Crexendo, Inc. (CXDO): History, Ownership, Mission, How It Works & Makes Money

With a market capitalization near $209 Million and trailing twelve-month (TTM) revenue of $66.35 Million as of the third quarter of 2025, how is Crexendo, Inc. (CXDO) carving out a significant niche in the hyper-competitive cloud communications space? Honestly, the answer lies in its award-winning, AI-enhanced platform, which recently surpassed 7 Million global end users, defintely showing its mission to deliver innovative, reliable solutions. You need to understand the mechanics of its recurring revenue model and the unique ownership structure-where insiders hold over 45% of the stock-to truly map its near-term risks and opportunities for maximizing returns.

Crexendo, Inc. (CXDO) History

You're looking for the foundational story of Crexendo, Inc., and how it evolved from its early roots to a key player in the cloud communications space. The direct takeaway is this: Crexendo is a turnaround story, fundamentally changing its business model from web services to Unified Communications as a Service (UCaaS) and Communications Platform as a Service (CPaaS) after 2007, a pivot that now drives its strong revenue growth, with full-year 2025 revenue expected to hit around $67.67 million.

Given Company's Founding Timeline

Year established

The company traces its roots back to 1995, initially founded as StoresOnline, Inc.

Original location

StoresOnline was originally based in Orem, Utah. The current headquarters is in Tempe, Arizona.

Founding team members

While the original StoresOnline founding team is distinct, the critical leadership change that led to the modern company was Steven G. Mihaylo, who became CEO in 2007 and spearheaded the strategic pivot. Jeff Korn is the current CEO and Chairman of the Board.

Initial capital/funding

StoresOnline initially used a direct sales and seminar model for funding. The company later raised capital, including a $2 million Post IPO funding round on January 27, 2015.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history is defintely defined by two major strategic shifts that created the modern Crexendo you see today. Honestly, one was a pivot, the other was an accelerator.

The first transformative decision was the move away from the StoresOnline web services model between 2007 and 2011. This wasn't just a name change; it was a complete overhaul of the business strategy to focus squarely on the burgeoning cloud communications market, specifically UCaaS. This set the stage for all future growth. You have to be willing to kill your old business to build a new, better one. That's the quick math.

• Strategic Pivot to Cloud: Abandoned the legacy e-commerce platform business to focus entirely on cloud-based voice and data services, a high-growth, recurring-revenue model.
• NetSapiens Acquisition (2021): This was the biggest move. It instantly elevated Crexendo from a direct UCaaS provider to a significant CPaaS player, allowing it to license its platform to other service providers. This provided a powerful, high-margin new engine for growth, complementing its direct sales efforts.

What this estimate hides is the execution risk of integrating a major acquisition like NetSapiens, but the Q3 2025 results, showing 28% growth in software solutions revenue, suggest that integration is working. This dual-engine strategy-direct sales plus platform licensing-is key to their current market position, and you can see the results. To be fair, understanding who holds stakes after such moves is crucial. Exploring Crexendo, Inc. (CXDO) Investor Profile: Who's Buying and Why?

Crexendo, Inc. (CXDO) Ownership Structure

Crexendo, Inc. (CXDO) is a publicly traded company on the NASDAQ, but its ownership structure is heavily weighted toward individual insiders, giving them significant control over the company's strategic direction.

This means that while the company is subject to public market scrutiny and SEC filings, the largest block of shares, nearly half, rests with those who run the business, which can be a double-edged sword for outside investors. You defintely want to pay attention to insider trading activity here.

Given Company's Current Status

Crexendo, Inc. is a publicly traded entity, listed on the NASDAQ Stock Market under the ticker symbol CXDO. As of November 2025, the company's market capitalization stands at approximately $208.5 million, reflecting its position in the cloud communications and software-as-a-service (SaaS) market.

The company maintains a strong insider presence, which is typical for a growth-oriented technology firm where founders and executives want to keep a tight grip on governance. This high insider ownership, while aligning management's interests with the stock price, also means retail and institutional investors have less collective power to influence major decisions.

For a detailed look at the company's long-term goals, you can review its Mission Statement, Vision, & Core Values of Crexendo, Inc. (CXDO).

