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8x8, Inc. Reports Record Revenue in First Quarter of Fiscal Year 2027

August 4, 2026 4:05 PM

CAMPBELL, Calif.--(BUSINESS WIRE)-- 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the first quarter of fiscal year 2027 ended June 30, 2026.

"We delivered a strong start to fiscal 2027, exceeding our guidance for revenue, non-GAAP operating margin and operating cash flow, while continuing to build momentum across the business," said Samuel Wilson, Chief Executive Officer at 8x8, Inc. "Organizations are looking for practical ways to use AI to improve customer experiences and employee productivity without adding complexity. Our strategy has been to build a unified platform that brings together communications, customer engagement and AI, making it easier for customers to achieve those outcomes. We are encouraged by the progress we are seeing across the business and remain focused on disciplined execution to drive long-term growth and shareholder value."

First Quarter of Fiscal 2027 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:

Platform Innovation Highlights

8x8 continued to focus on delivering enterprise-grade intelligence and automation to the entire organization, with new capabilities added to the 8x8 Platform for CX, including:

Industry Recognition

Leadership Updates

Second Quarter and Fiscal 2027 Financial Outlook

Management provides expected ranges for selected financial and operating metrics 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 "Caution Concerning Forward-Looking Statements" below.

"We continue to execute against a financial model designed to support long-term value creation," said Kevin Kraus, Chief Financial Officer at 8x8, Inc. "As customers increasingly adopt our usage-based communications and AI solutions, revenue mix will continue to evolve. While those offerings carry a different gross margin profile than SaaS software subscriptions, they also expand our market opportunity and contribute meaningful operating profit and cash flow as they scale. Our focus remains on growing operating income dollars, generating cash and allocating capital with discipline."

Second Quarter of Fiscal 2027 Ending September 30, 2026

Fiscal Year 2027 Ending March 31, 2027

The Company does not reconcile its forward-looking estimates of non-GAAP gross margin to the corresponding GAAP measure of GAAP gross margin, 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 shares, 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 gross margin, 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.

Conference Call Information:

Management will host a conference call to discuss earnings results on August 4, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call is expected to 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 one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps 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.

Copyright 2026 8x8, Inc. 8x8, Engage and associated brand assets are trademarks of 8x8, Inc. All rights reserved. GARTNER and PEER INSIGHTS are registered trademarks and service marks of Gartner, Inc. and/or its affiliates. All rights reserved.

Caution Concerning 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, 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," "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, statements regarding: changing industry trends; market opportunities; the potential success and impact of our investments in artificial intelligence (“AI”) technologies; our ability to drive increased platform and multi-product adoption; our ability to increase profitability and cash flow; our position in the market and the direction of our innovation; the expected capabilities, availability and customer reception of our products and services; 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 in which we compete, as well as our competitors’ use of AI, 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 new products and acquisitions may not generate the revenue or efficiencies that we expect. As a result, we could fail to meet the revenue or operating margin targets we forecast in our guidance, for a particular quarter or for the full fiscal year.

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 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 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 intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, 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, transaction-related costs, 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, transaction-related costs, 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, other income and income tax expense effects. Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation, amortization of capitalized internal-use software costs, and other expense (income), 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. Stock-based benefit plans 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 the Company’s 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 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. Transaction-related costs 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, transaction 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. A loss on debt extinguishment relates to the prepayment of the Company's debt and is primarily due to the write-off of unamortized debt discount and issuance costs. Gains and losses on the remeasurement of warrants are due to changes in the fair value of the Company's detachable warrant liability.

