Crexendo Announces Strong Fourth Quarter and Fiscal Year 2025 Results
PHOENIX, ARIZONA / ACCESS Newswire / March 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 fourth quarter and fiscal year ended December 31, 2025.
Financial highlights:
Net income for the year of $5.1 million and non-GAAP net income of $11.4 million.
Revenue for the year of $68.2 million, up 12% year-over-year.
Fourth quarter net income of $1.2 million and non-GAAP net income of $2.8 million.
Fourth quarter revenue of $18.1 million, up 11% year-over-year.
Financial Results for the Fourth Quarter of 2025
Total Revenue: Consolidated total revenue for the fourth quarter of 2025 increased 11%, or $1.8 million, to $18.1 million compared to $16.2 million for the fourth quarter of 2024.
Service Revenue: Consolidated service revenue for the fourth quarter of 2025 increased 8%, or $0.6 million, to $8.6 million compared to $8.0 million for the fourth quarter of 2024.
Software Solutions Revenue: Consolidated software solutions revenue for the fourth quarter of 2025 increased 18%, or $1.3 million, to $8.3 million compared to $7.0 million for the fourth quarter of 2024.
Product Revenue: Consolidated product revenue for the fourth quarter of 2025 decreased 6%, or $(0.1) million, to $1.1 million compared to $1.2 million for the fourth quarter of 2024.
Operating Expenses: Consolidated operating expenses for the fourth quarter of 2025 increased 8%, or $1.3 million, to $16.9 million compared to $15.6 million for the fourth quarter of 2024.
Net Income/(Loss): The Company reported net income of $1.2 million for the fourth quarter of 2025, or $0.04 per basic and diluted common share, compared to net income of $0.5 million, or $0.02 per basic and diluted common share for the fourth quarter of 2024.
Non-GAAP: Non-GAAP net income of $2.8 million for the fourth quarter of 2025, or $0.09 per basic and diluted common share, compared to non-GAAP net income of $2.0 million or $0.07 per basic common share and $0.06 per diluted common share for the fourth quarter of 2024.
EBITDA and Adjusted EBITDA: EBITDA for the fourth quarter of 2025 of $2.0 million compared to $1.5 million for the fourth quarter of 2024. Adjusted EBITDA for the fourth quarter of 2025 of $2.8 million compared to $2.2 million for the fourth quarter of 2024.
Financial Results for the Full Year 2025
Total Revenue: Consolidated total revenue for the year ended December 31, 2025 increased 12%, or $7.3 million, to $68.2 million compared to $60.8 million for the year ended December 31, 2024.
Service Revenue: Consolidated service revenue for the year ended December 31, 2025 increased 6%, or $1.9 million, to $33.8 million compared to $31.8 million for the year ended December 31, 2024.
Software Solutions Revenue: Consolidated software solutions revenue for the year ended December 31, 2025 increased 27%, or $6.3 million, to $29.7 million compared to $23.4 million for the year ended December 31, 2024.
Product Revenue: Consolidated product revenue for the year ended December 31, 2025 decreased 16%, or $(0.9) million, to $4.7 million compared to $5.6 million for the year ended December 31, 2024.
Operating Expenses: Consolidated operating expenses for the year ended December 31, 2025 increased 8%, or $4.5 million, to $63.5 million compared to $59.0 million for the year ended December 31, 2024.
Net Income/(Loss): The Company reported net income of $5.1 million for the year ended December 31, 2025, or $0.17 per basic common share and $0.16 per diluted common share, compared to net income of $1.7 million, or $0.06 per basic and diluted common share for the year ended December 31, 2024.
Non-GAAP: Non-GAAP net income of $11.4 million for the year ended December 31, 2025, or $0.38 per basic common share and $0.36 per diluted common share, compared to non-GAAP net income of $7.7 million or $0.29 per basic common share and $0.26 per diluted common share for the year ended December 31, 2024.
