Crexendo, Inc. (NASDAQ:CXDO) reported financial results for the third quarter ended September 30, 2026, with total revenue of $25.2 million and GAAP net income of $1.1 million. The Phoenix-based cloud communications software provider also reported adjusted EBITDA of $4.0 million, compared with $2.9 million for the third quarter of 2025.
Consolidated revenue rose 44% to $25.2 million in the third quarter of 2026, compared with $17.5 million in the corresponding quarter of 2025.
Service revenue increased 75% to $15.1 million from $8.6 million. Software solutions revenue rose 2% to $7.7 million from $7.5 million, while product revenue increased 78% to $2.4 million from $1.4 million.
Operating expenses were $24.1 million, up 49% from $16.2 million in the third quarter of 2025. GAAP net income was $1.1 million, or $0.03 per basic and diluted common share, compared with $1.5 million, or $0.05 per basic and diluted common share, a year earlier.
Crexendo reported non-GAAP net income of $4.0 million, or $0.12 per basic and diluted common share, compared with $3.0 million, or $0.10 per basic and diluted common share, for the third quarter of 2025. EBITDA was $3.0 million, compared with $2.0 million in the prior-year quarter.
For the nine months ended September 30, 2026, total revenue increased 41% to $70.5 million from $50.1 million in the same period of 2025.
Service revenue was $40.5 million, compared with $25.2 million. Software solutions revenue was $22.7 million, compared with $21.4 million, while product revenue was $7.3 million, compared with $3.6 million.
Operating expenses increased 41% to $68.0 million from $46.5 million. GAAP net income was $2.7 million, or $0.08 per basic and diluted common share, compared with $3.9 million, or $0.13 per basic common share and $0.12 per diluted common share, for the nine months ended September 30, 2025.
Non-GAAP net income was $11.3 million, or $0.35 per basic common share and $0.34 per diluted common share, compared with $8.6 million, or $0.29 per basic common share and $0.27 per diluted common share. EBITDA was $7.5 million, compared with $6.0 million, and adjusted EBITDA was $11.3 million, compared with $8.4 million.
Crexendo held $22.8 million in cash and cash equivalents at September 30, 2026, compared with $31.4 million at December 31, 2025.
Cash provided by operating activities for the nine months ended September 30, 2026 was $9.7 million, compared with $7.0 million for the same period of 2025. Cash used in investing activities was ($26.2) million, compared with nil, while cash provided by financing activities was $8.0 million, compared with $3.4 million for the first nine months of 2025.
Chief Executive Officer and Chairman Jeff Korn said Crexendo secured 5 new licensees during the third quarter, bringing the year-to-date total to 16, compared with 14 for all of 2025. He said the wins support future organic growth as providers migrate subscribers to NetSapiens, expand their businesses and purchase additional capacity.
Korn also said Crexendo’s solutions support more than eight million end users. The company described its network as including over 250 cloud communication platform software subscribers, alongside its direct retail offering.
According to Korn, the integration of ESI had gone seamlessly. He said Crexendo was actively evaluating additional opportunities while continuing to focus on organic growth. He also attributed his confidence in the product roadmap and long-term opportunity to the response to a preview of NetSapiens Flow, the company’s expanding AI ecosystem and progress with CAIRO.
Crexendo said non-GAAP net income, EBITDA and adjusted EBITDA are supplemental measures and are not defined under U.S. GAAP. The company said they should not be viewed alone or used as substitutes for GAAP net income/(loss) or other consolidated income statement data.
Crexendo also said EBITDA and adjusted EBITDA do not reflect cash expenditures or future requirements for capital expenditures, contractual commitments, working capital, interest, principal payments or income taxes. The company stated that its U.S. GAAP results remain its primary basis for evaluating operating performance.
Crexendo management was scheduled to discuss the results on a conference call on November 3, 2026, at 4:30 PM Eastern time. Jeff Korn, Chief Financial Officer Ron Vincent and President and Chief Operating Officer Doug Gaylor were scheduled to host the call, followed by a question-and-answer session.
