Key Highlights

  • Annualized Exit Monthly Recurring Subscriptions reached 85,176 at September 30, 2026 against 56,100 a year earlier, a gain of about 51.8% on simple arithmetic.
  • Monthly recurring subscriptions were 7,099 at September 30, 2026, though the extract does not state the unit of measure.
  • The company says its cloud communications software supports over eight million end users through more than 250 platform subscribers plus a direct retail offering.
  • Cloud telecommunications contracts typically run 36 to 60 months, and software licenses are priced on concurrent sessions rather than per seat.

Recurring Subscription Base Climbs by About 52%

Crexendo (NASDAQ:CXDO) filed its Quarterly Report on November 3, 2026 for the period ended September 30. The company provides cloud communication platform software and unified communications as a service, covering voice, video, contact center and managed IT services for businesses of all sizes. Its key metric, annualized exit monthly recurring subscriptions, was 85,176 against 56,100 a year earlier, or about 51.8% higher (own arithmetic). The supplied extract contained only the Business overview and key metrics, so revenue, earnings, cash and guidance for the quarter are not covered in this article.

How the Metric Works and Why It Is a Snapshot

The metric equals the monthly value of all customer recurring charges at the end of a month, multiplied by 12, and management calls it a leading indicator of future subscription revenue. At September 30, 2026 monthly recurring subscriptions were 7,099. Multiplying by 12 gives 85,188, slightly above the reported 85,176, which probably reflects rounding but is a small inconsistency. Because it measures contracted recurring charges at one date, it excludes one-time equipment sales and says nothing about margins or customer churn. Cloud telecommunications contracts typically last 36 to 60 months, so the base can build steadily once customers are signed. Recurring Revenue also comes from broadband internet, managed IT services, software licenses and infrastructure as a service, while equipment sales, financing and device-as-a-service arrangements add product revenue. Activation fees are split between devices and the service, and the service portion is recognized over the contract term.

Two Segments, Missing Retention Data and Thin-Trading Risk

Crexendo reports cloud telecommunications services and software solutions. The software segment licenses platforms such as SNAPsolution to service providers by concurrent sessions, which lets them oversubscribe networks and lower cost per seat as Volume rises. The company says its platform was recently recognized as the fastest growing unified communications as a service platform in the United States, a claim the extract does not support with data. It defines a net monthly subscription dollar retention rate, but no value appeared in the extract. The prior-year monthly figure is also not shown, so only the annualized comparison can be made, and management gave no outlook in the extract. Shares of a company this size can be thinly traded: a small number of trades can move the price, spreads can be wide and quoted moves can reverse.

Where Things Stand

On the company's own metric, the recurring base grew by about 52% because monthly recurring charges rose from about 56,100 to 85,176 on an annualized basis, but the extract does not show whether that came from new customers, price increases, acquisitions or platform subscribers. Crexendo (NASDAQ:CXDO) therefore has an encouraging leading indicator without confirmed revenue, profit or retention figures. Watch the full financial statements, the retention rate, and whether the subscription growth converts into revenue and Cash Flow in coming quarters.