Crexendo Announces Strong Second Quarter 2026 Results

PHOENIX, AZ / ACCESS Newswire / August 4, 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 second quarter ended June 30, 2026.

Second Quarter Financial highlights:

• Total revenue increased 49% year-over-year to $24.6 million

• GAAP net income of $1.1 million, or $0.03 per basic and diluted common share.

• Non-GAAP net income of $4.1 million, or $0.12 per basic and diluted common share.

Financial Results for the Second Quarter of 2026

Total Revenue:Consolidated total revenue for the second quarter of 2026 increased 49%, or $8.1 million, to $24.6 million compared to $16.6 million for the second quarter of 2025.

Service Revenue:Consolidated service revenue for the second quarter of 2026 increased 78%, or $6.5 million, to $14.9 million compared to $8.4 million for the second quarter of 2025.

Software Solutions Revenue:Consolidated software solutions revenue for the second quarter of 2026 increased 5%, or $0.4 million, to $7.3 million compared to $7.0 million for the second quarter of 2025.

Product Revenue:Consolidated product revenue for the second quarter of 2026 increased 104%, or $1.2 million, to $2.5 million compared to $1.2 million for the second quarter of 2025.

Operating Expenses:Consolidated operating expenses for the second quarter of 2026 increased 53%, or $8.1 million, to $23.6 million compared to $15.4 million for the second quarter of 2025.

Net Income/(Loss):The Company reported net income of $1.1 million for the second quarter of 2026, or $0.03 per basic and diluted common share, compared to net income of $1.2 million, or $0.04 per basic and diluted common share for the second quarter of 2025.

Non-GAAP:Non-GAAP net income of $4.1 million for the second quarter of 2026, or $0.12 per basic and diluted common share, compared to non-GAAP net income of $2.9 million or $0.10 per basic common share and $0.09 per diluted common share for the second quarter of 2025.

EBITDA and Adjusted EBITDA:EBITDA for the second quarter of 2026 of $3.0 million compared to $2.0 million for the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 of $4.1 million compared to $2.8 million for the second quarter of 2025.

Financial Results for the six months ended June 30, 2026

Total Revenue:Consolidated total revenue for the six months ended June 30, 2026 increased 39%, or $12.7 million, to $45.4 million compared to $32.6 million for the six months ended June 30, 2025.

Service Revenue:Consolidated service revenue for the six months ended June 30, 2026 increased 54%, or $8.9 million, to $25.4 million compared to $16.6 million for the six months ended June 30, 2025.

Software Solutions Revenue:Consolidated software solutions revenue for the six months ended June 30, 2026 increased 9%, or $1.2 million, to $15.1 million compared to $13.8 million for the six months ended June 30, 2025.

Product Revenue:Consolidated product revenue for the six months ended June 30, 2026 increased 121%, or $2.7 million, to $4.9 million compared to $2.2 million for the six months ended June 30, 2025.

Operating Expenses:Consolidated operating expenses for the six months ended June 30, 2026 increased 44%, or $13.5 million, to $43.9 million compared to $30.4 million for the six months ended June 30, 2025.

Net Income/(Loss):The Company reported net income of $1.6 million for the six months ended June 30, 2026, or $0.05 per basic and diluted common share, compared to net income of $2.4 million, or $0.08 per basic and diluted common share for the six months ended June 30, 2025.

Non-GAAP:Non-GAAP net income of $7.3 million for the six months ended June 30, 2026, or $0.23 per basic common share and $0.22 per diluted common share, compared to non-GAAP net income of $5.5 million or $0.19 per basic common share and $0.18 per diluted common share for the six months ended June 30, 2025.

EBITDA and Adjusted EBITDA:EBITDA for the six months ended June 30, 2026 of $4.6 million compared to $3.9 million for the six months ended June 30, 2025. Adjusted EBITDA for the six months ended June 30, 2026 of $7.3 million compared to $5.5 million for the six months ended June 30, 2025.

Cash and Cash Equivalents:Total cash and cash equivalents at June 30, 2026 was $18.3 million compared to $31.4 million at December 31, 2025.

