# EDGAR Filing Document

**Accession Number:** 0001075736
**File Stem:** 0001654954-25-012572
**Filing Date:** 2025-11
**Character Count:** 29906
**Document Hash:** d0dec952da95f6eff6cb67a55d89445f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-25-012572.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001654954-25-012572

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20251104

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Crexendo, Inc.
- **CENTRAL INDEX KEY:** 0001075736
- **STANDARD INDUSTRIAL CLASSIFICATION:** TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 870591719
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32277
- **FILM NUMBER:** 251448779

**BUSINESS ADDRESS:**
- **STREET 1:** 1225 W. WASHINGTON ST.
- **STREET 2:** SUITE 213
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85288
- **BUSINESS PHONE:** 8012270004

**MAIL ADDRESS:**
- **STREET 1:** 1225 W. WASHINGTON ST.
- **STREET 2:** SUITE 213
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85288

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IMERGENT INC
- **DATE OF NAME CHANGE:** 20020710

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NETGATEWAY INC
- **DATE OF NAME CHANGE:** 19990527

?xml version='1.0' encoding='ASCII'? cxdo_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**_______________**

**FORM 8-K**

**_______________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934**

Date of report (Date of earliest event reported): **<u>November 4, 2025</u>**

**_______________**

---

| |
|:---|
| **Crexendo, Inc.** |
| *(Exact Name of Registrant as Specified in Its Charter)* |

---

_______________

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-32277** | **87-0591719** |
| *(State or Other Jurisdiction* <br>of Incorporation) | *(Commission* <br>File Number) | *(IRS Employer* <br>Identification No.) |

---

**<u>1225 West Washington Street, Suite 213, Tempe, AZ 85288</u>**

*(Address of Principal Executive Offices) (Zip Code)*

**<u>(602) 714-8500</u>**

*(Registrant's Telephone Number, Including Area Code)*

**<u>Not applicable.</u>**

*(Former Name or Former Address, if Changed Since Last Report)*

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2)

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02 Results of Operations and Financial Condition.**

On November 4, 2025, Crexendo, Inc. issued a press release, a copy of which is being furnished as Exhibit 99.1 hereto and is incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and herein shall be deemed "furnished" and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits

The following exhibit is furnished with this Current Report on Form 8-K:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](cxdo_ex991.htm) | [Press release dated November 4, 2025 by Registrant, reporting its results of operations for quarter ended September 30, 2025.](cxdo_ex991.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Dated: November 4, 2025 | **Crexendo, Inc.** | **Crexendo, Inc.** |
|  | By: | /s/ Ronald Vincent |
|  |  | Ronald Vincent<br>Chief Financial Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](cxdo_ex991img7.jpg)

**Crexendo Announces Strong Third Quarter 2025 Results**

PHOENIX, AZ / ACCESSWIRE / November 4, 2025 / Crexendo, Inc. (NASDAQ: CXDO), an award-winning software technology company that is a premier provider of cloud communication platform and services, video collaboration and managed IT services tailored to businesses of all sizes, today announced financial results for the third quarter ended September 30, 2025.

**Third Quarter Financial highlights:**

· Total revenue increased 12% year-over-year to $17.5 million

· GAAP net income of $1.5 million, or $0.05 per basic and diluted common share.

· Non-GAAP net income of $3.0 million, or $0.10 per basic and diluted common share.

**Financial Results for the Third Quarter of 2025**

**Total Revenue:** Consolidated total revenue for the third quarter of 2025 increased 12%, or $1.9 million, to $17.5 million compared to $15.6 million for the third quarter of 2024.

**Service Revenue:** Consolidated service revenue for the third quarter of 2025 increased 8%, or $0.7 million, to $8.6 million compared to $8.0 million for the third quarter of 2024.

**Software Solutions Revenue:** Consolidated software solutions revenue for the third quarter of 2025 increased 28%, or $1.7 million, to $7.5 million compared to $5.9 million for the third quarter of 2024.

**Product Revenue:** Consolidated product revenue for the third quarter of 2025 decreased 25%, or $(0.4) million, to $1.4 million compared to $1.8 million for the third quarter of 2024.

**Operating Expenses:** Consolidated operating expenses for the third quarter of 2025 increased 5%, or $0.7 million, to $16.2 million compared to $15.5 million for the third quarter of 2024.

**Net Income/(Loss):** The Company reported net income of $1.5 million for the third quarter of 2025, or $0.05 per basic and diluted common share, compared to net income of $0.1 million, or $0.01 per basic common share and $0.00 per diluted common share for the third quarter of 2024.

**Non-GAAP:** Non-GAAP net income of $3.0 million for the third quarter of 2025, or $0.10 per basic and diluted common share, compared to non-GAAP net income of $1.7 million or $0.06 per basic and diluted common share for the third quarter of 2024.

