Crexendo Q2 revenue rises on customer wins, ESI acquisition

Crexendo

04/08/2026 21:11

Overview
U.S. cloud communications provider's Q2 revenue rose 49% yr/yr, slightly missing analyst expectations
Adjusted net income and adjusted EBITDA for Q2 beat analyst estimates
Company cites new customer wins and ESI acquisition as drivers of revenue growth

Outlook
Company expects AI-related revenue to become meaningful in 2027

Result Drivers
NEW CUSTOMER WINS - Co said it secured eleven new platform customers in Q2, up from two a year earlier, which it expects will drive recurring revenue as customers migrate and expand usage
ESI ACQUISITION - Co said the ESI acquisition improved revenue, strengthened the customer base, and exceeded initial sales expectations
MARGIN AND CASH FLOW IMPROVEMENT - Co said margin improvement and higher operating cash flow provided greater financial flexibility

Company press release: ID:nACSKCcyba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$24.6 mln
$24.65 mln (6 Analysts)
Q2 Adjusted Net Income
Beat
$4.1 mln
$2.81 mln (5 Analysts)
Q2 Net Income
 
$1.1 mln
 
Q2 Adjusted EBITDA
Beat
$4.1 mln
$3.37 mln (6 Analysts)
Q2 EBITDA
 
$3 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Crexendo Inc is $11.00, about 52.4% above its August 3 closing price of $7.22
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
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Aug 3 - Backblaze Q2 revenue beats estimates; shares of the company were up about 13% in extended trading
Aug 4 - Israel's AudioCodes Q2 revenue rises on strong demand in Voice AI and managed services segments

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)