8x8(US:EGHT)2025-11-04 21:11Financial Performance - Total revenue for Q2 FY 2026 was $184.1 million, a year-over-year increase from $181.0 million in Q2 FY 2025[5] - Service revenue for Q2 FY 2026 reached $179.1 million, compared to $175.1 million in the same quarter last year[5] - GAAP net income for Q2 FY 2026 was $0.8 million, a significant improvement from a net loss of $14.5 million in Q2 FY 2025[5] - Non-GAAP net income for Q2 FY 2026 was $13.1 million, up from $12.1 million in Q2 FY 2025[5] - Total revenue for Q2 2025 was $184.1 million, a 1.2% increase from $181.0 million in Q2 2024[36] - Service revenue reached $179.1 million, up from $175.1 million year-over-year, indicating a growth of 1.2%[36] - Net income for Q2 2025 was $767,000, a significant improvement from a net loss of $14.5 million in Q2 2024[36] - Basic and diluted net income per share for Q2 2025 was $0.01, compared to a loss of $0.11 per share in Q2 2024[36] - GAAP net income for Q3 2025 was $767, representing 0.4% of total revenue, a significant improvement from a loss of $14,543 in Q3 2024, which was -8.0% of total revenue[43] - Non-GAAP net income for Q3 2025 reached $13,113, or 7.1% of total revenue, compared to $12,099, or 6.7% in Q3 2024[43] Cash Flow and Expenses - Cash flow from operations for Q2 FY 2026 was $8.8 million, down from $12.3 million in Q2 FY 2025[5] - Total operating expenses decreased slightly to $114.0 million from $116.0 million year-over-year[36] - Cash and cash equivalents as of September 30, 2025, were $75.9 million, down from $88.1 million at the end of March 2025[38] - Total assets decreased to $670.8 million from $683.2 million since March 31, 2025[38] - Stockholders' equity increased to $133.2 million from $122.2 million since March 31, 2025[38] - Net cash provided by operating activities for the six months ended September 30, 2025, was $20,708, compared to $30,465 for the same period in 2024, representing a decrease of 32.2%[40] - Cash, cash equivalents, and restricted cash at the end of the period were $76,684, down from $117,867 at the end of the previous year[40] Profitability Metrics - Non-GAAP operating margin for FY 2026 is projected to be between 8.5% and 9.5%[19] - GAAP service revenue margin for the six months ended September 30, 2025, was 68.6%, down from 71.3% in 2024[42] - Non-GAAP gross margin as a percentage of total revenue for the six months ended September 30, 2025, was 66.7%, compared to 70.4% in 2024[42] - Non-GAAP operating profit for the six months ended September 30, 2025, was $33,657, down from $41,648 in 2024, reflecting a decrease of 19.2%[42] - Adjusted EBITDA for Q3 2025 was $22,037, accounting for 12.0% of total revenue, down from $26,650, or 14.7% in Q3 2024[43] Debt and Capital Management - The company has reduced total debt by $224 million, or 41%, since August 2022, reflecting a commitment to disciplined capital management[12] - The company incurred $25,000 in principal repayment on term loans during the six months ended September 30, 2025[40] - The company reported a loss on debt extinguishment of $46 in Q3 2025, compared to a significant loss of $11,996 in Q3 2024[43] Recognition and Innovation - 8x8 was recognized as a leader in the IDC MarketScape for European Contact Center-as-a-Service Applications Software 2025[12] - The company introduced AI-powered features to enhance agent productivity and improve service quality in the contact center[12] Stock-Based Compensation - Stock-based compensation expense for the six months ended September 30, 2025, was $12,671, compared to $23,438 in 2024, indicating a reduction of 46%[42] - Stock-based compensation expense for Q3 2025 was $5,762, down from $9,845 in Q3 2024[43]