# EDGAR Filing Document

**Accession Number:** 0001075736
**File Stem:** 0001654954-26-001832
**Filing Date:** 2026-3
**Character Count:** 31252
**Document Hash:** 5ebf78fef82c0c681118b128df3e5f9c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-26-001832.hdr.sgml**: 20260303

**ACCESSION NUMBER**: 0001654954-26-001832

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20260303

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

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260303

**DATE AS OF CHANGE**: 20260303

**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:** 26713763

**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): **March 3, 2026**

**___________________________**

---

| |
|:---|
| **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 March 3, 2026, 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 March 3, 2026 by Registrant, reporting its results of operations for quarter and full year ended December 31, 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: March 3, 2026 | **Crexendo, Inc.** | **Crexendo, Inc.** |
|  | By: | /s/ Ronald Vincent |
|  |  | Ronald Vincent<br>Chief Financial Officer |

---

## Exhibit 99.1

**EXHIBIT 99.1**

**Crexendo Announces Strong Fourth Quarter and Fiscal Year 2025 Results**

PHOENIX, AZ / ACCESSWIRE / March 3, 2026 / Crexendo, Inc. (NASDAQ: CXDO), 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, today announced financial results for the fourth quarter and fiscal year ended December 31, 2025.

**Financial highlights:**

· Net income for the year of $5.1 million and non-GAAP net income of $11.4 million.

· Revenue for the year of $68.2 million, up 12% year-over-year.

· Fourth quarter net income of $1.2 million and non-GAAP net income of $2.8 million.

· Fourth quarter revenue of $18.1 million, up 11% year-over-year.

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

**Total Revenue:** Consolidated total revenue for the fourth quarter of 2025 increased 11%, or $1.8 million, to $18.1 million compared to $16.2 million for the fourth quarter of 2024.

**Service Revenue:** Consolidated service revenue for the fourth quarter of 2025 increased 8%, or $0.6 million, to $8.6 million compared to $8.0 million for the fourth quarter of 2024.

**Software Solutions Revenue:** Consolidated software solutions revenue for the fourth quarter of 2025 increased 18%, or $1.3 million, to $8.3 million compared to $7.0 million for the fourth quarter of 2024.

**Product Revenue:** Consolidated product revenue for the fourth quarter of 2025 decreased 6%, or $(0.1) million, to $1.1 million compared to $1.2 million for the fourth quarter of 2024.

**Operating Expenses:** Consolidated operating expenses for the fourth quarter of 2025 increased 8%, or $1.3 million, to $16.9 million compared to $15.6 million for the fourth quarter of 2024.

**Net Income/(Loss):** The Company reported net income of $1.2 million for the fourth quarter of 2025, or $0.04 per basic and diluted common share, compared to net income of $0.5 million, or $0.02 per basic and diluted common share for the fourth quarter of 2024.

**Non-GAAP:** Non-GAAP net income of $2.8 million for the fourth quarter of 2025, or $0.09 per basic and diluted common share, compared to non-GAAP net income of $2.0 million or $0.07 per basic common share and $0.06 per diluted common share for the fourth quarter of 2024.

**EBITDA and Adjusted EBITDA:** EBITDA for the fourth quarter of 2025 of $2.0 million compared to $1.5 million for the fourth quarter of 2024. Adjusted EBITDA for the fourth quarter of 2025 of $2.8 million compared to $2.2 million for the fourth quarter of 2024.

**Financial Results for the Full Year 2025**

**Total Revenue:** Consolidated total revenue for the year ended December 31, 2025 increased 12%, or $7.3 million, to $68.2 million compared to $60.8 million for the year ended December 31, 2024.

**Service Revenue:** Consolidated service revenue for the year ended December 31, 2025 increased 6%, or $1.9 million, to $33.8 million compared to $31.8 million for the year ended December 31, 2024.

**Software Solutions Revenue:** Consolidated software solutions revenue for the year ended December 31, 2025 increased 27%, or $6.3 million, to $29.7 million compared to $23.4 million for the year ended December 31, 2024.

**Product Revenue:** Consolidated product revenue for the year ended December 31, 2025 decreased 16%, or $(0.9) million, to $4.7 million compared to $5.6 million for the year ended December 31, 2024.

**Operating Expenses:** Consolidated operating expenses for the year ended December 31, 2025 increased 8%, or $4.5 million, to $63.5 million compared to $59.0 million for the year ended December 31, 2024.

**Net Income/(Loss):** The Company reported net income of $5.1 million for the year ended December 31, 2025, or $0.17 per basic common share and $0.16 per diluted common share, compared to net income of $1.7 million, or $0.06 per basic and diluted common share for the year ended December 31, 2024.

**Non-GAAP:** Non-GAAP net income of $11.4 million for the year ended December 31, 2025, or $0.38 per basic common share and $0.36 per diluted common share, compared to non-GAAP net income of $7.7 million or $0.29 per basic common share and $0.26 per diluted common share for the year ended December 31, 2024.

**EBITDA and Adjusted EBITDA:** EBITDA for the year ended December 31, 2025 of $8.0 million compared to $5.2 million for the year ended December 31, 2024. Adjusted EBITDA for the year ended December 31, 2025 of $11.2 million compared to $8.2 million for the year ended December 31, 2024.

