EGHT

This article first appeared on GuruFocus. Total Revenue: $190.2 million, up 4.9% year over year. Service Revenue: Record $185.3 million, up 5.1% year over year. Platform Usage Revenue: Grew approximately 63% year over year, accounting for approximately 26% of service revenue (vs. 17% in Q1 '26). Gross Margin: 61.6% of revenue, reflecting mix shift toward usage-based offerings. Operating Income: $18.9 million, with operating margin of 9.9%. Net Income: $13.6 million, with fully diluted EPS of $0.09. Cash Flow from Operations: $17 million for the quarter. Cash and Cash Equivalents: $90.6 million at quarter end, excluding restricted cash. Debt Principal Outstanding: $309.4 million, down approximately 44% from August 2022 peak. AI Solution Adoption: Increased 121% year over year. AI Studio Adoption: More than 200 organizations building agents, with over 2,900 AI agents created; more than half are paying customers. Multiproduct Adoption: Customers using 3+ paid products increased 18% year over year, representing approximately 38% of recurring revenue. Newer Product Revenue: Increased 18% year over year. Channel-Generated Pipeline: Grew approximately 25% year over year. Warning! GuruFocus has detected 5 Warning Signs with EGHT. Is EGHT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 8x8 Inc (NASDAQ:EGHT) delivered a strong Q1 FY2027 with record service revenue of $185.3 million, marking the fifth consecutive quarter of year-over-year revenue growth. Adoption of AI solutions, including AI Studio and Intelligent Customer Assistant, surged 121% year-over-year, with over 200 organizations building agents and more than half becoming paying customers. Platform usage revenue, including CPaaS and AI, grew 63% year-over-year and now represents approximately 26% of service revenue, up from 17% in the prior year. The company raised its full-year FY2027 service revenue guidance by $18 million to $725-$745 million, reflecting confidence in business momentum. Operating income of $18.9 million and operating margin of 9.9% exceeded guidance, driven by disciplined expense management and lower operating costs. Debt reduction continues, with principal debt down 44% from the August 2022 peak, and cash interest paid decreased 25% year-over-year. Customers using three or more paid products increased 18% year-over-year, now representing approximately 38% of recurring revenue, indicating deeper platform adoption. Gross margin declined to 61.6% due to the mix shift toward lower-margin usage-based offerings, and is expected to remain flat to slightly down in Q2. The company continues to face ASP downsell pressure in UC seat-based pricing, driven by competitors offering lower prices, which impacts retention and revenue per customer. Platform usage revenue growth is expected to slow significantly to 30-35% year-over-year in Q2, down from 63% in Q1, due to tougher comparables. Cash flow from operations can be volatile quarter-to-quarter, with Q1 results benefiting from favorable timing of collections and payments. The term loan balance will be reclassified to current liabilities ahead of its August 2027 maturity, and refinancing specifics have not yet been disclosed. The company's focus on usage-based revenue, while growing, carries lower margins, and the path to improved profitability depends on achieving economies of scale in newer products. Despite progress, the company acknowledges that channel partners are not yet fully educated on the entire product portfolio, limiting potential revenue acceleration. Q: Can you provide high-level commentary on customer retention and churn, and whether AI-enabled solutions are driving lower churn and higher customer adoption?A: Samuel Wilson (CEO): On a year-over-year basis, both contact center and UCC seats are up. We are still seeing a ripple-through of street pricing on UC, particularly with smaller customers, which causes some ASP downsell pressure at renewal, driven by competitors pushing lower prices. However, this hasn't gotten worse over the last 18 months. We are not losing many customers, and customer loss is decreasing. There is a clear correlation between more products and higher retention and higher average revenue per customer, with a big jump as customers go from one to two, two to three, and three to four products. The key is pushing the multiproduct strategy. Q: How much of the strong usage-based results were related to AI versus the CPaaS business, and are you seeing pressure on seat-based pricing as AI becomes more of a revenue lever?A: Samuel Wilson (CEO): The two are deeply interconnected. When you send an SMS or use WhatsApp, it frequently hits