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Here are 1-3 brief analogies for Crexendo (CXDO):

• Crexendo is like RingCentral for small to mid-sized businesses.
• It's a comprehensive cloud communication platform, similar to what Zoom Phone offers.
• Imagine Microsoft Teams or Slack, but as an all-in-one cloud phone system and collaboration suite for businesses.

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Crexendo's major products and services fall primarily into two categories of cloud communication solutions:

• Unified Communications as a Service (UCaaS): Provides businesses with a comprehensive suite of cloud-based communication tools, including VoIP phone systems, video conferencing, and team messaging.
• Contact Center as a Service (CCaaS): Offers cloud-based software and services designed to manage customer interactions across various channels, optimizing customer support and sales operations.

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• Small and Medium-sized Businesses (SMBs): These businesses are direct subscribers to Crexendo's cloud-based Unified Communications as a Service (UCaaS), cloud phone systems, and collaboration tools. This segment forms a significant part of Crexendo's direct sales.
• Enterprise Customers: Larger organizations and corporations that directly utilize Crexendo's UCaaS and contact center solutions, often requiring more comprehensive and tailored communication infrastructures.
• Telecommunication Service Providers: Through its NetSapiens platform, Crexendo sells its software and solutions to other telecommunication companies, Internet Service Providers (ISPs), cable operators, and Managed Service Providers (MSPs). These service providers then use the NetSapiens platform to offer their *own* branded cloud communication services to their end-customers. These wholesale customers are a crucial part of Crexendo's revenue stream.

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• HP Inc. (HPQ)
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Jeffrey Korn Chief Executive Officer | Executive Chairman of the Board of Directors

Jeffrey Korn has served on the Crexendo executive team for over 20 years, most recently as Chief Legal Officer. He was instrumental in changing Crexendo's business model from business-to-consumer (B2C) to business-to-business (B2B). Prior to joining Crexendo, he served as Chief Legal Officer and a member of the Board of Directors of Prosoft Training (a former Nasdaq company), and before that, he was a partner in a commercial litigation and business services law firm.

Ron Vincent Chief Financial Officer

Ron Vincent has been Crexendo's Chief Financial Officer since April 2012. Before joining Crexendo's leadership team, he was an audit senior manager at Ernst & Young, LLP from 2005 to 2012, concluding a 14-year professional career as an auditor. His auditing experience included reviewing business plans for telecommunication and internet marketing service providers. Earlier in his career, he was an Audit Senior with Mukai, Greenlee & Company and John C. Todd II, P.C. He is a Certified Public Accountant and holds an MBA from the University of Phoenix and a B.S. in Accounting/Finance from Indiana University.

Doug Gaylor President | Chief Operating Officer

Doug Gaylor serves as President and Chief Operating Officer for Crexendo. He joined the company in 2009 as Vice President of Sales. With over 30 years in the telecom industry, he is a subject matter expert in various telecom areas. Prior to Crexendo, he held positions of increasing responsibility, culminating as Senior Vice President, at Inter-Tel/Mitel, where he began in 1987.

Jon D. Brinton Chief Revenue Officer

Jon D. Brinton brings over 25 years of experience in the technology industry. He joined Crexendo in November 2020. Before that, he was Vice President of North America Channel at Avaya, where he successfully navigated the transition to cloud-based solutions, generating over $1 billion in annual sales. He also held various Senior Executive roles at Mitel, playing a pivotal role in establishing the company as the second-largest global provider of Unified Communications as a Service (UCaaS) by leading its Cloud Division. His career started at Inter-Tel, where he led the expansion of the NetSolutions Division, which was later acquired by Mitel. Before Inter-Tel, he was the President and primary stockholder of Network Services Agency, Inc., a telecommunications agency business that Inter-Tel acquired in 1999.

Steven G. Mihaylo Chairman Emeritus

Steven G. Mihaylo is the founder of Inter-Tel, Incorporated, which he established in 1969. He grew Inter-Tel to nearly $500 million in annual revenue before selling it for approximately $750 million in 2007. Mihaylo served as the Chief Executive Officer of Crexendo from 2008 to 2023 and now holds the position of Chairman Emeritus.

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The key risks to Crexendo's business are primarily its intense competition, ongoing lack of profitability, and the persistent threat of cybersecurity incidents.

1. Intense Competition: Crexendo operates in the highly competitive cloud communications market, facing significant challenges from major and established players such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. This intense competition and industry consolidation pose a considerable risk to Crexendo's pricing power, market share, and long-term revenue growth prospects, with a notable risk that many clients could eventually transition to larger providers.
2. Lack of Profitability and Potential Shareholder Dilution: A significant risk for Crexendo is its ongoing lack of profitability, as the company has reported negative operating income since 2021. This financial performance raises concerns that Crexendo may need to raise additional capital, potentially through further equity raises, which could lead to the dilution of shareholder value.
3. Cybersecurity Threats: As a Software as a Service (SaaS) provider in the Unified Communication as a Service (UCaaS) market, Crexendo is exposed to increasing and evolving cybersecurity threats. Given that its customer base is highly sensitive to privacy, service quality, and availability, any material cyberattack could have a significant adverse effect on the company's operations and financial condition.

