Crexendo, Inc.

Crexendo is downgraded from Strong Buy to 'Buy' due to slowing organic growth, despite attractive valuation and strong Service segment performance. Service revenue, boosted by the ESI acquisition, now drives growth and boasts a 67.4% gross margin, nearly matching Software's 71.1%. Organic growth fell to 5% in Q3, well below management's double-digit target, raising concerns about reliance on acquisitions.

Crexendo, Inc. (CXDO) Q3 2026 Earnings Call Transcript

Although the revenue and EPS for Crexendo (CXDO) give a sense of how its business performed in the quarter ended September 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Crexendo NASDAQ: CXDO reported third-quarter 2026 revenue of $25.2 million, up 44% from a year earlier, as the company said it reached a $100 million annualized revenue run rate. The communications software and services provider also reported GAAP net income of $1.1 million, or $0.03 per diluted share, and adjusted EBITDA of $4 million, compared with $2.9 million in the prior-year quarter.