Exploring Crexendo, Inc. (CXDO) Investor Profile: Who’s Buying and Why?

You're looking at Crexendo, Inc. (CXDO) right now, a company that just reported Q3 2025 revenue of $17.5 million, a solid 12% jump year-over-year, but the stock still closed lower after the earnings miss on GAAP net income of $1.5 million. So, the question isn't just about the financials, but who's actually buying into this cloud communications story, especially when insiders-led by Steven G. Mihaylo's 36.76% stake-control nearly half the company at 48.81% ownership. Do you really understand the risk-reward when institutional investors like BlackRock, Inc. and Vanguard Group Inc. only hold about 24.16%, and we're seeing net insider selling, like CEO Jeffrey G. Korn's recent sale of 10,000 shares? It's a classic small-cap scenario: high insider conviction versus cautious institutional accumulation, and that dynamic is defintely what drives the volatility in a stock with a $208.36 million market capitalization. Are the institutions buying for the 28% growth in software solutions revenue, or are they trimming their positions because of the high concentration risk?

Who Invests in Crexendo, Inc. (CXDO) and Why?

The investor profile for Crexendo, Inc. (CXDO) is highly concentrated, dominated by company insiders, which tells you a lot about the stock's risk and opportunity. While institutional money provides a layer of professional validation, the real driver here is the conviction of the executive team and founders.

As of late 2025, the ownership structure is split across three main groups, but the distribution is far from even. Insiders-executives and directors-hold the lion's share, a clear signal of their vested interest in long-term growth. The general public, or retail investors, also hold a significant block, suggesting a mix of high-conviction individual buyers and smaller accounts. Hedge funds, interestingly, do not have a meaningful investment in the company.

• Insiders: Approximately 48.81% of shares.
• Institutional Investors: Approximately 24.16% of shares.
• Retail Investors (General Public): Approximately 27.03% of shares.

The largest individual shareholder is Steven G. Mihaylo, who owns roughly 36.76% of the company, valued at about $83.49 million. That's a massive stake. Among institutional holders, you see major players like Vanguard Group Inc. and BlackRock, Inc., which hold approximately 2.05% and 2.09% of the common stock, respectively, as of late 2025.

What Attracts Investors to Crexendo, Inc. (CXDO)?

Investors are drawn to Crexendo, Inc. primarily for its growth prospects in the cloud communications space, especially the high-margin software segment, and its consistent, verifiable profitability. The company operates in the Unified Communications as a Service (UCaaS) market, a high-growth area. The key is that they are growing profitably, which is a rare feat in this competitive tech sector.

Here's the quick math: For the nine months ended September 30, 2025, consolidated total revenue increased 12% year-over-year to $50.1 million. More importantly, the software solutions revenue-the most scalable part of the business-increased by a robust 31% to $21.4 million in that same period. The company reported GAAP net income of $3.9 million for the nine months, a significant jump from the prior year, making it the ninth consecutive quarter of GAAP profitability as of Q3 2025.

The investment thesis is built on a few core pillars:

• Software Growth: Software solutions revenue grew 28% in Q3 2025 to $7.5 million.
• Cash Position: A healthy cash and equivalents balance of $28.6 million as of September 30, 2025, provides stability and M&A optionality.
• Strategic Moves: Ongoing investments in AI-driven capabilities and the migration to Oracle Cloud Infrastructure (OCI) are expected to drive future cost savings and margin expansion.

The stock is viewed by some as having a reasonable valuation for a long-term growth play, especially given the expected full-year 2025 revenue of around $67.67 million and estimated earnings per share (EPS) of $0.13. You can dig deeper into the company's business model and history here: Crexendo, Inc. (CXDO): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies: Long-Term Growth and Value

Given the heavy insider ownership and the institutional presence of index-tracking funds, the predominant strategy among Crexendo, Inc. investors is a long-term holding approach focused on growth and value. This isn't a stock for quick, speculative trading, though some quantitative funds do hold positions.

