8x8, Inc. Announces Second Quarter Fiscal Year 2026 Financial Results

CAMPBELL, Calif.--( BUSINESS WIRE)-- 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the second quarter of fiscal year 2026 ended September 30, 2025.

“Our second quarter performance reflected progress against our strategic priorities,” said Samuel Wilson, Chief Executive Officer at 8x8, Inc. “Revenue growth was driven by record usage of our CX platform, continued expansion of our product portfolio, and growing adoption of new solutions like 8x8 Engage and AI-based solutions.

“We are embedding AI across our platform and our operations, not as a headline but as a real driver of efficiency, accuracy, and customer success. With innovation as our foundation and disciplined execution, we are building a stronger company positioned for sustainable, long-term growth.”

Second Quarter Fiscal Year 2026 Financial Results:

A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to non-GAAP measures is included in the supplemental reconciliation at the end of this release.

Recent Business Highlights:

Innovation on the 8x8 Platform for CX

8x8 continued to advance the 8x8 Platform for Customer Experience with new capabilities that strengthen collaboration, streamline omnichannel engagement, and simplify operations for global enterprises. Recent innovations include:

Together, these innovations reflect 8x8's focus on unifying customer and employee experiences through intelligent, secure, and connected communication, empowering organizations to engage more effectively, operate more efficiently, and deliver better outcomes across every interaction.

Recognition and Awards

These accolades reflect 8x8's continued commitment to innovation, operational excellence, and helping organizations around the world deliver exceptional customer and employee experiences.

Corporate and Leadership Updates

8x8 advanced the next phase of its go-to-market transformation while demonstrating confidence in its cash generation and disciplined approach to capital optimization.

Third Quarter and Updated Fiscal Year 2026 Financial Outlook:

Management provides expected ranges for total revenue, service revenue, non-GAAP operating margin, non-GAAP net income per share, diluted, and cash flow from operations based on its evaluation of the current business environment. The Company emphasizes that these expectations are subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below.

Third Quarter Fiscal Year 2026 Ending December 31, 2025

Fiscal Year 2026 Ending March 31, 2026

The Company does not reconcile its forward-looking estimates of non-GAAP operating margin to the corresponding GAAP measure of GAAP operating margin or non-GAAP net income per share, basic and diluted, to the corresponding GAAP measure of GAAP net income (loss) per share due to the significant variability of, and difficulty in making accurate forecasts and projections with regards to, the various expenses excluded by these metrics. For example, future hiring and employee turnover may not be reasonably predictable, stock-based compensation expense depends on variables that are largely not within the control of nor predictable by management, such as the market price of 8x8 common stock, and may also be significantly impacted by events like acquisitions, the timing and nature of which are difficult to predict with accuracy. The actual amounts of these excluded items could have a significant impact on the Company's GAAP operating margin and GAAP net income (loss) per share, basic and diluted. Accordingly, management believes that reconciliations of these forward-looking non-GAAP financial measures to their corresponding GAAP measures are not available without unreasonable effort. See the "Explanation of GAAP to Non-GAAP Reconciliation" below for the definition of non-GAAP operating margin and non-GAAP net income per share, basic and diluted.

All projections are on a non-GAAP basis. Additionally, our increased emphasis on profitability and cash flow generation may not be successful. The reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we don't anticipate and may not achieve the desired outcome.

Conference Call & Supporting Materials Information:

Management will host a conference call to discuss earnings results on November 4, 2025 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will last approximately 60 minutes. Participants may:

Participants should plan to dial in or log on 10 minutes prior to the start time. The webcast will be archived on 8x8's website for a period of at least 30 days. For additional information, visit https://www.investors.8x8.com/.

About 8x8 Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on the industry's most integrated platform for Customer Experience—combining Contact Center, Unified Communication, and CPaaS solutions. The 8x8® Platform for CX integrates AI at every level to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. We help customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to: changing industry trends; market opportunities; the potential success and impact of our investments in artificial intelligence technologies; our strategic transformation initiatives; our ability to drive increased platform and multi-product adoption; our ability to increase profitability and cash flow; our position in the market and pace of our innovation; the success of our go-to-market engine; and our financial outlook, revenue growth, and profitability.

