Crexendo
Crexendo's revenue rose 12.1% to $68 million in fiscal 2025. Its operating margin was 6.9%, up from 3.0% a year earlier. Free cash flow was $9 million, up 48.3%. The diluted share count rose 5.4%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What Crexendo does
Crexendo sells cloud phone and communications services to businesses of all sizes. Its unified communications service covers voice calling, video, contact center and managed IT services. It also licenses the cloud communications software behind these services to other companies, which resell them under their own brands. The company says its software supports over seven million end users worldwide, through more than 240 software subscribers and its own direct retail business.
It reports two segments. Cloud Telecommunications sells hosted calling plans with contracts that usually run three to five years, plus broadband internet, managed IT services and the sale or lease of desk phones and other equipment. Software Solutions earns money from software licenses, maintenance and support, and professional services such as consulting, design and installation.
Crexendo says it competes with traditional phone, wireless and cable companies, other providers of cloud phone services, and other alternative voice providers. It stopped paying a quarterly dividend in April 2023, and it expects to look at acquisitions and other changes to its capital structure to expand.
Its biggest risks, as it describes them
- Intense competition from phone, wireless and cable companies and other cloud communications providers.
- It may not reach or keep operating profitability.
- Acquisitions it expects to make could distract management, raise costs and dilute shareholders.
- It may not be able to raise financing on good terms, or at all.
- Its uptime guarantee exposes it to customer credits, and usage-based pricing can make revenue swing.
Income statement
From fiscal 2019 to 2025, earnings per share grew 14.8% a year and net income 29.1% a year, as new shares raised the share count by 103% and diluted each share's earnings.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 8 | 6 | 10 | 18 | 31 |
| Debt incl. finance leases | 2 | 1 | 1 | 1 | 0 |
| Net debt (negative means net cash) | −5 | −4 | −9 | −18 | −31 |
| Net debt to EBITDA | −0.0x | — | — | −8.3x | −6.4x |
| Debt to equity | 0.0x | 0.0x | 0.0x | 0.0x | 0.0x |
| Interest coverage | −33.5x | −479.4x | −14.7x | 57.0x | 275.9x |
| Current ratio | 1.1x | 1.2x | 1.6x | 2.2x | 3.4x |
| Quick ratio | 1.1x | 1.1x | 1.6x | 2.2x | 3.4x |
Cash flow
Projections
Project Crexendo's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
Insider trades
No officer, director or 10% owner of Crexendo reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | 5 of 8 | 7 of 8 | 6 of 8 |
| Rule of 40 | 48.1% | 24.6% | 25.7% |
| Altman Z'' | −0.50 | 1.32 | 4.31 |
| Accruals ratio | −6.9% | −7.6% | −5.9% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Fail | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Pass | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Pass | Pass |
| Current ratio rose | Pass | Pass | Pass |
| Share count didn't rise | Fail | Fail | Fail |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Pass | Pass | Fail |
| F-score | 5 of 8 | 7 of 8 | 6 of 8 |
Compare
Put Crexendo side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Crexendo | FY25 | 12.1% | 6.9% | 13.6% | 13.3% | −6.4x | 6 | |
| Silvaco Group | FY25 | 5.7% | −72.8% | −54.7% | — | — | — | Compare |
| Roadzen | FY26 | 24.2% | −25.4% | −38.7% | — | — | 5 | Compare |
| Daily Journal | FY25 | 25.4% | 10.9% | 15.2% | — | — | — | Compare |
| Red Violet | FY25 | 20.0% | 14.6% | 31.9% | 22.1% | −1.8x | 6 | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 9 | 10 | 12 | 14 | 16 | 28 | 38 | 53 | 61 | 68 |
| Revenue growth | 16.6% | 11.7% | 16.9% | 21.2% | 13.5% | 71.4% | 33.7% | 41.7% | 14.4% | 12.1% |
| Gross profit | 6 | 10 | — | 10 | 11 | — | — | — | — | — |
| Research and development | 1 | 1 | 1 | 1 | 1 | 1 | 4 | 5 | 6 | 6 |
| Operating income | −3 | −1 | −0 | 1 | 1 | −3 | −37 | −2 | 2 | 5 |
| Net income | −3 | −1 | −0 | 1 | 8 | −2 | −35 | −0 | 2 | 5 |
| Diluted EPS (US$) | −0.21 | −0.07 | −0.02 | 0.07 | 0.46 | −0.12 | −1.54 | −0.01 | 0.06 | 0.16 |
| Diluted shares (millions) | 13 | 14 | 14 | 16 | 17 | 20 | 23 | 26 | 30 | 32 |
| Cash flow | ||||||||||
| Cash from operations | −1 | 0 | 0 | 2 | 1 | −1 | −0 | 4 | 6 | 9 |
| Capital expenditure | — | — | — | — | — | 0 | 0 | 0 | 0 | 0 |
| Free cash flow | — | — | — | — | — | −1 | −1 | 3 | 6 | 9 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 10 | 1 | 0 | 0 | 0 |
| Stock-based compensation | 1 | 1 | 0 | 0 | 1 | 2 | 4 | 4 | 3 | 3 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 0 | 1 | 2 | 4 | 18 | 8 | 6 | 10 | 18 | 31 |
| Debt incl. finance leases | 1 | 0 | 0 | 0 | 2 | 2 | 1 | 1 | 1 | 0 |
| Total assets | 4 | 4 | 4 | 8 | 31 | 77 | 56 | 56 | 65 | 78 |
| Total liabilities | 3 | 2 | 2 | 3 | 5 | 11 | 14 | 12 | 14 | 14 |
| Shareholders' equity | 0 | 2 | 2 | 4 | 26 | 66 | 42 | 45 | 51 | 64 |
| Margins and ratios | ||||||||||
| Gross margin | 60.2% | 94.6% | — | 69.9% | 69.8% | — | — | — | — | — |
| Operating margin | −30.3% | −7.2% | −1.7% | 7.9% | 6.0% | −10.0% | −99.6% | −3.2% | 3.0% | 6.9% |
| Net margin | −30.6% | −9.1% | −1.9% | 7.9% | 48.5% | −8.7% | −94.3% | −0.7% | 2.8% | 7.4% |
| Free cash flow margin | — | — | — | — | — | −3.9% | −1.9% | 6.4% | 10.3% | 13.6% |
| Rule of 40 (growth + FCF margin) | — | — | — | — | — | 67.5% | 31.8% | 48.1% | 24.6% | 25.7% |
| Return on capital | −118.5% | −51.2% | — | — | 9.4% | −6.3% | −60.4% | −3.7% | 4.7% | 13.3% |
| Return on equity | −205.4% | −86.6% | −12.3% | 35.7% | 52.7% | −5.3% | −66.0% | −0.8% | 3.5% | 8.8% |
| Return on assets | −60.7% | −25.6% | −5.4% | 18.5% | 41.3% | −4.5% | −53.3% | −0.7% | 2.8% | 7.1% |
| Net debt to EBITDA | — | — | — | −3.3x | −12.4x | −0.0x | — | — | −8.3x | −6.4x |