Crexendo Inc (CXDO)
NASDAQ:CXDO
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Crexendo
(NASDAQ:CXDO)
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Rating:74Outperform
Price Target:
$7.00
▲(17.85% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by strengthened fundamentals (profitability and cash flow improvement plus a low-leverage balance sheet) and supportive earnings-call guidance around sustained growth and accretive M&A. These positives are tempered by weak technical momentum and a relatively high P/E that leaves less room for execution missteps, especially given historical earnings/cash flow volatility.
Positive Factors
Recurring revenue & profitable growth
Sustained double‑digit organic revenue growth combined with consecutive GAAP profitability indicates the core subscription/usage business has scaled to a durable profit-generating model. This improves predictability of cash flows and supports reinvestment and measured M&A over the coming 2–6 months.
Negative Factors
Historical earnings and cash‑flow volatility
The company moved from sizable losses and negative cash flow in 2021–2022 to profitability in 2024–2025; that sharp swing highlights execution sensitivity and makes it uncertain whether recent margins and cash generation will be fully repeatable without sustained execution and margin discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & profitable growth
Sustained double‑digit organic revenue growth combined with consecutive GAAP profitability indicates the core subscription/usage business has scaled to a durable profit-generating model. This improves predictability of cash flows and supports reinvestment and measured M&A over the coming 2–6 months.
Read all positive factors
Crexendo (CXDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$185.05M
Dividend YieldN/A
Average Volume (3M)206.50K
Price to Earnings (P/E)37.9
Beta (1Y)1.62
Revenue Growth12.91%
EPS Growth222.63%
CountryUS
Employees179
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding31,152,603
10 Day Avg. Volume132,262
30 Day Avg. Volume206,497
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 Cap0.84
Enterprise Value/Revenue2.27
Enterprise Value/Gross Profit2.87
Enterprise Value/Ebitda19.25
Forecast
1Y Price Target
$9.40Price Target Upside58.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.37
Revenue Forecast (FY)$97.17M
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 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows where sales are coming from geographically, indicating core markets, growth opportunities, and concentration risk. Helps assess exposure to local competition, regulation, or economic slowdowns and where the company can expand its footprint.
Shows where sales are coming from geographically, indicating core markets, growth opportunities, and concentration risk. Helps assess exposure to local competition, regulation, or economic slowdowns and where the company can expand its footprint.
Data provided by:
The Fly
The FlyCrexendo Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial trajectory: double-digit organic revenue growth, sustained GAAP profitability (10 consecutive profitable quarters), robust EBITDA and cash generation, significant user and platform scale expansion, completion of an important OCI migration, and a strategic acquisition (ESI) expected to be accretive. Lowlights included declines in product revenue, some quarter-specific gross-margin pressure, increased operating expenses due to strategic investments, and uncertainty because ESI’s results are unaudited and synergy timing is not finalized. Overall, the positives (growth, profitability, cash flow, scale and strategic AI and M&A initiatives) materially outweigh the negatives.Positive Updates
Double-Digit Organic Revenue Growth
Full-year revenue grew 12% year-over-year to $68.2 million. Fourth quarter revenue increased 11% year-over-year to $18.1 million, meeting the company's objective of profitable double-digit organic growth.
Negative Updates
Decline in Product Revenue
Product revenue decreased 16% for the full year to $4.7 million and declined 6% in the quarter to $1.1 million, reflecting a shift away from lower-margin product sales.
Read all updates
Q4-2025 Updates
Positive
Negative
Double-Digit Organic Revenue Growth
Full-year revenue grew 12% year-over-year to $68.2 million. Fourth quarter revenue increased 11% year-over-year to $18.1 million, meeting the company's objective of profitable double-digit organic growth.
Read all positive updates
Company Guidance
Management’s forward-looking guidance emphasized continued profitable, double-digit organic growth in 2026 (management reiterated a double‑digit organic growth target), a push to reach a ~$100 million revenue run rate by the end of 2026, and disciplined, accretive M&A (ESI acquired for $35.0M — $27.3M cash / $7.7M stock — ~1.35x unaudited 2025 revenue of ~$26M, ~80% recurring UCaaS, ~86% UCaaS gross margin; expected to increase Crexendo’s revenue, earnings and cash flow and to be accretive within two quarters once audited), while maintaining GAAP profitability (10th consecutive GAAP‑profitable quarter) and strong cash generation (FY2025 revenue $68.2M, net income $5.1M, non‑GAAP income $11.4M, adjusted EBITDA $11.2M or 17% of revenue, cash from operations $9.3M, non‑GAAP free cash flow $9.3M or 14% FCF margin, cash $31.4M). They expect similar customer acquisition costs post‑acquisition, no material one‑time capex that would meaningfully reduce FCF conversion (historically >50% of EBITDA to FCF), margin upside from OCI/data‑center consolidation and licensing optimization (ESI OCI migration expected this year), and product upside from AI (CAIRO could lift average retail ARPA from roughly $350/month by >25%); backlog/remaining performance obligations stood at $89.1M as an indicator of near‑term revenue.Crexendo Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
82
Very Positive
| 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
Negative
5.94
Price Trends
6.36
Negative
6.56
Negative
6.42
Negative
Market Momentum
-0.08
Positive
40.45
Neutral
35.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXDO, the sentiment is Negative. The current price of 5.94 is below the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.36, and below the 200-day MA of 6.42, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 35.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks
1.
Item 8. Financial statements and supplementary data Q4, 2025
2.
Recent Accounting Pronouncements Q4, 2025
3.
Off balance sheet arrangements Q4, 2025
Crexendo Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $202.62M | 18.42 | 11.24% | ― | 17.27% | 39.41% | |
74 Outperform | $185.05M | 37.87 | 8.50% | ― | 12.91% | 222.63% | |
72 Outperform | $382.25M | 20.48 | 7.20% | ― | 4.22% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $408.47M | -23.34 | -3.26% | 4.63% | -3.10% | 66.00% | |
55 Neutral | $433.74M | 12.80 | 10.15% | ― | 7.38% | 20.81% | |
54 Neutral | $160.92M | -1,321.16 | 45.15% | ― | 0.06% | 55.55% |
* Communication Services Sector Average
CXDO
Crexendo
5.94
1.47
32.89%
ATNI
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26.58
9.86
58.94%
RDCM
Radcom
12.14
0.94
8.39%
RBBN
Ribbon Communications
2.47
-1.04
-29.63%
OOMA
Ooma
13.90
1.72
14.12%
KORE
KORE Group Holdings
9.15
6.70
273.47%
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.