You should not place undue reliance on such forward-looking statements. Actual results could differ materially from those projected in forward-looking statements depending on a variety of factors, including, but not limited to: customer adoption and demand for our products may be lower than we anticipate; the impact of economic downturns on us and our customers; ongoing volatility and conflict in the political environment; general inflationary pressures; competitive dynamics of the cloud communication and collaboration markets, including voice, contact center, video, messaging, and communication application programming interfaces, as well as our competitors' use of AI, in which we compete, may change in ways we are not anticipating; third parties may assert ownership rights in our IP, which may limit or prevent our continued use of the core technologies behind our solutions; our customer churn rate may be higher than we anticipate; and our investments in marketing, channel and value-added resellers, new products, and our acquisition of Fuze, Inc. may not result in meeting our revenue or operating margin targets we forecast in our guidance, for a particular quarter or for the full fiscal year. Our increased emphasis on profitability and cash flow generation may not be successful; and the reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we do not anticipate and may not achieve the desired outcome.

For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Explanation of GAAP to Non-GAAP Reconciliation

The Company has provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these Non-GAAP financial measures internally to understand, manage, and evaluate the business, and to make operating decisions. Management believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. Management also believes that some of 8x8’s investors use these Non-GAAP financial measures as an additional tool in evaluating 8x8's "core operating performance" in the ordinary, ongoing, and customary course of the Company's operations. Core operating performance excludes items that are non-cash, not expected to recur, or not reflective of ongoing financial results. Management also believes that looking at the Company’s core operating performance provides consistency in period-to-period comparisons and trends.

These Non-GAAP financial measures may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which limits the usefulness of these measures for comparative purposes. Management recognizes that these Non-GAAP financial measures have limitations as analytical tools, including the fact that management must exercise judgment in determining which types of items to exclude from the Non-GAAP financial information. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these Non-GAAP financial measures to their most directly comparable GAAP financial measures in the table titled "Reconciliation of GAAP to Non-GAAP Financial Measures." Detailed explanations of the adjustments from comparable GAAP to Non-GAAP financial measures are as follows:

Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of Other Revenue

Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service Revenue, which is Cost of Service Revenue excluding amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, and certain severance, transition and contract exit costs; and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other Revenue excluding stock-based compensation expense and related employer payroll taxes, and certain severance, transition and contract exit costs.

Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin

Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin as a percentage of Other Revenue are computed as Service Revenue less Non-GAAP Cost of Service Revenue divided by Service Revenue and Other Revenue less Non-GAAP Cost of Other Revenue divided by Other Revenue, respectively. Non-GAAP Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total Revenue. Management believes the Company’s investors benefit from understanding these adjustments and from an alternative view of the Company’s Cost of Service Revenue and Cost of Other Revenue, as well as the Company's Service, Other and Total Revenue Gross Margin performance compared to prior periods and trends.

Non-GAAP Operating Profit and Non-GAAP Operating Margin

Non-GAAP Operating Profit excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, acquisition and integration expenses, certain legal and regulatory costs, and certain severance, transition and contract exit costs from Operating Profit. Non-GAAP Operating Margin is Non-GAAP Operating Profit divided by Revenue. Management believes that these exclusions provide investors with a supplemental view of the Company’s ongoing operating performance.

Non-GAAP Net Income and Adjusted EBITDA

Non-GAAP Net Income excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, acquisition and integration expenses, certain legal and regulatory costs, certain severance, transition and contract exit costs, amortization of debt discount and issuance cost, loss on debt extinguishment, gain on remeasurement of warrants, and other income. Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation, amortization of capitalized internal-use software costs, and other income (expense), net from non-GAAP net income. Management believes the Company’s investors benefit from understanding these adjustments and an alternative view of our net income performance as compared to prior periods and trends.

