Crexendo Inc. Common Stock (CXDO)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what I know: Crexendo sells cloud communications and UCaaS software, a competitive field where scale and switching costs matter. It is tiny at 187 employees and $192.9 million market cap on the 2026-10-13 close of $5.80. The filed record shows a turnaround: fiscal 2023 revenue was $53.2 million and net income was -$362,000; fiscal 2024 revenue was $60.8 million and net income $1.7 million; fiscal 2025 revenue was $68.2 million and net income $5.1 million, or $0.16 diluted EPS. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $24.6 million, net income $1.1 million, and diluted EPS $0.03, up from fiscal Q1 2026 revenue of $20.7 million and net income of $578,000. That is real top-line momentum. But quality is mixed. The FairStock calculations show ROE of 6.30%, ROCE of 3.63%, and FCF yield of -7.6%, while trailing free cash flow was -$14.7 million, so accounting profit is not yet converting into cash. The balance sheet looks conservative with D/E 0.07, Piotroski 7/9 and Altman Z 4.43. Valuation is the problem: P/E 44.62, P/B 2.47, EV/EBITDA 19.26, Graham Number $2.62 and a -121.37% margin of safety. I would call it a small turnaround with a fair or full price, not a bargain. The Lynch category is TURNAROUND because it returned to profit after a loss within the last three years. I want more cash generation and a lower price before calling it compelling.

In plain English: Crexendo sells cloud phone and communication software to businesses. Sales have been growing and the company has returned to profit, but it is still small, earns low margins, and burned cash over the past year. At $5.80, the shares look expensive compared with the company's recent earnings and book value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer