Crexendo Hits 6M Users, 8 Quarters GAAP Profit Ahead of Shareholder Vote

TL;DR

**CXDO is crushing it with user growth and consistent profits, making it a solid long-term play in UCaaS.**

AI Summary

Crexendo, Inc. (CXDO) is holding its 2025 Annual Meeting of Stockholders on December 2, 2025, following a 'transformative year' in 2024 and continued strides in 2025. The company reported surpassing 6 million users on its platform and achieved GAAP profitability for the 8th consecutive quarter in Q2 2025, alongside non-GAAP net income for the 27th consecutive quarter. Crexendo was recognized in G2's Spring 2025 Reports with 18 first-place rankings for customer service and received Frost & Sullivan's 2024 Competitive Strategy Leadership Award for Excellence in Cloud Communications, affirming its status as the fastest-growing telecommunications software platform. Key proposals for the meeting include the election of six directors, advisory approval of executive compensation, advisory approval of executive compensation frequency, and the ratification of Urish Popeck & Co., LLC as the independent registered public accounting firm for fiscal year 2025. As of October 6, 2025, there were 30,701,950 shares of common stock outstanding, with Chairman and CEO Jeffrey G. Korn emphasizing the company's commitment to increasing stockholder value.

Why It Matters

Crexendo's consistent GAAP profitability for eight consecutive quarters and non-GAAP net income for 27 quarters signals strong operational efficiency and financial health, which is crucial for investor confidence in the competitive SaaS and UCaaS sectors. Surpassing 6 million users and receiving industry accolades like Frost & Sullivan's 2024 Competitive Strategy Leadership Award demonstrates significant market penetration and product validation, potentially attracting new customers and partners. For employees, these achievements validate their efforts and could lead to further growth opportunities within a recognized industry leader. The company's strategic outlook, focused on continuous improvement and stockholder value, suggests a stable and growth-oriented trajectory in the cloud communications market.

Risk Assessment

Risk Level: low — The company has demonstrated GAAP profitability for 8 consecutive quarters and non-GAAP net income for 27 consecutive quarters, indicating strong financial stability. While there were some Section 16(a) filing delinquencies for certain executives, these were largely administrative and subsequently addressed, not posing a material operational or financial risk.

Analyst Insight

Investors should consider Crexendo's consistent profitability and strong user growth as indicators of a robust business model. Attend the annual meeting or vote your proxy to support the board's recommendations, particularly the ratification of the accounting firm, to ensure continued good governance.

Executive Compensation

Key Numbers

• 6 million — Users on platform (Surpassed this milestone, indicating significant growth)
• 8 — Consecutive quarters of GAAP profitability (Demonstrates consistent financial performance through Q2 2025)
• 27 — Consecutive quarters of non-GAAP net income (Highlights sustained operational success through Q2 2025)
• 18 — First-place rankings in G2's Spring 2025 Reports (Recognized for outstanding customer service based on end-user feedback)
• 30,701,950 — Shares of common stock outstanding (As of the record date October 6, 2025)
• 37.2% — Beneficial ownership by Steven G. Mihaylo (Indicates a significant insider stake in the company)
• 47.2% — Beneficial ownership by all current directors and executive officers as a group (Shows strong alignment of insider interests with shareholder value)
• 2025-12-02 — Date of Annual Meeting (Key date for shareholder decisions)
• 2025-10-06 — Record Date for voting (Determines eligibility to vote at the Annual Meeting)
• 2024 — Fiscal year for Annual Report (Financial performance reviewed by shareholders)

Key Players & Entities

• Crexendo, Inc. (company) — Registrant and subject of the DEF 14A filing
• Jeffrey G. Korn (person) — Chairman & CEO of Crexendo, Inc.
• Urish Popeck & Co., LLC (company) — Independent registered public accounting firm for fiscal year ending December 31, 2025
• Steven G. Mihaylo (person) — Significant beneficial owner with 37.2% of shares
• SEC (regulator) — Securities and Exchange Commission
• Equinity Trust Company LLC (company) — Independent proxy tabulator
• Kevin Jackson (person) — Executive officer with a delinquent Section 16(a) filing
• L. Jasmine Kim (person) — Executive officer with an unfiled Section 16(a) report
• David Wang (person) — Executive officer with a delinquent Section 16(a) filing
• Anand Buch (person) — Executive officer with a delinquent Section 16(a) filing

