital structure or acquisition-related changes affecting shareholdersnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
The business
The sales model is distributed: some customers are service providers that resell subscriptions, and others are direct retail clients. The company tracks subscriptions through its own metrics, such as annualized recurring revenue and net subscription dollar retention, which show how well it keeps and expands customers. It has also been expanding internationally in software, mainly in English-speaking areas, although revenue from outside the United States has so far not been material.
Recently the activity has focused on organic growth and strategic acquisitions, and management has stated that its newly released artificial intelligence offerings are not yet a meaningful contributor to revenue. If these offerings become relevant, they could change the company's growth profile in the coming years.
Segments
Cloud telecommunications
The cloud telecommunications segment generated 38,503 thousand USD of revenue in 2025, compared with 37,464 thousand USD in 2024, while service revenue grew 6% in 2025 and product revenue fell 16% 1. This segment anchors the recurring base and also includes broadband and equipment leasing.
Market context
The unified communications and cloud telephony market is shaped by the shift of companies from on-premise phone systems to hosted services sold on subscription. The company describes its offering as the fastest growing UCaaS platform in the United States, but this is the company's own claim, not an independent measurement. The market is sensitive to economic cycles, because firms can postpone new purchases when conditions weaken.
The company says demand is supported by providers moving to new platforms and by clients expanding their license counts. If these trends hold, they could support recurring revenue growth over the medium term, although quarterly results can vary considerably between periods.
Trends
- Migration to the cloudtailwind
Companies are increasingly moving from on-premise telephone infrastructure to cloud services, which supports demand for the Crexendo platform. If this migration continues, it could expand the customer base and recurring revenue.
- Strategic acquisitionsmixed
Integration of the ESI acquisition has added revenue and an experienced team, and the company says the process is progressing well. Acquisitions can however bring integration costs, amortization of intangible assets and the risk of goodwill impairment, as the company's filings also warn.
- Macroeconomic pressureheadwind
Inflation, volatile interest rates and tariffs can slow customer spending and raise equipment costs. Fixed pricing over several years limits the company's ability to pass on cost increases quickly.
- Artificial intelligencemixed
The company recently launched AI offerings, which management sees as a future growth driver but which do not yet contribute meaningfully to revenue. If adoption grows, they could become relevant to revenue only in 2027, as management suggests.
Competitive position
Crexendo competes with other cloud communications and UCaaS providers, especially among service providers that resell platforms. Its differentiation rests on licensing per concurrent session, which lets providers oversubscribe their networks and lower the cost per seat as volume grows.
The filings do not directly compare the company's market share with that of its competitors, so its relative position remains unclear. The number of providers moving to the NetSapiens platform and the rapid revenue growth suggest the offering has traction, but this does not prove market dominance.
- UCaaS and cloud communications providers
The company's filings describe general competition in unified communications without naming specific firms, so concrete competitors cannot be identified from the sources.
- Hosted PBX providers
Competition comes from cloud voice providers offering the same PBX functions, and the sources do not name them.
- Cloud contact center platforms
In contact center services the company competes with CCaaS solutions, but the sources do not identify specific providers.
- Managed IT services providers
For managed IT services competition is general, and the documents do not name competitors.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report03 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Proxy statement19 Oct 2026
- Current report13 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Current report10 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Current report30 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report12 May 2026Regulation FD disclosure · Financial statements and exhibits
- Current report05 May 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Crexendo, Inc. · 03 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Crexendo, Inc. · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Crexendo, Inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.