Crexendo, Inc. (CXDO) AI Stock Analysis

NASDAQ: CXDOAI research summary: business, growth, valuation, analysts, bull and bear case.

CXDO AI stock analysis summary

AI Research

Crexendo, Inc. (CXDO) provides cloud communications, unified communications as a service, and web hosting services. Revenue increased to $68.2M in FY2025 and reached $80.9M on a trailing twelve-month basis, while net income rose to $5.1M in FY2025. The company maintains a net cash position of $12.6M as of June 30, 2026, alongside a trailing price-to-earnings multiple of 39.1x.

Market cap
$181.9M
Revenue (TTM)
$80.9M
P/E
39.1x
fwd 196.1x
1Y return
-10.2%
S&P 500 16.8%
Avg. target
$10.92
99.6% vs last close

Bull case

  • Annual revenue expanded from $28.1M in FY2021 to $68.2M in FY2025, contributing to a 5-year revenue CAGR of 33.0%.
  • Free cash flow strengthened substantially to $9.3M in FY2025, supported by low capital expenditures of $18,000.
  • All 6 covering analysts rate the stock a Buy or Strong Buy, targeting a mean price of $10.92.

Bear case

  • The stock trades at a premium forward P/E of 196.1x compared to the median of 14.1x for US-listed Communication Services peers.
  • Dilution has been significant, with the company's share count expanding 61.0% over five years.
  • In the latest quarter ended June 30, 2026, quarterly earnings fell 25.0% year-over-year.

What Crexendo does

Crexendo, Inc., headquartered in Tempe, Arizona, provides cloud communication services, unified communications as a service (UCaaS), call center solutions, collaboration tools, and cloud-based business services across the United States, Canada, and internationally. The company operates through two segments: Cloud Telecommunications and Web Services. Cloud Telecommunications provides IP-based voice services, broadband Internet resale, and cloud equipment under the Crexendo brand across desktop phones, mobile apps, and desktop applications. The Web Services segment offers website hosting and professional services to support digital infrastructure for businesses.

Growth and profitability

Crexendo grew its revenue from $28.1M in FY2021 to $68.2M in FY2025, achieving a 5-year revenue CAGR of 33.0% from FY2020 to FY2025. Annual net income improved from -$2.4M in FY2021 to $5.1M in FY2025, turning operating margins from -10.0% to positive 6.9%. In FY2025, gross margin reached 62.9% and free cash flow rose to $9.3M. For the trailing twelve months ending June 30, 2026, revenue stood at $80.9M with a profit margin of 5.3%. For the latest quarter ended June 30, 2026, quarterly revenue grew 48.9% year-over-year, while quarterly earnings declined 25.0%.

CXDO income statement →

Balance sheet and cash flow

As of June 30, 2026, Crexendo held $18.3M in cash and short-term investments against total debt of $5.6M, resulting in net cash of $12.6M. Total assets reached $101.0M and shareholders' equity stood at $78.1M. The company shows a current ratio of 2.06 and a debt-to-equity ratio of 0.07. In FY2025, operating cash flow generated $9.3M, while capital expenditures were limited to $18,000, leaving free cash flow of $9.3M. Over five years, the share count increased by 61.0%.

CXDO balance sheet →

Valuation and performance

At a last close of $5.47 on October 16, 2026, Crexendo traded at a market cap of $181.9M and an enterprise value of $180.9M. Its trailing P/E of 39.1x and forward P/E of 196.1x sit well above the median of its US-listed Communication Services peers at 16.2x and 14.1x, respectively. The company's price-to-sales ratio of 2.2x and EV/EBITDA of 19.3x also exceed peer medians of 0.8x and 10.0x. Over the past year, the stock declined 10.2%, lagging the 16.8% return for the S&P 500 (SPY).

CXDO key metrics →

What analysts expect

Wall Street coverage reflects 5 Strong Buy ratings, 1 Buy, and no Hold or Sell ratings. The mean price target is $10.92, representing a 99.6% premium over the last close of $5.47. For the fiscal year ending December 31, 2026, analysts estimate revenue of $97.2M and EPS of $0.41, representing 14.3% EPS growth. Crexendo beat earnings estimates in 3 of the last 4 quarters, and its next earnings report is scheduled for November 3, 2026.

CXDO forecast and price target →

Key risks and what to watch

  • CXDO shares trade 21.1% below their 200-day moving average and fell 15.5% year-to-date.
  • The company's operating margin of 5.0% over the trailing twelve months remains below the peer median of 13.3%.
  • Short interest accounts for 5.8% of float, highlighting market skepticism despite positive FY2025 net income of $5.1M.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this CXDO AI stock analysis

This page is an AI-written research summary of Crexendo, Inc. (CXDO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CXDO income statement, CXDO balance sheet, CXDO key metrics, CXDO analyst forecast, CXDO chart. See the CXDO stock overview for the latest quote and news.

CXDO AI stock analysis FAQ

Does Crexendo pay a dividend?

Crexendo does not pay a regular dividend. Cash generated has supported liquidity, resulting in net cash of $12.6M as of June 30, 2026.

What is Crexendo's revenue growth outlook?

Analysts forecast revenue of $97.2M for FY2026 and $110.5M for FY2027, which represents a projected revenue growth rate of 13.7%.

How strong is Crexendo's balance sheet?

Crexendo closed the quarter on June 30, 2026, with $18.3M in cash against $5.6M in total debt, giving it a debt-to-equity ratio of 0.07 and a current ratio of 2.06.

What are Crexendo's core business segments?

The company operates through two segments: Cloud Telecommunications, which offers UCaaS and IP-based business telecommunications, and Web Services, which provides website hosting and digital infrastructure solutions.

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