FAQ

Industry Context

Crexendo operates in the rapidly growing Software as a Service (SaaS) and Unified Communications as a Service (UCaaS) sectors. The company is positioned as the fastest-growing telecommunications software platform, emphasizing its competitive edge in cloud communications. Recognition from Frost & Sullivan and high rankings on G2 for customer service highlight its strong market presence and customer satisfaction.

Regulatory Implications

As a publicly traded company, Crexendo is subject to SEC regulations and reporting requirements, including the timely filing of proxy statements like this DEF 14A. Compliance with accounting standards (GAAP) and corporate governance practices is crucial for maintaining investor confidence and avoiding regulatory scrutiny.

What Investors Should Do

1. Review director nominees and vote.
2. Vote on advisory approval of executive compensation.
3. Vote on the frequency of advisory executive compensation approval.
4. Ratify the appointment of Urish Popeck & Co., LLC as the independent auditor.
5. Submit proxy by October 6, 2025.

Key Dates

• 2025-12-02: 2025 Annual Meeting of Stockholders — Key date for shareholders to vote on director elections, executive compensation, and auditor ratification.
• 2025-10-06: Record Date for voting eligibility — Determines which stockholders are entitled to vote at the Annual Meeting.
• 2025-10-16: Date of Proxy Statement — Indicates the official filing date for the proxy materials.
• 2025-10-20: Mailing of Notice of Internet Availability of Proxy Materials — Initiates the period for shareholders to access proxy materials and vote.
• 2024-12-31: Fiscal Year End — The period for which the Annual Report and financial statements are presented.

Glossary

DEF 14A

A filing with the SEC that provides detailed information to shareholders about matters to be voted on at an annual meeting, including director nominations, executive compensation, and auditor ratification. (This document is the primary source of information for shareholders regarding the upcoming annual meeting and key company proposals.)

Proxy Statement

A document that the SEC requires companies to provide to shareholders before a shareholder meeting, containing information about the matters to be voted on. (Essential for shareholders to understand the proposals and make informed voting decisions.)

GAAP

Generally Accepted Accounting Principles. A common set of accounting standards and procedures used in financial reporting. (Indicates the company's adherence to standardized financial reporting, with 8 consecutive quarters of GAAP profitability.)

Non-GAAP net income

Net income calculated using accounting methods that exclude certain items to provide a clearer view of ongoing operational performance. (Highlights the company's sustained operational success, with 27 consecutive quarters of non-GAAP net income.)

SaaS

Software as a Service. A software distribution model where a third-party provider hosts applications and makes them available to customers over the Internet. (Crexendo operates in this sector, indicating its business model and competitive landscape.)

UCaaS

Unified Communications as a Service. A cloud-based delivery model for communication services, integrating various communication methods like voice, video, and messaging. (Crexendo is a fast-growing platform in this sector, competing with other cloud communication providers.)

Beneficial ownership

The right to obtain economic benefits of ownership of a security, even if the security is registered in another person's name. (Shows the extent to which insiders, like Steven G. Mihaylo and the group of directors/officers, have a vested interest in the company's performance.)

Year-Over-Year Comparison

This filing indicates a positive trajectory for Crexendo, highlighting continued growth with over 6 million users and sustained profitability (8 consecutive GAAP quarters, 27 non-GAAP quarters). The company has also received industry accolades, suggesting strong operational performance and market recognition compared to previous periods. Key proposals remain consistent with typical annual meetings, focusing on governance and auditor ratification.

