Crexendo (NASDAQ:CXDO) Announces Quarterly Earnings Results

07 May 2026, 15:43 by Amy Steele · The Cerbat Gem

Crexendo (NASDAQ:CXDO – Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.08 by $0.02, FiscalAI reports. The company had revenue of $20.71 million for the quarter, compared to the consensus estimate of $19.63 million. Crexendo had a return on equity of 14.49% and a net margin of 6.15%.

Here are the key takeaways from Crexendo’s conference call:

Crexendo reported a strong quarter with $20.7M revenue (up 29% YoY), GAAP net income of $0.6M and non‑GAAP net income of $3.3M, marking its 11th consecutive GAAP profitable quarter.
The March 1 acquisition of Estech Systems (ESI) contributed about $2.1M in the quarter, integration is “ahead of plan,” and ESI added materially to backlog and near‑term sales activity.
Product innovation and AI are strategic drivers — the newly launched CAIRO AI receptionist/orchestrator and a growing EVP partner program (48 partners, 11 AI-focused) are expected to boost ARPU and licensee monetization.
Organic performance remains healthy (management expects sustained double‑digit organic growth excluding ESI) and remaining performance obligations rose to $135.6M, but visibility on ESI’s sustained monthly run‑rate is limited with only one month of included results.
Operating expenses rose (~$3.2M excluding ESI) and margin headwinds included OCI migration costs, acquisition‑related charges (~$800K), and increased product sales at low margins, leaving operating margin at 2% this quarter.

Crexendo Trading Up 0.4%

Shares of CXDO traded up $0.04 during midday trading on Thursday, reaching $9.78. 397,318 shares of the stock were exchanged, compared to its average volume of 206,301. Crexendo has a 52 week low of $5.08 and a 52 week high of $9.84. The company’s 50 day moving average is $6.52 and its two-hundred day moving average is $6.60. The company has a market capitalization of $304.65 million, a P/E ratio of 65.50 and a beta of 0.93.

Trending Headlines about Crexendo

Here are the key news stories impacting Crexendo this week:

Positive Sentiment: Needham & Company raised its price target to $12.00 and reiterated a Buy rating, implying material upside and likely attracting buyer interest. Article Title
Positive Sentiment: Q1 2026 results beat estimates: revenue $20.7M (≈29% YoY) and EPS $0.10 vs. consensus $0.08, with GAAP net income ~ $0.6M — evidence of accelerating top‑line growth and improving profitability that supports re‑rating risk. Article Title
Positive Sentiment: Management will present at two investor conferences (Needham and LD Micro) next week, which should increase sell‑side/investor visibility and give management a forum to discuss the ESI acquisition and 11 consecutive quarters of GAAP profitability. Article Title
Positive Sentiment: Media coverage frames the quarter as “momentum building” and highlights accelerating growth — narrative support that can fuel further investor interest following the beat and upgrade. Article Title
Neutral Sentiment: Earnings call transcript and analyst notes provide detail on customer wins, margin drivers and product mix; useful for assessing sustainability but not an immediate catalyst on their own. Article Title
Negative Sentiment: Insider selling: CEO Jeffrey Korn disclosed sales totaling 30,000 shares (May 4–6) and COO Douglas Gaylor sold 30,000 shares in the same window. Large insider disposals can create short‑term selling pressure and raise questions for some investors about timing of liquidity. (CEO filing: Read More.; COO filing: Read More..)

Insider Transactions at Crexendo

In other Crexendo news, COO Douglas Walter Gaylor sold 20,000 shares of the stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $9.37, for a total value of $187,400.00. Following the completion of the sale, the chief operating officer directly owned 231,413 shares in the company, valued at approximately $2,168,339.81. This trade represents a 7.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CRO Jon Brinton sold 114,795 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $9.14, for a total value of $1,049,226.30. Following the completion of the sale, the executive owned 114,795 shares of the company’s stock, valued at approximately $1,049,226.30. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 195,277 shares of company stock worth $1,719,800 over the last quarter. 47.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Crexendo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CXDO. Geode Capital Management LLC raised its stake in Crexendo by 120.1% in the second quarter. Geode Capital Management LLC now owns 318,001 shares of the company’s stock valued at $1,930,000 after buying an additional 173,530 shares during the last quarter. Jacobs Levy Equity Management Inc. purchased a new stake in Crexendo in the third quarter valued at about $805,000. Informed Momentum Co LLC purchased a new stake in Crexendo in the fourth quarter valued at about $717,000. NewEdge Advisors LLC raised its stake in Crexendo by 659.7% in the fourth quarter. NewEdge Advisors LLC now owns 112,353 shares of the company’s stock valued at $727,000 after buying an additional 97,563 shares during the last quarter. Finally, Goldman Sachs Group Inc. purchased a new stake in Crexendo in the first quarter valued at about $431,000. 9.53% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have commented on CXDO shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Crexendo in a research report on Wednesday, April 8th. Needham & Company LLC upped their price objective on Crexendo from $9.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday. Wall Street Zen downgraded Crexendo from a “strong-buy” rating to a “buy” rating in a research report on Friday, January 23rd. Finally, Lake Street Capital reaffirmed a “buy” rating and issued a $11.00 price objective on shares of Crexendo in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $10.40.

Check Out Our Latest Research Report on CXDO

Crexendo Company Profile

(Get Free Report)

Crexendo, Inc (NASDAQ: CXDO) is a provider of cloud-based communications and collaboration solutions tailored to businesses of varying sizes. The company’s flagship offering, CXsuite, integrates enterprise-grade voice, video conferencing, instant messaging, presence, and contact center functionality into a single platform delivered over the internet. By leveraging hosted infrastructure and a subscription-based model, Crexendo aims to reduce on-premises hardware costs and simplify management for IT teams and resellers.

Crexendo’s product portfolio includes a multi-tenant cloud PBX, SIP trunking, session border controllers and an application programming interface (API) suite that allows partners and customers to embed real-time communications into custom workflows.