EBITDA and Adjusted EBITDA: EBITDA for the year ended December 31, 2025 of $8.0 million compared to $5.2 million for the year ended December 31, 2024. Adjusted EBITDA for the year ended December 31, 2025 of $11.2 million compared to $8.2 million for the year ended December 31, 2024.
Cash and Cash Equivalents: Total cash and cash equivalents at December 31, 2025 was $31.4 million compared to $18.2 million at December 31, 2024.
Cash Flow: Cash provided by operating activities for the year ended December 31, 2025 was $9.3 million compared to cash provided by operating activities of $6.3 million for the year ended December 31, 2024. Cash used in investing activities was $(18) compared to cash used in investing activities of $(27) for the year ended December 31,2024. Cash provided by financing activities for the year ended December 31, 2025 was $3.9 million compared to cash provided by financing activities of $1.6 million for the year ended December 31, 2024.
Management Commentary
"I am extremely pleased with our 2025 performance and proud of the team that delivered on our commitments of profitable double digit organic growth," said Jeff Korn, Chairman and CEO. "We generated full-year net income of $5.1 million and non-GAAP net income of $11.4 million on revenue of $68.2 million, up 12% year-over-year. Fourth quarter revenue increased 11% to $18.1 million, with net income of $1.2 million and non-GAAP net income of $2.8 million, reflecting disciplined execution and sustained profitability. This was our tenth consecutive GAAP profitable quarter and our 29 th consecutive Non-GAAP profitable quarter. This month marks my third year as CEO. When the team and I assumed leadership in 2023, revenue was approximately $53 million, and the company was burning about $100,000 per month. Today, we are consistently cash flow positive, have grown annual revenue by more than $15 million, and expanded both profitability and EBITDA. Our platform has scaled meaningfully. We have grown from just over 4 million users 3 years ago to more than 7 million users today, representing approximately 75% growth in under three years. This scale underscores our product leadership, operational discipline, and partner-first strategy. Further we committed to a disciplined strategy of driving profitable organic growth while pursuing accretive acquisitions, and having successfully delivered on the organic component, our exciting announcement on the acquisition of ESI this week demonstrates how we will now accelerate that growth through strategic M&A."
Korn added "Customer service remains a core differentiator. We continue to lead the industry in G2 customer satisfaction rankings based on verified reviews. At the same time, we are aggressively advancing our AI strategy. Early feedback on CAIRO, our AI operator, has been highly encouraging, and we believe it has the potential to transform the SMB market by enabling small businesses to operate with enterprise-grade capabilities. Our innovation was recognized for the second consecutive year with the Generative AI Product of the Year award, along with 42 additional G2 Winter 2026 awards across Platform AI and Contact Center categories. We also launched our Marketplace, which we believe will accelerate partner deployment of certified solutions, shorten time to value, expand ecosystem monetization, and create incremental revenue share opportunities. I highlight these results not as a reflection of past success, but as evidence of consistent execution. We have strengthened profitability, accelerated growth, expanded our platform, and invested in innovation. Based on this track record, I am confident we will continue to deliver and believe our most significant opportunities remain ahead of us."
Conference Call
Crexendo management will hold a conference call today, March 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: 146313
Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 146313 and the Crexendo earnings call. A replay of the call will be available until March 17, 2026, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 53594.
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. Our solutions currently support over seven million end users globally, through our extensive global network of over 240 cloud communication platform software subscribers and our 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) results reflecting disciplined execution and sustained profitability; (ii) being consistently cash flow positive and expanded both profitability and EBITDA with the platform having scaled meaningfully; (iii) platform scale underscoring product leadership, operational discipline, and partner-first strategy; (iv) being committed to a disciplined strategy of driving profitable organic growth while pursuing accretive acquisitions and having successfully delivered on the organic component with the acquisition of ESI accelerating that growth through strategic M&A; (v) customer service remains a core differentiator; (vi) aggressively advancing AI strategy with early feedback on CAIRO, being highly encouraging, and believing it has the potential to transform the SMB market by enabling small businesses to operate with enterprise-grade capabilities; (vii) innovation being recognized; (viii) believing the Marketplace will accelerate partner deployment of certified solutions, shorten time to value, expand ecosystem monetization, and create incremental revenue share opportunities and (ix) being confident it will continue to deliver and believe the most significant opportunities remain ahead.
