Crexendo (CXDO) AI Stock Analysis

• Market Cap: $218.50M
• Dividend Yield: N/A
• Average Volume (3M): 120.82K
• Price to Earnings (P/E): 48.8
• Beta (1Y): 1.72
• 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: 152,300
• 30 Day Avg. Volume: 120,822
• 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: 0.86
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: 23.59
• 1Y Price Target: $8.90
• Price Target Upside: 29.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $7.00 ▲(1.74% Upside)

CXDO scores positively on improved financial fundamentals (returned profitability, growing free cash flow, and very low leverage) and a constructive earnings update with strong YoY revenue growth and higher cash. Offsetting this, technical momentum is currently soft and valuation appears expensive (P/E ~46.6 with no dividend yield provided).

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. 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

Financials show a meaningful turnaround: profitability is solid (TTM gross margin ~67%, net margin ~6.6%), cash flow is positive with strong FCF growth (~44%), and leverage is very low (debt-to-equity ~0.02). The main constraint is slower top-line momentum (TTM revenue growth ~2.9%).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability: gross margin is strong (~67%) and the company is meaningfully profitable (about 6.6% net margin), a clear improvement from the losses seen in 2021–2023 and the sharp drawdown in 2022. Profitability has also stepped up versus 2024 (net margin ~2.8%). The main weakness is growth: revenue is up only ~2.9% in TTM (Trailing-Twelve-Months), well below the faster growth posted in prior years, suggesting momentum has moderated.

Balance Sheet

The balance sheet looks conservative with very low leverage: total debt is modest and debt-to-equity is extremely low in TTM (Trailing-Twelve-Months) (~0.02), improving from prior years. Equity has grown versus 2023–2024, and returns on equity are positive again in TTM (Trailing-Twelve-Months) (~7.7%) after being negative in multiple earlier periods. The key watch item is that returns remain moderate rather than high, indicating the business is still in a rebuilding phase despite the cleaner capital structure.

Cash Flow

Cash generation is a strength: operating cash flow and free cash flow are both positive in TTM (Trailing-Twelve-Months), and free cash flow growth is strong (~44%). Free cash flow is closely aligned with net income (roughly 1:1), supporting earnings quality. The primary weakness is that cash generation relative to revenue remains only moderate (operating cash flow as a share of revenue is ~0.67% in TTM (Trailing-Twelve-Months)), even though it has improved from earlier years that included negative cash flow.

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: 6.88
• 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 6.88 is below the 20-day moving average (MA) of 6.95, above the 50-day MA of 6.77, and above the 200-day MA of 6.14, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 26.11 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	$201.81M	19.83	10.54%	―	17.27%	39.41%
CXDO	67 Neutral	$218.50M	48.83	7.87%	―	12.91%	222.63%
ATNI	63 Neutral	$352.90M	-24.10	-1.70%	4.63%	-3.10%	66.00%
OOMA	62 Neutral	$338.38M	151.76	2.59%	―	4.22%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KORE	55 Neutral	$85.77M	-1.30	―	―	0.06%	55.55%
RBBN	50 Neutral	$489.18M	-11.02	-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.

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.

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.

The most recent analyst rating on (CXDO) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Crexendo stock, see the CXDO Stock Forecast page.

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.

The most recent analyst rating on (CXDO) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Crexendo stock, see the CXDO Stock Forecast page.