Crexendo, Inc. (CXDO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Crexendo, Inc. (CXDO) Media & Communications Profile

Crexendo, Inc. delivers cloud communication and web services, focusing on unified communications and call center solutions for businesses in the United States, Canada, and internationally. Operating through two segments, Cloud Telecommunications and Web Services, Crexendo leverages IP and cloud technology to provide comprehensive communication tools, positioning itself in a competitive telecommunications landscape.

What Is the Investment Thesis for CXDO?

Crexendo, Inc. presents a compelling investment thesis centered on its growth in the cloud communication and UCaaS market. With a market capitalization of $207M and a P/E ratio of 14.4, the company demonstrates profitability with a 6.1% profit margin and a strong gross margin of 82.9%. Key value drivers include the increasing adoption of cloud-based communication solutions and the expansion of its service offerings. Growth catalysts include strategic partnerships and continued innovation in its technology platform. Potential risks include competition from larger players in the telecommunications industry and the need to maintain technological superiority. The company's beta of 0.94 suggests moderate volatility relative to the market.

Based on FMP financials and quantitative analysis

CXDO Key Highlights

Market capitalization of $207M indicates a mid-sized player in the cloud communication space.

• P/E ratio of 14.4 reflects investor expectations of future earnings growth.
• Gross margin of 82.9% demonstrates efficient cost management and strong pricing power.
• Profit margin of 6.1% shows the company's ability to convert revenue into profit.
• Beta of 0.94 suggests the stock's price is slightly less volatile than the overall market.

Who Are CXDO's Competitors?

CXDO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CXDO's Key Strengths?

Comprehensive suite of cloud communication services.

• Strong gross margin.
• Established presence in the US and Canada.
• Focus on unified communications.

What Are CXDO's Weaknesses?

Smaller market share compared to larger competitors.

• Limited geographic presence.
• Dependence on cloud infrastructure.
• Relatively high P/E ratio.

What Could Drive CXDO Stock Higher?

Launch of new AI-powered features in UCaaS platform to enhance user experience and productivity.

• Expansion of strategic partnerships to broaden market reach and service offerings.
• Increasing adoption of cloud-based communication solutions by SMBs.
• Release of updated mobile applications for improved accessibility and functionality.

What Are the Key Risks for CXDO?

Intense competition from larger telecommunications companies with greater resources.

• Rapid technological changes requiring continuous innovation and investment.
• Economic downturn affecting business spending on communication services.
• Cybersecurity threats and data breaches compromising customer data and trust.
• Dependence on reliable cloud infrastructure and internet connectivity.

What Are the Growth Opportunities for CXDO?

• Expansion of UCaaS Offerings: Crexendo can capitalize on the growing demand for unified communication solutions by expanding its UCaaS offerings. The global UCaaS market is projected to reach $79.3 billion by 2028, growing at a CAGR of 11.4% from 2021. By integrating advanced features like AI-powered analytics and enhanced security, Crexendo can attract a larger customer base and increase revenue. Timeline: Ongoing.
• Strategic Partnerships and Integrations: Forming strategic partnerships with complementary technology providers can enhance Crexendo's service offerings and expand its market reach. Integrating with popular CRM and business software platforms can provide a seamless experience for customers and drive adoption. The market for integrated communication solutions is growing rapidly, with businesses seeking unified platforms for their communication needs. Timeline: Ongoing.
• Geographic Expansion: Expanding its geographic presence beyond the United States and Canada can unlock new growth opportunities for Crexendo. Targeting regions with high adoption rates of cloud-based technologies and a strong demand for UCaaS solutions can drive revenue growth. The global cloud communication market is expanding, offering opportunities in various regions. Timeline: Ongoing.
• Focus on Small and Medium-Sized Businesses (SMBs): Targeting SMBs with tailored communication solutions can be a significant growth driver for Crexendo. SMBs often lack the resources to invest in complex communication infrastructure, making them ideal candidates for cloud-based solutions. The SMB market represents a substantial opportunity for Crexendo to expand its customer base and increase revenue. Timeline: Ongoing.
• Enhanced Cybersecurity Solutions: With increasing concerns about data security, Crexendo can differentiate itself by offering enhanced cybersecurity solutions as part of its UCaaS offerings. Providing robust security features and compliance certifications can attract customers who prioritize data protection. The market for cybersecurity solutions is growing rapidly, driven by the increasing threat of cyberattacks. Timeline: Ongoing.