Given Company's Ownership Breakdown

The ownership breakdown for Crexendo is unique because of the dominance of individual insiders. Here's the quick math: nearly half the company is held by people who work there, which is a massive concentration of control.

The largest individual shareholder is Steven G. Mihaylo, who alone holds a 36.76% stake in the company, representing over 11.29 million shares. This level of concentrated ownership means he is the ultimate decision-maker.

Given Company's Leadership

The company is steered by an experienced executive team, with an average management tenure of 4.4 years, providing continuity in strategy. The leadership team is closely involved with the company's stock, as evidenced by recent insider sales under Rule 10b5-1 trading plans in November 2025.

The core executive team as of November 2025 includes:

• Jeffrey Korn: CEO & Executive Chairman. He sold 10,000 shares on November 11, 2025, valued at $72,501.
• Doug Gaylor: President and Chief Operating Officer (COO). He sold 6,000 shares on November 12, 2025, for $45,060.
• Ron Vincent: Chief Financial Officer (CFO). He recently sold 10,000 shares on November 11, 2025, for $73,755.
• Jon Brinton: Chief Revenue Officer (CRO).
• David Wang: Chief Technology Officer (CTO).
• Anand Buch: Chief Strategy Officer (CSO) & General Manager, Software Division. Note that Mr. Buch announced his resignation, effective December 31, 2025.

Crexendo, Inc. (CXDO) Mission and Values

Crexendo, Inc.'s purpose extends beyond its strong fiscal year 2025 results, grounding itself in a commitment to customer-centric innovation and a drive to be a market leader in cloud communications. This cultural DNA, rooted in telecom expertise, focuses on delivering enterprise-class solutions at an affordable price point, which is defintely a powerful combination.

Crexendo, Inc.'s Core Purpose

The company's core values and mission are less about a framed statement on the wall and more about their operational philosophy, which is evident in their customer support and platform growth. For instance, their NetSapiens platform now supports over 7 million end users globally as of the third quarter of 2025, a clear sign that this philosophy works.

Official Mission Statement (Operational Focus)

While a single, publicly declared mission statement isn't always available, Crexendo, Inc.'s business activities clearly define its core objective: delivering exceptional value to customers through innovative and reliable communication solutions that enhance business productivity and customer experience.

• Provide outstanding cloud communications services.
• Empower businesses to connect and collaborate effectively.
• Offer enterprise-class cloud services to any size business at affordable monthly rates.

This commitment is reflected in their Q3 2025 performance, where the Software Solutions segment saw a robust 28% growth, showing that their platform innovation is resonating with partners and customers. If you want to dive deeper into the market's view, you should check out Exploring Crexendo, Inc. (CXDO) Investor Profile: Who's Buying and Why?

Vision Statement (Inferred Aspirations)

Crexendo, Inc.'s vision is to be the leading, disruptive force in the Unified Communications as a Service (UCaaS) space, constantly pushing technological boundaries to maintain a competitive edge and drive profitable growth. They are delivering profitable growth today while building an even stronger, smarter, and more innovative company for tomorrow.

• Aspire to be a leading provider of cloud communication solutions, recognized for innovation and reliability.
• Continuously invest in AI-driven capabilities and next-generation collaboration solutions.
• Achieve sustained value for shareholders, with analysts estimating a full-year 2025 revenue of approximately $67.67 million.

Here's the quick math: their Q3 2025 GAAP net income was $1.5 million, a solid number that underpins their profitable growth strategy, which is a key part of the vision.

Crexendo, Inc. Slogan/Tagline (Market Identity)

The company's most frequent and powerful market positioning statement, often used by CEO Jeff Korn, emphasizes their growth and competitive differentiation.

• The fastest-growing platform in America.
• Award-winning premier provider of cloud communications.

Their deep commitment to customer support, which they call their 'DNA,' has earned them a sustained 4.9 out of 5-star rating on G2.com for 14 consecutive quarters, proving that the slogan isn't just marketing fluff.

Crexendo, Inc. (CXDO) How It Works

Crexendo, Inc. operates as a dual-engine cloud communications provider, selling its proprietary software platform to other service providers on a wholesale basis and offering its own Unified Communications as a Service (UCaaS) directly to businesses on a retail basis.