**Cash and Cash Equivalents:** Total cash and cash equivalents at December 31, 2025 was $31.4 million compared to $18.2 million at December 31, 2024.

**Cash Flow:** Cash provided by operating activities for the year ended December 31, 2025 was $9.3 million compared to cash provided by operating activities of $6.3 million for the year ended December 31, 2024. Cash used in investing activities was $(18) compared to cash used in investing activities of $(27) for the year ended December 31, 2024. Cash provided by financing activities for the year ended December 31, 2025 was $3.9 million compared to cash provided by financing activities of $1.6 million for the year ended December 31, 2024.

**Management Commentary**

"I am extremely pleased with our 2025 performance and proud of the team that delivered on our commitments of profitable double digit organic growth," said Jeff Korn, Chairman and CEO. "We generated full-year net income of $5.1 million and non-GAAP net income of $11.4 million on revenue of $68.2 million, up 12% year-over-year. Fourth quarter revenue increased 11% to $18.1 million, with net income of $1.2 million and non-GAAP net income of $2.8 million, reflecting disciplined execution and sustained profitability. This was our tenth consecutive GAAP profitable quarter and our 29<sup>th</sup> consecutive Non-GAAP profitable quarter. This month marks my third year as CEO. When the team and I assumed leadership in 2023, revenue was approximately $53 million, and the company was burning about $100,000 per month. Today, we are consistently cash flow positive, have grown annual revenue by more than $15 million, and expanded both profitability and EBITDA. Our platform has scaled meaningfully. We have grown from just over 4 million users 3 years ago to more than 7 million users today, representing approximately 75% growth in under three years. This scale underscores our product leadership, operational discipline, and partner-first strategy. Further we committed to a disciplined strategy of driving profitable organic growth while pursuing accretive acquisitions, and having successfully delivered on the organic component, our exciting announcement on the acquisition of ESI this week demonstrates how we will now accelerate that growth through strategic M&A."

Korn added "Customer service remains a core differentiator. We continue to lead the industry in G2 customer satisfaction rankings based on verified reviews. At the same time, we are aggressively advancing our AI strategy. Early feedback on CAIRO, our AI operator, has been highly encouraging, and we believe it has the potential to transform the SMB market by enabling small businesses to operate with enterprise-grade capabilities. Our innovation was recognized for the second consecutive year with the Generative AI Product of the Year award, along with 42 additional G2 Winter 2026 awards across Platform AI and Contact Center categories. We also launched our Marketplace, which we believe will accelerate partner deployment of certified solutions, shorten time to value, expand ecosystem monetization, and create incremental revenue share opportunities. I highlight these results not as a reflection of past success, but as evidence of consistent execution. We have strengthened profitability, accelerated growth, expanded our platform, and invested in innovation. Based on this track record, I am confident we will continue to deliver and believe our most significant opportunities remain ahead of us."

**Conference Call**

Crexendo management will hold a conference call today, March 3, 2026, 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: 146313

Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 146313 and the Crexendo earnings call. A replay of the call will be available until March 17, 2026, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 53594.

**About Crexendo**

Crexendo, Inc. is 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. Our solutions currently support over seven million end users globally, through our extensive global network of over 240 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) results reflecting disciplined execution and sustained profitability; (ii) being consistently cash flow positive and expanded both profitability and EBITDA with the platform having scaled meaningfully; (iii) platform scale underscoring product leadership, operational discipline, and partner-first strategy; (iv) being committed to a disciplined strategy of driving profitable organic growth while pursuing accretive acquisitions and having successfully delivered on the organic component with the acquisition of ESI accelerating that growth through strategic M&A; (v) customer service remains a core differentiator; (vi) aggressively advancing AI strategy with early feedback on CAIRO, being highly encouraging, and believing it has the potential to transform the SMB market by enabling small businesses to operate with enterprise-grade capabilities; (vii) innovation being recognized; (viii) believing the Marketplace will accelerate partner deployment of certified solutions, shorten time to value, expand ecosystem monetization, and create incremental revenue share opportunities and (ix) being confident it will continue to deliver and believe the most significant opportunities remain ahead.

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, 2025, 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**

**Consolidated Balance Sheets**

(In thousands, except par value and share data)

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $31378 | $18193 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade receivables, net of allowance of $124 and $146, respectively | 4913 | 4352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | 454 | 393 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equipment financing receivables, net of allowance of $50 and $69, respectively | 1416 | 1049 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract costs | 2318 | 1931 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 892 | 876 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax receivable | 234 | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 292 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 41897 | 26882 |
| Contract assets, net of allowance of $145 and $127, respectively | 402 | 406 |
| Long-term equipment financing receivables, net of allowance of $107 and $157, respectively | 3223 | 2397 |
| Property and equipment, net | 195 | 394 |
| Operating lease right-of-use assets | 1006 | 1491 |
| Intangible assets, net | 17860 | 20528 |
| Goodwill | 9454 | 9454 |
| Contract costs, net of current portion | 3319 | 2879 |
| Other long-term assets | 330 | 507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | $77686 | $64938 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $649 | $1003 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 8391 | 6992 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 2 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Notes payable | 114 | 478 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 493 | 481 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax payable | 151 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 2528 | 3079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 12328 | 12094 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities, net of current portion | 1008 | 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 | 529 | 1022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 13865 | 13525 |
| Commitments and contingencies (Note 17) |  |  |
| 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, 31,004,327 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares issued and outstanding as of December 31, 2025 and 27,621,557 shares issued and outstanding as of December 31, 2024 | 31 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 145325 | 138015 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (81719) | (86790) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 184 | 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 63821 | 51413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities and Stockholders' Equity | $77686 | $64938 |

