8x8(EGHT) - 2026 Q1 - Quarterly Results

First Quarter Fiscal 2026 Earnings Release Financial Highlights 8x8 returned to growth in Q1 FY2026, with total revenue of $181.4 million and a narrowed GAAP net loss Q1 FY2026 Key Financial Metrics (GAAP & Non-GAAP) | Metric | Q1 FY2026 | Q1 FY2025 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $181.4M | $178.1M | +1.8% | | Service Revenue | $176.3M | $172.8M | +2.0% | | GAAP Operating Income (Loss) | $0.6M | ($1.4M) | Improved | | Non-GAAP Operating Profit | $16.3M | $20.1M | -18.9% | | GAAP Net Loss | ($4.3M) | ($10.3M) | Improved | | Non-GAAP Net Income | $10.7M | $10.4M | +2.9% | | Adjusted EBITDA | $20.7M | $25.8M | -19.8% | | Cash Flow from Operations | $11.9M | $18.1M | -34.3% | - The company demonstrated disciplined capital allocation by repurchasing one million shares for $1.8 million and prepaying $15.0 million of principal on its 2024 Term Loan during the quarter[6] Management Commentary CEO Samuel Wilson highlighted the platform strategy and AI-driven solutions for long-term shareholder value - The return to growth is seen as validation of the company's platform strategy, with expanded product adoption and accelerated consumption-based revenue[2] - Management is committed to building a durable business poised for growth, focusing on customer needs around AI implementation and expanding platform capabilities[3] - 8x8 views itself as uniquely positioned to lead in the intelligent, integrated, and voice-powered customer experience space[3] Business Highlights Platform Innovation and Integrations 8x8 introduced AI-driven innovations and platform enhancements to simplify operations and improve efficiency - Launched 8x8 Verif8, a frictionless, omnichannel One-Time Password (OTP) solution for secure authentication[7] - Expanded 8x8 Operator Connect for Microsoft Teams coverage to 50 countries, providing native PSTN calling[7][8] - Introduced several AI-powered enhancements, including 8x8 Smart Assist for real-time agent guidance, Intelligent Customer Assistant Knowledge AI for transforming static content into dynamic self-service, and smarter, multilingual chat summarization[10] - Enhanced digital engagement capabilities with native Viber Messaging in the contact center, 8x8 Social Connect for managing social media interactions, and expanded digital channel support for 8x8 Engage[10] Recognition and Awards 8x8 received multiple industry accolades for its UCaaS and CCaaS platforms, user experience, and workplace - 8x8 was recognized for its platform and products through several awards: - Strong Performer in The Forrester Wave™ for UCaaS Platforms, Q3 2025. - TrustRadius Top Rated Awards for UCaaS and CCaaS. - Silver in the New York Product Design Awards for 8x8 Supervisor Workspace. - Named Best CPaaS Platform by CX Today[16] - The company was the sole CCaaS provider recognized in Newsweek's 2025 Global Most Loved Workplaces, ranking at 69[16] Financial Outlook Second Quarter Fiscal Year 2026 Outlook For Q2 FY2026, 8x8 projects total revenue of $175M-$180M and a non-GAAP operating margin of 8.0%-9.0% Q2 FY2026 Non-GAAP Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $175M - $180M | | Service Revenue | $170M - $175M | | Non-GAAP Gross Margin | ~66.0% - 68.0% | | Non-GAAP Operating Margin | ~8.0% - 9.0% | | Non-GAAP Net Income per Share, diluted | $0.06 - $0.08 | | Cash Flow from Operations | $3M - $5M | Full Fiscal Year 2026 Outlook For FY2026, 8x8 anticipates total revenue of $706M-$720M and a non-GAAP operating margin of 8.5%-9.5% Full FY2026 Non-GAAP Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenue | $706M - $720M | | Service Revenue | $685M - $700M | | Non-GAAP Gross Margin | 66.0% - 68.0% | | Non-GAAP Operating Margin | 8.5% - 9.5% | | Non-GAAP Net Income per Share, diluted | $0.28 - $0.33 | | Cash Flow from Operations | $35M - $45M | Financial Statements and Reconciliations Condensed Consolidated Statements of Operations Q1 FY2026 total revenue was $181.4M, with GAAP operating income of $0.6M and a narrowed net loss of $4.3M Q1 FY2026 Statement of Operations Highlights (in thousands) | Line Item | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Total Revenue | $181,361 | $178,147 | | Gross Profit | $120,440 | $120,960 | | Income (Loss) from Operations | $565 | ($1,374) | | Net Loss | ($4,315) | ($10,290) | | Net Loss Per Share (Basic & Diluted) | ($0.03) | ($0.08) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $684.3M, with cash at $81.3M after debt and share repurchases Balance Sheet Highlights (in thousands) | Line Item | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $81,315 | $88,050 | | Total Current Assets | $207,980 | $203,866 | | Total Assets | $684,348 | $683,177 | | Total Current Liabilities | $176,439 | $169,244 | | Total Liabilities | $556,158 | $560,973 | | Total Stockholders' Equity | $128,190 | $122,204 | Condensed Consolidated Statements of Cash Flows Q1 FY2026 operating cash flow was $11.9M, with $17.3M used in financing for debt and share repurchases Q1 FY2026 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | 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 (decrease) increase in cash | ($7,092) | $14,502 | Reconciliation of GAAP to Non-GAAP Financial Measures Q1 FY2026 non-GAAP operating profit was $16.3M and non-GAAP net income was $10.7M, after key adjustments Q1 FY2026 GAAP to Non-GAAP Reconciliation Highlights (in thousands) | Line Item | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | GAAP income (loss) from operations | $565 | ($1,374) | | Amortization of acquired intangible assets | $3,501 | $5,099 | | Stock-based compensation & related taxes | $6,909 | $13,593 | | Severance, transition and contract exit costs | $4,523 | $2,121 | | Non-GAAP operating profit | $16,333 | $20,110 | | GAAP net loss | ($4,315) | ($10,290) | | Total adjustments | $15,050 | $20,683 | | Non-GAAP net income | $10,735 | $10,393 | - Management uses non-GAAP financial measures internally to evaluate the business, believing they are useful to investors for assessing ongoing operational performance by excluding items that are non-cash, not expected to recur, or not reflective of ongoing financial results[26]