Crexendo, Inc. reported significant financial growth in its latest quarterly filing, with total revenue reaching $24.6 million for the three months ended June 30, 2026, a 49% increase from $16.6 million in the same period last year. The company attributed this growth to a combination of organic revenue increases and contributions from its recent acquisition of Estech Systems, LLC (ESI), which added approximately $6.9 million in revenue. For the first half of 2026, total revenue was $45.4 million, up 39% from $32.6 million in the prior year. Despite the revenue growth, Crexendo reported a net income of $1.1 million for the second quarter, a decrease from $1.2 million in the same quarter of 2025, primarily due to increased operating expenses.

The company's operating expenses surged to $23.6 million in the second quarter, up from $15.4 million a year earlier, largely driven by costs associated with the ESI acquisition and increased selling and marketing expenses. The cost of service revenue also rose, reflecting the higher operational scale following the acquisition. Crexendo's total assets increased to $101 million as of June 30, 2026, compared to $77.7 million at the end of 2025, bolstered by the acquisition and growth in cash and receivables.

Crexendo's customer base has expanded significantly, with over six million end users supported globally through its cloud communication platform. The company reported a Monthly Recurring Subscription (MRS) of $6.8 million as of June 30, 2026, translating to an Annualized Exit Monthly Recurring Subscription (AERR) of $81.2 million, a substantial increase from $53.9 million a year prior. The company also noted a strong Net Monthly Subscription Dollar Retention Rate of 99%, indicating effective customer retention and growth.

Looking ahead, Crexendo anticipates continued growth driven by its cloud telecommunications and software solutions segments. The company expects to leverage its expanded product offerings and customer base to enhance market share, particularly in the UCaaS sector. Management remains optimistic about achieving its performance targets for the year, supported by the integration of ESI and ongoing investments in technology and customer service enhancements.

About Crexendo, Inc.

Crexendo, Inc. provides cloud-based communication solutions, including UCaaS, VoIP, contact center, and managed IT services for businesses of all sizes. Its core offerings include scalable software platforms, hardware, and infrastructure supporting voice, video, messaging, and collaboration. Serving global markets, the company emphasizes proprietary technology, flexible licensing models, and recurring revenue streams, competing with larger telecom and software providers in a highly competitive, evolving industry.

This description was generated via AI from an annual report. Updated about 1 year ago.

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