CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT) has been recognized in the 2025 Gartner Magic Quadrant for Unified Communications as a Service. ...

8×8, Inc. (NASDAQ:EGHT) is one of the best AI stocks to buy under $5. On September 11, the company announced a strategic partnership with ULAP Networks. The partnership paves the way for the company to expand its customer experience platform into regulated markets. 8x8, Inc. (EGHT) Expanding Customer Platform to Regulated Markets As part of the collaboration, 8X8 is to integrate its global platform with ULAP Network’s cloud infrastructure and connectivity services in 113 countries. The integration should ...

Core Viewpoint - 8x8, Inc. has appointed Mary Murray as Operations Director and Country Lead for Ireland, indicating a strategic move to strengthen its leadership in the region [1] Company Summary - The appointment of Mary Murray is aimed at enhancing operational efficiency and leadership within the Irish market [1]

Core Insights - 8x8, Inc. has launched the 8x8 CX Champions Fantasy Team, a global recognition program aimed at celebrating individuals who contribute to exceptional customer experience (CX) moments [1] Company Summary - The 8x8 CX Champions Fantasy Team is designed to honor individuals who have made significant impacts in customer experience [1]

Investors interested in stocks from the Internet - Software sector have probably already heard of 8x8 (EGHT) and Adyen N.V. Unsponsored ADR (ADYEY) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors s ...

Core Insights - The article compares two Internet - Software stocks, 8x8 (EGHT) and Adyen N.V. Unsponsored ADR (ADYEY), to determine which is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - 8x8 has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Adyen N.V. has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3] - The Zacks Rank system favors stocks with positive revisions to earnings estimates, which supports the improving outlook for 8x8 [3] Group 2: Valuation Metrics - 8x8 has a forward P/E ratio of 6.46, significantly lower than Adyen N.V.'s forward P/E of 42.83, indicating that 8x8 may be undervalued [5] - The PEG ratio for 8x8 is 0.74, while Adyen N.V. has a PEG ratio of 2.34, further suggesting that 8x8 offers better value based on expected earnings growth [5] - 8x8's P/B ratio is 2.12 compared to Adyen N.V.'s P/B of 11.56, reinforcing the notion that 8x8 is more attractively priced [6] Group 3: Overall Value Assessment - Based on various valuation metrics, 8x8 holds a Value grade of A, while Adyen N.V. has a Value grade of F, indicating a clear preference for 8x8 among value investors [6]

Core Viewpoint - The article emphasizes the importance of value investing as a successful strategy across various market conditions, highlighting the use of fundamental analysis to identify undervalued stocks [2]. Company Summary - 8x8 (EGHT) is identified as a notable stock with a Zacks Rank of 2 (Buy) and an "A" grade for Value, indicating it is among the best value stocks currently available [3]. - The company has a PEG ratio of 0.64, which is significantly lower than the industry average PEG of 1.69, suggesting that EGHT is undervalued compared to its peers [4]. - Over the past year, EGHT's PEG ratio has fluctuated between a high of 0.79 and a low of 0.33, with a median of 0.51, further supporting the notion of its current undervaluation [4]. - The combination of a strong earnings outlook and favorable valuation metrics positions EGHT as an impressive value stock at this time [5].

Core Viewpoint - The comparison between 8x8 (EGHT) and Adyen N.V. Unsponsored ADR (ADYEY) indicates that EGHT presents a better value investment opportunity based on various financial metrics [1][7]. Valuation Metrics - EGHT has a forward P/E ratio of 5.92, significantly lower than ADYEY's forward P/E of 42.46 [5]. - The PEG ratio for EGHT is 0.68, while ADYEY's PEG ratio stands at 2.12, suggesting that EGHT is more favorably valued in relation to its expected earnings growth [5]. - EGHT's P/B ratio is 1.94, compared to ADYEY's P/B of 11.75, further indicating that EGHT is undervalued relative to its book value [6]. Investment Grades - Both EGHT and ADYEY have a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions for both companies [3]. - EGHT holds a Value grade of A, while ADYEY has a Value grade of F, highlighting a significant disparity in their valuation attractiveness [6].