The institutional holders, which include names like Dimensional Fund Advisors LP and Arrowstreet Capital, Limited Partnership, often employ systematic or quantitative strategies, meaning they buy the stock because it fits a specific set of criteria-like small-cap exposure, value metrics, or momentum-rather than a deep, fundamental conviction in the management team. Still, the core strategy is predicated on the company executing its profitable growth plan.

The insider ownership, which is defintely a huge factor, aligns management's interests with long-term shareholder value. They are betting on the company's ability to continue its double-digit revenue growth through 2026. The focus is on the long-term margin expansion that will come from scaling the software business and realizing cost savings from the OCI migration starting in 2026.

The investment strategies break down like this:

The risk you map here is that with nearly half the shares held by insiders, liquidity can be lower, and any major change in their sentiment could cause a disproportionate price drop. Finance: Monitor insider selling activity via SEC filings weekly.

Institutional Ownership and Major Shareholders of Crexendo, Inc. (CXDO)

You're looking at Crexendo, Inc. (CXDO) because you know a small-cap tech company's investor profile tells a real story about its risk and growth potential. The direct takeaway here is that while institutional ownership is growing, it's still relatively low, meaning the company's trajectory is heavily influenced by its founders and insiders. This is a double-edged sword: high conviction from the core team, but less oversight and liquidity from the big funds.

As of late 2025, institutional investors hold a collective stake of approximately 25% of Crexendo, Inc.'s stock, which translates to a total of over 8.7 million shares. This is a respectable number for a company with a market capitalization around $208.36 million, but it's important to remember that individual insiders, like the company's largest shareholder, Steven G. Mihaylo, hold a much more substantial portion, closer to 45% to 48% of the outstanding shares. That's a key distinction you defintely need to keep in mind.

Top Institutional Investors and Shareholdings

When you look at who's buying, you see a mix of index funds and active managers, which adds a layer of stability. The largest institutional holders are exactly the names you'd expect to provide a solid base for any stock, large or small. They are mostly passive funds and large asset managers that track the broader market.

Here's a quick look at the top institutional holders and their positions based on the most recent 13F filings, with data points as close to November 2025 as possible:

The presence of giants like Vanguard Group Inc. and BlackRock, Inc. is a good signal. They aren't making a huge bet-their portfolio allocation to CXDO is minimal-but their inclusion in index funds provides a floor of perpetual demand for the stock. You can get more detail on the company's fundamentals here: Breaking Down Crexendo, Inc. (CXDO) Financial Health: Key Insights for Investors.

Recent Changes in Institutional Ownership

The story in the third quarter of 2025 was one of accumulation, which is a bullish sign. We saw a net increase in institutional shares, with the total number of institutional owners rising to 160. This suggests that more funds are initiating small positions or adding to existing ones, likely following the company's solid Q3 2025 results where total revenue hit $17.5 million and software solutions revenue grew 28% year-over-year.

The buying activity was concentrated in a few key areas, showing conviction from some major players:

• Pembroke Management LTD dramatically increased its stake by over 209.3%.
• BNP Paribas Financial Markets also saw a massive boost, raising its position by 172.6%.
• Vanguard Group Inc. boosted its holdings by 11.2%, adding over 70,000 shares.
• Dimensional Fund Advisors LP and Arrowstreet Capital Limited Partnership also made modest increases of 5.2% and 4.5%, respectively.

Still, not everyone was buying. Some quantitative strategies funds, like Occudo Quantitative Strategies LP, reduced their position by 21.1%. This kind of back-and-forth is normal, but the net accumulation and the large percentage increases from a few funds suggest a growing interest in Crexendo, Inc.'s cloud communications and software solutions story.

Impact of Institutional Investors on Stock and Strategy

For a small-cap company like Crexendo, Inc., institutional investors play a critical, albeit passive, role. Their main impact isn't on day-to-day strategy-that's still firmly in the hands of the insiders-but on credibility and liquidity. The fact that 160 institutional investors are on the register gives the stock a stamp of approval, suggesting some level of due diligence has been done by professional money managers.

