Crexendo (CXDO) AI Stock Analysis

• Market Cap: $204.05M
• Dividend Yield: N/A
• Average Volume (3M): 211.50K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 1.69
• Revenue Growth: 12.91%
• EPS Growth: 222.63%
• Country: US
• Employees: 179
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.09
• Shares Outstanding: 31,152,603
• 10 Day Avg. Volume: 317,428
• 30 Day Avg. Volume: 211,497
• PEG Ratio: 0.22
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 2.82
• P/FCF Ratio: 20.70
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 3.20
• Enterprise Value/Ebitda: 21.52
• 1Y Price Target: $9.40
• Price Target Upside: 43.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): $79.69M

• Rating: 75 Outperform
• Price Target: $7.50 ▲(14.50% Upside)
• Action: Upgraded Date: 03/04/26
• Date: Action: Upgraded 03/04/26

The score is driven primarily by strong financial improvement (profitability and free cash flow recovery, plus very low leverage). Earnings-call commentary supports continued product/AI-led growth, but the valuation is demanding (high P/E) and technical momentum is mixed, which tempers the overall rating.

Positive Factors

Platform scale and recurring revenue

A scaled NetSapiens platform with over 7 million end users and strong partner activation creates a durable recurring revenue base. Scale supports higher ARPA, network effects and easier cross-sell to service providers, reducing unit costs and strengthening long-term revenue retention.

Free cash flow recovery

Operating and free cash flow turned meaningfully positive, with FCF roughly matching net income in 2024–2025. Consistent cash generation improves reinvestment ability, funds M&A and product development (AI/OCI initiatives), and reduces financing risk versus prior loss periods.

Conservative balance sheet / low leverage

Very low leverage and a solid equity base give Crexendo financial flexibility to invest in cloud/AI initiatives and pursue accretive M&A like Estech while withstanding macro downturns. Low debt limits interest burden and preserves cash flow for strategic growth over the next 12–24 months.

Negative Factors

Limited international scale

With under 10% of revenue from international markets, Crexendo’s growth is heavily dependent on the U.S. market. This concentration limits addressable-market diversification and exposes results to domestic demand cycles; durable growth requires sustained investment and execution overseas.

Product revenue decline & volatility

A 25% drop in product revenue highlights variability in one-time sales and a shift toward services/software. Coupled with past swings from large losses to recent profits, this volatility raises execution risk for maintaining revenue cadence and could pressure margins if product recoveries lag.

Service margin pressure

A 100bp decline in service gross margins signals margin mix or cost pressures in core recurring operations. If service margins remain under pressure, it could cap consolidated gross-margin sustainability and limit incremental free cash flow from organic growth absent further efficiency gains.

Crexendo Business Overview & Revenue Model

Company Description

Crexendo, Inc. provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally. It operates through two segments, Cloud Telecommunications and Web Services. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and resells broadband Internet services. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Web Services segment provides website hosting and other professional services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is headquartered in Tempe, Arizona.

How the Company Makes Money

Crexendo generates revenue primarily through its subscription-based model, where customers pay for access to its cloud services on a monthly or annual basis. Key revenue streams include recurring fees from VoIP phone services, video conferencing solutions, and other communication tools. The company also offers additional features and services that can be added to existing plans, which contributes to upselling opportunities. Strategic partnerships with telecom providers and technology platforms may enhance their service offerings and expand their customer base, further driving revenue growth. Additionally, Crexendo may benefit from customer retention through long-term contracts and ongoing support services.

Crexendo Financial Statement Overview

Summary

Strong multi-year revenue growth and a clear profitability/FCF turnaround in 2024–2025, with sharply higher gross margins and earnings-backed free cash flow. Balance sheet is conservatively financed with minimal leverage. Main risk is historical volatility (large losses and negative cash flow earlier in the period), which raises sustainability questions.

