Revenue growth accelerated to 29% in 2026Q1, while gross margins reached a peak of 81.2%, suggesting a favorable shift toward higher-margin software licensing.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 |
|---|
| Revenue | 72.82M | 68.17M | 60.84M | 53.2M | 37.55M | 28.09M | 16.39M | 14.44M | 11.91M | 10.38M | 9.12M | 7.82M | 7.59M | 10.33M | 17.17M | 48.02M | 65.79M | 94.41M | 128.05M | 151.62M | 185.09M | 39.08M | 81.03M | 53.23M | 37.35M | 43M | 27.42M | 100K |
| Revenue Growth % | 16.31% | 12.05% | 14.36% | 41.66% | 33.68% | 71.43% | 13.51% | 21.23% | 14.75% | 13.8% | 16.57% | 3.02% | -26.47% | -39.84% | -64.25% | -27.01% | -30.31% | -26.27% | -15.55% | -18.08% | 373.68% | -51.78% | 52.24% | 42.5% | -13.14% | 56.79% | 27324.76% | - |
| Cost of Revenue | 20.76M | 25.26M | 23.09M | 21.56M | 13.68M | 10.66M | 4.95M | 4.35M | 3.82M | 3.46M | 3.63M | 3.58M | 3.58M | 4.09M | 5.09M | 17.73M | 21.77M | 29.14M | 38.16M | 47M | 30.97M | 29.28M | 18.75M | 10.9M | 6.53M | 8.43M | 8.67M | -400K |
| Gross Profit | 52.06M | 42.9M | 37.74M | 31.64M | 23.87M | 17.43M | 11.44M | 10.09M | 8.09M | 6.92M | 5.49M | 4.25M | 4.01M | 6.24M | 12.07M | 30.3M | 44.02M | 65.27M | 89.89M | 104.62M | 154.12M | 9.8M | 62.28M | 42.32M | 30.83M | 34.57M | 18.75M | 500K |
| Gross Margin % | 71.49% | 62.94% | 62.04% | 59.47% | 63.56% | 62.05% | 69.81% | 69.86% | 67.93% | 66.69% | 60.25% | 54.28% | 52.83% | 60.39% | 70.34% | 63.08% | 66.91% | 69.14% | 70.2% | 69% | 83.27% | 25.08% | 76.86% | 79.52% | 82.53% | 80.41% | 68.38% | 500% |
| Gross Profit Growth % | - | 13.67% | 19.31% | 32.53% | 36.93% | 52.38% | 13.44% | 24.68% | 16.89% | 25.96% | 29.39% | 5.83% | -35.67% | -48.35% | -60.14% | -31.18% | -32.56% | -27.39% | -14.08% | -32.12% | 1472.84% | -84.27% | 47.16% | 37.3% | -10.85% | 84.37% | 3650.56% | - |
| Operating Expenses | 48.08M | 38.21M | 35.92M | 33.32M | 61.26M | 20.24M | 10.45M | 8.95M | 8.29M | 7.75M | 8.26M | 9.09M | 10.61M | 11.72M | 18.19M | 36.19M | 50.59M | 73.15M | 93.15M | 85.19M | 54.86M | 42.42M | 54.32M | 38.07M | 27.11M | 34.61M | 57.09M | 11.7M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 6.5M | 7.99M | 5.16M | 1.88M | -34.65M | -1.18M | 1.25M | 1.23M | -114K | -719K | -2.62M | -4.57M | -5.94M | -4.6M | -4.74M | -4.54M | -5.2M | 5.36M | -2.06M | 20.05M | 99.57M | -32.38M | 8.1M | 4.6M | 6.8M | 2.38M | -31.86M | -10.5M |
| EBITDA Margin % | 8.93% | 11.71% | 8.47% | 3.54% | -92.25% | -4.21% | 7.62% | 8.51% | -0.96% | -6.93% | -28.7% | -58.4% | -78.17% | -44.54% | -27.62% | -9.46% | -7.9% | 5.68% | -1.61% | 13.22% | 53.8% | -82.87% | 9.99% | 8.64% | 18.2% | 5.54% | -116.18% | -10500% |
| EBITDA Growth % | 13.05% | 54.9% | 173.62% | 105.44% | -2826.1% | -194.8% | 1.63% | 1178.07% | 84.14% | 72.53% | 42.72% | 23.03% | -29.04% | 2.97% | -4.38% | 12.57% | -196.96% | 360.48% | -110.26% | -79.86% | 407.49% | -500.02% | 75.98% | -32.32% | 185.18% | 107.48% | -203.45% | - |