What Are CXDO's Competitive Advantages?

• Proprietary cloud communication platform.
• Integrated suite of communication and web services.
• Established customer base.
• Expertise in cloud-based telecommunications.

What Does CXDO Do?

Crexendo, Inc., headquartered in Tempe, Arizona, was founded in 1995 and rebranded from iMergent, Inc. in 2011. The company specializes in providing cloud communication, unified communications as a service (UCaaS), call center solutions, collaboration tools, and other cloud-based business services. Crexendo operates through two primary segments: Cloud Telecommunications and Web Services. The Cloud Telecommunications segment is the core of its business, offering telecommunications services that utilize Internet Protocol (IP) and cloud technology to transmit calls, converting voice signals into digital data packets. This segment also resells broadband Internet services and is involved in the sale and lease of cloud telecommunications equipment. Crexendo provides hardware, software, and unified communication solutions for businesses, accessible through various devices and user interfaces like desktop phones, mobile devices, and desktop applications, all under the Crexendo brand. The Web Services segment complements the telecommunications offerings by providing website hosting and other professional services, creating a holistic suite of solutions for businesses seeking to enhance their communication and online presence. Crexendo serves businesses in the United States, Canada, and internationally.

What Products and Services Does CXDO Offer?

• Provides cloud communication services.
• Offers unified communications as a service (UCaaS).
• Delivers call center solutions.
• Provides collaboration tools.
• Offers cloud-based business services.
• Resells broadband Internet services.
• Sells and leases cloud telecommunications equipment.

How Does CXDO Make Money?

• Generates revenue through subscription fees for cloud communication services.
• Revenue from the sale and lease of telecommunications equipment.
• Revenue from reselling broadband Internet services.
• Revenue from web hosting and professional services.

What Industry Does CXDO Operate In?

Crexendo operates within the rapidly expanding cloud communication and UCaaS market. The industry is characterized by a shift towards cloud-based solutions, driven by the need for flexible, scalable, and cost-effective communication tools. Crexendo competes with larger telecommunications companies and specialized UCaaS providers. Its focus on integrated solutions and customer service helps it differentiate in a competitive landscape.

Who Are CXDO's Key Customers?

• Small and medium-sized businesses (SMBs).
• Businesses in the United States.
• Businesses in Canada.
• International businesses.

Company Profile

Crexendo, Inc. operates in the Telecommunications Services industry within the Communication Services sector. It is headquartered in Tempe, US. The company is led by CEO Jeffrey G. Korn. CXDO has traded publicly since 2018.

Return on equity for Crexendo, Inc. stands at 7.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.8%, showing how much profit it generates from its asset base. CXDO trades at a trailing price-to-earnings ratio of 14.41, below the Communication Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.37 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

CXDO Valuation & Market Position

With a $207M market cap, Crexendo, Inc. sits in the micro-cap segment of the market. Relative to its peer group, CXDO's quantitative score of 64/100 is roughly in line with the peer average of 69/100.

Quarterly Financial Performance: Crexendo, Inc.

Revenue for Crexendo, Inc. came in at $24.6M during Q2 2026, a 19.0% improvement versus the preceding quarter. The company recorded net income of $1.1M, with diluted EPS of $0.03. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this micro-cap Communication Services company. Across the four most recent quarters, CXDO averaged $0.03 in diluted EPS.

Crexendo, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 5.63 places it in the safe zone, indicating low near-term bankruptcy risk.

Crexendo, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 26.2% above estimates on average.

Wall Street analysts project Crexendo, Inc. revenue of about $97.2M for fiscal 2026, with EPS near $0.41. The estimate reflects 4 contributing analysts.

Over the past six months, Crexendo, Inc. insiders filed 26 SEC Form 4 transactions — 17 sales and 9 purchases. On net that is roughly 1K shares disposed (about $10K), a signal worth weighing alongside the fundamentals.

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CXDO Analyst Consensus

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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