Group 1 - The analyst has maintained a Neutral stance on 8x8 (NASDAQ: EGHT) shares over the past year, noting high volatility but little change in share price since initial coverage [1] - The current market capitalization of 8x8 is $250 million, indicating that shares are considered cheap [1] - The analyst focuses on undercovered companies, with a watchlist of up to 100 companies, primarily in technology, software, electronics, and energy transition sectors [1] Group 2 - The analyst has over 7 years of personal investment experience and a Master's degree in Electrical Engineering, currently working as an automotive battery R&D engineer in Sweden [1] - The write-ups serve as a platform for laying out investment theses and receiving feedback from the investing community [1] - The analysis aims to identify asymmetric investment opportunities to achieve market-beating returns [1]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q2 2025 financial statements reflect increased revenue, a narrowed net loss, stable assets, and positive operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to **$684.3 million** as of June 30, 2025, while liabilities decreased and stockholders' equity improved Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $81,315 | $88,050 | | Accounts receivable, net | $60,514 | $49,680 | | Goodwill | $274,476 | $271,530 | | **Total assets** | **$684,348** | **$683,177** | | **Liabilities & Equity** | | | | Accounts payable | $42,890 | $45,773 | | Term loan (current & non-current) | $136,343 | $151,174 | | Convertible senior notes, non-current | $199,039 | $198,790 | | **Total liabilities** | **$556,158** | **$560,973** | | **Total stockholders' equity** | **$128,190** | **$122,204** | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Total revenue increased to **$181.4 million** for Q2 2025, with a turnaround to operating income and a narrowed net loss due to reduced expenses Condensed Consolidated Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $181,361 | $178,147 | | Gross profit | $120,440 | $120,960 | | Income (loss) from operations | $565 | $(1,374) | | Interest expense | $(3,968) | $(9,956) | | Net loss | $(4,315) | $(10,290) | | Net loss per share (Basic and diluted) | $(0.03) | $(0.08) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to **$128.2 million** by June 30, 2025, driven by currency adjustments and stock-based compensation, despite a net loss and share repurchases - During the quarter ended June 30, 2025, the company repurchased **1.0 million shares** of common stock for **$1.8 million**[20](index=20&type=chunk) - Stock-based compensation expense for the quarter was **$6.4 million**, compared to **$13.3 million** in the same period of the prior year[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$11.9 million** for Q2 2025, with significant cash usage in financing activities, leading to a **$7.1 million** net decrease in cash and equivalents Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,873 | $18,148 | | Net cash used in investing activities | $(4,416) | $(3,130) | | Net cash used in financing activities | $(17,337) | $(352) | | **Net increase (decrease) in cash** | **$(7,092)** | **$14,502** | - Financing activities included a **$15.0 million** principal repayment on the term loan and **$1.8 million** for common stock repurchases during the quarter[23](index=23&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, debt instruments, and share repurchases, highlighting geographic revenue shifts and **$755.0 million** in remaining performance obligations - The company is a SaaS provider of contact center, voice, video, chat, and API solutions, with a majority of revenue from communication services subscriptions and platform usage[25](index=25&type=chunk) Revenue by Geography (in thousands) | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | United States | $113,091 | $122,858 | | United Kingdom | $30,731 | $29,206 | | Other International | $37,539 | $26,083 | | **Total revenue** | **$181,361** | **$178,147** | - As of June 30, 2025, the company had remaining performance obligations of approximately **$755.0 million**, with **83%** expected to be recognized as revenue over the next 24 months[39](index=39&type=chunk) - On April 11, 2025, the company prepaid **$15.0 million** of quarterly principal payments due under the 2024 Term Loan, with a remaining principal of **$137.0 million** as of June 30, 2025[65](index=65&type=chunk) - Subsequent to the quarter end, on July 29, 2025, the company prepaid an additional **$10.0 million** of the 2024 Term Loan[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **2.0%** service revenue increase, improved operating income from expense reductions, and a strategic focus on AI and global CPaaS expansion, while maintaining sufficient liquidity [Overview](index=22&type=section&id=Overview) 8x8 provides an integrated AI-powered Platform for CX™ combining contact center, business communications, and APIs, targeting mid-market and enterprise clients - 8x8 provides