our AI Studio on the backend. The vast majority of usage revenue is still traditional CPaaS due to high volumes, but AI is growing well in excess of 100% year-over-year. On pricing, seat-based pricing pressure is due to competitors pricing lower to grab seats, not AI. AI is seen purely as an add-on, with customers paying per seat for UC and CC and adding usage-based items on top. Q: How are AI deployments changing relationships with your channel, and how effective is the channel at selling the full platform?A: Samuel Wilson (CEO): The channel is the primary route to market. While some global channel partners are doing amazing things with AI Studio, the biggest issue is educating and enabling the channel base on the full range of products. We are a full business communications company, and when we achieve better channel enablement on products like CPaaS, Engage, AI Studio, and workforce management, I believe our revenues will significantly accelerate. Q: Can you provide more color on why traditional CPaaS growth has been so strong over the last couple of quarters and why it might moderate into Q2?A: Samuel Wilson (CEO): CPaaS is a bigger piece overall, and while Southeast Asia is important, we sell CPaaS globally, with strong growth in Europe. AI is growing well in excess of 100% year-over-year. The single biggest driver is that over the last 18 months to two years, we've integrated the products together, making it easy to drive corresponding CPaaS business. CPaaS adds a lot of dollars because it starts with a much bigger number, while AI is smaller but growing faster; the blend drives overall growth. Q: Can you provide more color on the magnitude or timing expectations for expanding margins in the usage portfolio?A: Kevin Kraus (CFO): It's a continuous work in process. AI usage margins are much higher than basic wholesale-type margins. We are balancing our ability to do certain volumes in wholesale areas to gain better advantage elsewhere. As we get scale, margins should come up over time. Samuel Wilson (CEO) added that customers often start with lower-margin basic products like SMS messaging and then add on higher-margin services like AI Studio and WhatsApp, which expands margins over time, though not overnight. Q: You raised the top-line revenue guidance while maintaining the profitability outlook. Can you discuss the dynamics between lower gross margin and operating leverage from usage-based revenue, and whether there's a threshold where operating leverage becomes more positive?A: Samuel Wilson (CEO): Usage-based models carry lower gross margins than traditional SaaS because there's no "vaporware," but they also carry a lower OpEx profile. As usage revenue scales, we expect continued growth and higher operating profit dollars and cash flow over time. We need to get newer products to economies of scale to drive down unit costs. Kevin Kraus (CFO) added that the mix within usage is shifting, with new products not as geographically concentrated in low-profit areas, which should have a positive effect on gross profit dollars over time. Q: Can you elaborate on the strong usage-based revenue growth and the expectation for growth to slow to 30%-35% in Q2 from 63% in Q1?A: Kevin Kraus (CFO): The lower growth in Q2 reflects a tougher compare to a strong Q2 '26 rather than a change in business dynamics. The higher platform usage growth drives a modest shift in mix, and we expect gross margins to be flat to down slightly quarter over quarter. We are keeping operating expenses flat to Q1, which gives us the operating margin guidance of 8% to 9%. Q: Can you provide more detail on the Q2 guidance and the model dynamics driving it?A: Kevin Kraus (CFO): For fiscal Q2 '27, we expect service revenue between $180 million and $185 million, total revenue between $185 million and $190 million, gross margin between 60.5% and 61.5%, and operating margin between 8% and 9%. We assume continued strong growth for platform usage, with year-over-year growth slowing to 30%-35% from 63% in Q1 due to a tougher compare. Annual merit increases take full effect in Q2, but we offset incremental costs with operational efficiencies and a lower cost structure associated with platform usage. Q: Can you provide an update on the debt refinancing and the term loan reclassification?A: Kevin Kraus (CFO): The term loan balance currently classified as long-term debt will move to current liabilities on the balance sheet reflecting the August 2027 maturity. This is a standard GAAP mechanic, not a change in financial position. We intend to continue paying down the term loan on schedule and are confident in our ability to refinance debt balances prior to maturity. We are not prepared to share refinancing specifics today but remain confident in the cash-generating capabilities of the business model. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Fifth consecutive quarter of year-over-year revenue growth Record service revenue of $185 million and total revenue of $190 million Adoption of AI solutions accelerates as customers use AI Studio to build a wide variety of AI agents CAMPBELL, Calif., August 04, 2026--(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: Total revenue increased 5% to $190.2 million, compared to $181.4 million in the first quarter of fiscal 2026. Service revenue increased 5% to $185.3 million, compared to $176.3 million in the first quarter of fiscal 2026. GAAP gross margin was 61%, compared to 66% in the first quarter of fiscal 2026. Non-GAAP gross margin was 62%, compared to 68% in the first quarter of fiscal 2026. GAAP operating income was $4.4 million, compared to $0.6 million in the first quarter of fiscal 2026. Non-GAAP operating income was $18.9 million, compared to $16.3 million in the first quarter of fiscal 2026. GAAP net loss was $1.2 million, compared to $4.3 million in the first quarter of fiscal 2026. Non-GAAP net income was $13.6 million, compared to $10.7 million in the first quarter of fiscal 2026. Cash provided by operating activities was $17.0 million for the first quarter of fiscal 2027, compared to $11.9 million in the first quarter of fiscal 2026. Cash, cash equivalents, and restricted cash were $92.3 million on June 30, 2026, compared to $95.0 million at the end of fiscal 2026. The balance on June 30, 2026 reflects a $14.5 million principal payment on the 2024 Term Loan made during the first quarter of fiscal 2027. Total principal amount of debt outstanding on June 30, 2026 was $309.4 million, compared to $323.9 million at the end of fiscal 2026. 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: 8x8 Pulse, available now for select 8x8 customers, to capture and index interactions across calls, meetings, emails, and support tickets, making conversation data searchable and actionable across the organization. 8x8 Resolve, available now for select 8x8 customers, is a new critical communications solution that delivers incident and emergency alerts to frontline workforces through the 8x8 Platform for CX, eliminating the need for separate alerting tools. 8x8 AI Routing, available now for select 8x8 customers, to dynamically match customers to the best-qualified expert across the organization and use interaction data, including transcripts, sentiment, and historical patterns, to automate skills configuration, eliminating months of manual setup and stale profiles. Support for multiple AI models, voice-powered agent building, and one-click connectors to third-party business applications in 8x8 AI Studio, enabling teams to deploy AI agents without additional vendors or custom development. The new 8x8 App Store that provides self-serve capability extensions, including AI Studio and 8x8 Workforce Management. A native integration with Synthflow that extends AI voice capabilities for joint customers within the existing platform. Automated assistive quality evaluations and enhanced forecasting and scheduling 8x8 Workforce Management, available at no additional cost to existing 8x8 Contact Center customers. Industry Recognition Named Best Communications Provider Enterprise and recognized as the Women in Telecoms Champion in the Comms Council UK 2026 Awards. Won the Retail Systems 2026 Awards in the Contact Centre and Digital Service Innovation category. 8x8 Work was named a winner in TMCNet’s 2026 Unified Communications Product of the Year Awards. 8x8 Contact Center was named a winner in CUSTOMER Magazine’s 2026 Contact Center Technology Awards. Recognized in the 2026 Gartner® Magic Quadrant™ for Unified Communications as a Service. Recognized as a Leader in the Metrigy CCaaS MetriRank 2026. Leadership Updates Appointed Colleen Martin-Garcia as Senior Vice President and Chief Accounting Officer, overseeing the global accounting organization, including financial close and reporting, revenue, payroll and equity, and treasury functions across the U.S., EMEA, and APAC regions. 