8x8 (EGHT) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this telecommunications services company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between ...

Core Viewpoint - Investors are evaluating the value propositions of 8x8 (EGHT) and Zoom Communications (ZM) to determine which stock offers better value at present [1] Valuation Metrics - Both EGHT and ZM currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - Value investors focus on various valuation metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Specific Valuation Comparisons - EGHT has a forward P/E ratio of 6.00, significantly lower than ZM's forward P/E of 14.01, suggesting EGHT may be undervalued [5] - The PEG ratio for EGHT is 0.85, while ZM's PEG ratio is 6.97, indicating EGHT's expected earnings growth is more favorable relative to its price [5] - EGHT's P/B ratio stands at 1.97 compared to ZM's P/B of 2.76, further supporting the notion that EGHT is the more attractive value option [6] - Based on these valuation metrics, EGHT is rated with a Value grade of A, while ZM has a Value grade of C, reinforcing EGHT's position as the superior value choice [6]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to _________ Commission file number: 001-38312 _________________ 8x8, INC. (Exact name of Registrant as Specified in its Charter) __________ ...

Core Insights - 8x8's shares surged by as much as 27.7% following the release of Q2 2026 results, which exceeded Wall Street's expectations and included optimistic guidance for the upcoming quarters [1][7] Financial Performance - Q2 2026 sales for 8x8 increased by 1.7% year-over-year, reaching $184.1 million, marking the second consecutive quarter of revenue growth after a prolonged decline [2] - Adjusted earnings remained stable at $0.09 per diluted share, surpassing the consensus estimate of $0.07 per share, with revenues expected around $178 million [2] Company Outlook - Despite the positive revenue trends, 8x8 is still in a turnaround phase, having faced challenges in growing top-line sales, with the stock down approximately 20% in 2025 and 49% over the past three years [4] - The company is actively reducing long-term debt and integrating artificial intelligence features into its services, although the fastest-growing products have lower gross margins [5] Market Position - While 8x8's stock has recently gained, it remains significantly down over the past year, indicating ongoing challenges in the digital communications market [7]

Core Insights - 8x8 reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, with a year-over-year comparison showing no change in earnings [1] - The company achieved revenues of $184.1 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.82% and showing an increase from $181 million year-over-year [2] - The stock has underperformed, losing approximately 30.3% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Outlook - The future performance of 8x8's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [4][5] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $177.24 million, and for the current fiscal year, it is $0.30 on revenues of $713.67 million [7] Industry Context - The Internet - Software industry, to which 8x8 belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Ziff Davis, another company in the same industry, is expected to report quarterly earnings of $1.76 per share, reflecting a year-over-year increase of 7.3% [9]

Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $184.1 million, exceeding guidance by approximately $4 million, with a year-over-year growth of 1.7% [13] - Service revenue reached $179.1 million, growing 2.3% year-over-year, driven by strong usage-based offerings [13] - Gross profit was $120.9 million, with a gross margin of 65.7%, reflecting a sequential decline due to a shift towards lower-margin usage revenue [14] - Operating income was $17.3 million, resulting in a 9.4% operating margin, above expectations [14] - Cash flow from operations was $8.8 million, exceeding guidance, with a cash balance of $76.7 million at quarter-end [14][15] Business Line Data and Key Metrics Changes - Usage revenue, including CPaaS communication APIs, accounted for approximately 19% of service revenue, up from 13% in Q2 2025 [13] - Service revenue from Fused customers declined to about 3% of total service revenue, down from 7% in Q2 2025, as the company transitions these customers to the 8x8 Platform [13] Market Data and Key Metrics Changes - The U.S. business is experiencing slower growth compared to international markets, with the U.K. and international segments growing substantially faster [63] - The company is seeing increased demand for its AI-powered solutions, which are becoming integral to customer engagement strategies [55] Company Strategy and Development Direction - The company is focusing on innovation, particularly through the integration of AI across its platform to enhance customer experiences and operational efficiency [5][11] - A new product, 8x8 Workforce Management, will be offered free to all Contact Center customers, marking a shift towards product-led growth [6][7] - The company is committed to disciplined capital management, including debt reduction, with a significant reduction of $224 million in debt principal since August 2022 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained shareholder value, despite potential variability in usage-based revenue growth [16][19] - The transition to a usage-based revenue model is expected to lead to increased revenue growth, albeit with decreasing gross margins in the short term [61] - Management is aware of pricing pressures in the market but believes that the introduction of new AI products will help offset these challenges [42] Other Important Information - The company is actively exploring M&A opportunities to drive geographic and product portfolio expansion, while maintaining a focus on cash flow and debt management [49][50] - The company is implementing a new conference call format, providing detailed quarterly letters and financial highlights to enhance communication with investors [4][12] Q&A Session Summary Question: What is driving the service margin changes? - Management indicated that the changes are primarily driven by volume rather than price, with stable margins on application services [22] Question: How will the revenue trajectory look as Fused customers transition? - Management noted that while there will be a temporary headwind as Fused customers are upgraded, they expect to return to normalized growth rates thereafter [23][24] Question: How is pipeline quality being measured? - Pipeline quality is measured by the number of deals reaching stage three in their sales process, indicating a higher likelihood of closing [25][26] Question: What actions are being taken regarding cost management? - The company is deploying AI technologies internally to improve efficiency and reduce costs, while also managing supplier pricing [60][62] Question: How does the company view M&A versus organic growth? - Management stated that while they are looking at tuck-in acquisitions, debt reduction remains a priority, and they are focused on cash flow-driven growth [49][50]

8x8 Second Quarter Fiscal 2026 Ended September 30, 2025 November 4, 2025 Copyright 2025 8x8, Inc. or its affiliates. All rights reserved. Forward-Looking Statements This presentation includes 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, as amended. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "s ...

Exhibit 99.1 8x8, Inc. Announces Second Quarter Fiscal Year 2026 Financial Results Year-over-year service and total revenue growth 19th consecutive quarter of positive cash flow from operations Strong usage trends drive record platform engagement 8x8 Workforce Management integrated with Contact Center as Innovation Accelerates CAMPBELL, CA, November 4, 2025 – 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the second quarter of fisca ...

Nov 4, 2025 4:10 PM Eastern Standard Time 8x8 Adds Native Support for Mitel Phones, Enhancing Platform Access and Enterprise Voice Flexibility Share Native SIP support enables access to the 8x8 platform for Mitel phone users, preserving hardware investments, and improving voice resiliency - without disruptions CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, now offers native support and direct sales for most widely deployed Mitel SIP d ...

Core Insights - UK consumers prefer human support over AI, with 83% favoring real person interactions compared to only 4% for virtual agents or chatbots [2][15][3] - Financial incentives can shift consumer preferences, as over 30% would consider using AI if it resulted in lower prices [4][9] Consumer Preferences - A significant majority (75%) of respondents across the UK prefer human interaction for urgent issues, with no region reporting below 76% support [3] - For non-urgent matters, support for AI increases slightly, indicating a nuanced view on the use of technology [3] Regional Variations - Londoners show the highest price sensitivity, with 45% more likely to accept AI if it reduces costs, followed by Newcastle (39%) and Wales (36%) [5] - In contrast, only 20% of Scots indicated that discounts would influence their preference for AI [5] Demographic Insights - Younger demographics (25-34 years) are more open to hearing a relative's voice in customer interactions, with 48% in favor, while only 12% of those aged 55 and older support this idea [6][8] - Among 16-24 year olds, 7% prefer AI assistance, and 17% have no preference, suggesting a generational divide in attitudes towards AI [8] AI Integration in Customer Experience - The 8x8 platform integrates AI to enhance customer experience, supporting human agents with real-time assistance and workflow automation [10] - The approach emphasizes empowering agents rather than replacing them, aligning with customer expectations for a balanced service model [9]