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The increasing integration and market penetration of unified communications as a service (UCaaS) solutions offered by hyperscale technology companies, most notably Microsoft Teams Phone and Google Voice/Meet. These offerings are often bundled with their widely adopted productivity suites (Microsoft 365 and Google Workspace, respectively), providing businesses with a compelling, often lower-cost, and deeply integrated alternative to pure-play UCaaS providers like Crexendo. This trend leverages existing customer relationships and infrastructure, making it difficult for specialized UCaaS providers to compete on price, integration, and ecosystem breadth, leading to a continuous squeeze on market share and margins for dedicated providers.

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• Global Unified Communications as a Service (UCaaS) Market: This market is projected to grow significantly, with one estimate indicating a rise from USD 84.9 billion in 2025 to USD 433.29 billion by 2034, expanding at a compound annual growth rate (CAGR) of 18%. Another projection places the market size at USD 215.53 billion by 2032, with a CAGR of 18.15% from its 2024 value of USD 56.75 billion.
• U.S. Unified Communications as a Service (UCaaS) Market: The U.S. UCaaS market was valued at USD 15.76 billion in 2023 and is projected to reach USD 114.15 billion by 2032, demonstrating a CAGR of 24.61% from 2024 to 2032.
• Global Cloud Communication Platform Market: This market is expected to reach USD 141.40 billion by 2035, growing from USD 19.38 billion in 2024 at a CAGR of 19.80% from 2025. Another report estimates the global cloud communication market will reach USD 136.3 billion by 2034, from USD 29.2 billion in 2025, at a CAGR of 18.7%.
• U.S. Cloud Communication Platform Market: The U.S. cloud communication market is projected to be valued at USD 8.6 billion by 2025 and is expected to reach USD 36.8 billion in 2034, with a CAGR of 17.5%.

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Crexendo (CXDO) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and operational strengths:

1. Continued Growth in Software Solutions and Platform Adoption: The company's software division has demonstrated robust growth, with a 25% increase in Q3 2024, 32% in Q4 2024, and 28% in Q3 2025. This segment, including its NetSapiens platform, is a primary driver as Crexendo surpasses significant milestones in end-user adoption, validating its technology's strength and scalability.
2. Expansion of AI-Driven Products and Services: Crexendo is actively investing in and launching new AI-driven capabilities such as AI Voice Studio, AI call recording, contact center AI powered by ChatGPT, AI assistant, and AI operator solutions. These innovations are anticipated to enhance user experience and drive incremental revenue per customer through organic product development and strategic partnerships.
3. Strategic Mergers and Acquisitions (M&A): Management has articulated a clear strategy to pursue and close strategic acquisition opportunities, particularly within the $5-20 million range, with a goal of one accretive roll-up per year. This inorganic growth strategy aims to expand the company's market presence and revenue base.
4. Cost Savings and Margin Expansion from Cloud Migration: While directly impacting profitability, the ongoing migration of data centers to Oracle Cloud Infrastructure (OCI) and the transition of "classic" customers to the "VIP" platform are expected to generate substantial cost savings. These savings free up resources that can be reinvested into the business, supporting continued profitable growth and enhancing product offerings.
5. Superior Customer Service and Organic Customer Acquisition: Crexendo consistently highlights its strong focus on customer service and support as a significant competitive advantage. This commitment helps in retaining existing customers, driving upgrade orders, and attracting new licensees, leading to sustained organic growth in its customer base.

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<h2>Capital Allocation Decisions for Crexendo (CXDO)</h2>

<h3> Share Repurchases</h3>
<ul>
    <li>As of March 11, 2024, Crexendo had an authorized share repurchase program.</li>
</ul>

<h3> Share Issuance</h3>
<ul>
    <li>In connection with the NetSapiens acquisition in June 2021, Crexendo issued approximately 3,097,309 shares of common stock valued at approximately $19.2 million.</li>
    <li>Analysts forecast Crexendo's share count to rise 7.0% annually for the next three years, potentially leading to dilution for existing shareholders.</li>
    <li>The number of outstanding shares was 21.59 million in 2021, growing to 22.62 million in 2022, 25.99 million in 2023, 26.84 million in 2024, and 29.43 million as of November 2025.</li>
</ul>

<h3> Outbound Investments</h3>
<ul>
    <li>In June 2021, Crexendo acquired NetSapiens, a UCaaS and collaboration provider, for approximately $49.1 million, consisting of cash and stock consideration.</li>
    <li>In November 2022, Crexendo acquired Allegiant Networks, a regional telecom and data services company, to expand its reach and offerings, particularly in IT and managed services.</li>
    <li>As of late 2025, Crexendo is actively reviewing strategic acquisition opportunities with optimism about closing a deal by early next year to further enhance its market position.</li>
</ul>

<h3> Capital Expenditures</h3>
<ul>
    <li>In the last 12 months (as of late 2025), Crexendo's capital expenditures were -$45,000.</li>
    <li>The company is focusing on strategic investments in AI capabilities and Oracle Cloud infrastructure, which are expected to drive sustained profitable growth and enhance cost savings.</li>
</ul>