8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited, in thousands, except per share amounts)

Three Months Ended June 30,

2026

2025

Service revenue

$

185,346

$

176,308

Other revenue

4,824

5,053

Total revenue

190,170

181,361

Cost of service revenue

67,635

53,822

Cost of other revenue

6,164

7,099

Total cost of revenue

73,799

60,921

Gross profit

116,371

120,440

Operating expenses:

Research and development

28,406

28,364

Sales and marketing

58,750

68,184

General and administrative

24,836

23,327

Total operating expenses

111,992

119,875

Income from operations

4,379

565

Interest expense

(4,179

)

(3,968

)

Other income (expense), net

(408

)

364

Loss before provision for income taxes

(208

)

(3,039

)

Provision for income taxes

992

1,276

Net loss

$

(1,200

)

$

(4,315

)

Net loss per share:

Basic and diluted

$

(0.01

)

$

(0.03

)

Weighted average number of shares:

Basic and diluted

141,973

134,809

Comprehensive income (loss)

Net loss

$

(1,200

)

$

(4,315

)

Foreign currency translation adjustment

99

6,258

Comprehensive income (loss)

$

(1,101

)

$

1,943

8X8, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share amounts)

June 30, 2026

March 31, 2026

ASSETS

Current assets:

Cash and cash equivalents

$

90,595

$

93,260

Restricted cash

1,707

1,702

Accounts receivable, net

70,428

57,004

Deferred contract acquisition costs

23,174

25,193

Other current assets

37,809

32,650

Total current assets

223,713

209,809

Property and equipment, net

44,552

45,821

Operating lease, right-of-use assets

28,184

26,672

Intangible assets, net

53,776

57,589

Goodwill

276,408

276,372

Deferred contract acquisition costs, non-current

34,235

34,562

Other assets, non-current

11,938

11,996

Total assets

$

672,806

$

662,821

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

38,121

$

36,714

Accrued and other liabilities

92,065

69,867

Operating lease liabilities

10,693

10,357

Deferred revenue

35,334

36,699

Term loan, current

37,277

39,218

Total current liabilities

213,490

192,855

Operating lease liabilities, non-current

39,473

39,100

Deferred revenue, non-current

247

181

Convertible senior notes, non-current

200,091

199,830

Term loan, non-current

69,985

82,431

Other liabilities, non-current

1,703

1,815

Total liabilities

524,989

516,212

Stockholders' equity:

Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of June 30, 2026 and March 31, 2026, respectively

—

—

Common stock: $0.001 par value, 300,000 shares authorized, 143,970 shares and 141,164 shares issued and outstanding at June 30, 2026 and March 31, 2026, respectively

144

141

Additional paid-in capital

1,041,051

1,038,745

Accumulated other comprehensive loss

(6,105

)

(6,204

)

Accumulated deficit

(887,273

)

(886,073

)

Total stockholders' equity

147,817

146,609

Total liabilities and stockholders' equity

$

672,806

$

662,821

8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

Three Months Ended June 30,

2026

2025

Cash flows from operating activities:

Net loss

$

(1,200

)

$

(4,315

)

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

Depreciation

1,410

1,690

Amortization of intangible assets

3,835

3,501

Amortization of capitalized internal-use software costs

2,856

2,673

Amortization of debt discount and issuance costs

330

336

Amortization of deferred contract acquisition costs

7,051

8,956

Allowance for credit losses

607

290

Operating lease expense, net of accretion

2,595

2,854

Stock-based compensation expense

4,055

6,352

Loss on debt extinguishment

44

81

Gain on remeasurement of warrants

(71

)

(209

)

Other

188

(368

)

Changes in assets and liabilities:

Accounts receivable, net

(14,407

)

(9,503

)

Deferred contract acquisition costs

(4,611

)

(4,471

)

Other current and non-current assets

(9,273

)

(2,997

)

Accounts payable and accrued liabilities

24,979

3,347

Deferred revenue

(1,354

)

3,656

Net cash provided by operating activities

17,034

11,873

Cash flows from investing activities:

Purchases of property and equipment

(694

)

(377

)

Capitalized internal-use software costs

(2,225

)

(4,039

)

Payments for other investing activities

(229

)

—

Net cash used in investing activities

(3,148

)

(4,416

)

Cash flows from financing activities:

Repurchase of common stock

—

(1,848

)

