Crexendo's Second-Quarter Revenue Growth Accelerates

The Tip Desk · August 4, 2026 · 3 min read

Total revenue rose 49% to $24.6 million as service sales and adjusted EBITDA expanded after the Estech Systems deal.

Crexendo, Inc. (CXDO), a cloud communication platform software and unified communications as a service provider, reported that year-over-year revenue growth accelerated in the second quarter ended June 30, 2026, after a slower first-quarter pace.

Total revenue increased 49%, or $8.1 million, to $24.6 million from $16.6 million a year earlier, after rising 29% in the first quarter of 2026. Service revenue, the largest line, increased 78%, or $6.5 million, to $14.9 million from $8.4 million a year earlier, after 29% growth in the prior quarter. Product revenue increased 104%, or $1.2 million, to $2.5 million from $1.2 million a year earlier. Software solutions revenue increased 5%, or $0.4 million, to $7.3 million from $7.0 million a year earlier.

GAAP net income was $1.1 million, or $0.03 a share, compared with $1.2 million, or $0.04 a share, a year earlier. Non-GAAP net income was $4.1 million, or $0.12 a share, compared with $2.9 million, or $0.10 basic and $0.09 diluted a share, a year earlier. Adjusted EBITDA was $4.1 million, up 46% from $2.8 million a year earlier. EBITDA was $3.0 million.

Operating expenses increased 53%, or $8.1 million, to $23.6 million from $15.4 million a year earlier, faster than the 36% increase recorded in the first quarter of 2026. Selling and marketing expense was $8.0 million, general and administrative expense was $5.3 million, and research and development expense was $1.8 million. Cost of service revenue was $4.9 million, cost of software solutions revenue was $2.2 million, and cost of product revenue was $1.4 million. Income from operations was $1.1 million.

Chief Executive Officer and Chairman Jeff Korn said the company secured eleven new platform logos through the second quarter of 2026, compared with two over the same period last year, and said those wins should provide a recurring revenue opportunity as customers convert subscriber bases, expand, and purchase additional licenses. He said the Estech Systems acquisition was performing as hoped, that integration was progressing well, and that sales were exceeding initial expectations. Korn said recently released AI offerings were not yet meaningful contributors to revenue and that he expects AI-related revenue can become meaningful in 2027.

Cash and cash equivalents were $18.3 million at June 30, 2026, down from $31.4 million at December 31, 2025. For the six months ended June 30, 2026, cash provided by operating activities was $4.8 million, up 89% from $2.5 million a year earlier. Cash used in investing activities was $26.2 million, versus nil a year earlier, reflecting the ESI acquisition. Cash provided by financing activities was $8.3 million. Intangible assets, net, were $38.3 million at June 30, 2026, and goodwill was $14.2 million. Stock issued for the acquisition of a business was $7.4 million.

Korn said the increased cash generation strengthens the balance sheet and provides flexibility to pursue additional strategic M&A while seeking to minimize dilution.