Q2 2026 Crexendo Inc Earnings Call Transcript
Key Points
- Revenue increased 49% year-over-year to $24.6 million, with strong growth across all segments.
- GAAP net income of $1.1 million and non-GAAP net income of $4.1 million, with adjusted EBITDA up 46%.
- Secured 11 new platform logos in the first half of 2026, compared to only 2 in the same period last year.
- Gross margins improved significantly, with consolidated gross margin up 500 basis points from Q1.
- Operating cash flow for the first six months increased 89% to $4.8 million, providing strategic flexibility.
- Consolidated organic revenue growth was light at 7% for the quarter, below the 11% year-to-date average.
- Perpetual license revenue decreased by $700,000 due to smaller initial orders from new licensees.
- Operating expenses increased 53% year-over-year, largely due to the ESI acquisition.
- The ESI acquisition eliminated approximately $180,000 of revenue recognized in the prior year quarter.
- AI offerings, including Cairo, are not yet a meaningful contributor to revenue, with significant impact expected only in 2027.
Greetings and welcome to the Crescendo second quarter 2026 earnings conference call. (Operator Instructions)
I will now turn the conference over to your host. Mr. Jeff korn, Chairman and Chief Executive Officer with Crexendo . Sir, the floor is yours.
Thank you, Alan, and good afternoon, everyone.
It is my pleasure to welcome you to the Crescendo Q2 2026 conference call. I am Jeff Corn, Chairman of the Board and CEO. Here with me today are Doug Gaylor, our President and COO, Ron Vincent, our CFO, and John Britton, our CRO.
In a moment, John will read the safe harbor statement. After that, I will provide some brief comments on our performance and strategy. Ron will then provide a more detailed discussion of our financial results and Doug will provide a business sales and product update. After that, we will open the call for questions. John, would you please read the safe harbor statement?
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