Exoglucanases function by hydrolyzing β-1,4-glycosidic bonds in cellulose. They work in tandem with other cellulases, such as endoglucanases and β-glucosidases, to break down cellulose into glucose. The synergistic action of these enzymes ensures efficient cellulose degradation, making exoglucanases indispensable in the bioconversion of lignocellulosic biomass.