Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 101

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 101
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   788   1,623   1,526 Adjusted EBITDA $2,784  $2,204  $5,503  $4,265 

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(1)For the three months ended June 30, 2025 and 2024, employer payroll tax expense related to share-based compensation was $63 and $4, respectively. For the six months ended June 30, 2025 and 2024, employer payroll tax expense related to share-based compensation was $135 and $14, respectively.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our revenue, operating income or loss and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet. Please see Note 1 of Part I, Item 1 of this quarterly report on Form 10-Q for a summary of significant accounting policies. In addition, the estimates, assumptions and judgments involved in our accounting policies described in critical accounting policies and estimates are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Segment Operating Results 

The Company has two operating segments, which consist of Cloud Telecommunications Services and Software Solutions. The information below is organized in accordance with our two reportable segments. Segment operating income is equal to segment net revenue less segment cost of service revenue, cost of software solution revenue, cost of product revenue, sales and marketing, research and development, and general and administrative expenses.

Operating Results of our Cloud Telecommunications Services Segment (in thousands):

  Three Months Ended June 30,  Six Months Ended June 30, Cloud Telecommunications Services 2025  2024  2025  2024 Service revenue $8,374  $8,067  $16,556  $15,912 Product revenue  1,203   1,293   2,210   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