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
Consolidated Balance Sheets
(In thousands, except par value and share data)
December 31,
2025
2024
$
31,378
$
18,193
4,913
4,352
454
393
1,416
1,049
2,318
1,931
892
876
234
75
292
13
41,897
26,882
402
406
3,223
2,397
195
394
1,006
1,491
17,860
20,528
9,454
9,454
3,319
2,879
330
507
$
77,686
$
64,938
$
649
$
1,003
8,391
6,992
2
21
114
478
493
481
151
40
2,528
3,079
12,328
12,094
1,008
293
-
2
-
114
529
1,022
13,865
13,525
-
-
31
28
145,325
138,015
(81,719
)
(86,790
)
184
160
63,821
51,413
$
77,686
$
64,938
CREXENDO, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share and share data)
Year Ended December 31,
2025
2024
$
33,782
$
31,849
29,664
23,374
4,721
5,615
68,167
60,838
14,153
13,087
8,275
6,793
2,835
3,215
17,771
16,538
14,723
13,829
5,720
5,552
63,477
59,014
4,690
1,824
637
191
(19
)
(42
)
63
(84
)
681
65
5,371
1,889
(300
)
(212
)
$
5,071
$
1,677
$
0.17
$
0.06
$
0.16
$
0.06
29,681,847
26,757,242
31,641,294
30,019,359
CREXENDO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
2025
2024
$
5,071
$
1,677
3,295
3,331
2,932
3,002
4
(18
)
(73
)
127
(539
)
(906
)
(14
)
(106
)
(1,124
)
(877
)
(61
)
(11
)
(827
)
(1,192
)
(16
)
(368
)
(159
)
(75
)
(512
)
(346
)
1,045
1,275
111
(13
)
164
784
9,297
6,284
(18
)
(27
)
(18
)
(27
)
(21
)
(75
)
(478
)
(457
)
4,870
2,370
(489
)
(243
)
3,882
1,595
24
(6
)
13,185
7,846
18,193
10,347
$
31,378
$
18,193
Supplemental disclosure of cash flow information:
Cash used during the year for:
$
(314
)
$
(300
)
$
(17
)
$
(32
)
$
410
$
-
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 March 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 to Non-GAAP Net Income
(Unaudited, in thousands, except per share and share data)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
(In thousands)
(In thousands)
$
1,218
$
507
$
5,071
$
1,677
747
709
3,169
3,002
51
-
51
-
786
755
3,078
3,028
$
2,802
$
1,971
$
11,369
$
7,707
$
0.09
$
0.07
$
0.38
$
0.29
$
0.09
$
0.06
$
0.36
$
0.26
30,837,145
27,195,382
29,681,847
26,757,242
32,151,192
30,547,245
31,641,294
30,019,359
Reconciliation of U.S. GAAP Net Income to EBITDA to Adjusted EBITDA
(Unaudited, in thousands)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
(In thousands)
(In thousands)
$
1,218
$
507
$
5,071
$
1,677
829
826
3,295
3,331
1
11
19
42
(252
)
(4
)
(700
)
(107
)
165
112
300
212
1,961
1,452
7,985
5,155
51
-
51
-
747
709
3,169
3,032
$
2,759
$
2,161
$
11,205
$
8,187
(1) For the three months ended December 31, 2025 and 2024, employer payroll tax expense related to share-based compensation was $69 and $28, respectively. For the twelve months ended December 31, 2025 and 2024, employer payroll tax expense related to share-based compensation was $237 and $59, respectively.
SOURCE: Crexendo, Inc.