📊 CXDO Key Takeaways
Is Crexendo, Inc. (CXDO) a Good Investment?
Crexendo's exceptional revenue growth (358,873.7% YoY) reflects recent acquisition activity rather than organic expansion, masking severe operational challenges. The combined entity exhibits razor-thin margins (2.1% operating, 2.8% net) and near-zero returns (ROE 0.8%, ROA 0.6%), indicating poor capital efficiency and integration headwinds that outweigh the solid balance sheet strength.
Crexendo shows strong fundamental financial health with high liquidity, minimal debt, and solid free cash flow generation. Profitability is positive at both operating and net income levels, and cash generation appears stronger than accounting earnings. The main question is growth quality, since the extreme reported revenue increase is not matched by a similar step-change in net income and may reflect acquisition or reporting-base effects rather than clean organic expansion.
Why Buy Crexendo, Inc. Stock? CXDO Key Strengths
- Fortress balance sheet with minimal debt (114K long-term debt) and 72.7M stockholders' equity providing financial flexibility
- Positive free cash flow generation of 2.0M with low capital requirements (18K capex), demonstrating capital-light model
- Adequate liquidity with 1.37x current ratio and 7.2M cash position supporting operational needs
- Excellent interest coverage ratio of 440x with negligible leverage
- Very strong balance sheet with $31.38M cash, negligible long-term debt, and $63.82M equity
- Healthy liquidity and financial flexibility, supported by 3.40x current ratio and 3.36x quick ratio
- Positive operating cash flow and strong free cash flow conversion with minimal capital expenditure needs
CXDO Stock Risks: Crexendo, Inc. Investment Risks
- Catastrophically thin operating margin of 2.1% indicates severe unit economics or competitive pressure; unsustainable without dramatic improvement
- Near-zero returns on equity (0.8%) and assets (0.6%) reveal highly inefficient capital allocation and questionable acquisition strategy
- Revenue growth entirely acquisition-driven (358,873% YoY); unknown organic growth trajectory and integration execution risk
- Missing gross profit data prevents assessment of true cost structure; inability to distinguish margin compression sources
- Only 578K net income on 20.7M revenue suggests significant debt servicing, operating costs, or integration expenses consuming value
- Reported revenue growth is unusually large and may be low-quality or non-organic if driven by acquisitions or comparability distortions
- Operating margin of 6.9% is only moderate relative to the scale of reported revenue, suggesting limited operating leverage so far
- Gross profit and gross margin are unavailable, reducing visibility into underlying unit economics and margin durability
Key Metrics to Watch
- Sequential operating margin trend and timeline to reach industry-standard profitability levels (8-12%)
- Gross margin disclosure and cost of revenue as percentage of sales post-integration
- Return on equity improvement pathway toward acceptable 10%+ levels
- Organic revenue growth rate and contribution from acquired versus legacy operations
- Operating margin and net margin trend over the next several filings
- Revenue growth quality, especially whether future growth converts into higher operating cash flow and earnings
Crexendo, Inc. (CXDO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Crexendo, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CXDO Profit Margin, ROE & Profitability Analysis
CXDO vs Telecom Sector: How Crexendo, Inc. Compares
How Crexendo, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Crexendo, Inc. Stock Overvalued? CXDO Valuation Analysis 2026
Based on fundamental analysis, Crexendo, Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Crexendo, Inc. Balance Sheet: CXDO Debt, Cash & Liquidity
CXDO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Crexendo, Inc.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.01 reflects profitable operations.
CXDO Revenue Growth, EPS Growth & YoY Performance
CXDO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $16.1M | $578.0K | $0.02 |
| Q3 2025 | $15.6M | $148.0K | $0.00 |
| Q2 2025 | $14.7M | $434.0K | $0.02 |
| Q1 2025 | $14.3M | $434.0K | $0.01 |
| Q3 2024 | $13.9M | $148.0K | $0.00 |
| Q2 2024 | $12.7M | $434.0K | $-0.02 |
| Q1 2024 | $12.5M | $434.0K | $0.01 |
| Q3 2023 | $9.1M | -$423.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Crexendo, Inc. Dividends, Buybacks & Capital Allocation
CXDO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Crexendo, Inc. (CIK: 0001075736)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CXDO
What is the AI rating for CXDO?
Crexendo, Inc. (CXDO) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CXDO's key strengths?
Claude: Fortress balance sheet with minimal debt (114K long-term debt) and 72.7M stockholders' equity providing financial flexibility. Positive free cash flow generation of 2.0M with low capital requirements (18K capex), demonstrating capital-light model. ChatGPT: Very strong balance sheet with $31.38M cash, negligible long-term debt, and $63.82M equity. Healthy liquidity and financial flexibility, supported by 3.40x current ratio and 3.36x quick ratio.
What are the risks of investing in CXDO?
Claude: Catastrophically thin operating margin of 2.1% indicates severe unit economics or competitive pressure; unsustainable without dramatic improvement. Near-zero returns on equity (0.8%) and assets (0.6%) reveal highly inefficient capital allocation and questionable acquisition strategy. ChatGPT: Reported revenue growth is unusually large and may be low-quality or non-organic if driven by acquisitions or comparability distortions. Operating margin of 6.9% is only moderate relative to the scale of reported revenue, suggesting limited operating leverage so far.
What is CXDO's revenue and growth?
Crexendo, Inc. reported revenue of $20.7M.
Does CXDO pay dividends?
Crexendo, Inc. does not currently pay dividends.
Where can I find CXDO SEC filings?
Official SEC filings for Crexendo, Inc. (CIK: 0001075736) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CXDO's EPS?
Crexendo, Inc. has a diluted EPS of $0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CXDO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Crexendo, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CXDO stock overvalued or undervalued?
Valuation metrics for CXDO: ROE of 0.8% (sector avg: 15%), net margin of 2.8% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy CXDO stock in 2026?
Our dual AI analysis gives Crexendo, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CXDO's free cash flow?
Crexendo, Inc.'s operating cash flow is $2.0M, with capital expenditures of $18.0K. FCF margin is 9.7%.
How does CXDO compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 2.8% (avg: 14%), ROE 0.8% (avg: 15%), current ratio 1.37 (avg: 1).