The company said a replay would be available until November 17, 2026.
Crexendo announced financial results for the third quarter ended September 30, 2026. The company reported total revenue of $25.2 million, GAAP net income of $1.1 million and adjusted EBITDA of $4.0 million.
Crexendo's consolidated total revenue increased 44% to $25.2 million in the third quarter of 2026, compared with $17.5 million for the third quarter of 2025. Service revenue increased 75% to $15.1 million, software solutions revenue increased 2% to $7.7 million, and product revenue increased 78% to $2.4 million.
Crexendo reported GAAP net income of $1.1 million, or $0.03 per basic and diluted common share, for the third quarter of 2026. Non-GAAP net income was $4.0 million, or $0.12 per basic and diluted common share, while adjusted EBITDA was $4.0 million compared with $2.9 million for the third quarter of 2025.
Crexendo's consolidated operating expenses increased 49% to $24.1 million in the third quarter of 2026, compared with $16.2 million for the third quarter of 2025. GAAP net income was $1.1 million, compared with $1.5 million for the third quarter of 2025.
For the nine months ended September 30, 2026, Crexendo's total revenue increased 41% to $70.5 million, compared with $50.1 million for the same period of 2025. GAAP net income was $2.7 million, non-GAAP net income was $11.3 million and adjusted EBITDA was $11.3 million.
Crexendo had $22.8 million in cash and cash equivalents at September 30, 2026, compared with $31.4 million at December 31, 2025. Cash provided by operating activities was $9.7 million, cash used in investing activities was ($26.2) million and cash provided by financing activities was $8.0 million for the nine months ended September 30, 2026.
Crexendo said it secured 5 new licensees in the third quarter, bringing its year-to-date total to 16, compared with 14 for all of 2025. Chief Executive Officer and Chairman Jeff Korn said these wins expand the foundation for future organic growth as providers migrate subscribers to NetSapiens, grow their businesses and purchase additional capacity.
Crexendo said its solutions support more than eight million end users. The company also described an extensive global network of over 250 cloud communication platform software subscribers, alongside its direct retail offering.
Crexendo provides cloud communication platform software and unified communications as a service offerings, including voice, video, contact centre and managed IT services tailored to businesses of all sizes. The company also provides video collaboration and managed IT services, with providers able to migrate subscribers to NetSapiens and purchase additional capacity.
Jeff Korn said the integration of ESI had gone seamlessly and that it reinforced management's confidence in identifying and successfully integrating strategic, accretive acquisitions. He also said Crexendo was actively evaluating additional opportunities to accelerate growth while remaining focused on organic growth.
Jeff Korn said the response to the preview of NetSapiens Flow, together with Crexendo's expanding AI ecosystem and continued progress with CAIRO, gave him confidence in the company's product roadmap and long-term opportunity. He said the company believed that combining innovation, disciplined expense management and selective acquisitions positioned it to deliver sustainable, profitable growth and build lasting and increasing shareholder value.
Crexendo, Inc. is identified in the announcement as trading on NASDAQ under the ticker symbol CXDO.
Crexendo management was scheduled to hold a conference call on November 3, 2026, at 4:30 PM Eastern time to discuss the results. The call was to be hosted by Jeff Korn, CFO Ron Vincent and President and COO Doug Gaylor, followed by a question-and-answer period.
Crexendo said a replay of the earnings call would be available until November 17, 2026. The announcement provided the toll-free number 877-481-4010, the international number 919-882-2331 and replay passcode 54653.
Crexendo says Non-GAAP net income and adjusted EBITDA are supplemental measures and are not defined under U.S. GAAP; they should not be considered in isolation or as substitutes for GAAP net income/(loss) or other consolidated income statement data. The company says these measures have limitations, including that EBITDA and adjusted EBITDA do not reflect cash expenditures or future requirements for capital expenditures, contractual commitments, working capital, interest, principal payments or income taxes.