CXDO heads into its May 5 earnings call with short interest at a six-week high and the stock down on the week, creating a tighter-than-usual backdrop for the print.
Short sellers have been steadily rebuilding positions since late March. SI % of FF climbed from 2.4% in mid-March to 3.7% by April 28 — the highest reading in the 30-day window. That 52% month-on-month increase in shares short is notable for a micro-cap UCaaS name where short floats rarely move this fast. The FINRA fortnightly figure confirms the trend, with 610,493 shares short as of April 15 and days to cover running at 4.4 days.
The lending market, however, tells a more relaxed story. Cost to borrow has been falling sharply — down 38% over the past month to just 0.51% annualised — the cheapest it has been since mid-March. Borrowing conditions are loose, meaning the rebuild in short positions has met no friction from the lending pool. Options positioning has actually eased this week too. The put/call ratio dropped to 1.33 on April 29, well below where it had been trading for the prior two weeks — as high as 1.70 on April 20, which was the 52-week peak. That pullback in the PCR suggests some near-term hedging demand has been unwound heading into the event.
The Street remains uniformly bullish, though the most recent price-target actions are now nearly two months old. Lake Street lifted its target to $9.00 in early March, following similar upward moves from Needham ($9.00) and B. Riley ($8.00) in the prior quarter. Every coverage analyst carries a Buy rating, and the consensus mean target of $9.33 implies roughly 42% upside to the current price of $6.56. The bull case centres on the 13.6% year-on-year growth in total backlog to $87.9 million, 28% UCaaS bookings growth from master agents, and a 28% jump in software solutions revenue. Bears point to a 22% drop in devices revenue, margin pressure from the strategic pivot away from lower-margin work, and macro sensitivity given the company's SMB customer base.
Insider activity this week was minimal and ceremonial. The CEO, CFO, and President/COO each received small equity awards on April 24, alongside token open-market sales of fewer than 80 shares each at $6.82. Net insider activity over the past 90 days amounts to just $7,200 in net value — essentially noise. The ownership structure remains heavily concentrated: founder Steven Mihaylo holds 36% of shares, with BlackRock and Vanguard adding modestly to their positions as of late March.
The historical reaction pattern around earnings is thin but directionally mild. The last two prints both produced small positive next-day moves of around 0.9%, though the five-day picture was mixed — one trailing off 7% and one gaining 6.5%. The May 5 print arrives with the stock down 2% on the week and peers broadly under pressure: HCKT fell 5.6% on the week and GGRP dropped 12.9%, suggesting sector headwinds rather than CXDO-specific weakness.
The key watch for next week is whether the backlog and UCaaS bookings figures sustain their recent momentum — and whether devices revenue shows any sign of stabilising — given that the short rebuild has outpaced any corresponding move in borrow costs.
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