Crexendo (CXDO) opened 2026 with Q1 total revenue of US$20.7 million and basic EPS of US$0.018, alongside trailing twelve month EPS of US$0.147 on revenue of US$72.8 million, giving investors a fresh read on both quarterly momentum and the broader run rate. Over recent periods, the company has seen quarterly revenue move from US$16.1 million in Q1 2025 to US$20.7 million in Q1 2026, while basic EPS shifted from US$0.0418 to US$0.018 on a quarterly basis and from US$0.0888 to US$0.147 on a trailing twelve month view, highlighting how short term earnings and longer run profitability can point in different directions. With current net margins running above last year and earnings growth over the past 12 months backed by higher profitability, this set of results puts the focus squarely on how sustainable those margins prove to be.

See our full analysis for Crexendo.

With the latest numbers on the table, the next step is to see how this mix of revenue, EPS and margin trends lines up with the main bullish and bearish narratives investors have been following around Crexendo.

202.4% earnings growth meets softer quarterly profit

• Over the last 12 months, net income was US$4.5 million on US$72.8 million of revenue, while Q1 2026 net income was US$0.6 million on US$20.7 million of revenue, so the strong 202.4% year over year earnings growth sits alongside a softer recent quarter.
• Consensus narrative points to the Oracle Cloud migration and 31% year over year software growth as key margin drivers. However, Q1 2026 net income of US$0.6 million compares with US$1.2 million to US$1.5 million in each quarter of 2025, which raises a fair question about how smooth that profitability story is in the near term.
  • Trailing net margin of 7.4% versus 2.8% a year earlier supports the idea of a more profitable business model, while Q1 2026 EPS of US$0.018 sits below the US$0.04 to US$0.048 range seen across 2025.
  • Analysts looking for earnings to reach about US$9.3 million by 2029 will likely pay close attention to whether recent quarterly profit levels move closer to the trailing trend or stay nearer Q1.

Revenue steps up to US$20.7m with 19.9% growth forecast

• Quarterly revenue has moved from US$16.1 million in Q1 2025 to US$20.7 million in Q1 2026, and revenue over the last 12 months sits at US$72.8 million with forecasts pointing to about 19.9% annual growth.
• Bulls argue that rapid software gains and carrier partnerships can support that near 20% revenue growth rate, and the recent move from US$62.6 million to US$72.8 million in trailing revenue over five quarters fits that story. However, the Q1 2026 net income of US$0.6 million compared with US$1.2 million to US$1.5 million in recent quarters keeps the spotlight on how much of that growth falls to the bottom line.
  • Supporters of the bullish view also point to trailing EPS of US$0.147 versus US$0.063 five quarters ago, which lines up with the earnings growth figures, even though the latest single quarter EPS is below the trailing average.
  • With earnings forecast to grow around 22.2% per year, the mix of higher revenue and a recent dip in quarterly profit gives you a clear data set to judge how convincing that bullish path looks against the numbers today.

Bulls who see Q1 as a pause rather than a setback often point straight to the multi year growth forecasts and carrier deals, so if that angle interests you, it is worth seeing how those arguments stack up against the detailed assumptions in the dedicated bullish narrative for Crexendo 🐂 Crexendo Bull Case.

High 59.8x P/E against 7.4% margin

• The stock trades on a 59.8x P/E, compared with a 7.4% trailing net margin and earnings of US$4.5 million over the last 12 months, while the DCF fair value of US$12.26 sits above the current share price of US$9.74.
• Bears focus on that 59.8x P/E being well above the 21.1x US IT industry average and question whether margins and growth justify it, especially given Q1 2026 net income of US$0.6 million versus US$1.2 million to US$1.5 million in each of the prior three quarters and an analyst price target cap of US$10.08.
  • Critics highlight that even in the more cautious narrative, earnings are expected to grow from around US$3.1 million to US$9.7 million, yet the required 35.9x future P/E is still higher than the industry level, which keeps valuation sensitivity firmly tied to execution.
  • At the same time, a DCF fair value above the current price and trailing earnings growth above 200% give bears a clear set of figures to test whether the current multiple already prices in too much of that progress.

Skeptics who worry that a 59.8x P/E leaves little room for missteps often dig into the detailed cautious case, so if you want to see how those concerns line up with the margin and growth assumptions, have a look at the dedicated bearish narrative for Crexendo 🐻 Crexendo Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Crexendo on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seen enough to spot both the enthusiasm and the concern in these numbers? Move quickly to review the data yourself, weigh up the trade offs, and check the full breakdown of risks and potential upsides with 3 key rewards and 1 important warning sign

See What Else Is Out There

Crexendo is carrying a high 59.8x P/E alongside softer recent quarterly profit and an earnings outlook that still needs strong execution to match expectations.

If that mix of rich valuation and profit sensitivity feels uncomfortable, it is worth comparing it with companies screened as 73 resilient stocks with low risk scores that aim to keep earnings and risk more tightly aligned.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.