Crexendo Q2 Revenue Jumps 49% to $24.6M, Non-GAAP EPS $0.12; Cash Drops to $18.3M After ESI Deal
CXDO sits 42% above its 52-week low of $5.26.
Summary
Crexendo reported Q2 2026 revenue of $24.6 million (+49% YoY) and Non-GAAP EPS of $0.12, beating year-ago results. Cash declined to $18.3 million after the ESI acquisition, while platform logo wins surged to 11 from 2.
Key Events · Earnings and Guidance · CXDO
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Revenue Surges 49% to $24.6M
Total revenue grew $8.1 million year-over-year, with service revenue up 78% to $14.9 million, software solutions up 5% to $7.3 million, and product revenue more than doubling to $2.5 million.
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Non-GAAP EPS of $0.12 Beats Prior Year
Non-GAAP net income reached $4.1 million, or $0.12 per diluted share, compared to $2.9 million ($0.09) in Q2 2025. GAAP net income was $1.1 million ($0.03/share).
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Cash Drops to $18.3M After ESI Acquisition
Cash and equivalents fell from $31.4 million at year-end 2025 to $18.3 million, primarily due to $26.2 million used in investing activities for the ESI acquisition, partially offset by $4.8 million in operating cash flow and $8.3 million from financing.
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Platform Logo Wins Accelerate to 11
Crexendo secured 11 new platform logos in Q2 2026, up from only 2 in the same period last year, indicating growing adoption of the NetSapiens platform.
Analysis · CXDO · Technology
Crexendo delivered strong top-line growth with revenue up 49% year-over-year, driven by the ESI acquisition and organic gains. Non-GAAP net income of $4.1 million ($0.12/share) handily beat the prior-year quarter's $2.9 million, and Adjusted EBITDA expanded 46% to $4.1 million. However, cash and equivalents fell sharply to $18.3 million from $31.4 million at year-end, largely due to $26.2 million used for the ESI acquisition. The company also added 11 new platform logos versus just 2 a year ago, signaling accelerating platform adoption. Against a backdrop of heavy insider selling over the past 90 days, these results provide a positive fundamental counterpoint, though the cash burn from M&A and the insider distribution pattern warrant attention.
At the time of this filing, CXDO was trading at $7.45 on NASDAQ in the Technology sector, with a market capitalization of approximately $241.5M. The 52-week trading range was $5.26 to $11.23. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.