Crexendo, Inc. reported a total revenue of $17.5 million for the third quarter of 2025, marking a 12% increase from $15.6 million in the same period last year. The growth was driven primarily by a 28% rise in software solutions revenue, which reached $7.5 million, up from $5.9 million. Service revenue also saw an increase, climbing to $8.6 million from $8.0 million, while product revenue decreased to $1.4 million from $1.8 million. For the nine months ending September 30, 2025, total revenue was $50.1 million, a 12% increase compared to $44.6 million for the same period in 2024.
The company reported a net income of $1.5 million for the third quarter of 2025, significantly up from $148,000 in the prior year. For the nine-month period, net income was $3.9 million, compared to $1.2 million in 2024. Basic earnings per share for the third quarter were $0.05, up from $0.01, while diluted earnings per share increased to $0.05 from $0.00. The increase in profitability was attributed to higher revenues and improved operational efficiencies, despite a rise in operating expenses, which totaled $16.2 million for the quarter, up from $15.5 million a year earlier.
Crexendo's operational metrics indicate a solid performance, with the company supporting over seven million end users globally through its cloud communication platform. The company has expanded its customer base, with a notable increase in its Annualized Exit Monthly Recurring Subscriptions (AERR), which reached $56.1 million as of September 30, 2025, compared to $49.0 million a year prior. The company also reported a net monthly subscription dollar retention rate of 100%, indicating strong customer retention and growth.
In terms of strategic developments, Crexendo has focused on enhancing its product offerings and expanding its market presence. The company continues to invest in its cloud telecommunications services and software solutions, which are critical to its growth strategy. As of September 30, 2025, Crexendo had cash and cash equivalents of $28.6 million, up from $18.2 million at the end of 2024, providing a solid liquidity position to support ongoing operations and potential future investments.
Looking ahead, Crexendo anticipates continued growth driven by its expanding customer base and product adoption. The company remains committed to enhancing its service offerings and leveraging its technology to capture a larger share of the cloud communications market. Management expressed confidence in achieving its financial targets for the remainder of the fiscal year, supported by the positive trends in revenue and customer engagement metrics.
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.
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