Here's the quick math: with insiders owning nearly half the stock, they control the voting power and the strategic direction. Institutional investors, with their 25% stake, act more as a stabilizing force and a source of future capital demand. Their buying can help push the stock price higher, as we saw with the stock hitting a 52-week high of $7.65 in November 2025. But, to be fair, if a few large institutions decide to sell at once, the stock price could drop fast because the trading volume is lower than a mega-cap company.

The opportunity for you is that as the company continues its profitable growth-with a full-year 2025 earnings expectation of $0.35 per share on $67.94 million in revenue-institutional ownership could climb toward the 40% to 50% range typical of more mature tech companies. That shift would bring greater liquidity and potentially a higher valuation multiple. But until then, you have to accept the risk that comes with a closely-held company.

Key Investors and Their Impact on Crexendo, Inc. (CXDO)

The investor profile for Crexendo, Inc. (CXDO) is dominated by a powerful group of insiders, which is the single most important factor influencing the company's direction. While institutional money is present, the control rests firmly with the company's founders and executives, a dynamic that dictates strategic decisions and limits the immediate influence of external funds.

The Overwhelming Insider Stake: Steven Mihaylo's Influence

You need to understand that Crexendo, Inc. is fundamentally an insider-controlled company. The single largest shareholder is Steven Mihaylo, who holds a massive stake of approximately 36.76% of the common stock. This translates to about 11,297,565 shares, valued at roughly $84.51 million as of November 2025. When you factor in the holdings of other individual insiders, the total insider ownership hovers around 45% of the company.

This level of concentration means insiders face the maximum upside potential or downside risk, so their interests are highly aligned with long-term growth. Honestly, with this much control, the board and management have significant insulation from external shareholder pressure, like activist campaigns. It's a double-edged sword: you get stability and a clear vision, but also a diminished ability for outside investors to force a change in strategy.

Institutional Credibility and Passive Giants

Despite the strong insider presence, top-tier institutional investors hold a significant, though minority, stake. This institutional ownership lends the stock credibility, suggesting professional money managers see a viable business model in Crexendo, Inc.'s cloud communications platform and unified communications as a service (UCaaS) offerings.

The total institutional ownership is around 25%, with the largest holders being familiar names in the financial world. These are primarily passive investors, meaning they track an index rather than actively pushing for operational changes. They are buying the stock because Crexendo, Inc. is part of their investment universe, not because they are planning a boardroom fight.

Here's the quick math on the top institutional holders as of November 2025:

What this estimate hides is the power of their collective vote, especially in a contested election. Still, the overwhelming insider block makes a successful activist campaign highly unlikely. For more on the company's long-term view, you should look at the Mission Statement, Vision, & Core Values of Crexendo, Inc. (CXDO).

Recent Moves: Insiders Selling, Institutions Buying

Looking at recent activity in the 2025 fiscal year, we see a clear pattern: institutions are accumulating shares while key insiders are executing pre-planned sales. This is a crucial data point for mapping near-term risks and opportunities.

• Vanguard Group Inc. boosted its holdings by 11.2% in the third quarter of 2025, acquiring an additional 70,791 shares.
• Dimensional Fund Advisors LP also lifted its stake by 5.2% during the same period, adding 15,926 shares.
• Pembroke Management LTD made a very notable move, increasing its position by a substantial 209.3% in October 2025.

On the insider side, we've seen consistent selling, often executed under Rule 10b5-1 trading plans (pre-scheduled sales to avoid accusations of trading on non-public information). This is defintely something to watch, but it's not necessarily a sign of a lack of confidence.

• COO Douglas Walter Gaylor sold a total of 30,000 shares in recent trades, valued at approximately $214,360.
• CEO Jeffrey G. Korn sold 10,000 shares on November 11, 2025, at an average price of $7.2501 per share.
• CFO Ron Vincent also sold 10,000 shares on November 11, 2025, under a trading plan.

