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Crexendo Announces Strong Second Quarter 2025 Results

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Crexendo (NASDAQ:CXDO) reported strong Q2 2025 financial results, with total revenue increasing 13% year-over-year to $16.6 million. The company's software solutions segment showed impressive growth of 31%, reaching $7.0 million. GAAP net income doubled to $1.2 million ($0.04 per share) from $0.6 million in Q2 2024.

The cloud communication platform provider maintained profitability for the eighth consecutive quarter of GAAP profitability and 27th consecutive quarter of Non-GAAP net income. Non-GAAP net income reached $2.9 million ($0.10 per basic share), while Adjusted EBITDA improved to $2.8 million. The company's cash position strengthened to $23.5 million, up from $18.2 million at the end of 2024.

Crexendo (NASDAQ:CXDO) ha riportato solidi risultati finanziari nel secondo trimestre del 2025, con un fatturato totale in crescita del 13% su base annua, raggiungendo i 16,6 milioni di dollari. Il segmento delle soluzioni software dell'azienda ha registrato una crescita notevole del 31%, arrivando a 7,0 milioni di dollari. L'utile netto GAAP 猫 raddoppiato, passando da 0,6 milioni di dollari nel secondo trimestre 2024 a 1,2 milioni di dollari (0,04 dollari per azione).

Il fornitore di piattaforme di comunicazione cloud ha mantenuto la redditivit脿 per l'ottavo trimestre consecutivo secondo i principi contabili GAAP e per il ventisettesimo trimestre consecutivo secondo i criteri Non-GAAP. L'utile netto Non-GAAP ha raggiunto 2,9 milioni di dollari (0,10 dollari per azione base), mentre l'EBITDA rettificato 猫 migliorato a 2,8 milioni di dollari. La posizione di cassa dell'azienda si 猫 rafforzata, salendo a 23,5 milioni di dollari, rispetto ai 18,2 milioni di fine 2024.

Crexendo (NASDAQ:CXDO) report贸 s贸lidos resultados financieros en el segundo trimestre de 2025, con ingresos totales que aumentaron un 13% interanual hasta 16.6 millones de d贸lares. El segmento de soluciones de software de la compa帽铆a mostr贸 un crecimiento impresionante del 31%, alcanzando los 7.0 millones de d贸lares. La utilidad neta GAAP se duplic贸 a 1.2 millones de d贸lares (0.04 d贸lares por acci贸n) desde 0.6 millones en el segundo trimestre de 2024.

El proveedor de plataformas de comunicaci贸n en la nube mantuvo la rentabilidad por el octavo trimestre consecutivo bajo GAAP y por el vig茅simo s茅ptimo trimestre consecutivo bajo Non-GAAP. La utilidad neta Non-GAAP alcanz贸 2.9 millones de d贸lares (0.10 d贸lares por acci贸n b谩sica), mientras que el EBITDA ajustado mejor贸 a 2.8 millones de d贸lares. La posici贸n de efectivo de la compa帽铆a se fortaleci贸 a 23.5 millones de d贸lares, desde 18.2 millones al final de 2024.

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Crexendo (NASDAQ:CXDO) a annonc茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025, avec un chiffre d'affaires total en hausse de 13 % en glissement annuel, atteignant 16,6 millions de dollars. Le segment des solutions logicielles de l'entreprise a affich茅 une croissance impressionnante de 31 %, atteignant 7,0 millions de dollars. Le b茅n茅fice net selon les normes GAAP a doubl茅, passant de 0,6 million de dollars au deuxi猫me trimestre 2024 脿 1,2 million de dollars (0,04 dollar par action).

Le fournisseur de plateforme de communication cloud a maintenu sa rentabilit茅 pour le huiti猫me trimestre cons茅cutif selon les normes GAAP et pour le vingt-septi猫me trimestre cons茅cutif selon les normes Non-GAAP. Le b茅n茅fice net Non-GAAP a atteint 2,9 millions de dollars (0,10 dollar par action de base), tandis que l'EBITDA ajust茅 s'est am茅lior茅 脿 2,8 millions de dollars. La tr茅sorerie de l'entreprise s'est renforc茅e, passant 脿 23,5 millions de dollars, contre 18,2 millions 脿 la fin de 2024.

Crexendo (NASDAQ:CXDO) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025, mit einem Gesamtumsatz, der um 13 % im Jahresvergleich auf 16,6 Millionen US-Dollar anstieg. Das Softwarel枚sungssegment des Unternehmens verzeichnete ein beeindruckendes Wachstum von 31 % und erreichte 7,0 Millionen US-Dollar. Der GAAP-Nettogewinn verdoppelte sich von 0,6 Millionen US-Dollar im zweiten Quartal 2024 auf 1,2 Millionen US-Dollar (0,04 US-Dollar je Aktie).