Non-GAAP Net Income Per Share – Basic and Non-GAAP Net Income Per Share – Diluted

Non-GAAP Net Income Per Share – Basic is Non-GAAP Net Income divided by the weighted-average basic shares outstanding. Non-GAAP Net Income Per Share – Diluted is Non-GAAP Net Income divided by the weighted-average diluted shares outstanding. Diluted shares outstanding include the effect of potentially dilutive securities from stock-based benefit plans and convertible senior notes. These potentially dilutive securities are excluded from the computation of net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. They are added for the computation of diluted net income per share on a non-GAAP basis in periods when 8x8 has net profit on a non-GAAP basis as their inclusion provides a better indication of 8x8’s underlying business performance. Management believes the Company’s investors benefit by understanding our Non-GAAP net income performance as reflected in a per share calculation as ways of measuring performance by ownership in the Company. Management believes these adjustments offer investors a useful view of the Company’s diluted net income per share as compared to prior periods and trends.

Management evaluates and makes decisions about its business operations based on Non-GAAP financial information by excluding items management does not consider to be “core costs” or “core proceeds.” Management believes some of its investors also evaluate our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Management excludes the amortization of acquired intangible assets, which primarily represents a non-cash expense of technology and/or customer relationships already developed, to provide a supplemental way for investors to compare the Company’s operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. Stock-based compensation expense has been excluded because it is a non-cash expense and relies on valuations based on future conditions and events, such as the market price of 8x8 common stock, that are difficult to predict and/or largely not within the control of management. The related employer payroll taxes for stock-based compensation are excluded since they are incurred only due to the associated stock-based compensation expense. Acquisition and integration expenses consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal and other professional services, due diligence, integration, and other closing costs, which are costs that vary significantly in amount and timing. Legal and regulatory costs include litigation and other professional services, as well as certain tax and regulatory liabilities. Severance, transition and contract exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts. Debt amortization expenses relate to the non-cash accretion of the debt discount.

8X8, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands, except per share amounts)

Three Months Ended September 30,

Six Months Ended September 30,

2025

2024

2025

2024

Service revenue

179,094

175,075

355,402

347,876

Other revenue

5,001

5,923

10,054

11,269

Total revenue

184,095

180,998

365,456

359,145

Cost of service revenue

57,699

50,251

111,521

99,747

Cost of other revenue

7,056

7,572

14,155

15,263

Total cost of revenue

64,755

57,823

125,676

115,010

Gross profit

119,340

123,175

239,780

244,135

Operating expenses:

Research and development

27,918

31,291

56,282

63,428

Sales and marketing

63,835

64,867

132,019

131,973

General and administrative

22,238

19,848

45,565

42,939

Total operating expenses

113,991

116,006

233,866

238,340

Income from operations

5,349

7,169

5,914

5,795

Interest expense

(4,842

)

(7,905

)

(8,810

)

(17,861

)

Other income (expense), net

468

(12,709

)

832

(10,993

)

Income (loss) before provision for income taxes

975

(13,445

)

(2,064

)

(23,059

)

Provision for income taxes

208

1,098

1,484

1,774

Net income (loss)

767

(14,543

)

(3,548

)

(24,833

)

Net income (loss) per share:

Basic

0.01

(0.11

)

(0.03

)

(0.19

)

Diluted

0.01

(0.11

)

(0.03

)

(0.19

)

Weighted average number of shares:

Basic

136,970

129,250

135,895

127,633

Diluted

141,561

129,250

135,895

127,633

Comprehensive income (loss)

Net income (loss)

767

(14,543

)

(3,548

)

(24,833

)

Unrealized loss on investments in securities

—

)

Foreign currency translation adjustment

(1,826

)

8,363

4,432

8,009

Comprehensive income (loss)

(1,059

)

(6,180

)

884

(16,829

)

8X8, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except per share amounts)

September 30, 2025

March 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

75,872

88,050

Restricted cash

812

462

Accounts receivable, net

66,889

49,680

Deferred contract acquisition costs

27,733

30,935

Other current assets

34,316

34,739

Total current assets

205,622

203,866

Property and equipment, net

47,394

47,919

Operating lease, right-of-use assets

30,424

33,508

Intangible assets, net

60,973

67,949

Goodwill

273,803

271,530

Restricted cash, non-current

—

812

Deferred contract acquisition costs, non-current

39,252

44,239

Other assets, non-current

13,288

13,354

Total assets

670,756

683,177

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

43,307

45,773

Accrued and other liabilities

66,872

63,025

Operating lease liabilities

10,740

11,102

Deferred revenue

43,569

37,751

Term loan, current

19,173

11,593

Total current liabilities

183,661

169,244

Operating lease liabilities, non-current

44,420

49,196

Deferred revenue, non-current

477

706

Convertible senior notes, non-current

199,317

198,790

Term loan

107,299

139,581

Other liabilities, non-current

2,420

3,456

Total liabilities

537,594

560,973

Stockholders' equity:

Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of September 30, 2025 and March 31, 2025

—

Common stock: $0.001 par value, 300,000 shares authorized, 138,569 shares and 134,355 shares issued and outstanding as of September 30, 2025 and March 31, 2025, respectively

139

134

Additional paid-in capital

1,028,971

1,018,902

Accumulated other comprehensive loss

(4,679

)

(9,111

)

Accumulated deficit

(891,269

)

(887,721

)

Total stockholders' equity

133,162

122,204

Total liabilities and stockholders' equity

670,756

683,177

8X8, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

Six Months Ended September 30,

2025

2024

Cash flows from operating activities:

Net loss

(3,548

)

(24,833

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation

3,391

3,756

Amortization of intangible assets

7,003

10,198

Amortization of capitalized internal-use software costs

5,685

7,022

Amortization of debt discount and issuance costs

698

1,718

Amortization of deferred contract acquisition costs

17,402

19,697

Allowance for credit losses

375

1,269

Operating lease expense, net of accretion

5,529

6,038

Stock-based compensation expense

11,715

22,177

Loss on debt extinguishment

127

11,996

Gain on remeasurement of warrants

(246

)

(2,010

)

Other

(402

)

(3,626

)

Changes in assets and liabilities:

Accounts receivable, net

(16,392

)

(5,314

)

Deferred contract acquisition costs

(8,407

)

(12,447

)

Other current and non-current assets

(1,332

)

850

Accounts payable and accruals

(6,053

)

(8,886

)

Deferred revenue

5,163

2,860

Net cash provided by operating activities

20,708

30,465

Cash flows from investing activities:

Purchases of property and equipment

(1,519

)

(1,589

)

Capitalized internal-use software costs

(7,140

)

(5,892

)

Purchase of cost investment

—

(771

)

Maturities of investments

—

1,048

Net cash used in investing activities

(8,659

)

(7,204

)

Cash flows from financing activities:

Proceeds from issuance of common stock under employee stock plans

1,228

1,682

Payments for repurchases of common stock

(1,848

)

—

Payments for debt issuance and amendment costs

(70

)

(1,114

)

Repayment of principal on term loan

(25,000

)

(225,000

)

Gross proceeds from term loan

—

200,000

Other financing activities

(969

)

(704

)

Net cash used in financing activities

(26,659

)

(25,136

)

Effect of exchange rate changes on cash

1,970

3,019

Net increase (decrease) in cash and cash equivalents

(12,640

)

1,144

Cash, cash equivalents and restricted cash, beginning of year

89,324

116,723

Cash, cash equivalents and restricted cash, end of period

76,684

117,867

Supplemental disclosures of cash flow information:

Interest paid

9,038

16,324

Income taxes paid

1,373

2,386

Payables and accruals for property and equipment

108

3,207

8X8, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands, except per share amounts)

Three Months Ended September 30,

Six Months Ended September 30,

2025

2024

2025

2024

Cost of Revenue:

GAAP cost of service revenue (as a percentage of service revenue)

57,699

32.2

50,251

28.7

111,521

31.4

99,747

28.7

Amortization of acquired intangible assets

(514

)

(2,118

)

(1,021

)

(4,235

)

Stock-based compensation expense and related employer payroll taxes

(476

)

(1,230

)

(1,058

)

(2,838

)

Severance, transition and contract exit costs

(81

)

(55

)

(1,025

)

(577

)

Non-GAAP cost of service revenue (as a percentage of service revenue)

56,628

31.6

46,848

26.8

108,417

30.5

92,097

26.5

GAAP service revenue margin (as a percentage of service revenue)

121,395

67.8

124,824

71.3

243,881

68.6

248,129

71.3

Non-GAAP service revenue margin (as a percentage of service revenue)

122,466

68.4

128,227

73.2

246,985

69.5

255,779

73.5

GAAP cost of other revenue (as a percentage of other revenue)

