Q4 2025 Crexendo Inc Earnings Call Transcript
Key Points
- Crexendo Inc (CXDO) achieved a 12% year-over-year organic revenue growth in 2025, reaching $68.2 million.
- The company reported its 10th consecutive GAAP profitable quarter, with a net income of $1.2 million in Q4 2025.
- Crexendo Inc (CXDO) successfully completed the acquisition of Estech Systems (ESI), expected to significantly boost revenue and earnings.
- The company has expanded its user base from 4 million to over 7 million users in under three years, marking a 75% growth.
- Crexendo Inc (CXDO) continues to lead in customer satisfaction rankings and has been recognized with multiple awards, including the Generative AI Product of the Year Award.
- Product revenue decreased by 6% in Q4 2025, indicating challenges in this segment.
- Software solutions revenue gross margin decreased by 500 basis points year-over-year to 63% in Q4 2025.
- Operating expenses increased by 8% in Q4 2025, which could impact future profitability if not managed carefully.
- The company faces uncertainties in the macroeconomic environment, which may affect the timing of large deals.
- Crexendo Inc (CXDO) is limited in discussing specific financial projections for the ESI acquisition due to pending audit completion.
Greetings. Welcome to the Crexendo fourth quarter 2025 earnings call. (Operator Instructions) Please note, this conference is being recorded.
I will now turn the conference over to your host, Jeff Korn, CEO and Chairman of the Board. You may begin.
Thank you, John, and good afternoon, everyone. Welcome to Crexendo's Q4 year-end 2025 earnings conference call. As John just said, I'm Jeff Korn, Chairman of the Board and Chief Executive Officer. Joining me today are Doug Gaylor, our President and COO; Ron Vincent, our Chief Financial Officer; and Jon Brinton, our Chief Revenue Officer. In a moment, Jon will read our safe harbor statement. After that, I'll provide an overview of our performance and strategy. Ron will then dive into the financials, and Doug will close with an operational and business update before we open it up for questions.
Jon, would you please read the safe harbor?
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