| Depreciation & Amortization | 2.52M | 3.29M | 3.33M | 3.57M | 2.75M | 1.63M | 258K | 94K | 92K | 106K | 146K | 270K | 663K | 1.15M | 1.37M | 1.35M | 1.38M | 0 | 1.2M | 620K | 307K | 241K | 137.28K | 350.8K | 3.08M | 2.42M | 6.48M | 700K |
| D&A / Revenue % | 3.47% | 4.83% | 5.48% | 6.72% | 7.31% | 5.79% | 1.57% | 0.65% | 0.77% | 1.02% | 1.6% | 3.45% | 8.73% | 11.09% | 8% | 2.81% | 2.1% | 0% | 0.93% | 0.41% | 0.17% | 0.62% | 0.17% | 0.66% | 8.24% | 5.62% | 23.62% | 700% |
| Operating Income (EBIT) | 3.98M | 4.69M | 1.82M | -1.69M | -37.39M | -2.81M | 991K | 1.14M | -206K | -825K | -2.76M | -4.84M | -6.6M | -5.75M | -6.12M | -5.89M | -6.57M | -7.88M | -3.25M | 19.43M | 99.27M | -32.62M | 7.96M | 4.25M | 3.72M | -35.22K | -38.34M | -11.2M |
| Operating Margin % | 5.47% | 6.88% | 3% | -3.17% | -99.57% | -10% | 6.05% | 7.86% | -1.73% | -7.95% | -30.3% | -61.86% | -86.9% | -55.63% | -35.62% | -12.27% | -9.99% | -8.35% | -2.54% | 12.82% | 53.63% | -83.49% | 9.82% | 7.98% | 9.95% | -0.08% | -139.8% | -11200% |
| Operating Income Growth % | - | 157.13% | 207.99% | 95.48% | -1230.68% | -383.55% | -12.69% | 650.97% | 75.03% | 70.14% | 42.9% | 26.67% | -14.87% | 6.05% | -3.8% | 10.39% | 16.56% | -142.21% | -116.74% | -80.43% | 404.28% | -509.94% | 87.28% | 14.31% | 10653.54% | 99.91% | -242.33% | - |
| Interest Expense | 10K | 19K | 42K | 115K | 78K | 84K | 76K | 12K | 12K | 209K | 138K | 28K | 3K | 0 | 0 | 2K | 4K | 14K | 3K | 3K | 26K | 91K | 43.36K | 43.36K | 1.95M | 3.29M | 3.29M | 0 |
| Interest Coverage | - | 283.68x | 45.98x | -1.30x | -462.78x | -33.64x | 25.99x | 96.42x | -16.33x | -3.41x | -19.14x | -161.61x | -2099.67x | - | - | -588.00x | -403.50x | 282.14x | -616.00x | 2061.33x | 747.31x | 1090.84x | -752.39x | -598.56x | -8.26x | 1.13x | -0.01x | - |
| Interest / Revenue % | 0.01% | 0.03% | 0.07% | 0.22% | 0.21% | 0.3% | 0.46% | 0.08% | 0.1% | 2.01% | 1.51% | 0.36% | 0.04% | 0% | 0% | 0% | 0.01% | 0.01% | 0% | 0% | 0.01% | 0.23% | 0.05% | 0.08% | 5.22% | 7.65% | 11.99% | 0% |
| Non-Operating Income | 783K | 681K | 65K | 1000K | 1000K | -100K | 908K | 10K | -2K | -188K | -17K | 286K | 300K | 525K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 790K | -1000K | 35.22K | 1000K |
| Pretax Income | 4.76M | 5.37M | 1.89M | -264K | -36.17M | -2.91M | 1.9M | 1.15M | -208K | -1.01M | -2.78M | -4.55M | -6.3M | -5.22M | -4.15M | -1.18M | -1.62M | -1.86M | 6.18M | 26.69M | 102.29M | -28.9M | 9.6M | 4.25M | 2.2M | -35.22K | -39.53M | -11.3M |
| Pretax Margin % | 6.54% | 7.88% | 3.1% | -0.5% | -96.33% | -10.36% | 11.59% | 7.93% | -1.75% | -9.76% | -30.49% | -58.2% | -82.95% | -50.54% | -24.19% | -2.45% | -2.46% | -1.97% | 4.83% | 17.6% | 55.27% | -73.97% | 11.85% | 7.98% | 5.89% | -0.08% | -144.15% | -11300% |