an integrated Platform for CX™ that combines contact center, business communications, and APIs into a single AI-powered system[97](index=97&type=chunk) - The company's strategic focus is on mid-market, small and mid-sized enterprise, and public sector organizations, typically with **500 to 10,000 employees**[98](index=98&type=chunk) - Go-to-market strategy includes direct sales complemented by a partner ecosystem of technology solutions distributors (TSDs), value-added resellers (VARs), and strategic technology partners[99](index=99&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Total revenue increased **1.8%** to **$181.4 million** for Q2 2025, driven by service revenue growth, while operating expenses decreased and interest expense significantly declined Revenue Comparison (in thousands) | Revenue Type | Q1 FY26 (ended June 30, 2025) | Q1 FY25 (ended June 30, 2024) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Service revenue | $176,308 | $172,801 | $3,507 | 2.0% | | Other revenue | $5,053 | $5,346 | $(293) | (5.5)% | - The increase in service revenue was driven by an **$8.2 million** rise in platform usage revenue, offset by a **$4.7 million** decrease in subscription revenue, mainly from former Fuze customers[121](index=121&type=chunk) Operating Expense Comparison (in thousands) | Expense Category | Q1 FY26 (ended June 30, 2025) | Q1 FY25 (ended June 30, 2024) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $28,364 | $32,137 | $(3,773) | (11.7)% | | Sales and marketing | $68,184 | $67,106 | $1,078 | 1.6% | | General and administrative | $23,327 | $23,091 | $236 | 1.0% | - Interest expense decreased by **$6.0 million (60.1%)** YoY, primarily due to a lower interest rate and principal balance on the new 2024 Term Loan[135](index=135&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with **$82.2 million** in cash as of June 30, 2025, managing debt through prepayments and share repurchases Cash Position (in thousands) | Category | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $81,315 | $88,050 | | Restricted cash (current & non-current) | $917 | $1,274 | | **Total** | **$82,232** | **$89,324** | - Net cash from operating activities decreased to **$11.9 million** from **$18.1 million** in the prior year's quarter, due to changes in working capital and timing of payments[146](index=146&type=chunk) - During the quarter, the company made a **$15.0 million** principal repayment on its 2024 Term Loan and repurchased **$1.8 million** of its common stock[146](index=146&type=chunk)[151](index=151&type=chunk) - The company increased its non-cancellable three-year hosting service contract commitment from **$24.1 million** to **$54.0 million**[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk exposures, including interest rate and foreign currency risks, since March 31, 2025 - There were no material changes in the company's market risk exposures since March 31, 2025[159](index=159&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[160](index=160&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that have materially affected or are likely to materially affect it[161](index=161&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from Note 7, with the company believing adequate provisions are recorded for existing claims - Details on legal proceedings are located in Note 7 of the financial statements[164](index=164&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) Investors should review risk factors detailed in the Annual Report on Form 10-K, as no material changes have occurred since March 31, 2025 - Investors are advised to review the risk factors detailed in the company's Annual Report on Form 10-K[165](index=165&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred; the company repurchased **1.0 million shares** for **$1.8 million** under its 2017 plan, with **$5.2 million** remaining available Issuer Purchases of Equity Securities (for the three months ended June 30, 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Approximate Dollar Value Remaining Under Program (thousands) | | :--- | :--- | :--- | :--- | | April 2025 | — | — | $7,065 | | May 2025 | — | — | $7,065 | | June 2025 | 1,000 | $1.83 | $5,237 | | **Total** | **1,000** | | | - As of June 30, 2025, approximately **$5.2 million** remained available for share repurchases under the 2017 Plan[166](index=166&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) The report discloses officer trading plan activities, including a CFO plan termination, a CLO plan adoption, and sell-to-cover arrangements for equity award tax obligations - CFO Kevin Kraus terminated a Rule 10b5-1 Trading Plan on May 27, 2025[171](index=171&type=chunk) - Chief Legal Officer Laurence Denny adopted a Rule 10b5-1 Trading Plan on June 12, 2025, for the potential sale of up to **20,000 shares**[172](index=172&type=chunk) - Company officers have entered into sell-to-cover arrangements to satisfy tax withholding obligations related to the vesting of RSUs and PSUs[173](index=173&type=chunk)