**EBITDA and Adjusted EBITDA:** EBITDA for the third quarter of 2025 of $2.1 million compared to $1.0 million for the third quarter of 2024. Adjusted EBITDA for the third quarter of 2025 of $2.9 million compared to $1.8 million for the third quarter of 2024.

**Financial Results for the nine months ended September 30, 2025**

**Total Revenue:** Consolidated total revenue for the nine months ended September 30, 2025 increased 12%, or $5.5 million, to $50.1 million compared to $44.6 million for the nine months ended September 30, 2024.

**Service Revenue:** Consolidated service revenue for the nine months ended September 30, 2025 increased 5%, or $1.3 million, to $25.2 million compared to $23.9 million for the nine months ended September 30, 2024.

**Software Solutions Revenue:** Consolidated software solutions revenue for the nine months ended September 30, 2025 increased 31%, or $5.0 million, to $21.4 million compared to $16.3 million for the nine months ended September 30, 2024.

**Product Revenue:** Consolidated product revenue for the nine months ended September 30, 2025 decreased 19%, or $(0.8) million, to $3.6 million compared to $4.4 million for the nine months ended September 30, 2024.

**Operating Expenses:** Consolidated operating expenses for the nine months ended September 30, 2025 increased 7%, or $3.1 million, to $46.5 million compared to $43.4 million for the nine months ended September 30, 2024.

**Net Income/(Loss):** The Company reported net income of $3.9 million for the nine months ended September 30, 2025, or $0.13 per basic common share and $0.12 per diluted common share, compared to net income of $1.2 million, or $0.04 per basic and diluted common share for the nine months ended September 30, 2024.

**Non-GAAP:** Non-GAAP net income of $8.6 million for the nine months ended September 30, 2025, or $0.29 per basic common share and $0.27 per diluted common share, compared to non-GAAP net income of $5.8 million or $0.22 per basic common share and $0.19 per diluted common share for the nine months ended September 30, 2024.

**EBITDA and Adjusted EBITDA:** EBITDA for the nine months ended September 30, 2025 of $6.0 million compared to $3.7 million for the nine months ended September 30, 2024. Adjusted EBITDA for the nine months ended September 30, 2025 of $8.4 million compared to $6.0 million for the nine months ended September 30, 2024.

**Cash and Cash Equivalents:** Total cash and cash equivalents at September 30, 2025 was $28.6 million compared to $18.2 million at December 31, 2024.

**Cash Flow:** Cash provided by operating activities for the nine months ended September 30, 2025 was $7.0 million compared to cash provided by operating activities of $4.1 million for the nine months ended September 30, 2024. Cash provided by financing activities for the nine months ended September 30, 2025 was $3.4 million compared to cash provided by financing activities of $1.0 million for the nine months ended September 30, 2024.

**Management Commentary**

"Crexendo delivered another outstanding quarter, highlighted by 12% year over year revenue growth, strong profitability with $1.5 million in GAAP net income, and $3.0 million in non-GAAP net income". said Jeff Korn, Crexendo Chief Executive Officer and Chairman of the Board. "Our 28% growth in software solutions underscores the strength of our platform and the increasing value we provide to customers and partners. I am also very encouraged with the 8% increase in service revenue, which I have great confidence will continue to grow. With strong margins, robust cash generation, and continued innovation, we are executing exceptionally well on our profitable growth strategy."

Korn added "We're just getting started and our recent announcement of eclipsing 7 Million users on the Crexendo platform is a testament to our success. Our investments in AI-driven capabilities, Oracle Cloud Infrastructure, and next-generation collaboration and contact center solutions are creating powerful momentum across our ecosystem. We see a long runway for organic growth, enhanced by strategic M&A opportunities, and we are fully committed to delivering sustained value for our shareholders. We're delivering profitable growth today while building an even stronger, smarter, and more innovative Crexendo for tomorrow."

**Conference Call**

Crexendo management will hold a conference call today, November 4, 2025, at 4:30 PM Eastern time to discuss these results. Company CEO Jeff Korn, CFO Ron Vincent, and President and COO Doug Gaylor will host the call, followed by a question-and-answer period.

**Dial-in Numbers:**

Domestic Participants: 888-506-0062

International Participants: 973-528-0011

Participant Access Code: 410777

Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 410777 and the Crexendo earnings call. A replay of the call will be available until November 11, 2025, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 53112.

**About Crexendo**

Crexendo, Inc. is an award-winning software technology company that is a premier provider of cloud communication platform software and unified communications as a service (UCaaS) offerings, including voice, video, contact center, and managed IT services tailored to businesses of all sizes. Our cloud communications software solutions currently support over seven million end users globally, through an extensive network of over 235 cloud communication platform software subscribers and our direct retail offering.

