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Crexendo
(NASDAQ:CXDO)
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Rating:69Neutral
Price Target:
$8.00
▲(20.85% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by strong financial performance—low leverage and solid free cash flow alongside a clear profitability turnaround—tempered by margin volatility. The latest earnings call supports the outlook with reiterated double-digit organic growth targets and strong RPO-driven visibility, while valuation is a notable headwind due to a high P/E. Technically, indicators are mixed with neutral RSI but negative MACD and the stock below its 50-day average.
Positive Factors
Conservative balance sheet / low leverage
Very low leverage (debt-to-equity ~0.07) gives Crexendo durable financial flexibility to fund strategic initiatives, absorb integration costs, and withstand macro stress without relying on equity dilution. This structural strength supports disciplined M&A and long-term investment optionality.
Negative Factors
Operating and EBITDA margin volatility
Significant swings in operating and EBITDA margins reduce earnings predictability. Even with strong gross margins, variability—partly from integration and cost mix—can persist for several quarters, complicating planning and limiting the company's ability to sustainably convert revenue gains into durable operating profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low leverage (debt-to-equity ~0.07) gives Crexendo durable financial flexibility to fund strategic initiatives, absorb integration costs, and withstand macro stress without relying on equity dilution. This structural strength supports disciplined M&A and long-term investment optionality.
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
$223.02M
Dividend YieldN/A
Average Volume (3M)560.71K
Price to Earnings (P/E)45.9
Beta (1Y)1.90
Revenue Growth16.31%
EPS Growth67.84%
CountryUS
Employees193
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding32,415,375
10 Day Avg. Volume605,093
30 Day Avg. Volume560,711
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.00Price Target Upside66.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.42
Revenue Forecast (FY)$98.39M
Crexendo Business Overview & Revenue Model
Company Description
Crexendo, Inc. (trading as CXDO) delivers a broad spectrum of cloud-based business solutions to clients across the United States, Canada, and various international regions. Their service portfolio encompasses cloud communication, unified communica...
How the Company Makes Money
Crexendo primarily makes money by selling cloud-based communications services to business customers, typically on a subscription basis. Revenue is generated from recurring service fees for hosted voice and unified communications features (e.g., ca...
Crexendo Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a decidedly positive operational and financial trajectory: strong overall revenue growth (49% y/y), robust service and product revenue gains, healthy adjusted EBITDA and margin expansion, accelerating platform wins (11 new logos YTD vs 2 prior year) and a well-received ESI acquisition that is already contributing revenue and synergies. Near-term headwinds include a softer-than-expected quarterly organic growth rate (driven by a pullback in perpetual license deals and comparability to a record prior quarter), higher operating expenses largely from the acquisition, and early-stage AI monetization. On balance, the strengths (top-line acceleration, margin recovery, cash generation, RPO growth and successful acquisition integration) materially outweigh the transitory challenges.Positive Updates
Strong Top-Line Growth
Total revenue of $24.6M, up 49% year-over-year, beating analyst expectations; consolidated organic revenue +7% for the quarter and +11% year-to-date (in line with guidance).
Negative Updates
Quarterly Organic Growth Was Moderately Soft
Consolidated organic revenue grew only 7% year-over-year in the quarter (management attributes part of the weakness to a $700k decline in perpetual license revenue and a record Q2 2025 that included outsized orders).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $24.6M, up 49% year-over-year, beating analyst expectations; consolidated organic revenue +7% for the quarter and +11% year-to-date (in line with guidance).
Read all positive updates
Company Guidance
Management reiterated a disciplined, growth‑oriented outlook: they expect to deliver double‑digit organic revenue growth for FY2026 (YTD organic 11%) and target a $100 million revenue run‑rate by year‑end 2026, with AI‑related revenue becoming “meaningful” in 2027 and a major software release (Volume 46 with redesigned UI) planned for Q2 2027. Financial targets include maintaining adjusted EBITDA margin around 17% (Q2 adjusted EBITDA $4.1M), continuing operating margin improvement (Q2 operating margin 4%) and further gross margin gains after Q2 segment margins of ~70% for Software Solutions, ~67% for Services and 44% for Product (consolidated gross margin ~66%). They emphasized strong cash flexibility after ending Q2 with $18.3M in cash (after $26.2M cash paid for ESI), YTD operating cash flow of $4.8M (up 89% YoY), Q2 free cash flow $2.8M (up 35% sequentially), a remaining performance obligation of $139M (up 97% YoY) and a commitment to pursue only strategic, accretive M&A without substantially diluting shareholders.Crexendo Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.91M | 68.17M | 60.84M | 53.20M | 37.55M | 28.09M |
| Gross Profit | 37.50M | 42.90M | 37.74M | 31.64M | 23.87M | 17.43M |
| EBITDA | 9.20M | 8.69M | 5.26M | 3.42M | -33.35M | -1.20M |
| Net Income | 4.30M | 5.07M | 1.68M | -362.00K | -35.41M | -2.44M |
Balance Sheet | ||||||
| Total Assets | 101.04M | 77.69M | 64.94M | 56.16M | 55.63M | 77.15M |
| Cash, Cash Equivalents and Short-Term Investments | 18.29M | 31.38M | 18.19M | 10.35M | 5.47M | 7.47M |
| Total Debt | 5.64M | 1.14M | 2.12M | 2.19M | 4.42M | 2.79M |
| Total Liabilities | 22.93M | 13.87M | 13.53M | 11.55M | 14.18M | 11.22M |
| Stockholders Equity | 78.11M | 63.82M | 51.41M | 44.61M | 41.46M | 65.93M |
Cash Flow | ||||||
| Free Cash Flow | 11.55M | 9.28M | 6.26M | 3.41M | -700.00K | -1.11M |
| Operating Cash Flow | 11.55M | 9.30M | 6.28M | 3.50M | -411.00K | -1.01M |
| Investing Cash Flow | -26.21M | -18.00K | -27.00K | 3.70M | -1.70M | -9.87M |
| Financing Cash Flow | 9.53M | 3.88M | 1.59M | -2.31M | -54.00K | 650.00K |
Crexendo Technical Analysis
Negative
6.62
Price Trends
7.74
Negative
7.54
Negative
7.08
Negative
Market Momentum
-0.23
Positive
39.78
Neutral
55.27
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 6.62 is below the 20-day moving average (MA) of 7.37, below the 50-day MA of 7.74, and below the 200-day MA of 7.08, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.27 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 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 | $171.40M | 13.47 | 11.33% | ― | 15.77% | 40.61% | |
69 Neutral | $223.02M | 45.93 | 6.99% | ― | 16.31% | 67.84% | |
68 Neutral | $598.13M | 65.95 | 10.01% | ― | 11.70% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $366.22M | -27.06 | -1.96% | 4.71% | 1.29% | 57.21% | |
51 Neutral | $376.94M | 23.41 | 3.85% | ― | -7.62% | ― |
* Communication Services Sector Average
CXDO
Crexendo
6.63
0.67
11.16%
ATNI
ATN International
24.01
8.30
52.87%
RDCM
Radcom
10.01
-3.20
-24.22%
RBBN
Ribbon Communications
2.15
-1.64
-43.27%
OOMA
Ooma
21.49
10.08
88.34%
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.