Der Anbieter von Cloud-Kommunikationsplattformen hielt die Profitabilit盲t f眉r das achte Quartal in Folge nach GAAP und das 27. Quartal in Folge nach Non-GAAP aufrecht. Der Non-GAAP-Nettogewinn erreichte 2,9 Millionen US-Dollar (0,10 US-Dollar je Stammaktie), w盲hrend das bereinigte EBITDA auf 2,8 Millionen US-Dollar anstieg. Die Barposition des Unternehmens verst盲rkte sich auf 23,5 Millionen US-Dollar, gegen眉ber 18,2 Millionen US-Dollar Ende 2024.

Positive
  • Total revenue grew 13% YoY to $16.6 million
  • Software solutions revenue increased significantly by 31% to $7.0 million
  • GAAP net income doubled to $1.2 million from $0.6 million YoY
  • Strong cash position of $23.5 million, up from $18.2 million in December 2024
  • 27 consecutive quarters of Non-GAAP net income
  • Adjusted EBITDA improved to $2.8 million from $2.2 million YoY
Negative
  • Product revenue declined 7% to $1.2 million
  • Operating expenses increased 10% to $15.4 million
  • Service revenue growth was modest at 4%

Insights

Crexendo shows strong Q2 with 13% revenue growth, driven by 31% software solutions surge, maintaining profitability streak with improved margins.

Crexendo's Q2 2025 results demonstrate solid momentum with total revenue increasing 13% year-over-year to $16.6 million, primarily fueled by impressive 31% growth in software solutions revenue reaching $7.0 million. This segment is clearly becoming the company's growth engine, while service revenue showed more modest 4% growth to $8.4 million, and product revenue actually declined 7% to $1.2 million.

Profitability metrics show encouraging trends. GAAP net income doubled to $1.2 million ($0.04 per share) compared to $0.6 million ($0.02 per share) in Q2 2024. Non-GAAP net income rose to $2.9 million ($0.10 per basic share) from $2.1 million ($0.08 per basic share). Adjusted EBITDA improved to $2.8 million from $2.2 million, indicating enhanced operational efficiency.

Operating expenses increased 10% to $15.4 million, a slower rate than revenue growth, suggesting improving economies of scale. This differential between revenue and expense growth rates has contributed to margin expansion, evident in the improved profitability figures.

The company's cash position strengthened significantly to $23.5 million from $18.2 million at year-end 2024, representing a 29% increase in just six months. This robust liquidity provides flexibility for strategic investments, potential acquisitions, and operational needs.

Management's commentary indicates continued focus on infrastructure optimization (closing international data centers while expanding Oracle Cloud Infrastructure presence), which should yield cost efficiencies. The emphasis on "profitable growth" rather than growth at any cost aligns with current investor preferences for sustainable business models.

Crexendo's eight consecutive quarters of GAAP profitability and 27 consecutive quarters of non-GAAP profitability demonstrate consistent execution and operational discipline. The company appears well-positioned in the cloud communication and software solutions space, with solid financial fundamentals and a clear strategic direction focused on scaling its software platform and exploring AI applications while maintaining profitability.

PHOENIX, ARIZONA / / August 5, 2025 / Crexendo, Inc. (NASDAQ:CXDO), 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, today announced financial results for the second quarter ended June 30, 2025.

Second Quarter Financial highlights:

  • Total revenue increased 13% year-over-year to $16.6 million

  • GAAP net income of $1.2 million, or $0.04 per basic and diluted common share.

  • Non-GAAP net income of $2.9 million, or $0.10 per basic common share and $0.09 per diluted common share.

Financial Results for the Second Quarter of 2025

Total Revenue: Consolidated total revenue for the second quarter of 2025 increased 13%, or $1.9 million, to $16.6 million compared to $14.7 million for the second quarter of 2024.

Service Revenue: Consolidated service revenue for the second quarter of 2025 increased 4%, or $0.3 million, to $8.4 million compared to $8.1 million for the second quarter of 2024.

Software Solutions Revenue: Consolidated software solutions revenue for the second quarter of 2025 increased 31%, or $1.7 million, to $7.0 million compared to $5.3 million for the second quarter of 2024.

Product Revenue: Consolidated product revenue for the second quarter of 2025 decreased 7%, or $0.1 million, to $1.2 million compared to $1.3 million for the second quarter of 2024.

Operating Expenses: Consolidated operating expenses for the second quarter of 2025 increased 10%, or $1.3 million, to $15.4 million compared to $14.1 million for the second quarter of 2024.

