Crexendo Inc. (CXDO)
NASDAQ:CXDO
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Crexendo
(NASDAQ:CXDO)
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Rating:74Outperform
Price Target:
$10.50
▲(58.85% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving fundamentals (profitability and strong free cash flow alongside very low leverage) and a positive earnings outlook with expanding backlog/RPO. These strengths are tempered by expensive valuation (high P/E, no dividend yield provided) and technically stretched momentum (overbought signals), which elevates downside risk if execution or margins soften.
Positive Factors
Conservative balance sheet / low leverage
Minimal debt (about $1.0M TTM) and debt/equity near 0.01–0.02, with shareholders' equity rising from $44.6M (2023) to $72.7M (TTM). This durable capital structure reduces refinancing and solvency risk, preserves optionality for M&A, and supports multi‑quarter operations.
Negative Factors
Post‑acquisition cash reduction / liquidity pressure
Large cash outflow to fund ESI materially reduced liquidity and increased reliance on new credit facilities. This tightens the short‑term liquidity buffer and raises the importance of timely integration benefits and working capital management to avoid covenant or funding stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Minimal debt (about $1.0M TTM) and debt/equity near 0.01–0.02, with shareholders' equity rising from $44.6M (2023) to $72.7M (TTM). This durable capital structure reduces refinancing and solvency risk, preserves optionality for M&A, and supports multi‑quarter operations.
Read all positive factors
Crexendo Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region to show where Crexendo is gaining traction and where it’s most exposed to local economic cycles or competition. Reveals concentration risk if most revenue comes from a single market and points to geographic opportunities for expansion.
Breaks down sales by region to show where Crexendo is gaining traction and where it’s most exposed to local economic cycles or competition. Reveals concentration risk if most revenue comes from a single market and points to geographic opportunities for expansion.
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The Fly
The FlyCrexendo (CXDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$322.70M
Dividend YieldN/A
Average Volume (3M)409.72K
Price to Earnings (P/E)69.6
Beta (1Y)1.69
Revenue Growth16.31%
EPS Growth67.84%
CountryUS
Employees179
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding32,415,375
10 Day Avg. Volume476,860
30 Day Avg. Volume409,721
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)3.01
Price to Sales (P/S)2.82
P/FCF Ratio20.70
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue4.35
Enterprise Value/Gross Profit6.74
Enterprise Value/Ebitda34.63
Forecast
1Y Price Target
$10.80Price Target Upside63.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.42
Revenue Forecast (FY)$98.39M
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, Clo...
How the Company Makes Money
Crexendo makes money primarily through (1) recurring subscription and usage-based fees from delivering cloud communications services (e.g., hosted voice/unified communications and related service bundles) to business customers, and (2) software re...
Crexendo Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and strategic picture: robust top-line growth (29% YoY), sustained GAAP and non-GAAP profitability, material backlog expansion, and promising early results from the ESI acquisition and newly launched AI offerings (CAIRO). Near-term headwinds — cash reduction driven by acquisition payments, temporary margin pressure from OCI migration and low-margin product sales, and acquisition-related expenses — are management-framed as short-term and manageable while highlighting expected synergies, margin recovery, and disciplined use of debt to fund accretive M&A. Overall, the positives (growth, profitability, RPO expansion, product/AI momentum, integration progress) materially outweigh the transitory negatives.Positive Updates
Strong Revenue Growth
Consolidated revenue of $20.7M, up 29% year-over-year; organic revenue growth of 15.9% excluding the ESI acquisition contribution.
Negative Updates
Cash Reduction After Acquisition
Cash and cash equivalents fell to $7.2M at quarter end from $31.4M at Dec 31, 2025, driven by $26.2M of investing activity to fund the ESI acquisition; operating activities provided $2M of cash in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Consolidated revenue of $20.7M, up 29% year-over-year; organic revenue growth of 15.9% excluding the ESI acquisition contribution.
