Crexendo Reports 12% Organic Growth to $68.2M, Agrees $35M ESI Acquisition
Crexendo posted 2025 revenue of $68.2 million, up 12% organically, with GAAP net income of $5.1 million and non-GAAP income of $11.4 million, marking its 29th non-GAAP-profitable quarter and tenth straight GAAP-profitable quarter. It will acquire UCaaS provider ESI for $35 million to push recurring revenue toward a $100 million run rate.
1. Financial Performance
Crexendo delivered Q4 revenue of $18.1 million, up 11%, with GAAP net income of $1.2 million and non-GAAP net income of $2.8 million. For full-year 2025, revenue reached $68.2 million (up 12% organically), GAAP net income was $5.1 million, and non-GAAP income totaled $11.4 million, marking ten consecutive GAAP-profitable quarters and 29 non-GAAP-profitable quarters.
2. ESI Acquisition
The company agreed to acquire Estech Systems (ESI) for $35 million in cash and stock, with ESI generating approximately $26 million in 2025, about 80% recurring UCaaS revenue and 86% UCaaS gross margins. The deal, expected to close on March 1, 2026, is projected to be accretive and drive Crexendo toward a $100 million annual revenue run rate.
3. Cloud Migration and Infrastructure
Management has completed migrating all hosted licensees to Oracle Cloud Infrastructure and is decommissioning legacy data centers to improve margins. These infrastructure upgrades align with a goal of sustaining double-digit organic growth and enhancing operating cash flow in 2026.
4. AI Platform Expansion
Crexendo is rolling out its CAIRO AI Receptionist Orchestrator released in January, which management projects could lift retail ARPA by over 25%. Ongoing investments in AI, security, and platform scalability are positioned to support expanded channel reach and M&A-driven growth.