Net Income/(Loss): The Company reported net income of $1.2 million for the second quarter of 2025, or $0.04 per basic and diluted common share, compared to net income of $0.6 million, or $0.02 per basic and diluted common share for the second quarter of 2024.

Non-GAAP: Non-GAAP net income of $2.9 million for the second quarter of 2025, or $0.10 per basic common share and $0.09 per diluted common share, compared to non-GAAP net income of $2.1 million or $0.08 per basic common share and $0.07 per diluted common share for the second quarter of 2024.

EBITDA and Adjusted EBITDA: EBITDA for the second quarter of 2025 of $2.0 million compared to $1.4 million for the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 of $2.8 million compared to $2.2 million for the second quarter of 2024.

Financial Results for the six months ended June 30, 2025

Total Revenue: Consolidated total revenue for the six months ended June 30, 2025 increased 13%, or $3.6 million, to $32.6 million compared to $29.0 million for the six months ended June 30, 2024.

Service Revenue: Consolidated service revenue for the six months ended June 30, 2025 increased 4%, or $0.7 million, to $16.6 million compared to $15.9 million for the six months ended June 30, 2024.

Software Solutions Revenue: Consolidated software solutions revenue for the six months ended June 30, 2025 increased 32%, or $3.3 million, to $13.8 million compared to $10.5 million for the six months ended June 30, 2024.

Product Revenue: Consolidated product revenue for the six months ended June 30, 2025 decreased 15%, or $(0.4) million, to $2.2 million compared to $2.6 million for the six months ended June 30, 2024.

Operating Expenses: Consolidated operating expenses for the six months ended June 30, 2025 increased 9%, or $2.5 million, to $30.4 million compared to $27.9 million for the six months ended June 30, 2024.

Net Income/(Loss): The Company reported net income of $2.4 million for the six months ended June 30, 2025, or $0.08 per basic and diluted common share, compared to net income of $1.0 million, or $0.04 per basic common share and $0.03 per diluted common share for the six months ended June 30, 2024.

Non-GAAP: Non-GAAP net income of $5.5 million for the six months ended June 30, 2025, or $0.19 per basic common share and $0.18 per diluted common share, compared to non-GAAP net income of $4.1 million or $0.15 per basic common share and $0.14 per diluted common share for the six months ended June 30, 2024.

EBITDA and Adjusted EBITDA: EBITDA for the six months ended June 30, 2025 of $3.9 million compared to $2.7 million for the six months ended June 30, 2024. Adjusted EBITDA for the six months ended June 30, 2025 of $5.5 million compared to $4.3 million for the six months ended June 30, 2024.

Cash and Cash Equivalents: Total cash and cash equivalents at June 30, 2025 was $23.5 million compared to $18.2 million at December 31, 2024.

Cash Flow: Cash provided by operating activities for the six months ended June 30, 2025 and June 30, 2024, respectively was $2.5 million. Cash provided by financing activities for the six months ended June 30, 2025 was $2.7 million compared to cash provided by financing activities of $0.8 million for the six months ended June 30, 2024.

Management Commentary

"Our strong second quarter performance underscores our continued momentum and laser-like focus on profitable growth," said Jeff Korn, Crexendo Chief Executive Officer and Chairman of the Board. "We achieved a 13% year-over-year increase in total revenue to $16.6 million, driven by particularly impressive 31% growth in our software solutions segment that continues to be our strategic moat around our business. This marks our eighth consecutive quarter of GAAP profitability and 27th consecutive quarter of Non-GAAP net income. Our $1.2 million in net income and $2.8 million in adjusted EBITDA are clear indicators of the strength and scalability of our business model. These results are especially notable as we continue to invest in infrastructure and in the expansion of our products and services to secure long-term success."

Korn added, "We continue to execute on our strategic priorities such as closing our international data centers and expanding our Oracle Cloud Infrastructure (OCI) presence while maintaining cost discipline and expanding margins. With a robust cash position of $23.5 million and increased cash flow from both operations and financing, we are well-positioned to support continued growth. We remain focused on accelerating telecom services revenue through disciplined, profitable sales initiatives and a targeted review of strategic, accretive acquisitions. I remain highly enthusiastic about our trajectory and the opportunities ahead as we expand our footprint, advance our software platform, embrace AI applications, and continue to enhance long-term shareholder value."

Conference Call

Crexendo management will hold a conference call today, August 5, 2025, 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: 467741

Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 467741 and the Crexendo earnings call. A replay of the call will be available until August 12, 2025, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 52756.

