Crexendo (CXDO) Q4 2025 earnings summary

Executive summary

• Achieved double-digit organic growth and sustained GAAP profitability for the tenth consecutive quarter, with annual revenue reaching $68.2 million, up 12% year-over-year.

• Net income for 2025 was $5.1 million, with non-GAAP net income of $11.4 million; EBITDA rose to $8 million.

• User base expanded from just over 4 million to more than 7 million in under three years, a 75% increase.

• Completed the acquisition of Estech Systems (ESI), expected to be accretive and strategic, positioning the company toward a $100 million revenue run rate.

• Recognized for AI innovation, including the launch of the CAIRO AI Receptionist, Generative AI Product of the Year, and multiple industry awards.

Financial highlights

• Q4 revenue increased 11% year-over-year to $18.1 million; net income was $1.2 million, non-GAAP net income $2.8 million.

• Service revenue for 2025 increased 6% to $33.8 million; Q4 service revenue up 8% year-over-year.

• Software solutions revenue for 2025 rose 27% to $29.7 million; Q4 up 18% year-over-year.

• Product revenue for 2025 declined 16% to $4.7 million; Q4 product revenue down 6% year-over-year.

• Cash and equivalents at year-end were $31.4 million, up from $18.2 million; free cash flow margin was 14%.

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 Oracle Cloud migration and operational efficiencies.

• Management expects continued profitable growth, leveraging platform scale and strategic acquisitions.

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