Crexendo delivered consolidated total revenue of $20.7 million in Q1, a 29% increase from $16.1 million a year earlier, and reported GAAP net income of $0.6 million ($0.02 per share) alongside non-GAAP net income of $3.3 million ($0.10 per share). Adjusted EBITDA rose to $3.2 million from $2.7 million, while GAAP EBITDA was $1.6 million, reflecting continued profitability for the tenth consecutive quarter.

Service revenue climbed 29% to $10.6 million, software solutions revenue increased 12% to $7.7 million and product revenue surged 141% to $2.4 million. Operating expenses rose 36% to $20.3 million, driven by acquisition-related costs of $839,000 and $1.1 million of amortization expense tied to intangible assets.

Total cash and cash equivalents fell from $31.4 million at year-end 2025 to $7.2 million at March 31, 2026, following $26.2 million of investing outflows, primarily for the Estech Systems acquisition. Operating activities generated $2.0 million of cash, up from $1.2 million a year earlier, while financing activities contributed $0.1 million.

Crexendo’s acquisition of Estech Systems is performing ahead of expectations with early synergies in sales and operations, contributing to revenue and platform enhancements. The company highlighted the launch of its Crexendo AI Receptionist/Orchestrator and reaffirmed its trajectory toward $100 million in annual revenue, citing scalable growth and improving operating leverage.