Crexendo

CXDO

Telecommunications Services · Communication Services

Price

$7.66

-0.18 (-2.30%)

Market Cap

$248.3M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+56.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 20.3M (2021) → 31.6M (2025)

Crexendo, Inc. provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally. It operates through two segments, Cloud Telecommunications and Web Services. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmissi

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+29.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-56.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$6M/ year

→ Flat (+3% vs prior year)

8.4% of revenue

Below sector average (12%)

Steady R&D investment year-over-year

Insider Activity

36.5%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$7M cash & investments

Quarterly Free Cash Flow

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Crexendo grew revenue 29% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

56.5%

Premium pricing power — 56.5% gross margin

Operating Margin

6.2%

Modest — 6.2% operating margin

ROCE

1.7%

Weak — 1.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+16.3%

Fast-growing sales (16.3% YoY)

EPS YoY

+70.4%

Earnings growing fast (70.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

225%

Turns 225% of profit into real cash

FCF Margin

13.8%

Converts sales into free cash efficiently (13.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.01

Conservative — low debt load (0.01)

Interest Cover

481.90x

Comfortably covers interest (481.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

51.1x

Expensive — P/E 51.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+38.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (51.1 → 13.0)

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Dividends

Not applicable for this business.

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