Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 13

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 13
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210   2,588 Total revenue $9,577  $9,360  $18,766  $18,500 Operating expenses:                Cost of service revenue $3,556  $3,246  $7,043  $6,355 Cost of product revenue  687   696   1,286   1,426 Selling and marketing  3,081   2,808   5,933   5,604 General and administrative  1,958   2,232   3,896   4,390 Research and development  115   258   247   527 Total operating expenses  9,397   9,240   18,405   18,302 Income/(loss) from operations  180   120   361   198 Other income/(expense), net  123   45   204   40 Income/(loss) before income tax $303  $165  $565  $238 

 39Table of Contents

Three months ended June 30, 2025 compared to three months ended June 30, 2024

Service Revenue

Cloud telecommunications service revenue consists primarily of fees collected for cloud telecommunications services, professional services, interest from sales-type leases, reselling broadband Internet services, managed IT service, and administrative fees. The following table reflects our service revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024:

  Three Months Ended June 30,   2025  2024  Dollar Change  Percent Change Service revenue $8,374  $8,067  $307   4%

The increase in service revenue is due to an increase in telecommunications services fees of $332, an increase in fees, commissions, and other, recognized over time of $132, and an increase in sales-type lease interest of $44, offset by a decrease in one-time fees, commissions and other of $201. A substantial portion of Cloud Telecommunications service revenue is generated through thirty-six to sixty month service contracts. 

Product Revenue

Product revenue consists primarily of fees collected from the sale of desktop phone devices, third-party equipment, and device as a service. The following table reflects our product revenue for the three