---

**CREXENDO, INC. AND SUBSIDIARIES**

**Consolidated Statements of Operations**

(In thousands, except per share and share data)

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Service revenue | $33782 | $31849 |
| Software solutions revenue | 29664 | 23374 |
| Product revenue | 4721 | 5615 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 68167 | 60838 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of service revenue | 14153 | 13087 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of software solutions revenue | 8275 | 6793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of product revenue | 2835 | 3215 |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling and marketing | 17771 | 16538 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 14723 | 13829 |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development | 5720 | 5552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 63477 | 59014 |
| Income/(loss) from operations | 4690 | 1824 |
| Other income/(expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income | 637 | 191 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (19) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income/(expense) | 63 | (84) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income/(expense), net | 681 | 65 |
| Income/(loss) before income tax | 5371 | 1889 |
| Income tax benefit/(provision) | (300) | (212) |
| Net income/(loss) | $5071 | $1677 |
| Earnings per common share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.17 | $0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.16 | $0.06 |
| Weighted-average common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic | 29681847 | 26757242 |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted | 31641294 | 30019359 |

---

**CREXENDO, INC. AND SUBSIDIARIES**

**Consolidated Statements of Cash Flows**

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net income/(loss) | $5071 | $1677 |
| Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 3295 | 3331 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 2932 | 3002 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-cash operating lease amortization | 4 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | (73) | 127 |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade receivables | (539) | (906) |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract assets | (14) | (106) |
| &nbsp;&nbsp;&nbsp;&nbsp; Equipment financing receivables | (1124) | (877) |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | (61) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract costs | (827) | (1192) |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | (16) | (368) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax receivable | (159) | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | (512) | (346) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | 1045 | 1275 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax payable | 111 | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 164 | 784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by/(used in) operating activities | 9297 | 6284 |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (18) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by/(used in) investing activities | (18) | (27) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repayments made on finance leases | (21) | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp; Repayments made on notes payable | (478) | (457) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from exercise of options | 4870 | 2370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Taxes paid on the net settlement of stock options and RSUs | (489) | (243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by/(used for) financing activities | 3882 | 1595 |
| Effect of exchange rate changes on cash | 24 | (6) |
| NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 13185 | 7846 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 18193 | 10347 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | $31378 | $18193 |
| Supplemental disclosure of cash flow information: |  |  |
| Cash used during the year for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income taxes, net | $(314) | $(300) |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | $(17) | $(32) |
| Supplemental disclosure of non-cash investing and financing information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized software development costs | $410 | $- |

---

**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 March 3, 2026 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 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 to Non-GAAP Net Income**

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

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | (In thousands) | (In thousands) | (In thousands) | (In thousands) |
| U.S. GAAP net income/(loss) | $1218 | $507 | $5071 | $1677 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation and related taxes (1) | 747 | 709 | 3169 | 3002 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition related expenses | 51 |  | 51 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 786 | 755 | 3078 | 3028 |
| Non-GAAP net income | $2802 | $1971 | $11369 | $7707 |
| Non-GAAP earnings per common share: |  |  |  |  |
| Basic | $0.09 | $0.07 | $0.38 | $0.29 |
| Diluted | $0.09 | $0.06 | $0.36 | $0.26 |
| Weighted-average common shares outstanding: |  |  |  |  |
| Basic | 30837145 | 27195382 | 29681847 | 26757242 |
| Diluted | 32151192 | 30547245 | 31641294 | 30019359 |

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**Reconciliation of U.S. GAAP Net Income to EBITDA to Adjusted EBITDA**

(Unaudited, in thousands)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | (In thousands) | (In thousands) | (In thousands) | (In thousands) |
| U.S. GAAP net income/(loss) | $1218 | $507 | $5071 | $1677 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 829 | 826 | 3295 | 3331 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 1 | 11 | 19 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other, net | (252) | (4) | (700) | (107) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax provision | 165 | 112 | 300 | 212 |
| EBITDA | 1961 | 1452 | 7985 | 5155 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition related expenses | 51 |  | 51 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation and related taxes (1) | 747 | 709 | 3169 | 3032 |
| Adjusted EBITDA | $2759 | $2161 | $11205 | $8187 |

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———————

(1) For the three months ended December 31, 2025 and 2024, employer payroll tax expense related to share-based compensation was $69 and $28, respectively. For the twelve months ended December 31, 2025 and 2024, employer payroll tax expense related to share-based compensation was $237 and $59, respectively.