Crexendo, Inc. reported a total revenue of $20.7 million for the first quarter of 2026, marking a 29% increase from $16.1 million in the same period of the previous year. This growth was driven by a combination of service revenue, which rose to $10.6 million from $8.2 million, software solutions revenue increasing to $7.7 million from $6.9 million, and product revenue climbing to $2.4 million from $1.0 million. The company recorded a net income of $578,000, down from $1.2 million in the prior year, resulting in basic and diluted earnings per share of $0.02, compared to $0.04 in the first quarter of 2025.
The financial performance reflects significant operational changes, including the acquisition of Estech Systems, LLC (ESI) on March 1, 2026, which contributed approximately $2.1 million in revenue during the quarter. The acquisition was part of Crexendo's strategy to enhance its product offerings and customer base. The company also reported an increase in operating expenses, which rose to $20.3 million from $14.9 million, primarily due to additional costs associated with the ESI acquisition, increased product costs, and higher selling and marketing expenses.
Operationally, Crexendo's customer base continues to expand, with over seven million end users supported globally through its cloud communication platform. The company reported a total of 245 cloud communication platform software subscribers. The Annualized Exit Monthly Recurring Subscriptions (AERR) reached $58.2 million as of March 31, 2026, up from $57.5 million at the end of 2025, indicating a stable growth trajectory in recurring revenue streams. The company also noted a 98% increase in Remaining Performance Obligations (RPOs), which rose to $108.1 million, reflecting strong future revenue potential.
Looking ahead, Crexendo anticipates continued growth driven by its strategic initiatives, including the integration of ESI and the expansion of its cloud telecommunications and software solutions offerings. The company remains focused on enhancing its service capabilities and customer engagement, which it views as critical to sustaining its competitive position in the market. Management expressed confidence in the company's ability to meet its cash requirements for the next 12 months, supported by its operational cash flows and existing liquidity sources.
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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