The opportunity here is that institutional accumulation suggests a belief in the long-term growth story, particularly as Crexendo, Inc. continues to expand its user base and AI product roadmap. The risk, however, is that sustained insider selling-even pre-planned-can put downward pressure on the stock price, so you need to weigh the institutional vote of confidence against the executive cash-out.

Action: Track the next 13F filings (institutional holdings) for the fourth quarter to see if the accumulation trend accelerates.

Market Impact and Investor Sentiment

You're looking at Crexendo, Inc. (CXDO) and wondering who's holding the stock and what that tells you about its future. The direct takeaway is a complex but generally positive signal: Insiders own a massive chunk, but they're selling small amounts, while institutional investors are quietly accumulating shares, suggesting a belief in the long-term growth story despite short-term profit-taking.

The investor profile for Crexendo, Inc. (CXDO) is highly concentrated, which means a few key players drive the sentiment. Individual insiders hold a significant 47.20% of the company, with co-founder Steven Mihaylo being the largest shareholder with a 36.76% stake, representing over 11.29 million shares. This level of insider ownership is a huge vote of confidence, aligning management's interests defintely with yours as a shareholder. It's a powerful signal of commitment.

Still, you need to watch the recent insider transactions. Over the last 90 days leading up to November 2025, company executives, including CEO Jeffrey G. Korn and COO Douglas Walter Gaylor, have collectively sold 75,000 shares valued at about $537,810. This is not a massive divestment relative to their total holdings, but it's a net selling trend, which often indicates profit-taking at what they might see as a fair near-term valuation.

• Insiders own 47.20% of the stock.
• Institutions own about 25.89% of the stock.
• Retail investors hold the remaining 25.37%.

Institutional Accumulation and Market Reaction

The institutional money is moving in, and that's a strong tailwind. Professional money managers (institutions) hold a total of 8,725,998 shares. This group includes major players like Vanguard Group Inc., which boosted its holdings by 11.2% in the third quarter of 2025 to own 701,898 shares, and Dimensional Fund Advisors LP, which increased its stake by 5.2%. Plus, BNP Paribas Financial Markets dramatically increased its position by 172.6% in the third quarter of 2025. This accumulation suggests that the 'smart money' sees the company's growth as sustainable, particularly in its software solutions segment.

The market has responded positively to the underlying business performance that is attracting these investors. The stock price surged 27% in the month leading up to mid-November 2025, contributing to an annual gain of 40%. The stock's market capitalization recently hit approximately $208.36 million. This strong price action came right after Crexendo, Inc. announced its Q3 2025 results, where total revenue grew 12% year-over-year to $17.5 million, beating analyst expectations. That's a clear cause-and-effect: good results lead to institutional buying, which pushes the price up.

Analyst Consensus and Valuation Headwinds

The analyst community is aligned with the institutional buying, giving Crexendo, Inc. (CXDO) a consensus rating of 'Moderate Buy' from the six brokerages covering the stock. This is a solid endorsement. The average 12-month price target is set at approximately $9.08, with the high end reaching $11.00. Here's the quick math: with the stock trading near $6.79 in November 2025, that average target implies an upside of about 34.69%.

Analysts are basing this on tangible growth, not just hype. Full-year 2025 revenue estimates have been revised upward to approximately $67.67 million, with expected earnings per share (EPS) of $0.13. This growth is driven by the company's core strategy, which you can read more about in their Mission Statement, Vision, & Core Values of Crexendo, Inc. (CXDO).

What this estimate hides, though, is the high price-to-earnings (P/E) ratio, which is currently around 67.81. That's a hefty multiple compared to the broader market, suggesting investors are pricing in a lot of future growth. You're paying a premium for that projected growth.

Here is a snapshot of the key analyst perspectives as of November 2025: