Crexendo Announces Strong Third Quarter 2026 Results

PHOENIX, AZ / ACCESS Newswire / November 3, 2026 / Crexendo, Inc. (NASDAQ:CXDO), an award-winning software technology company that is a premier provider of cloud communication platform software and unified communications as a service (UCaaS) offerings, including voice, video, contact center, and managed IT services tailored to businesses of all sizes, today announced financial results for the third quarter ended September 30, 2026.

Third Quarter Financial highlights:

• Total revenue increased 44% year-over-year to $25.2 million
• GAAP net income of $1.1 million, or $0.03 per basic and diluted common share.
• Non-GAAP net income of $4.0 million, or $0.12 per basic and diluted common share.
• Adjusted EBITDA of $4.0 million, compared to $2.9 million for the third quarter of 2025.

Financial Results for the Third Quarter of 2026

Total Revenue: Consolidated total revenue for the third quarter of 2026 increased 44%, or $7.7 million, to $25.2 million compared to $17.5 million for the third quarter of 2025.

Service Revenue: Consolidated service revenue for the third quarter of 2026 increased 75%, or $6.4 million, to $15.1 million compared to $8.6 million for the third quarter of 2025.

Software Solutions Revenue: Consolidated software solutions revenue for the third quarter of 2026 increased 2%, or $0.2 million, to $7.7 million compared to $7.5 million for the third quarter of 2025.

Product Revenue: Consolidated product revenue for the third quarter of 2026 increased 78%, or $1.1 million, to $2.4 million compared to $1.4 million for the third quarter of 2025.

Operating Expenses: Consolidated operating expenses for the third quarter of 2026 increased 49%, or $7.9 million, to $24.1 million compared to $16.2 million for the third quarter of 2025.

Net Income/(Loss): The Company reported net income of $1.1 million for the third quarter of 2026, or $0.03 per basic and diluted common share, compared to net income of $1.5 million, or $0.05 per basic and diluted common share for the third quarter of 2025.

Non-GAAP: Non-GAAP net income of $4.0 million for the third quarter of 2026, or $0.12 per basic and diluted common share, compared to non-GAAP net income of $3.0 million or $0.10 per basic and diluted common share for the third quarter of 2025.

EBITDA and Adjusted EBITDA: EBITDA for the third quarter of 2026 of $3.0 million compared to $2.0 million for the third quarter of 2025. Adjusted EBITDA for the third quarter of 2026 of $4.0 million compared to $2.9 million for the third quarter of 2025.

Financial Results for the nine months ended September 30, 2026

Total Revenue: Consolidated total revenue for the nine months ended September 30, 2026 increased 41%, or $20.4 million, to $70.5 million compared to $50.1 million for the nine months ended September 30, 2025.

Service Revenue: Consolidated service revenue for the nine months ended September 30, 2026 increased 61%, or $15.3 million, to $40.5 million compared to $25.2 million for the nine months ended September 30, 2025.

Software Solutions Revenue: Consolidated software solutions revenue for the nine months ended September 30, 2026 increased 6%, or $1.4 million, to $22.7 million compared to $21.4 million for the nine months ended September 30, 2025.

Product Revenue: Consolidated product revenue for the nine months ended September 30, 2026 increased 104%, or $3.7 million, to $7.3 million compared to $3.6 million for the nine months ended September 30, 2025.

Operating Expenses: Consolidated operating expenses for the nine months ended September 30, 2026 increased 41%, or $21.4 million, to $68.0 million compared to $46.5 million for the nine months ended September 30, 2025.

Net Income/(Loss): The Company reported net income of $2.7 million for the nine months ended September 30, 2026, or $0.08 per basic and diluted common share, compared to net income of $3.9 million, or $0.13 per basic common share and $0.12 per diluted common share for the nine months ended September 30, 2025.

Non-GAAP: Non-GAAP net income of $11.3 million for the nine months ended September 30, 2026, or $0.35 per basic common share and $0.34 per diluted common share, compared to non-GAAP net income of $8.6 million or $0.29 per basic common share and $0.27 per diluted common share for the nine months ended September 30, 2025.

EBITDA and Adjusted EBITDA: EBITDA for the nine months ended September 30, 2026 of $7.5 million compared to $6.0 million for the nine months ended September 30, 2025. Adjusted EBITDA for the nine months ended September 30, 2026 of $11.3 million compared to $8.4 million for the nine months ended September 30, 2025.

Cash and Cash Equivalents: Total cash and cash equivalents at September 30, 2026 was $22.8 million compared to $31.4 million at December 31, 2025.

Cash Flow: Cash provided by operating activities for the nine months ended September 30, 2026 was $9.7 million compared to cash provided by operating activities of $7.0 million for the nine months ended September 30, 2025. Cash used in investing activities for the nine months ended September 30, 2026 was ($26.2) million compared to nil for the nine months ended September 30, 2025. Cash provided by financing activities for the nine months ended September 30, 2026 was $8.0 million compared to cash provided by financing activities of $3.4 million for the first nine months of 2025.

