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Crexendo, Inc.

CIK:0001075736|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Condensed Consolidated Statements of Operations (Unaudited)
Service revenue	$ 14,868	$ 8,374	$ 25,429	$ 16,556
Software solutions revenue	7,327	6,975	15,050	13,843
Product revenue	2,451	1,203	4,877	2,210
Total revenue	24,646	16,552	45,356	32,609
Operating expenses:
Cost of service revenue	4,869	3,556	8,753	7,043
Cost of software solutions revenue	2,227	1,813	4,663	3,303
Cost of product revenue	1,361	687	3,034	1,286
Selling and marketing	7,968	4,371	13,622	8,660
General and administrative	5,336	3,585	10,392	7,104
Research and development	1,830	1,437	3,397	2,960
Total operating expenses	23,591	15,449	43,861	30,356
Income/(loss) from operations	1,055	1,103	1,495	2,253
Other income/(expense):
Interest income	69	126	228	210
Interest expense	(62)	(6)	(62)	(15)
Other income/(expense), net	14	57	22	47
Total other income/(expense), net	21	177	188	242
Income/(loss) before income tax	1,076	1,280	1,683	2,495
Income tax (provision)/benefit	(25)	(48)	(54)	(92)
Net income/(loss)	$ 1,051	$ 1,232	$ 1,629	$ 2,403
Earnings per common share:
Basic	$ 0.03	$ 0.04	$ 0.05	$ 0.08
Diluted	$ 0.03	$ 0.04	$ 0.05	$ 0.08
Weighted-average common shares outstanding:
Basic	32,771,741	29,430,050	32,156,074	28,731,048
Diluted	34,228,693	31,324,711	33,492,258	31,165,361

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss)	$ 1,629	$ 2,403
Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities:
Depreciation and amortization	3,066	1,627
Allowance for credit losses	14	(88)
Share-based compensation	1,636	1,488
Non-cash operating lease amortization	13	16
Amortization of debt discount	8	0
Changes in assets and liabilities:
Trade receivables	(894)	(1,268)
Contract assets	(43)	(54)
Equipment financing receivables	157	(281)
Inventories	(24)	(225)
Contract costs	(583)	(231)
Prepaid expenses	(553)	(421)
Income tax receivable	20	(152)
Other assets	215	(321)
Accounts payable and accrued expenses	(298)	(8)
Income tax payable	(3)	4
Contract liabilities	428	44
Net cash provided by/(used for) operating activities	4,788	2,533
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of a business, net of cash acquired	(26,209)	0
Purchase of property and equipment	0	(18)
Net cash provided by/(used for) investing activities	(26,209)	(18)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments made on finance leases	(1)	(19)
Repayments made on notes payable	(114)	(236)
Proceeds from exercise of options	4,025	3,138
Taxes paid on the net settlement of stock options and RSUs	(417)	(187)
Proceeds from issuance of note payable	5,000	0
Debt issuance costs paid	(147)	0
Net cash provided by/(used for) financing activities	8,346	2,696
Effect of exchange rate changes on cash	(14)	46
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	(13,089)	5,257
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	31,378	18,193
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	18,289	23,450
Cash used during the year for:
Income taxes, net	(34)	(243)
Interest expense	(1)	(11)
Supplemental disclosure of non-cash investing and financing information:
Capitalized software development costs	0	410
Stock issued for the acquisition of a business	$ 7,433	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 18,289	$ 31,378
Trade receivables, net of allowance of $73 and $124, respectively	6,187	4,913
Contract assets, net of allowance of $2 and $0, respectively	114	0
Inventories	1,380	454
Equipment financing receivables, net of allowance of $75 and $50, respectively	2,741	1,416
Contract costs	4,156	2,318
Prepaid expenses	1,663	892
Income tax receivable	214	234
Other current assets	58	292
Total current assets	34,802	41,897
Contract assets, net of current portion, net of allowance of $139 and $145, respectively	848	402
Long-term equipment financing receivables, net of allowance of $149 and $107, respectively	5,351	3,223
Property and equipment, net	376	195
Operating lease right-of-use assets	751	1,006
Intangible assets, net	38,302	17,860
Goodwill	14,170	9,454
Contract costs, net of current portion	6,077	3,319
Other long-term assets	361	330
Total Assets	101,038	77,686
Current liabilities:
Accounts payable	1,384	649
Accrued expenses	10,561	8,391
Finance leases	1	2
Notes payable	454	114
Operating lease liabilities	511	493
Income tax payable	148	151
Contract liabilities	3,856	2,528
Total current liabilities	16,915	12,328
Contract liabilities, net of current portion	1,334	1,008
Notes payable, net of current portion	4,407	0
Operating lease liabilities, net of current portion	269	529
Total liabilities	22,925	13,865
Stockholders' equity:
Preferred stock, par value $0.001 per share - authorized 5,000,000 shares; none issued	0	0
Common stock, par value $0.001 per share - authorized 50,000,000 shares, 33,248,336 shares issued and outstanding as of June 30, 2026 and 31,004,327 shares issued and outstanding as of December 31, 2025	33	31
Additional paid-in capital	158,000	145,325
Accumulated deficit	(80,090)	(81,719)
Accumulated other comprehensive income	170	184
Total stockholders' equity	78,113	63,821
Total Liabilities and Stockholders' Equity	$ 101,038	$ 77,686