Repayment of principal on term loan

(14,500

)

(15,000

)

Other financing activities

(1,684

)

(489

)

Net cash used in financing activities

(16,184

)

(17,337

)

Effect of exchange rate changes on cash

(362

)

2,788

Net decrease in cash and cash equivalents

(2,660

)

(7,092

)

Cash, cash equivalents and restricted cash, beginning of year

94,962

89,324

Cash, cash equivalents and restricted cash, end of period

$

92,302

$

82,232

8X8, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except per share amounts)

Three Months Ended

June 30, 2026

June 30, 2025

Cost of Revenue:

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

$

67,635

36.5

%

$

53,822

30.5

%

Amortization of acquired intangible assets

(514

)

(507

)

Stock-based compensation expense and related employer payroll taxes

(201

)

(582

)

Transaction-related costs

(33

)

—

Severance, transition and contract exit costs

91

(944

)

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

$

66,978

36.1

%

$

51,789

29.4

%

GAAP service revenue gross profit (as a percentage of service revenue)

$

117,711

63.5

%

$

122,486

69.5

%

Non-GAAP service revenue gross profit (as a percentage of service revenue)

$

118,368

63.9

%

$

124,519

70.6

%

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

$

6,164

127.8

%

$

7,099

140.5

%

Stock-based compensation expense and related employer payroll taxes

(84

)

(147

)

Severance, transition and contract exit costs

(105

)

(353

)

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

$

5,975

123.9

%

$

6,599

130.6

%

GAAP other revenue gross loss (as a percentage of other revenue)

$

(1,340

)

(27.8

)%

$

(2,046

)

(40.5

)%

Non-GAAP other revenue gross loss (as a percentage of other revenue)

$

(1,151

)

(23.9

)%

$

(1,546

)

(30.6

)%

GAAP gross profit (as a percentage of total revenue)

$

116,371

61.2

%

$

120,440

66.4

%

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

$

117,217

61.6

%

$

122,973

67.8

%

Operating Profit:

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

$

4,379

2.3

%

$

565

0.3

%

Amortization of acquired intangible assets

3,835

3,501

Stock-based compensation expense and related employer payroll taxes

4,305

6,909

Transaction-related costs

2,517

—

Legal and regulatory costs

566

835

Severance, transition and contract exit costs

3,285

4,523

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

$

18,887

9.9

%

$

16,333

9.0

%

Net Income (Loss):

GAAP net loss (as a percentage of total revenue)

$

(1,200

)

(0.6

)%

$

(4,315

)

(2.4

)%

Amortization of acquired intangible assets

3,835

3,501

Stock-based compensation expense and related employer payroll taxes

4,305

6,909

Transaction-related costs

2,517

—

Legal and regulatory costs

566

835

Severance, transition and contract exit costs

3,285

4,523

Amortization of debt discount and issuance cost

330

336

Loss on debt extinguishment

44

81

Gain on warrants remeasurement

(71

)

(209

)

Other income (1)

—

(926

)

Income tax expense effects, net (2)

—

—

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

$

13,611

7.2

%

$

10,735

5.9

%

Interest expense(3)

3,849

4,558

Provision for income taxes

992

1,276

Depreciation

1,410

1,690

Amortization of capitalized internal-use software costs

2,856

2,673

Other expense (income), net

435

(236

)

Adjusted EBITDA (as a percentage of total revenue)

$

23,153

12.2

%

$

20,696

11.4

%

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

Basic

141,973

134,809

Diluted

147,065

138,569

GAAP net loss per share - Basic and diluted

$

(0.01

)

$

(0.03

)

Non-GAAP net income per share - Basic

$

0.10

$

0.08

Non-GAAP net income per share - Diluted

$

0.09

$

0.08

(1) Amount includes capitalized interest related to property, plant and equipment from general borrowing costs during the three months ended June 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.

8x8, Inc.

Media:

[email protected]

Investor Relations:

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Source: 8x8, Inc.

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