Form 4: Crexendo COO's Stock Holdings Update

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

Summary

• Douglas Walter Gaylor, Chief Operating Officer of Crexendo, Inc. (CXDO), reported changes in his beneficial ownership.
• On February 25, 2026, 278 shares of common stock vested from Restricted Stock Units (RSUs) at a price of $0.
• Concurrently, 91 shares were withheld by the company for payroll taxes related to the RSU vesting, based on a closing stock price of $5.84 on February 25, 2026. This was not a sale by Mr. Gaylor.
• Another 278 shares of common stock vested from RSUs at a price of $0 on the same date.
• An additional 91 shares were withheld for payroll taxes related to this second RSU vesting, also at a price of $5.84. This was also not a sale by Mr. Gaylor.
• Following these transactions, Mr. Gaylor directly beneficially owns 263,346 shares of common stock.
• He also directly beneficially owns 6,668 Restricted Stock Units from one grant and 8,612 Restricted Stock Units from another grant.
• The first set of RSUs vests in equal monthly installments over 36 months starting March 25, 2025.
• The second set of RSUs vests in equal monthly installments over 36 months starting October 25, 2025.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a routine insider transaction related to executive compensation, which does not indicate a significant positive or negative shift in company fundamentals or outlook.

Positives

• Vesting of Restricted Stock Units (RSUs) indicates ongoing compensation and alignment of management interests with shareholders.
• The transactions are part of a routine compensation plan, reflecting continued employment of a key officer.

Future Outlook

The remaining Restricted Stock Units will continue to vest in equal monthly installments over 36 months, subject to continuous employment.

Management Comments

• Each RSU represents the right to receive, upon vesting, one share of CXDO common stock contingent on continued employment.
• The Company withheld 91 shares of common stock for payment of the associated payroll taxes, using the closing stock price on February 25, 2026 of $5.84. This transaction does not represent a sale by the reporting person.
• The RSUs vest in equal monthly installments over 36 months starting on March 25, 2025 until such time as the RSUs are 100% vested, subject to continuous employment. Shares will be delivered upon vesting.
• The RSUs vest in equal monthly installments over 36 months starting on October 25, 2025 until such time as the RSUs are 100% vested, subject to continuous employment. Shares will be delivered upon vesting.

Industry Context

StockSavvy.ai notes that RSU vesting and subsequent tax withholdings are standard compensation practices for executives in the technology and communications industry, aligning executive incentives with long-term company performance.

Comparison to Industry Standards

• StockSavvy.ai observes that the use of Restricted Stock Units (RSUs) as a component of executive compensation is a common practice across the technology and communications sectors, similar to companies like RingCentral (RNG) or 8x8 (EGHT) which frequently utilize equity awards to retain talent and incentivize performance.
• The vesting schedule over 36 months is also typical for such awards, promoting long-term commitment.

Stakeholder Impact

• Shareholders: Minor positive impact from continued alignment of executive compensation with company performance; no direct impact on company financials from these specific transactions.
• Employees: No direct impact on general employees, but reflects standard executive compensation practices.

Next Steps

• Remaining Restricted Stock Units will continue to vest in equal monthly installments over 36 months, subject to continuous employment.

Key Dates

Recommendation

This Form 4 filing details routine RSU vesting and tax-related share withholdings for a Chief Operating Officer. It does not provide new information regarding the company's operational performance, strategic direction, or financial health that would warrant a change in investment thesis. The transactions are expected and do not signal any significant insider sentiment beyond standard compensation. Therefore, a "hold" recommendation is appropriate as there's no new catalyst for a buy or sell decision based solely on this filing.

Keywords

Crexendo, CXDO, Form 4, insider transaction, beneficial ownership, Restricted Stock Units, RSU, stock vesting, Chief Operating Officer, Douglas Walter Gaylor