About Crexendo

Crexendo, Inc. is 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. Our cloud communications software solutions currently support over six million end users globally, through an extensive network of over 235 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) believing the strong second quarter performance underscores its continued momentum and laser-like focus on profitable growth; (ii) believing its impressive 31% growth in the software solutions segment continues to be the strategic moat around the business; (iii) the $1.2 million in net income and $2.8 million in adjusted EBITDA are clear indicators of the strength and scalability of the business model; (iv) believing these results are especially notable as it continues to invest in infrastructure and in the expansion of products and services to secure long-term success; (v) the Company continues to execute on strategic priorities such as closing international data centers and expanding Oracle Cloud Infrastructure (OCI) presence while maintaining cost discipline and expanding margins; (vi) believing that with a robust cash position of $23.5 million and increased cash flow from both operations and financing it is well-positioned to support continued growth; (vii) remaining focused on accelerating telecom services revenue through disciplined, profitable sales initiatives and a targeted review of strategic, accretive acquisitions and (viii) remaining highly enthusiastic about its trajectory and the opportunities ahead as it expands its footprint, advance its software platform, embrace AI applications, and continues to 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, 2024, 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
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value and share data)

June 30, 2025

December 31, 2024

Assets
Current assets:
Cash and cash equivalents

$

23,450

$

18,193

Trade receivables, net of allowance of $146 and $146, respectively

5,620

4,352

Inventories

618

393

Equipment financing receivables, net of allowance of $34 and $69, respectively

1,185

1,049

Contract costs

2,135

1,931

Prepaid expenses

1,297

876

Income tax receivable

227

75

Other current assets

96

13

Total current assets

34,628

26,882

Contract assets, net of allowance of $155 and $127, respectively

433

406

Long-term equipment financing receivables, net of allowance of $76 and $157, respectively

2,657

2,397

Property and equipment, net

292

394

Operating lease right-of-use assets

1,227

1,491

Intangible assets, net

19,431

20,528

Goodwill

9,454

9,454

Contract costs, net of current portion

2,906

2,879

Other long-term assets

335

507

Total Assets

$

71,363

$

64,938

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable

$

519

$

1,003

Accrued expenses

7,468

6,992

Finance leases

3

21

Notes payable

356

478

Operating lease liabilities

475

481

Income tax payable

44

40

Contract liabilities

3,235

3,079

Total current liabilities

12,100

12,094

Contract liabilities, net of current portion

181

293

Finance leases, net of current portion

1

2

Notes payable, net of current portion

-

114

Operating lease liabilities, net of current portion

780

1,022

Total liabilities

13,062

13,525

Stockholders' equity:
Preferred stock, par value $0.001 per share - authorized 5,000,000 shares; none issued

-

-

Common stock, par value $0.001 per share - authorized 50,000,000 shares, 30,160,217
shares issued and outstanding as of June 30, 2025 and 27,621,557 shares issued
and outstanding as of December 31, 2024

30

28

Additional paid-in capital

142,452

138,015

Accumulated deficit

(84,387

)

(86,790

)

Accumulated other comprehensive income

206

160

Total stockholders' equity

58,301

51,413

Total Liabilities and Stockholders' Equity

$

71,363

$

64,938

CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share and share data)

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

Service revenue

$

8,374

$

8,067

$

16,556

$

15,912

Software solutions revenue

6,975

5,325

13,843

10,471

Product revenue

1,203

1,293

2,210

2,588

Total revenue

16,552

14,685

32,609

28,971

Operating expenses:
Cost of service revenue

3,556

3,246

7,043

6,355

Cost of software solutions revenue

1,813

1,445

3,303

2,837

Cost of product revenue

687

696

1,286

1,426

Selling and marketing

4,371

3,958

8,660

7,985

General and administrative

3,585

3,432

7,104

6,728

Research and development

1,437

1,328

2,960

2,577

Total operating expenses

15,449

14,105

30,356

27,908

Income/(loss) from operations

1,103

580

2,253

1,063

Other income/(expense):
Interest income

$

126

$

53

$

210

$

58

Interest expense

(6

)

(11

)

(15

)

(24

)

Other income/(expense), net

57

(7

)

47

(21

)

Total other income/(expense), net

177

35

242

13

Income/(loss) before income tax

1,280

615

2,495

1,076

Income tax benefit/(provision)

(48

)

(27

)

(92

)

(54

)

Net income/(loss)

$

1,232

$

588

$

2,403

$

1,022

Earnings per common share:
Basic

$

0.04

$

0.02

$

0.08

$

0.04

Diluted

$

0.04

$

0.02

$

0.08

$

0.03

Weighted-average common shares outstanding:
Basic

29,430,050

26,664,220

28,731,048

26,489,562

Diluted

31,324,711

29,510,903

31,165,361

29,810,838

CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)