| Income Tax | 227K | 300K | 212K | 98K | -762K | -465K | -6.04M | 6K | 15K | 7K | 12K | -12K | 77K | -257K | -212K | 5.05M | 692K | -5.68M | 3.04M | 2.69M | -8.33M | 614K | -12.29M | 13.46M | -864.37K | 3.88M | 6.96M | -700K |
| Effective Tax Rate % | 4.77% | 5.59% | 11.22% | -37.12% | 2.11% | 15.98% | -318.11% | 0.52% | -7.21% | -0.69% | -0.43% | 0.26% | -1.22% | 4.92% | 5.1% | -428.86% | -42.77% | 305.27% | 49.17% | 10.06% | -8.14% | -2.12% | -128.05% | 316.73% | -39.31% | -11012.74% | -17.61% | 6.19% |
| Net Income | 4.48M | 5.07M | 1.68M | -362K | -35.41M | -2.44M | 7.94M | 1.14M | -223K | -1.02M | -2.79M | -4.54M | -6.38M | -4.96M | -3.94M | -6.23M | -2.31M | -7.54M | 3.14M | 24M | 110.62M | -29.52M | 21.89M | 5.03M | 2.2M | -6.21M | -44.11M | -10.4M |
| Net Margin % | 6.15% | 7.44% | 2.76% | -0.68% | -94.3% | -8.7% | 48.45% | 7.89% | -1.87% | -9.83% | -30.62% | -58.05% | -83.96% | -48.05% | -22.96% | -12.97% | -3.51% | -7.99% | 2.45% | 15.83% | 59.77% | -75.54% | 27.02% | 9.46% | 5.89% | -14.44% | -160.83% | -10400% |
| Net Income Growth % | 85.5% | 202.39% | 563.26% | 98.98% | -1348.38% | -130.79% | 597.1% | 610.76% | 78.14% | 63.47% | 38.52% | 28.78% | -28.47% | -25.93% | 36.74% | -169.7% | 69.37% | -340.04% | -86.91% | -78.3% | 474.77% | -234.82% | 334.9% | 128.95% | 135.4% | 85.92% | -324.12% | - |
| EPS (Diluted) | 0.14 | 0.16 | 0.06 | -0.01 | -1.54 | -0.12 | 0.46 | 0.07 | -0.02 | -0.07 | -0.21 | -0.35 | -0.57 | -0.46 | -0.37 | -0.59 | -0.20 | -0.66 | 0.26 | 1.87 | 8.76 | -2.49 | -2.25 | -1.42 | -2.61 | -2.79 | -23.83 | -8.30 |
| EPS Growth % | 82.07% | 186.23% | 499.29% | 99.09% | -1183.33% | -126.09% | 557.14% | 548.72% | 78.69% | 65.14% | 40% | 38.6% | -23.91% | -24.32% | 37.29% | -195% | 69.7% | -353.85% | -86.1% | -78.65% | 451.81% | -10.67% | -58.45% | 45.59% | 6.45% | 88.29% | -187.11% | - |
| EPS (Basic) | - | 0.17 | 0.06 | -0.01 | -1.54 | -0.12 | 0.50 | 0.08 | -0.02 | -0.07 | -0.21 | -0.35 | -0.57 | -0.46 | -0.37 | -0.59 | -0.20 | -0.66 | 0.27 | 1.94 | 9.09 | -2.49 | -2.25 | -1.42 | -2.61 | -2.79 | -23.83 | -8.30 |
| Diluted Shares Outstanding | 32.68M | 31.64M | 30.02M | 25.94M | 22.94M | 20.28M | 17.42M | 15.56M | 14.33M | 13.94M | 13.36M | 12.96M | 11.16M | 10.71M | 10.63M | 10.6M | 11.36M | 11.37M | 11.86M | 12.83M | 12.62M | 11.84M | 12.11M | 11.02M | 5.87M | 2.23M | 1.85M | 1.25M |
MSP partner consolidation risk
According to recent financial disclosures, Crexendo achieved a notable 29% year-over-year revenue growth in 2026Q1, marking a significant acceleration from the mid-teens growth rates observed throughout 2024 and 2025, which suggests that the company's wholesale platform strategy is gaining substantial traction within the competitive telecommunications landscape.
