Crexendo(CXDO) - 2025 Q4 - Annual Results

Revenue Growth - Total revenue for Q4 2025 increased by 11%, reaching $18.1 million compared to $16.2 million in Q4 2024[3] - Full-year total revenue for 2025 increased by 12% to $68.2 million, up from $60.8 million in 2024[8] - Total revenue for the year ended December 31, 2025, was $68,167 million, representing a 11% increase from $60,838 million in 2024[27] Service Revenue - Service revenue for Q4 2025 rose by 8% to $8.6 million, up from $8.0 million in Q4 2024[3] - Service revenue increased to $33,782 million in 2025, up from $31,849 million in 2024, reflecting a growth of 6%[27] Software Solutions Revenue - Software solutions revenue for Q4 2025 grew by 18%, totaling $8.3 million compared to $7.0 million in Q4 2024[4] - Software solutions revenue rose to $29,664 million, a significant increase of 27% compared to $23,374 million in 2024[27] Net Income - Net income for Q4 2025 was $1.2 million, or $0.04 per share, compared to $0.5 million, or $0.02 per share in Q4 2024[5] - Net income for 2025 was $5,071 million, compared to $1,677 million in 2024, marking a substantial increase of 203%[28] Earnings Per Share - Basic earnings per share increased to $0.17 in 2025 from $0.06 in 2024, representing a growth of 183%[28] Cash Flow - The company reported a cash flow from operating activities of $9.3 million for 2025, compared to $6.3 million in 2024[15] - Cash provided by operating activities for 2025 was $9,297 million, an increase from $6,284 million in 2024[30] User Base Growth - The user base expanded from over 4 million to more than 7 million, representing a growth of approximately 75% in under three years[16] Strategic Initiatives - The company announced the acquisition of ESI to accelerate growth through strategic M&A[16] - Crexendo's AI strategy, particularly the CAIRO operator, received positive early feedback, indicating potential for significant market impact[16] Adjusted EBITDA - Adjusted EBITDA for the year ended December 31, 2025, was $11,205 million, compared to $8,187 million in 2024, reflecting a growth of 37%[39] Capitalization of Development Costs - The company capitalized $410 million in software development costs during the year[31] Cash and Cash Equivalents - The company reported a net increase in cash and cash equivalents of $13,185 million, up from $7,846 million in 2024[31] Shares Outstanding - The weighted-average common shares outstanding increased to 29,681,847 in 2025 from 26,757,242 in 2024[28]