Crexendo Inc. (NASDAQ: CXDO) announced a 29% year-over-year increase in consolidated total revenue to $20.7 million for the first quarter of 2026, according to financial results released on May 6.

The Arizona-based software technology company also reported its tenth consecutive quarter of GAAP profitability.

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Total revenue rose from $16.1 million in the same period last year.

Crexendo achieved a GAAP net income of $0.6 million and a non-GAAP net income of $3.3 million for the quarter.

Strong Analyst Confidence and Stock Performance

Market analysts have responded positively to the company's financial performance.

According to ratings compiled by CNN, all six analysts covering Crexendo have issued a Buy rating for the stock.

The stock has surged 65.94% over the past year and recorded a 49.17% jump year-to-date.

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Following the financial report, Lake Street analyst Eric Martinuzzi raised the price target on Crexendo to $11 from $9 on May 7 while maintaining a Buy rating.

The stock currently holds a median price target of $11, representing an 11.22% upside from its current trading price of $9.89.

Impact of ESI Acquisition

The integration of recent business acquisitions influenced the quarterly operational results.

Crexendo CEO and Chairman Jeff Korn emphasized that the company extended its GAAP profitability milestone despite absorbing acquisition-related expenses from Estech Systems (ESI).

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"The ESI acquisition is performing ahead of our expectations and is already contributing meaningfully to both revenue and operational momentum," Korn said.

"Integration is progressing well, with strong alignment across sales, operations, and engineering, and we are beginning to see early synergies that we expect to build on over time."

Korn noted that Q1 results included only one month of ESI contributions.

"I am excited about the impact we will see going forward from this significant acquisition," he added.

Crexendo operates as a software technology provider specializing in cloud communication platforms, video collaboration, and managed IT services for various business sizes.

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The long-term financial impacts of the ESI integration will be monitored in the upcoming fiscal quarters.