The sharp revenue jump in the most recent quarter indicates that the NetSapiens platform is successfully capturing market share, likely driven by increased seat adoption among existing MSP partners. Investors should monitor whether this growth trajectory is sustainable or if it was bolstered by non-recurring hardware sales, as the latter would imply less durability in the long-term revenue base.
As reported in quarterly filings, Crexendo's gross margin reached a peak of 81.2% in 2026Q1, a significant departure from the 60-63% range maintained over the prior two years, which suggests a favorable shift in the underlying product mix toward higher-margin software licensing over lower-margin hardware sales.
This margin expansion appears to be the primary lever for future profitability, as the company scales its software-only offerings. However, the historical volatility in these margins warrants caution, as it may reflect the lumpy nature of hardware procurement cycles rather than a permanent structural improvement in the core business model.
Based on the company's reported income statements, operating margins have struggled to scale proportionally with gross profit, hovering between 0.3% and 7.5% over the last ten quarters, which indicates that significant SG&A investments are currently required to support the company's ongoing platform development and market expansion efforts.
While the company is generating positive operating income, the lack of significant margin expansion suggests that Crexendo is still in a heavy reinvestment phase. Analysts should investigate whether this spending is essential for platform maintenance or if it represents a strategic choice to prioritize aggressive growth over immediate bottom-line optimization.
Data from recent SEC filings reveals that Crexendo consistently records stock-based compensation expenses exceeding $700,000 per quarter, which frequently represents a substantial portion of the company's reported net income, thereby necessitating a closer look at the quality of earnings and the true economic profitability of the firm.
The reliance on equity-based incentives may be dilutive to shareholders and masks the true cash-based operating performance of the business. Investors should adjust for these non-cash charges to determine if the underlying business is generating sufficient organic cash flow to sustain its current growth trajectory without constant reliance on external capital or dilution.
While the wholesale orchestration model provides a unique moat, the competitive landscape in UCaaS remains intense, and as noted in industry reports, the potential for per-seat licensing fee compression could threaten the company's long-term margin profile if MSP partners demand lower pricing to remain competitive themselves.
Short-sellers might focus on the risk that Crexendo's platform becomes a commodity, forcing a race to the bottom in pricing that would erode the current gross margin gains. The company's reliance on a concentrated base of MSP partners also creates a vulnerability where the loss of a single major partner could disproportionately impact future recurring revenue streams.
Quick answers to the most common questions about buying CXDO stock.
For fiscal year 2025, Crexendo, Inc. (CXDO) reported total revenue of $68.2M. This represents a 68067.0% increase compared to $0.1M in 1999.
Crexendo, Inc. (CXDO) is profitable, generating $5.1M in net income for the fiscal year ending 2025 with a net profit margin of 7.4%.
Crexendo, Inc. (CXDO) reported an operating income of $4.7M, resulting in an operating profit margin of 6.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Crexendo, Inc. (CXDO) generated $42.9M in gross profit for the year, representing a gross profit margin of 62.9%. This demonstrates the company's core pricing power and production efficiency.