Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 105

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 105
---
 and outsourced services required to install and support software solutions. The following table reflects our cost of service revenue for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024:

  Nine Months Ended September 30,   2025  2024  Dollar Change  Percent Change Cost of software solutions revenue $5,227  $4,523  $704   16%

The increase in cost of software solutions revenue is primarily related to an increase in salaries, benefits, bonuses, share-based compensation, and headcount of $461, an increase in software costs of $189, and an increase in outsourced services of $97, offset by a decrease in third-party hosting service costs of $41 and a decrease in other costs of software solutions revenue of $2.

Selling and Marketing

Selling and marketing expenses consist primarily of sales and marketing salaries, benefits, bonuses, commissions, share-based compensation, travel expenses, lead generation services, trade shows, third-party marketing services, the production of marketing materials, annual user group meeting costs, and sales support software. The following table reflects our selling and marketing expenses for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024:

  Nine Months Ended September 30,   2025  2024  Dollar Change  Percent Change Selling and marketing $4,034  $3,626  $408   11%

The increase in selling and marketing expense is primarily related to an increase in commission expense of $409 directly related to the increase in revenue and an increase in marketing materials and trade show costs of $103, offset by a decrease in salaries, benefits, bonuses, share-based compensation, and headcount of $58 primarily from an allocation of resources to the Cloud Telecommunications services segment, a decrease in sales support software of $27, and a decrease in other selling and marketing costs of $19.

General and Administrative

General and administrative expenses consist of salaries and benefits for executives, administrative personnel, amortization of intangible assets, legal, rent, equipment, accounting and other professional services, and other administrative corporate expenses. The following table reflects our general and administrative expenses for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024:

  Nine Months Ended September 30,