**Safe Harbor Statement**

This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. Specific forward-looking statements in this press release include Crexendo (i) delivering another outstanding quarter, highlighted by 12% year over year revenue growth, strong profitability; (ii) 28% growth in software solutions underscoring the strength of the platform and the increasing value provided to customers and partners; (iii) being encouraged with the 8% increase in service revenue with great confidence will continue to grow; (iv) believing that with strong margins, robust cash generation, and continued innovation the Company is executing exceptionally well on the profitable growth strategy; (v) just getting started with the recent announcement of eclipsing 7 Million users on the Crexendo platform being a testament to success; (vi) investments in AI-driven capabilities, Oracle Cloud Infrastructure, and next-generation collaboration and contact center solutions are creating powerful momentum across its ecosystem; (vii) seeing a long runway for organic growth, enhanced by strategic M&A opportunities, and being fully committed to delivering sustained value for our shareholders and (viii) delivering profitable growth today while building an even stronger, smarter, and more innovative Crexendo for tomorrow.

For a more detailed discussion of risk factors that may affect Crexendo's operations and results, please refer to the company's Form 10-K for the year ended December 31, 2024, quarterly Form 10-Qs as filed with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the company undertakes no obligation to update such forward-looking statements, except as required by law.

**Company Contact**

Crexendo, Inc.

Doug Gaylor

President and Chief Operating Officer

602-732-7990

<u>dgaylor@crexendo.com</u>

**CREXENDO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Balance Sheets**

(Unaudited, in thousands, except par value and share data)

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $28573 | $18193 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade receivables, net of allowance of $144 and $146, respectively | 4748 | 4352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | 640 | 393 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equipment financing receivables, net of allowance of $37 and $69, respectively | 1335 | 1049 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract costs | 2173 | 1931 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 1472 | 876 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax receivable | 256 | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 118 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 39315 | 26882 |
| Contract assets, net of allowance of $154 and $127, respectively | 446 | 406 |
| Long-term equipment financing receivables, net of allowance of $82 and $157, respectively | 3150 | 2397 |
| Property and equipment, net | 238 | 394 |
| Operating lease right-of-use assets | 1114 | 1491 |
| Intangible assets, net | 18646 | 20528 |
| Goodwill | 9454 | 9454 |
| Contract costs, net of current portion | 3228 | 2879 |
| Other long-term assets | 366 | 507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | $75957 | $64938 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $737 | $1003 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 8057 | 6992 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 3 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable | 236 | 478 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 484 | 481 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax payable | 43 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 4039 | 3079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 13599 | 12094 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities, net of current portion | 359 | 293 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance leases, net of current portion |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable, net of current portion |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 655 | 1022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 14613 | 13525 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred stock, par value $0.001 per share - authorized 5,000,000 shares; none issued |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock, par value $0.001 per share - authorized 50,000,000 shares, 30,701,950 shares issued and outstanding as of September 30, 2025 and 27,621,557 shares issued and outstanding as of December 31, 2024 | 31 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 144063 | 138015 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (82937) | (86790) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 187 | 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 61344 | 51413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities and Stockholders' Equity | $75957 | $64938 |

---

**CREXENDO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Statements of Operations**

(Unaudited, in thousands, except per share and share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Service revenue | $8569 | $7953 | $25125 | $23865 |
| Software solutions revenue | 7521 | 5860 | 21364 | 16331 |
| Product revenue | 1407 | 1814 | 3617 | 4402 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 17497 | 15627 | 50106 | 44598 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of service revenue | 3653 | 3336 | 10696 | 9691 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of software solutions revenue | 1924 | 1686 | 5227 | 4523 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of product revenue | 888 | 1081 | 2174 | 2507 |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling and marketing | 4533 | 4221 | 13193 | 12206 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 3780 | 3695 | 10884 | 10423 |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development | 1414 | 1473 | 4374 | 4050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 16192 | 15492 | 46548 | 43400 |
| Income/(loss) from operations | 1305 | 135 | 3558 | 1198 |
| Other income/(expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income | 199 | 69 | 409 | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (3) | (7) | (18) | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income/(expense), net | (8) | (3) | 39 | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income/(expense), net | 188 | 59 | 430 | 72 |
| Income/(loss) before income tax | 1493 | 194 | 3988 | 1270 |
| Income tax (provision)/benefit | (43) | (46) | (135) | (100) |
| Net income/(loss) | $1450 | $148 | $3853 | $1170 |
| Earnings per common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.05 | $0.01 | $0.13 | $0.04 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.05 | $0.00 | $0.12 | $0.04 |
| Weighted-average common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | 30397144 | 26848644 | 29292516 | 26610130 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | 31818738 | 29857261 | 31418659 | 29827531 |

---

**CREXENDO, INC. AND SUBSIDIARIES**

**Condensed Consolidated Statements of Cash Flows**

(Unaudited, in thousands)