This model allows Crexendo to generate highly scalable, high-margin revenue from its Software Solutions segment, which is then complemented by the steady, recurring service revenue from its Cloud Telecommunications Services segment, serving over 7 million end users globally as of November 2025.

Crexendo, Inc.'s Product/Service Portfolio

Crexendo, Inc.'s Operational Framework

Crexendo's operational framework is built on a Software-as-a-Service (SaaS) foundation, prioritizing recurring revenue streams and platform scalability. Honestly, the key is the split focus: wholesale platform licensing and retail service delivery.

• Revenue Segmentation: The business is split into two segments: Cloud Telecommunications Services (CTS), which accounted for 59% of Q2 2025 consolidated revenue, and Software Solutions (SS), which accounted for the remaining 41%.
• Recurring Revenue Focus: The majority of revenue is sticky; about 80% of the Telecom Services revenue is on a monthly recurring basis, typically under 36- to 60-month contracts.
• Value Creation via Platform: The Software Solutions segment, powered by the NetSapiens platform, creates value by enabling other service providers (licensees) to offer their own cloud communication services, which is a defintely capital-light way to scale. This segment saw revenue growth of 28% year-over-year in Q3 2025, reaching $7.5 million.
• Growth Strategy: The company pursues a dual growth strategy: organic growth, which saw 30% growth in Software Solutions and 7% in Telecom Services in 2024, and inorganic growth through strategic, accretive acquisitions of its own licensees.

Here's the quick math: Consolidated total revenue for the nine months ended September 30, 2025, was $50.1 million, demonstrating a 12% year-over-year increase, showing that the model is working. For more on who is betting on this model, check out Exploring Crexendo, Inc. (CXDO) Investor Profile: Who's Buying and Why?

Crexendo, Inc.'s Strategic Advantages

The company's market success comes down to a few clear differentiators, mostly centered on its proprietary technology and channel strategy, which allows it to compete effectively against much larger legacy vendors like Cisco's BroadSoft.

• Proprietary Technology and Margin: Owning the core technology, the NetSapiens platform, provides a significant competitive advantage. This control drives superior margins, with the Software Solutions segment achieving a gross margin of 74% in Q3 2025.
• Differentiated Architecture: The platform uses a differentiated architecture with session-based pricing and open APIs (Application Programming Interfaces), giving licensees greater flexibility and control than competing platforms.
• Financial Predictability: A high percentage of recurring revenue and a growing Remaining Performance Obligation (RPO), which hit $87.9 million in Q3 2025, provides a strong backlog and predictable cash flow.
• Innovation Focus: Ongoing investments in AI-driven capabilities and Oracle Cloud infrastructure are creating powerful momentum, especially in next-generation collaboration and contact center solutions, which management believes gives them a complete competitive advantage on look and feel.

What this estimate hides is the intense competition in the UCaaS space, but still, the high-margin, scalable wholesale segment provides a strong buffer and a clear path to continued GAAP profitability, which reached $1.5 million in Q3 2025.

Crexendo, Inc. (CXDO) How It Makes Money

Crexendo, Inc. generates the vast majority of its revenue by selling cloud-based communication platform subscriptions, known as Unified Communications as a Service (UCaaS), and related managed IT services to businesses. This business model is heavily focused on recurring monthly revenue from long-term contracts, which provides strong financial predictability.

Crexendo, Inc.'s Revenue Breakdown

The company operates with three distinct revenue streams, but the core financial engine is clearly the high-margin, recurring revenue from software and services. Based on the third quarter of 2025 (Q3 2025) results, total revenue hit $17.5 million, up 12% year-over-year.

Here's the quick math: The combined recurring revenue from Service and Software Solutions accounts for over 92% of the total, which is exactly what you want to see in a cloud-based business. The decline in Product Revenue is a strategic move to shed lower-margin, one-time hardware sales, which is a healthy sign of focus.

Business Economics

The economics of Crexendo, Inc. are built on a high-margin, sticky subscription model, which is the gold standard for a Software as a Service (SaaS) business. The key is to keep customer churn (the rate at which customers leave) low while expanding the high-margin Software Solutions segment. Exploring Crexendo, Inc. (CXDO) Investor Profile: Who's Buying and Why?

