Crexendo (CXDO) Q2 2025 earnings summary

Executive summary

• Achieved 13% year-over-year revenue growth to $16.6 million in Q2 2025, with 31% organic growth in software solutions and 4% growth in telecom/service revenue, while product revenue declined.

• Eighth consecutive quarter of GAAP profitability and 27th consecutive quarter of non-GAAP net income, with net income doubling to $1.2 million ($0.04 per share) from $0.6 million.

• Strong momentum in licensee and partner ecosystem, with total licensees around 240 and significant wins from legacy competitors.

• Annualized exit recurring revenue reached $53.9 million as of June 30, 2025, up from $47.3 million a year earlier.

• Continued investment in AI capabilities, Oracle Cloud Infrastructure migration, and disciplined cost management to drive future efficiencies.

Financial highlights

• Q2 2025 total revenue: $16.6 million (up 13% year-over-year); software solutions revenue: $7.0 million (up 31%); telecom/service revenue: $8.4–$9.6 million (up 2–4%); product revenue: $1.2 million (down 7%).

• Q2 2025 GAAP net income: $1.2 million ($0.04 per share); non-GAAP net income: $2.9 million ($0.10 per share); Adjusted EBITDA: $2.8 million (16.8–16.9% margin).

• Cash and cash equivalents at June 30, 2025: $23.5 million, up from $18.2 million at year-end 2024.

• Cash provided by operating activities for six months: $2.5 million; cash from financing activities: $2.7 million, mainly from stock option exercises.

• Basic EPS for Q2 2025: $0.04 GAAP, $0.10 Non-GAAP; six-month basic EPS: $0.08 GAAP, $0.19 Non-GAAP.

Outlook and guidance

• Expectation to maintain double-digit organic growth, with software solutions segment continuing at 30%+ growth.

• Management expects to achieve 100% of annual revenue and Adjusted EBITDA targets for 2025.

• Major cost savings and margin improvements anticipated in 2026 after U.S. data center migration completes.

• Continued focus on profitable growth, not pursuing low-margin opportunities, and pursuing strategic, accretive acquisitions.

• Operations and liquidity sources expected to satisfy cash requirements for at least the next 12 months.