Read all positive updates
Company Guidance
Management guided to sustained double‑digit organic growth for 2026 (excluding ESI) and reiterated a trajectory toward a $100M revenue run‑rate, noting the ESI acquisition contributed $2.1M in March and helped drive Q1 consolidated revenue of $20.7M (+29% YoY; organic +15.9%). Key Q1 metrics: service revenue $10.6M (+29%, 63% gross margin), software solutions $7.7M (+12%, 68% GM), product revenue $2.4M (+141%, 31% GM), consolidated gross margin ~61%; GAAP net income $0.6M ($0.02/sh), non‑GAAP net income $3.3M ($0.10/sh), EBITDA $1.6M, adjusted EBITDA $3.2M, marking 11 consecutive GAAP‑profitable quarters and 30 consecutive quarters of non‑GAAP profitability. They reported operating margin 2% (would be ~6–7% excluding ~$800k acquisition costs), operating cash flow +$2.0M, investing cash use -$26.2M (acquisition), cash $7.2M (vs. $31.4M at 12/31/25), RPO up to ~$135.6M (from $89.1M; $46M of RPO remaining for 2026), and closed a $5M term loan plus a $5M revolver (undrawn); management expects margin expansion and 1–2% service gross margin improvement next quarter, OCI hosting savings over time, and ARPU upside from AI (CAIRO) of >25% on an average retail ARPA of ~$350/month, supported by an EVP ecosystem of 48 partners (11 focused on AI).Crexendo Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.82M | 68.17M | 60.84M | 53.20M | 37.55M | 28.09M |
| Gross Profit | 46.94M | 42.90M | 37.74M | 31.64M | 23.87M | 17.43M |
| EBITDA | 9.14M | 8.69M | 5.26M | 3.42M | -33.35M | -1.20M |
| Net Income | 4.48M | 5.07M | 1.68M | -362.00K | -35.41M | -2.44M |
Balance Sheet | ||||||
| Total Assets | 91.28M | 77.69M | 64.94M | 56.16M | 55.63M | 77.15M |
| Cash, Cash Equivalents and Short-Term Investments | 7.25M | 31.38M | 18.19M | 10.35M | 5.47M | 7.47M |
| Total Debt | 1.02M | 1.14M | 2.12M | 2.19M | 4.42M | 2.79M |
| Total Liabilities | 18.57M | 13.87M | 13.53M | 11.55M | 14.18M | 11.22M |
| Stockholders Equity | 72.71M | 63.82M | 51.41M | 44.61M | 41.46M | 65.93M |
Cash Flow | ||||||
| Free Cash Flow | 10.08M | 9.28M | 6.26M | 3.41M | -700.00K | -1.11M |
| Operating Cash Flow | 10.10M | 9.30M | 6.28M | 3.50M | -411.00K | -1.01M |
| Investing Cash Flow | -26.23M | -18.00K | -27.00K | 3.70M | -1.70M | -9.87M |
| Financing Cash Flow | 2.18M | 3.88M | 1.59M | -2.31M | -54.00K | 650.00K |
Crexendo Technical Analysis
Positive
6.61
Price Trends
7.60
Positive
7.10
Positive
6.81
Positive
Market Momentum
0.67
Positive
70.80
Negative
79.08
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 6.61 is below the 20-day moving average (MA) of 9.40, below the 50-day MA of 7.60, and below the 200-day MA of 6.81, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 70.80 is Negative, neither overbought nor oversold. The STOCH value of 79.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXDO.
Crexendo Risk Analysis
Crexendo disclosed 23 risk factors in its most recent earnings report. Crexendo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crexendo Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $248.23M | 19.69 | 11.33% | ― | 15.77% | 40.61% | |
74 Outperform | $322.70M | 69.57 | 6.99% | ― | 16.31% | 67.84% | |
73 Outperform | $488.85M | 52.85 | 10.01% | ― | 11.70% | ― | |
61 Neutral | $437.51M | -49.04 | -1.96% | 4.63% | 1.29% | 57.21% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $542.51M | 17.24 | 7.85% | ― | -1.15% | ― | |
53 Neutral | $161.63M | -2.37 | 45.15% | ― | -0.93% | 47.84% |
* Communication Services Sector Average
CXDO
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Crexendo Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Crexendo Secures New $10 Million Credit Facilities
Positive
May 5, 2026
On May 1, 2026, Crexendo, Inc. entered into a credit agreement with Wells Fargo Bank that establishes a $5 million revolving line of credit and a $5 million term loan maturing on May 1, 2029. The facilities are jointly and severally guaranteed by ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.