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

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

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 Performance

NASDAQ CXDO traded up $1.43 on Wednesday, reaching $9.74. 1,163,577 shares of the stock traded hands, compared to its average volume of 204,135. Crexendo has a 12 month low of $5.07 and a 12 month high of $9.78. The company has a market cap of $303.40 million, a price-to-earnings ratio of 57.30 and a beta of 0.93. The company has a fifty day moving average price of $6.44 and a 200-day moving average price of $6.58.

More Crexendo News

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

Insider Activity at Crexendo

In other news, CTO David Tzat-Kin Wang sold 20,482 shares of the firm’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $7.00, for a total transaction of $143,374.00. Following the transaction, the chief technology officer owned 629,949 shares in the company, valued at approximately $4,409,643. This trade represents a 3.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 47.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. increased its position in Crexendo by 2.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 94,318 shares of the company’s stock valued at $610,000 after purchasing an additional 2,260 shares during the period. Bank of America Corp DE boosted its stake in shares of Crexendo by 71.7% during the fourth quarter. Bank of America Corp DE now owns 6,174 shares of the company’s stock valued at $32,000 after purchasing an additional 2,578 shares in the last quarter. BNP Paribas Financial Markets boosted its stake in shares of Crexendo by 172.6% during the third quarter. BNP Paribas Financial Markets now owns 4,394 shares of the company’s stock valued at $29,000 after purchasing an additional 2,782 shares in the last quarter. Occudo Quantitative Strategies LP increased its holdings in Crexendo by 20.4% during the fourth quarter. Occudo Quantitative Strategies LP now owns 18,016 shares of the company’s stock valued at $117,000 after buying an additional 3,056 shares during the period. Finally, JPMorgan Chase & Co. increased its holdings in Crexendo by 56.2% during the third quarter. JPMorgan Chase & Co. now owns 10,676 shares of the company’s stock valued at $69,000 after buying an additional 3,841 shares during the period. 9.53% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

CXDO has been the subject of a number of recent analyst reports. Wall Street Zen lowered shares of Crexendo from a “strong-buy” rating to a “buy” rating in a research note on Friday, January 23rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Crexendo in a research note on Wednesday, April 8th. Needham & Company LLC lifted their price objective on shares of Crexendo from $9.00 to $12.00 and gave the company a “buy” rating in a report on Wednesday. Finally, Lake Street Capital reissued a “buy” rating and issued a $11.00 price objective on shares of Crexendo in a research report on Wednesday. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $10.40.

Crexendo Company Profile

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.