Crexendo Revenue Growth Cools After Second Quarter

The Tip Desk · November 3, 2026 · 2 min read

Third-quarter sales were $25.2 million, up 44% from a year earlier, as GAAP net income held at $1.1 million, or $0.03 a share.

Crexendo, Inc. (CXDO), a cloud communication platform software and UCaaS provider, reported third-quarter revenue of $25.2 million, up 44% from a year earlier, a slower year-over-year pace than the 49% increase posted in the second quarter.

Service revenue, the largest line, rose 75% to $15.1 million. Software solutions revenue increased 2% to $7.7 million. Product revenue rose 78% to $2.4 million.

GAAP net income was $1.1 million, or $0.03 a share, matching the second-quarter dollar and per-share result after $0.6 million, or $0.02 a share, in the first quarter. Non-GAAP net income was $4.0 million, or $0.12 a share. Adjusted EBITDA was $4.0 million, compared with $2.9 million in the third quarter of 2025. EBITDA was $3.0 million.

Operating expenses increased 49% to $24.1 million. Selling and marketing expense was $8.4 million, general and administrative expense $5.3 million, and research and development $1.8 million. Cost of service revenue was $4.9 million.

Chief Executive Officer Jeff Korn said the company delivered another profitable quarter and remained GAAP profitable, and that adjusted EBITDA does not include intangible costs associated with a recent acquisition. He said that through the third quarter the company had already won more new platform logos than it secured in all of last year, citing five additional licensees in the third quarter and a year-to-date total of 16 versus 14 for all of 2025. He said solutions now support more than eight million end users.

Korn said the integration of ESI has gone seamlessly, that the company is actively evaluating additional opportunities, and that a preview of NetSapiens Flow at a user-group meeting, an expanding AI ecosystem, and progress with CAIRO support the product roadmap. The company said it is a premier provider of cloud communication platform software and UCaaS offerings, including voice, video, contact center, and managed IT services, and that its solutions support over eight million end users through more than 250 cloud communication platform software subscribers and a direct retail offering.

Cash and cash equivalents were $22.8 million at September 30, 2026, compared with $31.4 million at December 31, 2025. For the nine months ended September 30, 2026, cash provided by operating activities was $9.7 million. Cash used in investing activities was $26.2 million, including $26.2 million for the acquisition of a business, net of cash acquired. Cash provided by financing activities was $8.0 million.

Intangible assets, net, were $36.5 million at September 30, 2026, compared with $17.9 million at year-end 2025. Goodwill was $14.2 million. Stock issued for the acquisition of a business was $7.4 million in the nine months. Weighted-average diluted shares outstanding in the third quarter were 34.2 million.