Management Commentary

"Crexendo delivered another exceptional and profitable quarter, with total revenue of $25.2 million up 44% year-over-year; adjusted EBITDA of $4.0 million compared to $2.9 million for the third quarter of 2025; and cash and cash equivalents of $22.8 million," said Jeff Korn, Chief Executive Officer and Chairman of the Board. "We remain strongly GAAP profitable, and have very strong EBITDA, which is telling as it does not include intangible costs associated with our recent acquisition. I am particularly excited that through the third quarter, we have already won more new platform logos than we secured in all of last year. Q3 saw us secure an additional 5 new licensees to bring our YTD total to 16 compared to 14 for all of 2025. These wins expand the foundation for future organic growth as providers migrate subscribers to NetSapiens, grow their businesses and purchase additional capacity. With our solutions now supporting more than eight million end users, we have a substantial opportunity to deepen customer relationships and expand recurring revenue.

"The integration of ESI has gone seamlessly, reinforcing our confidence in our ability to identify and successfully integrate strategic, accretive acquisitions. We are actively evaluating additional opportunities to accelerate growth while remaining focused on maximizing organic growth across our business. The exceptional response to our preview of our new platform software release, NetSapiens Flow, at our largest-ever User Group Meeting last week, together with our expanding AI ecosystem and continued progress with CAIRO, gives me tremendous confidence in our product roadmap and long-term opportunity. By combining innovation, disciplined expense management and selective acquisitions, we believe we are well positioned to deliver sustainable, profitable growth and build lasting and increasing shareholder value."

Conference Call

Crexendo management will hold a conference call today, November 3, 2026, at 4:30 PM Eastern time to discuss these results. Company CEO Jeff Korn, CFO Ron Vincent, and President and COO Doug Gaylor will host the call, followed by a question-and-answer period.

Dial-in Numbers:
Domestic Participants: 888-506-0062
International Participants: 973-528-0011
Participant Access Code: 495191

Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 550804 and the Crexendo earnings call. A replay of the call will be available until November 17, 2026, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 54653.

About Crexendo

Crexendo, Inc. is an award-winning software technology company that is a premier provider of cloud communication platform and services, video collaboration and managed IT services tailored to businesses of all sizes. The Company's solutions currently support over eight million end users globally through its extensive global network of over 250 cloud communication platform software subscribers and its direct retail offering.

Safe Harbor Statement

This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. Specific forward-looking statements in this press release include Crexendo (i) delivering another exceptional quarter; (ii) having very strong EBITDA which is telling as it does not include intangible costs associated with the recent acquisition; (iii) being excited that through the third quarter it has already won more new platform logos than was secured in all of last year; (iv) believing that these wins expand the foundation for future organic growth as providers migrate subscribers to NetSapiens, grow their businesses and purchase additional capacity; (v) having a substantial opportunity to deepen customer relationships and expand recurring revenue; (vi) believing that the integration of ESI has gone seamlessly, reinforcing confidence in the ability to identify and successfully integrate strategic, accretive acquisitions; (vii) being actively evaluating additional opportunities to accelerate growth while remaining focused on maximizing organic growth across the business; (viii) believing the exceptional response to the preview of the new platform software release, NetSapiens Flow, together with the expanding AI ecosystem and continued progress with CAIRO, gives tremendous confidence in the product roadmap and long-term opportunity; and (ix) believing that by combining innovation, disciplined expense management and selective acquisitions that it is well positioned to deliver sustainable, profitable growth and build lasting and increasing shareholder value.

For a more detailed discussion of risk factors that may affect Crexendo's operations and results, please refer to the company's Form 10-K for the year ended December 31, 2025, quarterly Form 10-Qs as filed with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the company undertakes no obligation to update such forward-looking statements, except as required by law.

Company Contact

Crexendo, Inc.
Doug Gaylor
President and Chief Operating Officer
602-732-7990
[email protected]

CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
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CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
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CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
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Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use non-generally accepted accounting principles ("Non-GAAP") net income and Adjusted EBITDA as a supplemental measure of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to evaluate results without the effects of share-based compensation and related taxes, acquisition related expenses, changes in fair value of contingent consideration, amortization of intangibles, and goodwill and long-lived asset impairment. We define EBITDA as U.S. GAAP net income/(loss) before interest expense, interest income and other expense/(income), the gain/(loss) on the sale of property and equipment, goodwill and long-lived asset impairments, benefit/(provision) for income tax, and depreciation and amortization. We believe EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define Adjusted EBITDA as EBITDA adjusted for acquisition related expenses, changes in fair value of contingent consideration and share-based compensation and related taxes. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We also believe use of Adjusted EBITDA facilitates investors' use of operating performance comparisons from period to period, as well as across companies.

In our November 3, 2026 earnings press release, as furnished on Form 8-K, we included Non-GAAP net income, EBITDA and Adjusted EBITDA. The terms Non-GAAP net income, EBITDA, and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA, and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income/(loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

• EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
• they do not reflect changes in, or cash requirements for, our working capital needs;
• they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;
• they do not reflect income taxes or the cash requirements for any tax payments;
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
• while share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and
• other companies may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income, EBITDA, and Adjusted EBITDA only as supplemental support for management's analysis of business performance. Non-GAAP net income, EBITDA and Adjusted EBITDA are calculated as follows for the periods presented.

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the SEC, we are presenting the most directly comparable U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures.

Reconciliation of U.S. GAAP Net Income/(Loss) to Non-GAAP Net Income
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Reconciliation of U.S. GAAP Net Income/(Loss) to EBITDA to Adjusted EBITDA
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(1) For the three months ended September 30, 2026 and 2025, employer payroll tax expense related to share-based compensation was $10 and $33, respectively. For the nine months ended September 30, 2026 and 2025, employer payroll tax expense related to share-based compensation was $95 and $168, respectively.

SOURCE: Crexendo, Inc.