• Gross Margin Profile: The Software Solutions segment boasts a strong gross margin of 74%, increasing 300 basis points year-over-year, while Service Revenue maintains a solid 57% gross margin. This is where the profit is defintely made.
• Recurring Revenue Backlog: The company's Remaining Performance Obligations (RPO), which is the total value of contracted but unearned future revenue, stood at $87.9 million as of September 30, 2025. This backlog ensures a predictable revenue floor for the coming years.
• Pricing and Contracts: Cloud telecommunications contracts typically have terms lasting 36 to 60 months, securing long-term cash flow. Pricing is generally per-seat or per-user per month for the UCaaS subscriptions, plus fees for activations and professional services.
• Cost Structure: The primary costs are the infrastructure and network expenses to deliver the cloud services (Cost of Service Revenue) and the personnel costs for software development and customer support. Operating expenses for Q3 2025 increased 5% to $16.2 million, reflecting continued investment in growth and AI initiatives.

Crexendo, Inc.'s Financial Performance

The company is showing a clear trend of profitable growth, driven by the shift toward higher-margin software and services. This focus is translating directly into better bottom-line results and stronger cash generation, which is crucial for a growth-oriented tech firm.

• Total Revenue and Growth: Consolidated revenue for the first nine months of 2025 reached $50.1 million, an increase of 12% over the same period in the prior year. Analysts anticipate full-year 2025 revenue to be around $67.67 million.
• Profitability: GAAP net income for the nine months ended September 30, 2025, was $3.9 million, a significant jump from $1.2 million in the prior year period. Non-GAAP net income for Q3 2025 alone was $3.0 million.
• Cash Flow Strength: The business demonstrates excellent cash conversion, with Trailing Twelve Months (TTM) Free Cash Flow (FCF) to September 2025 at $9.1 million, which solidly exceeded the reported profit of $4.36 million for the same period. Operating cash flow for the nine months was $7.0 million.
• Liquidity: Crexendo maintains a healthy balance sheet, holding $28.6 million in cash and equivalents as of September 30, 2025. The company holds more cash than debt on its balance sheet.

Crexendo, Inc. (CXDO) Market Position & Future Outlook

Crexendo is a profitable, high-growth niche player in the massive Unified Communications as a Service (UCaaS) market, strategically positioning itself as the fastest-growing platform provider in North America by leveraging a unique pricing model and a partner-first approach. For fiscal year 2025, analysts project the company will generate revenue of approximately $66.346 million and net income of around $4.36 million, demonstrating a clear path of profitable expansion.

Competitive Landscape

The Unified Communications as a Service (UCaaS) market is valued at roughly $56.14 billion in 2025, but it's heavily fragmented, with a few giants dominating the seat count. Crexendo's competitive edge isn't about raw market share; it's about its disruptive session-based pricing model that allows its partners to save 45% to 50% on telecom expenses compared to traditional per-seat models, plus its platform's high scalability and flexibility. They're a small fish, but they're growing fast, having surpassed the 7 million user milestone on their platform in October 2025.

Opportunities & Challenges

You need to look at Crexendo not just as a telecom company, but as a software platform provider. The Software Solutions segment is their engine, growing organically at 28% year-over-year in Q3 2025, and that's where the real opportunity lies.

Industry Position

Crexendo holds a strong, defensible position in the wholesale and retail UCaaS space, especially for small and mid-sized enterprises (SMEs). Their focus is on enabling service providers, which is a very sticky business model. Honestly, their platform is the fastest-growing cloud communications software platform provider in North America.

• Wholesale Focus: The company's NetSapiens platform serves over 235 cloud communication platform software subscribers, which are long-term customers who build their entire business on Crexendo's technology.
• Profitability: They are one of the few telecom companies not only growing but growing profitably, reporting six consecutive quarters of GAAP net income as of Q3 2025.
• User Experience: The platform maintains a high customer satisfaction rating, recognized by G2 as #1 in VoIP Ease of Use for eight consecutive quarters as of Winter 2025.
• Growth Engine: Software solutions gross margins hit 74% in Q3 2025, which is a defintely healthy figure that provides capital for innovation and acquisition.

For more on their long-term vision, you should review their Mission Statement, Vision, & Core Values of Crexendo, Inc. (CXDO).