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what it is
Crexendo sells cloud phone, video, contact center, and managed IT software to businesses.
how it gets paid
Last year Crexendo made $68M in revenue.
why it's growing
Revenue grew 12.0% last year. Revenue was up 186% vs. prior year, and EPS doubled from the prior year.
what just happened
Crexendo posted $50M of quarterly revenue and $0.04 EPS, while Yahoo showed no EPS estimate.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
37.3x trailing p/e — you're paying up for this one
3.3% return on capital — nothing to write home about
$0.06 fy2024 eps est
xvary composite: 47/100 — below average
What they do
Crexendo sells cloud phone, video, contact center, and managed IT software to businesses.
You do not rip out a company phone system for fun. Crexendo's NetSapiens hosted cloud platform (Crexendo runs the software for you) bundles voice, video, and contact center tools. Leaving means swapping several systems at once. The company posted $68M of annual revenue and only $1M of long-term debt, so it can keep selling without balance-sheet drama.
How they make money
$68M
annual revenue · their business grew +12.0% last year
total revenue
$68M
+12.0%
The products that matter
cloud communications software
Software & Services
$61.4M · about 90% of revenue
This $61.4M segment is the company in practical terms. It makes up about 90% of revenue and is where the 12% growth actually showed up.
core revenue
partner acquisition channel
Crexendo Marketplace
10–12 new partners regularly
Management says the marketplace is onboarding 10–12 new partners regularly. Here is why you care: the partner channel is the growth plan, not a side feature.
channel bet
distribution program
EVP Program
28 straight quarters profitable
The EVP program sits inside a business that has posted 28 consecutive quarters of non-GAAP profitability. That does not prove durable pricing power. It does show the channel engine has held together longer than many small-cap software stories do.
durability test
Key numbers
$68M
annual revenue
This is the whole business size. You are not backing a tiny pre-revenue story here.
37.3x
trailing p/e
You pay 37.3 times profit for a company with 8.5% operating margin. That is a rich price for modest earnings power.
8.5%
operating margin
For every $100 of sales, about $8.50 is left after operating costs. That is healthy, but not luxury-car software.
$1M
long-term debt
Almost no debt means the business is not spending your cash on lenders.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $1M (0% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CXDO right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Crexendo posted $50M of quarterly revenue and $0.04 EPS, while Yahoo showed no EPS estimate.
Revenue was up 186% vs. prior year, and EPS doubled from the prior year. The quarter was also 74% of the full-year $68M revenue base, which is a very large slice for one quarter.
$50M
revenue
$0.04
eps
8.5%
operating margin
the number that mattered
The $50M quarter mattered because it was 74% of the full-year $68M base. That is a real scale jump, not a rounding error.
source: company earnings report, 2026
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What could go wrong
The risk here is not mysterious. CXDO is a $206M company asking the market to trust a partner-led growth plan in a crowded communications category, while one segment still accounts for about 90% of revenue.
med
partner additions slow down
Management says it is onboarding 10–12 new partners regularly. If that pace cools, the company loses speed in the exact channel it is using to support double-digit growth.
Software & Services is about 90% of revenue, so a channel slowdown would reach almost the whole income statement.
med
margin stays respectable instead of improving
An 8.5% operating margin proves the business is viable. It does not give you much room for pricing pressure, higher sales costs, or churn when larger rivals are everywhere.
At 37.3x trailing earnings, you are paying for margin expansion. If margin sits still, the multiple becomes the next thing under pressure.
med
gaap and non-gaap tell different stories
The 28-quarter streak is based on non-GAAP profit, while FY2025 GAAP net income was $5.1M versus $11.4M on a non-GAAP basis. That gap does not break the thesis, but it does mean you should not read the adjusted number in isolation.
If the gap widens instead of narrowing, confidence in the quality of earnings weakens even if the streak survives.
med
small-cap trading noise overwhelms good execution
This is a $206M company with a 10 / 100 price stability score and a $4–$8 52-week range. Liquidity and sentiment can move faster than fundamentals.
You can be right on the business and still get a rough ride in the stock. That matters if your time horizon is shorter than the operating story.
The risk stack is straightforward: partner momentum matters, margin improvement matters, earnings quality matters, and the stock can still ignore all of that for stretches because it is small.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
q1 2026 earnings report
Expected late May 2026. You want to hear whether partner additions and marketplace activity are still supporting double-digit growth.
margin
operating margin above 8.5%
If revenue grows but operating margin stalls around 8.5%, the business is running harder without creating much extra cushion.
channel
partner onboarding pace
Management cited 10–12 new partners regularly. That is one of the cleanest real-time signs that the growth plan is still working.
valuation
whether earnings growth keeps up with 37.3x p/e
This stock is not priced like a struggling microcap. If profit growth cools while the multiple stays rich, the market can handle the repricing for you.
Analyst rankings
earnings predictability
30 / 100
Low predictability means quarterly results can still surprise you. in human-speak, this is not the kind of stock where estimates feel locked in.
risk rank
3
That sits around the middle. You are not buying a disaster balance sheet, but you are not getting a safety blanket either.
price stability
10 / 100
A 10 / 100 score means the stock price has not been calm. The business may be steadier than the chart, but your experience as a shareholder probably will not be.
source: institutional data
Institutional activity
institutional ownership data for CXDO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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