Key Highlights

  • Shares were down 12.67%, or USD 0.7298, to USD 5.03 in pre-market trading on November 4, 2026.
  • Third quarter Revenue rose 44% to USD 25.2 million from USD 17.5 million.
  • GAAP Net Income was USD 1.1 million, or USD 0.03 per share, versus USD 1.5 million, or USD 0.05.
  • Adjusted EBITDA was USD 4.0 million versus USD 2.9 million a year earlier.
  • Cash was USD 22.8 million at September 30, 2026, down from USD 31.4 million at year end 2025.

What Moved Crexendo Before the Open (down USD 0.7298, 12.67%)

Crexendo (NASDAQ:CXDO) was down 12.67% to USD 5.03 in pre-market trading on November 4, 2026, a fall of USD 0.7298 from the Tuesday, November 3, 2026 close of about USD 5.76 (calculated). The move came after the company released third quarter results on November 3, 2026.

The headline revenue growth was strong, but the market appears to be focusing on lower GAAP earnings per share, higher operating costs after an Acquisition and the absence of forward guidance or annual Recurring Revenue figures in the release.

The Third Quarter Results in Detail

According to a company press release dated November 3, 2026, total revenue was USD 25.2 million versus USD 17.5 million a year earlier, up 44%. Service revenue rose 75% to USD 15.1 million from USD 8.6 million, software solutions revenue was USD 7.7 million versus USD 7.5 million, and product revenue rose 78% to USD 2.4 million from USD 1.4 million.

Operating expenses rose 49% to USD 24.1 million from USD 16.2 million, which outpaced revenue growth. GAAP net income fell to USD 1.1 million, or USD 0.03 per share, from USD 1.5 million, or USD 0.05. Non-GAAP net income rose to USD 4.0 million, or USD 0.12 per share, from USD 3.0 million, or USD 0.10, and EBITDA was USD 3.0 million versus USD 2.0 million.

Business Background and Nine Month Picture

Crexendo is a cloud communications and software company. It provides telecom services and the NetSapiens platform that service providers license to deliver voice and collaboration services to Business customers. The company said it added 16 new platform licensees year to date, compared with 14 for all of 2025, and supports more than eight million end users.

For the nine months ended September 30, 2026, revenue was USD 70.5 million versus USD 50.1 million, with service revenue of USD 40.5 million versus USD 25.2 million. GAAP net income was USD 2.7 million, or USD 0.08 per share, versus USD 3.9 million, or USD 0.13 basic. Adjusted EBITDA was USD 11.3 million versus USD 8.4 million, and Operating Cash Flow was USD 9.7 million versus USD 7.0 million.

Balance Sheet and Risks

Cash was USD 22.8 million at September 30, 2026 against USD 31.4 million at December 31, 2025, with investing outflows of USD 26.2 million over nine months, mainly for the ESI acquisition. Notes payable were about USD 4.7 million versus USD 0.1 million at year end 2025. Total Assets were USD 103.8 million and stockholders Equity USD 80.1 million, including USD 36.5 million of intangibles and USD 14.2 million of goodwill.

Risks include integration of acquired operations, rising costs relative to GAAP profit, and the fact that the release carried no guidance.

What to Watch Next

Investors will look for management commentary on integration costs, Margin recovery and recurring revenue disclosure, along with any guidance the company chooses to provide.

Cash use, Debt balances and the Quarterly Report filing with fuller segment detail will also shape how the market reads the results in the days ahead.