Crexendo (CXDO) AI Stock Analysis

• Market Cap: $193.39M
• Dividend Yield: N/A
• Average Volume (3M): 104.10K
• Price to Earnings (P/E): 63.9
• Beta (1Y): 1.79
• Revenue Growth: 13.10%
• EPS Growth: 1.03%
• Country: US
• Employees: 179
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.09
• Shares Outstanding: 30,169,530
• 10 Day Avg. Volume: 70,785
• 30 Day Avg. Volume: 104,102
• PEG Ratio: -0.15
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 22.37
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 25.43
• 1Y Price Target: $8.13
• Price Target Upside: 26.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $7.00 ▲(9.20% Upside)

Crexendo's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting revenue growth and profitability. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued with bearish momentum. The company's strategic initiatives and solid cash position provide a foundation for future growth, but competitive pressures and operational challenges remain.

Positive Factors

Revenue Growth

The significant growth in software solutions revenue indicates strong market demand and effective product offerings, supporting long-term revenue expansion.

Strategic Partnerships

The partnership with Dubber enhances Crexendo's platform capabilities, offering advanced AI solutions that can drive customer satisfaction and open new revenue streams.

Cash Flow Strength

Strong cash flow growth ensures liquidity and supports strategic investments, enhancing the company's ability to pursue growth opportunities and withstand market fluctuations.

Negative Factors

Product Revenue Decline

Declining product revenue suggests potential challenges in product competitiveness or market saturation, which could impact overall revenue diversification and growth.

Operating Expenses

Rising operating expenses may pressure profit margins and indicate inefficiencies, potentially limiting the company's ability to invest in growth initiatives.

Competitive Landscape

Intense competition and aggressive pricing strategies by rivals can erode market share and compress margins, challenging Crexendo's market position and profitability.

Crexendo Business Overview & Revenue Model

Company Description

Crexendo (CXDO) is a technology company specializing in cloud-based communication solutions and web services. Founded with a focus on providing small to medium-sized businesses with advanced tools to enhance their digital presence and communication capabilities, Crexendo offers a range of products including VoIP phone systems, unified communications, and website development services. The company operates primarily in the telecommunications and technology sectors, aiming to boost efficiency and connectivity for its clients through innovative solutions.

How the Company Makes Money

Crexendo generates revenue through several key streams, primarily focusing on subscription-based services for its cloud communication solutions. The company charges monthly fees for its VoIP and unified communications products, which provide businesses with essential telephony and collaboration tools. Additionally, Crexendo earns income from website development and hosting services, offering businesses a comprehensive digital presence package. Strategic partnerships with telecommunications providers and technology platforms also enhance their service offerings, allowing for broader market reach and customer acquisition. The recurring revenue model, combined with value-added services, contributes significantly to the company's overall earnings.

Crexendo Financial Statement Overview

Summary

Crexendo exhibits strong financial health, marked by impressive revenue growth and profitability improvements. The balance sheet is well-managed with low leverage and high equity. Cash flow generation is a key strength, providing liquidity and supporting growth. While operational efficiency can be improved further, the overall outlook is positive with a solid foundation for future expansion.

Income Statement

Crexendo has demonstrated strong revenue growth, with a 14.37% increase from 2023 to 2024. The gross profit margin improved to 78.49% in 2024, indicating efficient cost management. The net profit margin improved significantly from negative in 2023 to 2.76% in 2024. However, the EBIT margin, while positive at 3.00%, remains modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.04, reflecting minimal leverage. The return on equity improved to 3.26% in 2024, showing better profitability. The equity ratio is robust at 79.17%, indicating a strong capital structure. However, the lower total assets compared to 2021 indicate a potential area of concern for asset growth.

Cash Flow

Crexendo's cash flow is robust, with a significant increase in free cash flow from 2023 to 2024, growing by 83.66%. The operating cash flow to net income ratio is healthy at 3.75, highlighting strong cash generation relative to income. The free cash flow to net income ratio is high at 3.73, indicating efficient cash utilization. These metrics suggest strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.48M	60.84M	53.20M	37.55M	28.09M	16.39M
Gross Profit	39.69M	47.75M	31.64M	23.87M	17.43M	11.44M
EBITDA	6.62M	5.26M	3.42M	-33.37M	-1.20M	1.25M
Net Income	3.06M	1.68M	-362.00K	-35.41M	-2.44M	7.94M
Balance Sheet
Total Assets	71.36M	64.94M	56.16M	55.63M	77.15M	30.70M
Cash, Cash Equivalents and Short-Term Investments	23.45M	18.19M	10.35M	5.47M	7.47M	17.58M
Total Debt	1.70M	2.12M	2.19M	4.42M	2.79M	2.03M
Total Liabilities	13.06M	13.53M	11.55M	14.18M	11.22M	4.94M
Stockholders Equity	58.30M	51.41M	44.61M	41.46M	65.93M	25.76M
Cash Flow
Free Cash Flow	6.29M	6.26M	3.41M	-700.00K	-10.87M	-274.00K
Operating Cash Flow	6.33M	6.28M	3.50M	-411.00K	-1.01M	647.00K
Investing Cash Flow	-45.00K	-27.00K	3.70M	-1.70M	-9.87M	-921.00K
Financing Cash Flow	3.51M	1.59M	-2.31M	-54.00K	650.00K	13.67M

Crexendo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXDO, the sentiment is Positive. The current price of 6.41 is above the 20-day moving average (MA) of 6.23, above the 50-day MA of 6.38, and above the 200-day MA of 5.82, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CXDO.

Crexendo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	―	$224.25M	24.67	9.74%	―	18.18%	89.73%
CXDO	―	$193.39M	63.91	5.74%	―	13.10%	1.03%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KORE	―	$60.35M	―	―	―	0.24%	68.22%
ATNI	―	$239.16M	―	-9.15%	6.72%	-5.33%	-334.05%
RBBN	―	$610.15M	-14.10	-11.40%	―	7.38%	20.81%
OOMA	―	$319.33M	-198.80	-1.78%	―	5.42%	69.88%

Crexendo Corporate Events

Crexendo’s Earnings Call Highlights Strong Growth and AI Focus

Crexendo Inc. recently held its earnings call, where the overall sentiment was notably positive. The company reported strong revenue growth and sustained profitability, largely driven by impressive gains in its software solutions segment and strategic investments in AI capabilities. Despite some challenges, such as increased operating expenses and a decline in product revenue, Crexendo’s strong financial performance and strategic positioning were emphasized, leaving a positive impression on stakeholders.

Crexendo Reports Strong Q2 2025 Financial Results

Crexendo, Inc. is an award-winning software technology company specializing in cloud communication platforms, video collaboration, and managed IT services for businesses of all sizes. The company recently announced its financial results for the second quarter of 2025, showcasing strong growth and profitability. Crexendo reported a 13% year-over-year increase in total revenue, reaching $16.6 million. The company’s net income also saw significant growth, with GAAP net income reaching $1.2 million and non-GAAP net income at $2.9 million. The software solutions segment was a standout performer, with a 31% increase in revenue, highlighting the company’s strategic focus on this area. Despite a slight decrease in product revenue, Crexendo’s overall financial health remains robust, supported by a strong cash position of $23.5 million. Looking ahead, Crexendo’s management remains optimistic about the company’s growth trajectory, emphasizing strategic priorities such as expanding its Oracle Cloud Infrastructure presence and exploring strategic acquisitions to enhance shareholder value.