MeritValue

Crexendo, Inc.

CXDOdata completeness 100%16 fiscal years on file
The thesis, from the filings

Crexendo, Inc. earns about -12% on invested capital, below its ~9% cost of capital, and has bought back 100% of its shares over 5 years — no moat visible in the numbers. The estimate methods put fair value between $4.5 and $4.79 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$28.1M1$37.6M2$53.2M3$60.8M4$68.2M4
Net income−$2.45M5−$35.4M6−$362,0007$1.68M8$5.07M8
Operating cash flow−$1.01M9−$411,00010$3.5M11$6.28M12$9.3M12
Capital expenditure$101,00013$289,00014$92,00015$27,00016$18,00016
Free cash flow (derived)−$1.11M9−$700,00010$3.41M11$6.26M12$9.28M12
Total debt$1.87M17$1.05M18—$592,00019$114,00020
Cash & equivalents$7.47M21$5.48M21$10.3M22$18.2M22$31.4M22
Diluted shares20.28B22.9M25.9M30.0M31.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$20.17
your share of equity
Profit it earned you last year
$1.6
Free cash flow it threw off
$2.93
Debt you’d be carrying
$0.04

10 shares is a claim on $20.17 of net worth that earned you $1.6 and generated $2.93 of cash last year, against $0.04 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-12% avg · 5y
FY21 -4%FY22 -77%FY23 -0%FY24 5%FY25 16%

It earned about -12% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
−100% shares · 5y

Share count is down 100% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 94% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $4.5 and $4.79 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$4.79
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$6.26M
DCF · Growth Exit 5Y
$4.5
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$6.26M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$2.69
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $4.5
The three cases
Bear0.0%$3.81
Base5.0%$4.5
Bull10.0%$5.32

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001654954-23-002860 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001654954-24-002655 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001654954-25-002287 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001654954-26-001848 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001654954-23-002860 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001654954-24-002655 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001654954-25-002287 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001654954-26-001848 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001654954-23-002860 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001654954-24-002655 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001654954-25-002287 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001654954-26-001848 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001654954-23-002860 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001654954-24-002655 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001654954-25-002287 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001654954-26-001848 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001654954-22-003516 (LongTermDebt)
  18. 10-K · period ending 2022-12-31 · accession 0001654954-24-002655 (LongTermDebt)
  19. 10-K · period ending 2024-12-31 · accession 0001654954-25-002287 (LongTermDebt)
  20. 10-K · period ending 2025-12-31 · accession 0001654954-26-001848 (LongTermDebt)
  21. 10-K · period ending 2021-12-31 · accession 0001654954-23-002860 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-12-31 · accession 0001654954-26-001848 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)