Crexendo, Inc. reported a total revenue of $16.6 million for the second quarter of 2025, marking a 13% increase from $14.7 million in the same period last year. The growth was driven primarily by a rise in software solutions revenue, which increased by 31% to $7.0 million, compared to $5.3 million in the prior year. Service revenue also saw a modest increase of 4%, reaching $8.4 million, while product revenue decreased slightly to $1.2 million from $1.3 million. For the first half of 2025, total revenue rose to $32.6 million, up from $29.0 million in the first half of 2024.
The company reported a net income of $1.2 million for the second quarter, a significant increase from $588,000 in the same quarter of 2024. For the first six months of 2025, net income was $2.4 million, compared to $1.0 million in the previous year. Earnings per share for the second quarter were $0.04, up from $0.02 in the prior year, reflecting improved profitability driven by increased revenues and effective cost management.
Crexendo's operational metrics indicate a growing customer base, with over six million end users supported globally through its cloud communication platform. The company has expanded its service offerings and enhanced its product lines, which contributed to a 9% increase in remaining performance obligations (RPOs) to $56.4 million as of June 30, 2025. The company also reported a monthly recurring subscription (MRS) of $4.5 million, leading to an annualized exit monthly recurring subscriptions (AERR) of $53.9 million, up from $47.3 million a year earlier.
In terms of strategic developments, Crexendo has focused on enhancing its cloud telecommunications and software solutions segments. The company has made significant investments in research and development, with expenses in this area increasing by 32% to $2.7 million for the first half of 2025. This investment is aimed at finalizing the migration of customers to its new VIP platform and expanding its product offerings. The company also reported a slight increase in employee headcount, reflecting its commitment to supporting growth and innovation.
Looking ahead, Crexendo remains optimistic about its growth trajectory, supported by its expanding customer base and enhanced service offerings. The company anticipates continued revenue growth driven by its cloud telecommunications services and software solutions, as well as ongoing investments in technology and infrastructure. Management believes that the current operational momentum will sustain its financial performance in the upcoming quarters.
About Crexendo, Inc.
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