Form 4: Crexendo COO Reports RSU Vesting and Tax Withholding

Crexendo's Chief Operating Officer, Douglas Walter Gaylor, reported the vesting of Restricted Stock Units and subsequent tax-related share withholding on October 25, 2025.

Summary

• Douglas Walter Gaylor, Chief Operating Officer of Crexendo, Inc. (CXDO), reported transactions on October 25, 2025.
• A total of 278 shares of common stock were acquired through the vesting of Restricted Stock Units (RSUs) at a price of $0 per share.
• An additional 277 shares of common stock were acquired through the vesting of a separate batch of RSUs, also at a price of $0 per share.
• The company withheld 76 shares of common stock for payment of associated payroll taxes for the first RSU vesting, based on a closing stock price of $6.40 on October 25, 2025.
• Another 76 shares of common stock were withheld for payment of associated payroll taxes for the second RSU vesting, also at a closing stock price of $6.40 on October 25, 2025.
• Following these transactions, Douglas Walter Gaylor directly beneficially owns 242,934 shares of common stock from the first transaction set and 243,135 shares from the second transaction set.
• Remaining derivative securities include 7,779 Restricted Stock Units and 9,723 Restricted Stock Units, each representing the right to receive one share of common stock upon vesting.

Sentiment

Score: 6

Explanation: The sentiment is mildly positive as it reflects the routine vesting of executive equity, indicating continued alignment of management with shareholder interests. The tax withholding is a standard, non-discretionary event.

Positives

• The vesting of Restricted Stock Units indicates continued equity accumulation for the Chief Operating Officer, aligning management interests with shareholders.
• The transactions reflect the ongoing compensation structure designed to retain and incentivize key executives.

Negatives

• A total of 152 shares were withheld by the company for tax purposes, reducing the immediate increase in the COO's direct beneficial ownership, though this is a standard practice and not a sale by the reporting person.

Future Outlook

The remaining Restricted Stock Units will continue to vest in equal monthly installments over 36 months, contingent on continued employment, with shares delivered upon vesting.

Management Comments

• Each RSU represents the right to receive, upon vesting, one share of CXDO common stock contingent on continued employment.
• The company withheld shares of common stock for payment of associated payroll taxes, which does not represent a sale by the reporting person.
• One batch of RSUs vests in equal monthly installments over 36 months starting on March 25, 2025, subject to continuous employment.
• Another batch of RSUs vests in equal monthly installments over 36 months starting on October 25, 2025, subject to continuous employment.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction, common across all publicly traded companies, reflecting the standard practice of executive equity compensation and its associated tax implications.

Stakeholder Impact

• Shareholders: The report confirms the Chief Operating Officer's continued equity stake in the company, reinforcing management's alignment with shareholder value creation.
• Employees: The RSU vesting demonstrates the company's commitment to its executive compensation plans, which can positively influence employee morale and retention.

Next Steps

• Continued vesting of remaining Restricted Stock Units according to their respective 36-month schedules, contingent on continuous employment.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to the vesting of Restricted Stock Units and subsequent tax withholding. It does not contain new material information that would fundamentally alter the investment thesis for Crexendo, Inc. As such, a 'hold' recommendation is appropriate, as the filing confirms ongoing executive equity participation but provides no catalyst for a change in investment stance.

Keywords

Crexendo, CXDO, Form 4, Insider Transaction, Restricted Stock Units, RSU, Equity Compensation, Chief Operating Officer, Stock Vesting