Home / Business and Economy / Crexendo Q2 Revenue Soars 49% Amidst Strong Telecom Growth
Crexendo Q2 Revenue Soars 49% Amidst Strong Telecom Growth
5 Aug
Summary
- Second-quarter revenue reached $24.6 million, a 49% year-over-year increase.
- Acquisition of Estech Systems LLC significantly contributed to revenue growth.
- Gross margin improved by 500 basis points sequentially to 66%.
Crexendo reported a substantial 49% surge in second-quarter 2026 revenue, reaching $24.6 million compared to the prior year. This impressive financial performance was driven by strong growth in telecom services and the successful integration of Estech Systems LLC (ESI), acquired previously. The company's operational efficiency also saw a significant boost, with consolidated gross margin climbing 500 basis points to 66% from the first quarter.
Further details revealed that service revenue grew by 78%, contributing $14.9 million with a 67% gross margin. Software solutions revenue saw a modest 5% increase to $7.3 million, maintaining a strong 70% gross margin. Product revenue more than doubled, adding $2.5 million at a 44% gross margin. These figures reflect Crexendo's growing scale and operating leverage, with Chairman and CEO Jeff Korn highlighting profitability even while accounting for acquisition-related costs.