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net income/(loss) | $3853 | $1170 |
| Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 2466 | 2505 |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | (82) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 2254 | 2293 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-cash operating lease amortization | 13 | (12) |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade receivables | (394) | (247) |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract assets | (67) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp; Equipment financing receivables | (932) | (608) |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | (247) | (136) |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract costs | (591) | (867) |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | (596) | (819) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax receivable | (181) | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | (374) | (69) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | 799 | 695 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax payable | 3 | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 1026 | 335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by/(used for) operating activities | 6950 | 4107 |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (18) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by/(used for) investing activities | (18) | - |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repayments made on finance leases | (20) | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp; Repayments made on notes payable | (356) | (340) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from exercise of options | 4137 | 1573 |
| &nbsp;&nbsp;&nbsp;&nbsp; Taxes paid on the net settlement of stock options and RSUs | (340) | (166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by/(used for) financing activities | 3421 | 1011 |
| &nbsp;&nbsp;&nbsp;&nbsp; Effect of exchange rate changes on cash | 27 | (14) |
| NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 10380 | 5104 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 18193 | 10347 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $28573 | $15451 |
| Cash used during the year for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income taxes, net | $(315) | $(205) |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | $(16) | $(25) |
| Supplemental disclosure of non-cash investing and financing information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized software development costs | $411 | $- |

---

**Use of Non-GAAP Financial Measures**

To evaluate our business, we consider and use non-generally accepted accounting principles ("Non-GAAP") net income and Adjusted EBITDA as a supplemental measure of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to evaluate results without the effects of share-based compensation and related taxes, acquisition related expenses, changes in fair value of contingent consideration, amortization of intangibles, and goodwill and long-lived asset impairment. We define EBITDA as U.S. GAAP net income/(loss) before interest expense, interest income and other expense/(income), the gain/(loss) on the sale of property and equipment, goodwill and long-lived asset impairments, benefit/(provision) for income tax, and depreciation and amortization. We believe EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define Adjusted EBITDA as EBITDA adjusted for acquisition related expenses, changes in fair value of contingent consideration and share-based compensation and related taxes. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We also believe use of Adjusted EBITDA facilitates investors' use of operating performance comparisons from period to period, as well as across companies.

In our November 4, 2025 earnings press release, as furnished on Form 8-K, we included Non-GAAP net income, EBITDA and Adjusted EBITDA. The terms Non-GAAP net income, EBITDA, and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA, and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income/(loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

· EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

· they do not reflect changes in, or cash requirements for, our working capital needs;

· they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;

· they do not reflect income taxes or the cash requirements for any tax payments;

· although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;

· while share-based compensation and related taxes is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and

· other companies may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income, EBITDA, and Adjusted EBITDA only as supplemental support for management's analysis of business performance. Non-GAAP net income, EBITDA and Adjusted EBITDA are calculated as follows for the periods presented.

**Reconciliation of Non-GAAP Financial Measures**

In accordance with the requirements of Regulation G issued by the SEC, we are presenting the most directly comparable U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures.

**Reconciliation of U.S. GAAP Net Income/(Loss) to Non-GAAP Net Income**

(Unaudited, in thousands, except for per share and share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| U.S. GAAP net income/(loss) | $1450 | $148 | $3853 | $1170 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation and related taxes (1) | 799 | 797 | 2422 | 2323 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 785 | 755 | 2292 | 2273 |
| Non-GAAP net income | $3034 | $1700 | $8567 | $5766 |
| Non-GAAP earnings per common share: |  |  |  |  |
| Basic | $0.10 | $0.06 | $0.29 | $0.22 |
| Diluted | $0.10 | $0.06 | $0.27 | $0.19 |
| Weighted-average common shares outstanding: |  |  |  |  |
| Basic | 30397144 | 26848644 | 29292516 | 26610130 |
| Diluted | 31818738 | 29857261 | 31418659 | 29827531 |

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**Reconciliation of U.S. GAAP Net Income/(Loss) to EBITDA to Adjusted EBITDA**

(Unaudited, in thousands)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| U.S. GAAP net income/(loss) | $1450 | $148 | $3853 | $1170 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 839 | 829 | 2466 | 2505 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 3 | 7 | 18 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other, net | (191) | (66) | (448) | (103) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax provision | 43 | 46 | 135 | 100 |
| EBITDA | 2144 | 964 | 6024 | 3703 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation and related taxes (1) | 799 | 797 | 2422 | 2323 |
| Adjusted EBITDA | $2943 | $1761 | $8446 | $6026 |

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(1) For the three months ended September 30, 2025 and 2024, employer payroll tax expense related to share-based compensation was $33 and $16, respectively. For the nine months ended September 30, 2025 and 2024, employer payroll tax expense related to share-based compensation was $168 and $30, respectively.