7,056

141.1

7,572

127.8

14,155

140.8

15,263

135.4

Stock-based compensation expense and related employer payroll taxes

(89

)

(304

)

(236

)

(723

)

Severance, transition and contract exit costs

(443

)

(156

)

(796

)

(256

)

Non-GAAP cost of other revenue (as a percentage of other revenue)

6,524

130.5

7,112

120.1

13,123

130.5

14,284

126.8

GAAP other revenue margin (as a percentage of other revenue)

(2,055

)

(41.1

(1,649

)

(27.8

(4,101

)

(40.8

(3,994

)

(35.4

Non-GAAP other revenue margin (as a percentage of other revenue)

(1,523

)

(30.5

(1,189

)

(20.1

(3,069

)

(30.5

(3,015

)

(26.8

GAAP gross margin (as a percentage of total revenue)

119,340

64.8

123,175

68.1

239,780

65.6

244,135

68.0

Non-GAAP gross margin (as a percentage of total revenue)

120,943

65.7

127,038

70.2

243,916

66.7

252,764

70.4

Operating Profit:

GAAP income from operations (as a percentage of total revenue)

5,349

2.9

7,169

4.0

5,914

1.6

5,795

1.6

Amortization of acquired intangible assets

3,502

5,099

7,003

10,198

Stock-based compensation expense and related employer payroll taxes

5,762

9,845

12,671

23,438

Acquisition and integration costs

—

193

—

316

Legal and regulatory costs (1)

717

(3,166

)

1,552

(2,618

)

Severance, transition and contract exit costs

1,994

2,398

6,517

4,519

Non-GAAP operating profit (as a percentage of total revenue)

17,324

9.4

21,538

11.9

33,657

9.2

41,648

11.6

Three Months Ended September 30,

Six Months Ended September 30,

2025

2024

2025

2024

Net Income (Loss):

GAAP net income (loss) (as a percentage of total revenue)

767

0.4

(14,543

)

(8.0

(3,548

)

(1.0

(24,833

)

(6.9

Amortization of acquired intangible assets

3,502

5,099

7,003

10,198

Stock-based compensation expense and related employer payroll taxes

5,762

9,845

12,671

23,438

Acquisition and integration costs

—

193

—

316

Legal and regulatory costs

717

(3,166

)

1,552

(2,618

)

Severance, transition and contract exit costs

1,994

2,398

6,517

4,519

Amortization of debt discount and issuance costs

362

656

698

1,718

Loss on debt extinguishment

11,996

127

11,996

Gain on warrants remeasurement

(37

)

(263

)

(246

)

(2,010

)

Other (1)

—

(116

)

(926

)

(232

)

Income tax expense effects, net (2)

—

Non-GAAP net income (as a percentage of total revenue)

13,113

7.1

12,099

6.7

23,848

6.5

22,492

6.3

Interest expense (3)

4,480

7,249

9,038

16,143

Provision for income taxes

208

1,098

1,484

1,774

Depreciation

1,701

1,848

3,391

3,756

Amortization of capitalized internal-use software costs

3,012

3,264

5,685

7,022

Other income (expense), net

(477

)

1,092

(713

)

1,239

Adjusted EBITDA (as a percentage of total revenue)

22,037

12.0

26,650

14.7

42,733

11.7

52,426

14.6

Shares used in computing net income (loss) per share amounts:

Basic

136,970

129,250

135,895

127,633

Diluted

141,561

131,294

140,110

129,772

GAAP net income (loss) per share - Basic

0.01

(0.11

)

(0.03

)

(0.19

)

GAAP net income (loss) per share - Diluted

0.01

(0.11

)

(0.03

)

(0.19

)

Non-GAAP net income per share - Basic

0.10

0.09

0.18

Non-GAAP net income per share - Diluted

0.09

0.17

(1)

Amount includes capitalized interest related to property, plant and equipment from general borrowing costs during the six months ended September 30, 2025.

(2)

Non-GAAP adjustments do not have a material impact on our federal income tax provision due to past non-GAAP losses.

(3)

Amounts represent contractual interest expense related to our outstanding debt and does not include capitalized interest and amortization of debt discount and issuance costs.