Income Statement

Revenue growth has been strong over the full period (from $16.4M in 2020 to $68.2M in 2025), with a particularly large step-up in 2025. Profitability has also improved materially: the company moved from sizable losses in 2021–2023 to positive earnings in 2024 and a stronger result in 2025 (net margin improving to ~7.4%). Gross margins expanded sharply in 2025 (to ~79%), signaling a more favorable mix or better cost control. The main weakness is volatility—results swung from very large losses in 2022 to profitability in 2024–2025, which raises confidence risk around the durability of the current margin profile.

Balance Sheet

The balance sheet appears conservatively financed with very low leverage (debt-to-equity ~1.8% in 2025) and a solid equity base ($63.8M in 2025) relative to total assets ($77.7M). Return on equity has recovered to ~7.9% in 2025 after being negative in 2021–2023, reflecting the earnings turnaround. The key watch-out is equity variability over time (notably higher in 2021 versus 2022–2025), and profitability still isn’t consistently high enough yet to be considered firmly established.

Cash Flow

Cash generation has improved meaningfully: operating cash flow rose from negative in 2021–2022 to $6.3M in 2024 and $9.3M in 2025, with free cash flow closely tracking operating cash flow (about $9.3M in 2025). Free cash flow is well-supported by earnings in 2024–2025 (free cash flow roughly matches net income), which is a quality positive. The main weakness is the historical inconsistency—cash flow was negative as recently as 2022, and the pace of free cash flow growth has been uneven year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	68.17M	60.84M	53.20M	37.55M	28.09M
Gross Profit	54.01M	37.74M	31.64M	23.87M	17.43M
EBITDA	8.04M	5.26M	3.42M	-33.35M	-1.20M
Net Income	5.07M	1.68M	-362.00K	-35.41M	-2.44M
Balance Sheet
Total Assets	77.69M	64.94M	56.16M	55.63M	77.15M
Cash, Cash Equivalents and Short-Term Investments	31.38M	18.19M	10.35M	5.47M	7.47M
Total Debt	1.14M	2.12M	2.19M	4.42M	2.79M
Total Liabilities	13.87M	13.53M	11.55M	14.18M	11.22M
Stockholders Equity	63.82M	51.41M	44.61M	41.46M	65.93M
Cash Flow
Free Cash Flow	9.28M	6.26M	3.41M	-700.00K	-1.11M
Operating Cash Flow	9.30M	6.28M	3.50M	-411.00K	-1.01M
Investing Cash Flow	-18.00K	-27.00K	3.70M	-1.70M	-9.87M
Financing Cash Flow	3.88M	1.59M	-2.31M	-54.00K	650.00K

Crexendo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXDO, the sentiment is Positive. The current price of 6.55 is above the 20-day moving average (MA) of 6.35, below the 50-day MA of 6.61, and above the 200-day MA of 6.35, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 41.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXDO.

Crexendo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	76 Outperform	$179.37M	18.42	11.24%	―	17.27%	39.41%
CXDO	75 Outperform	$204.05M	37.87	8.50%	―	12.91%	222.63%
OOMA	72 Outperform	$383.92M	50.13	7.20%	―	4.22%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ATNI	55 Neutral	$403.71M	-23.34	-3.26%	4.63%	-3.10%	66.00%
KORE	55 Neutral	$157.66M	-0.95	56.67%	―	0.06%	55.55%
RBBN	51 Neutral	$384.57M	12.80	10.15%	―	7.38%	20.81%

Crexendo Corporate Events

Crexendo Stockholders Approve Key Proposals at Annual Meeting

On December 2, 2025, Crexendo, Inc. held its annual meeting of stockholders where several key proposals were voted on. The stockholders approved the election of directors to the board, including Kevin Jackson, Todd A. Goergen, Jeffrey G. Korn, Steven G. Mihaylo, and David Williams for two-year terms, and Chris McKee for a one-year term. They also approved the compensation of the company’s named executive officers, decided that the advisory vote on executive compensation should occur every three years, and appointed Urish Popeck & Co., LLC as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (CXDO) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Crexendo stock, see the CXDO Stock Forecast page.