Crexendo (CXDO) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 44% YoY to $25.2M, reaching a $100M annualized run rate; Adjusted EBITDA was $4.0M.

• ESI contributed $6.8M of Q3 revenue; GAAP net income was $1.1M versus $1.5M a year earlier.

• Added 16 platform licensees YTD, exceeding 14 for all of 2025; solutions support more than 8M end users.

Financial highlights

• Q3 revenue was $25.2M versus $17.5M; service revenue rose 75% to $15.1M, software solutions revenue 2% to $7.7M, and product revenue 78% to $2.4M.

• 9M revenue increased 41% to $70.5M; GAAP net income was $2.7M versus $3.9M, and operating income was $2.6M versus $3.6M.

• Q3 operating expenses rose 49% to $24.1M; operating income was $1.1M versus $1.3M.

• Q3 Adjusted EBITDA was $4.0M versus $2.9M; 9M Adjusted EBITDA was $11.3M versus $8.4M.

• Q3 non-GAAP net income was $4.0M, or $0.12 per share; GAAP basic and diluted EPS were $0.03 versus $0.05.

Outlook and guidance

• Double-digit organic growth remains an internal target; FY 2027 organic growth guidance was deferred pending greater clarity on interest rates and economic conditions.

• NetSapiens Flow is targeted for H1 2027; CAIRO is not expected to contribute meaningfully to revenue until H2 2027.

• Management expects continued growth and profitability, while managing expenses and hiring in response to conditions; Flow resources have been committed and R&D is not expected to rise significantly.

• Existing liquidity and operations are expected to meet cash requirements for at least 12 months.