Crexendo (CXDO) Q4 2025 earnings summary

Executive summary

• Achieved tenth consecutive GAAP profitable quarter and 29th consecutive Non-GAAP profitable quarter, with annual revenue up 12% year-over-year to $68.2 million and net income of $5.1 million.

• User base grew from just over 4 million to more than 7 million in under three years, reflecting 75% growth.

• Completed the acquisition of Estech Systems (ESI), expected to be accretive within two quarters and to help reach the $100 million annual revenue target.

• Significant investments made in AI, security, and infrastructure, including the launch of the CAIRO AI Receptionist and full migration to Oracle Cloud Infrastructure.

• Recognized with 42 G2 Winter 2026 awards, Generative AI Product of the Year, and inclusion in the Russell 2000 Index.

Financial highlights

• Q4 revenue increased 11% year-over-year to $18.1 million; full-year revenue rose 12% to $68.2 million.

• Q4 net income was $1.2 million ($0.04 per share); full-year net income was $5.1 million ($0.17 per share).

• Q4 non-GAAP net income was $2.8 million; full-year non-GAAP net income was $11.4 million.

• Q4 adjusted EBITDA was $2.8 million (15.3% margin); full-year adjusted EBITDA was $11.2 million (17% margin).

• Cash and equivalents at year-end were $31.4 million, with $9.3 million in free cash flow (14% margin).

Outlook and guidance

• Targeting continued double-digit organic growth and profitability in 2026, even with ongoing strategic investments.

• ESI acquisition expected to accelerate revenue growth and deliver cost and revenue synergies.

• Anticipates further gross margin improvements from completed data center consolidation and OCI migration.

• AI initiatives and new Marketplace expected to drive incremental revenue and ecosystem expansion.

• Confident in ability to deliver on future opportunities based on consistent execution.