Cash Flow:Cash provided by operating activities for the six months ended June 30, 2026 was $4.8 million compared to cash provided by operating activities of $2.5 million for the six months ended June 30, 2025. Cash used in investing activities for the six months ended June 30, 2026 was ($26.2) million compared to nill for the six months ended June 30, 2025. Cash provided by financing activities for the six months ended June 30, 2026 was $8.3 million compared to cash provided by financing activities of $2.7 million for the first six months of 2025.

Management Commentary

"Crexendo delivered another strong quarter, with total revenue increasing 49% year-over-year to $24.6 million and adjusted EBITDA increasing 46% to $4.1 million, " said Jeff Korn, Crexendo Chief Executive Officer and Chairman of the Board. "I am particularly pleased and excited that we secured eleven new platform logos through the second quarter of 2026, compared with only two over the same period last year. This substantial increase reinforces our belief that the Crexendo NetSapiens platform is increasingly the platform of choice for providers seeking a new, improved and scalable communications platform. These wins should provide a meaningful recurring revenue opportunity as these customers convert more of their existing subscriber bases to our platform, expand their businesses and purchase additional licenses in the future. In addition, I could not be more pleased with the ESI acquisition and the contributions the ESI team is already making to Crexendo. The integration is progressing exceptionally well, the employees are engaged, sales are exceeding our initial expectations, and we are already realizing the benefits of combining our accounting, legal, marketing, and engineering capabilities. ESI has significantly improved our revenue, strengthened our customer base, and added an experienced team that shares our commitment to innovation and outstanding customer service. The acquisition is performing exactly as we had hoped and further validates our disciplined approach to identifying and integrating strategic, accretive acquisitions. "

Korn added "I am also very pleased with our continued margin improvement and the substantial expansion in operating cash flow, with cash provided by operating activities increasing 89% to $4.8 million during the first six months of the year compared to the same period of the prior year. This increased cash generation strengthens our balance sheet and provides us with greater flexibility to pursue additional strategic M&A opportunities while seeking to minimize dilution to our shareholders. Our recently released AI offerings, while not yet meaningful contributors to revenue, continue to receive strong praise and market acceptance. I expect adoption to continue expanding and believe AI-related revenue can become meaningful in 2027. With accelerating platform momentum, a highly successful acquisition, improving margins and increasing cash generation, I remain extremely enthusiastic about our ability to deliver profitable growth and enhance long-term shareholder value. "

Conference Call

Crexendo management will hold a conference call today, August 4, 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: 550804

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 August 18, 2026, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 54291.

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) being pleased and excited that it secured eleven new platform logos through the second quarter of 2026, with that reinforcing the belief that the Crexendo NetSapiens platform is increasingly the platform of choice for providers seeking a new, improved and scalable communications platform; (ii) believing these wins should provide a meaningful recurring revenue opportunity as these customers convert more of their existing subscriber bases to the platform, expand their businesses and purchase additional licenses in the future; (iii) being pleased with the ESI acquisition and the contributions the ESI team is already making with the integration progressing exceptionally well with having the employees engaged and sales are exceeding initial expectations; (iv) already realizing the benefits of combining our accounting, legal, marketing, and engineering capabilities; (v) believing ESI significantly improved revenue, strengthened customer base, and added an experienced team that shares the commitment to innovation and outstanding customer service; (vi) believing the acquisition performing exactly as hoped and further validates the disciplined approach to identifying and integrating strategic, accretive acquisitions; (vii) being pleased with continued margin improvement and the substantial expansion in operating cash flow; (viii) believing that the increased cash generation strengthens the balance sheet and provides greater flexibility to pursue additional strategic M&A opportunities while seeking to minimize dilution to shareholders; (ix) believing that recently released AI offerings receive strong praise and market acceptance and expecting adoption to continue expanding that AI-related revenue can become meaningful in 2027 and (x) believing that with accelerating platform momentum, a highly successful acquisition, improving margins and increasing cash generation being extremely enthusiastic about the ability to deliver profitable growth and enhance long-term 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
dgaylor@crexendo.com

CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
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CREXENDO, INC. AND SUBSIDIARIES
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CREXENDO, INC. AND SUBSIDIARIES
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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, provision/(benefit) for income taxes, 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 August 4, 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 June 30, 2026 and 2025, employer payroll tax expense related to share-based compensation was $79 and $63, respectively. For the six months ended June 30, 2026 and 2025, employer payroll tax expense related to share-based compensation was $85 and $135, respectively.

SOURCE: Crexendo, Inc.

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