Crexendo (NASDAQ:CXDO) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Crexendo (NASDAQ:CXDO) announced its quarterly earnings results on Tuesday. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.02, FiscalAI reports. Crexendo had a net margin of 7.44% and a return on equity of 13.74%. The company had revenue of $20.71 million for the quarter, compared to analysts’ expectations of $19.63 million.

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 Stock Up 17.2%

Shares of NASDAQ CXDO traded up $1.43 during midday trading on Wednesday, hitting $9.74. The stock had a trading volume of 1,163,473 shares, compared to its average volume of 204,135. The business’s 50 day moving average is $6.44 and its 200-day moving average is $6.58. The company has a market cap of $303.40 million, a P/E ratio of 57.30 and a beta of 0.93. Crexendo has a 52 week low of $5.07 and a 52 week high of $9.78.

Insider Activity

In other news, CTO David Tzat-Kin Wang sold 20,482 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $7.00, for a total transaction of $143,374.00. Following the completion of the transaction, the chief technology officer directly owned 629,949 shares of the company’s stock, valued at $4,409,643. The trade was a 3.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 47.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Russell Investments Group Ltd. raised its holdings in shares of Crexendo by 2,260.1% during the fourth quarter. Russell Investments Group Ltd. now owns 28,274 shares of the company’s stock valued at $183,000 after purchasing an additional 27,076 shares during the last quarter. GWN Securities Inc. purchased a new position in shares of Crexendo during the fourth quarter valued at approximately $138,000. CreativeOne Wealth LLC raised its holdings in shares of Crexendo by 51.6% during the third quarter. CreativeOne Wealth LLC now owns 21,225 shares of the company’s stock valued at $138,000 after purchasing an additional 7,225 shares during the last quarter. Algert Global LLC raised its holdings in shares of Crexendo by 66.3% during the third quarter. Algert Global LLC now owns 20,891 shares of the company’s stock valued at $136,000 after purchasing an additional 8,331 shares during the last quarter. Finally, Diversify Advisory Services LLC purchased a new position in shares of Crexendo during the second quarter valued at approximately $125,000. 9.53% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Crexendo

Here are the key news stories impacting Crexendo this week:

• Positive Sentiment: Broker upgrade — Needham raised its price target to $12 and initiated/maintained a “Buy” stance, which signals institutional confidence and implies meaningful upside from current levels. Article Title
• Positive Sentiment: Quarterly beat — Crexendo reported Q1 revenue of $20.71M (vs. ~$19.63M consensus) and EPS of $0.10 (vs. $0.08 consensus), with revenue up ~29% year-over-year and GAAP net income of $0.6M — results that justify the market’s bullish reaction. Article Title
• Positive Sentiment: Strong investor interest — Trading volume spiked well above the stock’s average, indicating broad market attention and amplification of price moves after the earnings release and analyst action. Article Title
• Neutral Sentiment: Company disclosures & context — Management’s Q1 release and related materials provide detail on product and revenue mix that investors will parse on the call; the full earnings press release outlines the drivers behind the quarter. Article Title
• Neutral Sentiment: Earnings call transcript available — The Q1 2026 earnings call transcript can help investors assess management’s guidance, churn, upsell progress and margin outlook. Article Title
• Neutral Sentiment: Wall‑street commentary & previews — Coverage from Zacks, Chron and others summarizes key metrics vs. estimates and offers perspectives useful for short‑term trading and modelling. Article Title
• Negative Sentiment: Valuation & expectations — The stock trades at a relatively high P/E (reported ~57x), so further gains may depend on sustained top-line acceleration and margin expansion; any guidance shortfall could trigger profit-taking. Article Title

Wall Street Analyst Weigh In

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

About Crexendo

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.