Crexendo (CXDO) AI Stock Analysis

• Market Cap: $207.13M
• Dividend Yield: N/A
• Average Volume (3M): 238.83K
• Price to Earnings (P/E): 47.6
• Beta (1Y): 1.84
• Revenue Growth: 12.91%
• EPS Growth: 222.63%
• Country: US
• Employees: 179
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.10
• Shares Outstanding: 30,731,049
• 10 Day Avg. Volume: 142,861
• 30 Day Avg. Volume: 238,834
• PEG Ratio: -0.15
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 22.37
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 4.02
• Enterprise Value/Ebitda: 22.67
• 1Y Price Target: $8.90
• Price Target Upside: 32.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.34
• Revenue Forecast (FY): $68.24M

• Rating: 75 Outperform
• Price Target: $8.00 ▲(18.69% Upside)

Crexendo's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust cash flow and strategic initiatives in AI and potential M&A provide a solid growth outlook. However, the high P/E ratio and challenges in product revenue and international expansion temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in software solutions, indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Generation

Robust cash generation enhances liquidity, providing financial stability and enabling strategic investments for future growth.

AI Innovation

Investment in AI-driven products positions Crexendo as a leader in innovation, potentially increasing average revenue per account and market competitiveness.

Negative Factors

Product Revenue Decline

A significant decline in product revenue suggests potential challenges in product demand or market competition, which could impact overall revenue stability.

International Expansion Challenges

Limited international revenue highlights challenges in global market penetration, potentially restricting growth opportunities outside domestic markets.

Service Revenue Margin Decrease

Decreasing service revenue margins may indicate rising costs or pricing pressures, which could affect profitability if not addressed.

Crexendo Business Overview & Revenue Model

Company Description

Crexendo, Inc. (CXDO) is a technology company specializing in providing cloud-based communication and collaboration solutions for businesses. The company operates primarily in the telecommunications and software sectors, offering a suite of services that includes Voice over Internet Protocol (VoIP) phone systems, video conferencing, business messaging, and other unified communications tools. Crexendo focuses on delivering reliable, scalable, and cost-effective solutions tailored to meet the needs of small to medium-sized enterprises.

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

Crexendo exhibits strong financial health, marked by impressive revenue growth and profitability improvements. The balance sheet is well-managed with low leverage and high equity. Cash flow generation is a key strength, providing liquidity and supporting growth. While operational efficiency can be improved further, the overall outlook is positive with a solid foundation for future expansion.

Income Statement

Crexendo has demonstrated strong revenue growth, with a 14.37% increase from 2023 to 2024. The gross profit margin improved to 78.49% in 2024, indicating efficient cost management. The net profit margin improved significantly from negative in 2023 to 2.76% in 2024. However, the EBIT margin, while positive at 3.00%, remains modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.04, reflecting minimal leverage. The return on equity improved to 3.26% in 2024, showing better profitability. The equity ratio is robust at 79.17%, indicating a strong capital structure. However, the lower total assets compared to 2021 indicate a potential area of concern for asset growth.

Cash Flow

Crexendo's cash flow is robust, with a significant increase in free cash flow from 2023 to 2024, growing by 83.66%. The operating cash flow to net income ratio is healthy at 3.75, highlighting strong cash generation relative to income. The free cash flow to net income ratio is high at 3.73, indicating efficient cash utilization. These metrics suggest strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.35M	60.84M	53.20M	37.55M	28.09M	16.39M
Gross Profit	44.68M	37.74M	31.64M	23.87M	17.43M	11.44M
EBITDA	7.93M	5.26M	3.42M	-33.35M	-1.20M	2.23M
Net Income	4.36M	1.68M	-362.00K	-35.41M	-2.44M	7.94M
Balance Sheet
Total Assets	75.96M	64.94M	56.16M	55.63M	77.15M	30.70M
Cash, Cash Equivalents and Short-Term Investments	28.57M	18.19M	10.35M	5.47M	7.47M	17.58M
Total Debt	1.38M	2.12M	2.19M	4.42M	2.79M	2.03M
Total Liabilities	14.61M	13.53M	11.55M	14.18M	11.22M	4.94M
Stockholders Equity	61.34M	51.41M	44.61M	41.46M	65.93M	25.76M
Cash Flow
Free Cash Flow	9.08M	6.26M	3.41M	-700.00K	-1.11M	-274.00K
Operating Cash Flow	9.13M	6.28M	3.50M	-411.00K	-1.01M	647.00K
Investing Cash Flow	-45.00K	-27.00K	3.70M	-1.70M	-9.87M	-921.00K
Financing Cash Flow	4.00M	1.59M	-2.31M	-54.00K	650.00K	13.67M

Crexendo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 6.74 is above the 20-day moving average (MA) of 6.63, above the 50-day MA of 6.54, and above the 200-day MA of 5.95, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 38.95 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	$207.90M	20.37	10.54%	―	17.27%	39.41%
CXDO	75 Outperform	$207.13M	47.62	7.87%	―	12.91%	222.63%
ATNI	63 Neutral	$341.77M	-24.20	-1.70%	4.63%	-3.10%	66.00%
OOMA	62 Neutral	$327.34M	143.47	2.59%	―	4.22%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KORE	55 Neutral	$80.68M	―	―	―	0.06%	55.55%
RBBN	50 Neutral	$510.37M	-11.67	-11.40%	―	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.

Crexendo Board to Review Composition After Director’s Passing

On September 22, 2025, Jeffrey Bash, a long-standing member of Crexendo, Inc.’s Board of Directors, passed away at the age of 83. His contributions since 2013 were instrumental to the company’s growth. The board plans to review its composition following his passing.

Crexendo’s Chief Strategy Officer Resigns Effective December

On October 27, 2025, Anand J. Buch, Chief Strategy Officer of Crexendo, Inc., announced his resignation effective December 31, 2025. His departure is not due to any disagreements with the company, and he will continue part-time as a strategic advisor, focusing on licensee engagement.