Key Financial Figures

• $23 b — and his average client's market cap was $23 billion, his largest client with $230 bil
• $230 billion — as $23 billion, his largest client with $230 billion in market cap. The Company believes t

Filing Documents

• cxdo_def14a.htm (DEF 14A) — 537KB
• cxdo_def14aimg35.jpg (GRAPHIC) — 6KB
• cxdo_def14aimg36.jpg (GRAPHIC) — 6KB
• 0001654954-25-011941.txt ( ) — 857KB
• cxdo-20241231.xsd (EX-101.SCH) — 4KB
• cxdo-20241231_lab.xml (EX-101.LAB) — 11KB
• cxdo-20241231_cal.xml (EX-101.CAL) — 1KB
• cxdo-20241231_pre.xml (EX-101.PRE) — 8KB
• cxdo-20241231_def.xml (EX-101.DEF) — 2KB
• cxdo_def14a_htm.xml (XML) — 74KB

From the Filing

cxdo_def14a.htm UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 14A INFORMATION (Rule 14a-101) Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. [ ]) Filed by Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, for Use of the Commission Only (as Permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material Pursuant to 240.14a-12 Crexendo, Inc. (Name of Registrant as Specified in Its Charter) ______________________________________________ (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box). No fee required. Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: ____________________________ (5) Total fee paid: __$[_____]_______________________________________________ Fee paid previously with preliminary materials. Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a) (2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. 1) Amount Previously Paid: 2) Form, Schedule or Registration Statement No.: 3) Filing Party: 4) Date Filed: A Message from Our Chairman and Chief Executive Officer Dear Fellow Stockholders, On behalf of the entire Crexendo Board of Directors, I am pleased to invite you to Crexendo's 2025 Annual Meeting of Stockholders, which will be held on December 2 nd , 2025, at 2:00 p.m. Pacific Time, at the Company's headquarters located at 1225 W Washington Steet, Suite 213, Tempe, AZ 85288. As we have done each year, we are furnishing our proxy materials to stockholders primarily over the Internet. This process expedites your receipt of the proxy materials, reduces the cost of the Annual Meeting and conserves natural resources. Stockholders of record as of the close of business on October 6, 2025 will either receive a Proxy Card or a Notice of Internet Availability of Proxy Materials for the Annual Meeting. The notice contains instructions on how to access our Proxy Statement and Annual Report for the fiscal year ended December 31, 2024, and submit your proxy online. 2024 was a transformative year for Crexendo and we continue to make even more strides in 2025. I am profoundly proud and humbled to lead what I know is the best team in the Software as a Service (SaaS) and Unified Communications as a Service (UCaaS) sectors. We take our responsibility to our shareholders, licensees and customers very seriously and I believe our results confirm just that. We recently surpassed six (6) million users on our award-winning platform. This achievement is not merely a statistic; it is a testament to the dedication of our exceptional team and our industry-leading partners and licensees. We have been recognized in G2's Spring 2025 Reports for outstanding customer service with 18 - 1st place rankings; we are very proud of that as it is based on real end-user feedback. We are also excited that we were the recipient of Frost & Sullivan's 2024 Competitive Strategy Leadership Award for Excellence in Cloud Communications. This award not only underscores our innovative strategies but also affirms our status as the fastest-growing telecommunications software platform in the industry. We maintained our streak of achieving GAAP profitability for the 8th consecutive quarter in Q2 2025 as well as non-GAAP net income for the 27th consecutive quarter. These are just some of our more noteworthy accomplishments and we will not rest on our laurels – we will continue to improve and make certain we are providing the best software, customer solutions, and customer support in the industry while working every day to increase stockholder value. The spirit and energy of our employees is what has powered our excellent results, I could not be prouder of our team. Your vote is important to us. Even if you plan to attend the Annual Meeting, we recommend that you promptly submit your proxy with your voting instructions. You may do this over the Internet, as well as by telephone or mail. Please review the instructions regarding each of these options on your Proxy Card or Notice of Internet Availability of Proxy Materials. Thank you for your continued confidence in Crexendo. Sincerely, /s/ JEFFREY G. KORN JEFFREY G. KORN Chairman & CEO i NOTICE OF ANNUAL MEETING O

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View this DEF 14A filing on SEC EDGAR