Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 101

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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expense), net  (6)  (5)  32   (32)Income/(loss) before income tax $1,140  $168  $3,070  $1,006 

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

Software Solutions Revenue

Software solutions revenue consists primarily of software license fees, subscription maintenance and support, professional services, and annual user group meeting fees. Software licenses are billed by the number of concurrent sessions a customer has purchased or subscribes to. Subscription maintenance and support is ongoing and provides for software updates and improvements, support for add-on modules, bug fixes, and other general maintenance items. Professional services and other revenues consist of professional services such as the installation of software and integration of other modules, training and implementation as well as custom mobile branding. The following table reflects our service revenue for the three months ended September 30, 2025, compared to the three months ended September 30, 2024:

  Three Months Ended September 30,   2025  2024  Dollar Change  Percent Change Software solutions revenue $7,521  $5,860  $1,661   28%

The increase in software solutions revenue is primarily related to an increase in recurring software license and maintenance and support subscriptions of $1,040, an increase in perpetual software license revenue of $605, and an increase in professional services and other revenue of $16.

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Remaining Performance Obligations

Remaining Performance Obligations (RPOs) represents the total contract value of all contracts signed, less revenue recognized from those contracts as of September 30, 2025 and 2024. RPO’s increased 18%, or $4,480 to $28,888 as of September 30, 2025 as compared to $24,408 as of September 30, 2024. Below is a table which displays the software solutions segment revenue remaining performance obligations as of July 1, 2025 and 2024, and September 30, 2025 and 2024, which we expect to recognize as revenue within the next thirty-six to sixty months (in thousands):

Software solutions RPO's as of July 1, 2025 $27,077 Software solutions RPO's as of September 30, 2025 $28,888