Six Months Ended June 30,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss)

$

2,403

$

1,022

Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities:
Depreciation and amortization

1,627

1,676

Allowance for credit losses

(88

)

8

Share-based compensation

1,488

1,512

Non-cash operating lease amortization

16

(6

)

Changes in assets and liabilities:
Trade receivables

(1,268

)

(486

)

Contract assets

(54

)

(21

)

Equipment financing receivables

(281

)

(321

)

Inventories

(225

)

(172

)

Contract costs

(231

)

(574

)

Prepaid expenses

(421

)

(534

)

Income tax receivable

(152

)

(79

)

Other assets

(321

)

(7

)

Accounts payable and accrued expenses

(8

)

104

Income tax payable

4

(53

)

Contract liabilities

44

417

Net cash provided by/(used for) operating activities

2,533

2,486

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment

(18

)

-

Net cash used for investing activities

(18

)

-

CASH FLOWS FROM FINANCING ACTIVITIES
Repayments made on finance leases

(19

)

(37

)

Repayments made on notes payable

(236

)

(226

)

Proceeds from exercise of options

3,138

1,133

Taxes paid on the net settlement of stock options and RSUs

(187

)

(92

)

Net cash provided by/(used for) financing activities

2,696

778

Effect of exchange rate changes on cash

46

-

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

5,257

3,264

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

18,193

10,347

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

$

23,450

$

13,611

Cash used during the year for:
Income taxes, net

$

(243

)

$

(186

)

Interest expense

$

(11

)

$

(24

)

Supplemental disclosure of non-cash investing and financing information:
Capitalized software development costs

$

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, 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 5, 2025 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 and related taxes 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
(Unaudited, in thousands, except for per share and share data)

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

U.S. GAAP net income/(loss)

$

1,232

$

588

$

2,403

$

1,022

Share-based compensation and related taxes (1)

825

788

1,623

1,526

Amortization of intangible assets

801

758

1,507

1,518

Non-GAAP net income

$

2,858

$

2,134

$

5,533

$

4,066

Non-GAAP earnings per common share:
Basic

$

0.10

$

0.08

$

0.19

$

0.15

Diluted

$

0.09

$

0.07

$

0.18

$

0.14

Weighted-average common shares outstanding:
Basic

29,430,050

26,664,220

28,731,048

26,489,562

Diluted

31,234,711

29,510,903

31,165,361

29,810,838

Reconciliation of U.S. GAAP Net Income/(Loss) to EBITDA to Adjusted EBITDA
(Unaudited, in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

U.S. GAAP net income/(loss)

$

1,232

$

588

$

2,403

$

1,022

Depreciation and amortization

856

836

1,627

1,676

Interest expense

6

11

15

24

Other, net

(183

)

(46

)

(257

)

(37

)

Income tax provision

48

27

92

54

EBITDA

1,959

1,416

3,880

2,739

Share-based compensation and related taxes (1)

825

788

1,623

1,526

Adjusted EBITDA

$

2,784

$

2,204

$

5,503

$

4,265

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(1) For the three months ended June 30, 2025 and 2024, employer payroll tax expense related to share-based compensation was $63 and $4, respectively. For the six months ended June 30, 2025 and 2024, employer payroll tax expense related to share-based compensation was $135 and $14, respectively.

SOURCE: Crexendo, Inc.



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FAQ

What were Crexendo's (CXDO) Q2 2025 earnings results?

Crexendo reported Q2 2025 total revenue of $16.6 million (up 13% YoY), GAAP net income of $1.2 million ($0.04 per share), and non-GAAP net income of $2.9 million ($0.10 per basic share).

How much did Crexendo's software solutions revenue grow in Q2 2025?

Crexendo's software solutions revenue grew 31% year-over-year to $7.0 million in Q2 2025, compared to $5.3 million in Q2 2024.

What is Crexendo's current cash position as of Q2 2025?

Crexendo reported $23.5 million in cash and cash equivalents as of June 30, 2025, an increase from $18.2 million at December 31, 2024.

How many consecutive quarters has Crexendo been profitable?

Crexendo has achieved 8 consecutive quarters of GAAP profitability and 27 consecutive quarters of Non-GAAP net income.

What were the key challenges in Crexendo's Q2 2025 results?

Key challenges included a 7% decline in product revenue to $1.2 million, a 10% increase in operating expenses to $15.4 million, and modest service revenue growth of only 4%.
Crexendo Inc

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Telecom Services
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United States
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