C

Crexendo, Inc. — Earnings Quality Grade C

CXDO · Communication Services

Some red flags

Revenue
$68M
2025
Net Income
$5M
2025
Gross Margin
62.9%
Free Cash Flow
$9M
01

Screening Summary

14
Passed
2
Watch
1
Failed
-2.66
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 26 days, change +0 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 12.0%, CFFO 47.9%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 15.5% vs COGS 9.4%. Normal

B2CapEx vs Revenue

CapEx growth -33.3% vs revenue 12.0%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 75.7%, exceeds 70%

B4Gross Margin

Gross margin 62.9%, change +0.9pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.83. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 1.83

C3Accruals Ratio

Accruals ratio = -5.4%. Low accruals

C4Cash vs Debt

Cash $0.0B covers debt $0.0B

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 43% of equity

D2Leverage

Debt/EBITDA = 0.1x. Healthy

D3Soft Asset Growth

Other assets -34.9% vs revenue 12.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -9% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.66 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.66
-4.0 Clean-2.22 Grey-1.78 Danger0
1.008
DSRI
AR growing faster than revenue?
0.986
GMI
Gross margin declining?
0.799
AQI
Asset quality deteriorating?
1.12
SGI
Revenue growth rate
0.871
DEPI
Depreciation slowing?
0.955
SGAI
SG&A ratio changing?
-0.0544
TATA
Accruals level
0.844
LVGI
Leverage increasing?
05

Altman Z-Score

4.37
Safe Zone
0 Distress1.102.605.0+ Safe
0.3806
Liquidity
-1.0519
Cumulative profit
0.0694
Operating efficiency
4.603
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25