Crexendo, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Crexendo, Inc. (NASDAQ:CXDO) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.8% to hit US$17m. Crexendo also reported a statutory profit of US$0.05, which was an impressive 133% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Crexendo's seven analysts are now forecasting revenues of US$75.7m in 2026. This would be a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.7% to US$0.15. Before this earnings report, the analysts had been forecasting revenues of US$75.3m and earnings per share (EPS) of US$0.14 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.

View our latest analysis for Crexendo

The consensus price target rose 7.5% to US$9.21, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Crexendo, with the most bullish analyst valuing it at US$11.00 and the most bearish at US$8.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Crexendo shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Crexendo's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 27% p.a. growth over the last five years. Compare this to the 120 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while Crexendo's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Crexendo following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Crexendo going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Crexendo Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.