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 Service revenue in the range of $180 million to $185 million. Total revenue in the range of $185 million to $190 million. Non-GAAP gross margin in the range of approximately 60.5% to 61.5%. Non-GAAP operating margin in the range of approximately 8.0% to 9.0%. Interest expense of approximately $3.9 million. Cash interest of approximately $5.9 million. Non-GAAP net income per share, diluted, in the range of $0.07 to $0.08, based on a fully-diluted weighted-average share count of approximately 149 million shares. Cash flow from operations in the range of $9 million to $11 million. Fiscal Year 2027 Ending March 31, 2027 Service revenue in the range of $725 million to $745 million. Total revenue in the range of $745 million to $765 million. Non-GAAP gross margin in the range of 60.5% to 61.5%. Non-GAAP operating margin in the range of 8.8% to 9.8%. Non-GAAP net income per share, diluted, in the range of $0.33 to $0.38, based on a fully-diluted weighted-average share count of approximately 150 million shares. Cash flow from operations in the range of $45 million to $52 million. 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: Register to participate in the live call at https://register-conf.media-server.com/register/BIf18cb0ada2f94e8c8a55095f5670b608 Access the live webcast and replay from the Company’s investor relations events and presentations page at https://www.investors.8x8.com/news-events/events-presentations. 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) 8X8, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited, in thousands, except per share amounts) 8X8, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in thousands) 8X8, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited, in thousands, except per share amounts) View source version on businesswire.com: https://www.businesswire.com/news/home/20260803114117/en/ Contacts 8x8, Inc. Media:[email protected] Investor Relations:[email protected]

Interested in 8x8 Inc? Here are five stocks we like better. 8x8 delivered a strong fiscal Q1 2027: Total revenue rose 4.9% year over year to $190.2 million, while service revenue reached a record $185.3 million. Non-GAAP operating margin was 9.9%, operating cash flow was $17 million, and the company raised its full-year revenue outlook. AI and platform usage are accelerating: Platform usage revenue grew about 63% year over year and represented 26% of service revenue. AI product adoption increased 121%, with more than 200 organizations creating over 2,900 AI agents through AI Studio. Management is balancing growth with financial discipline: 8x8 reduced operating expenses, paid down debt to $309.4 million, and plans further repayments. Retention remains pressured mainly by downsells and pricing competition, while the company is targeting greater multi-product adoption and partner-led growth. Seize the Growth: Twilio’s AI Innovations Are Driving Huge Upside 8X8 (NASDAQ:EGHT) reported a record quarter for service revenue in the first quarter of fiscal 2027, extending its streak of year-over-year revenue growth to five consecutive quarters. The company exceeded its guidance ranges for service revenue, total revenue, non-GAAP operating margin and operating cash flow, while raising its full-year revenue outlook. Chief Executive Officer Samuel Wilson said the results reflected increasing customer adoption of the company’s unified communications, contact center, communications-platform-as-a-service, or CPaaS, and artificial intelligence offerings. He said 8x8’s investments in its platform over recent years are beginning to translate into broader adoption and stronger operating performance. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Our focus isn't on managing the business for one quarter. It's on building a company that can create durable value over the long term,” Wilson said. Total revenue for the quarter was $190.2 million, up 4.9% year over year, while service revenue rose 5.1% to a record $185.3 million, according to Chief Financial Officer Kevin Kraus. Platform usage revenue, including CPaaS communication APIs, digital channels and AI solutions, reached another record and represented about 26% of service revenue, compared with approximately 17% a year earlier. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Platform usage revenue increased about 63% year over year. Kraus said the growth reflects demand for the company’s usage-based offerings, though those offerings carry lower gross margins than traditional subscription software products. Gross profit totaled approximately $117.2 million, and gross margin was 61.6%. Kraus said the margin percentage was affected by the growing mix of usage-based revenue, but the company is prioritizing growth in AI-driven customer engagement and other high-growth markets while managing expenses to support operating profit dollars. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Non-GAAP operating income was $18.9 million, producing a 9.9% operating margin, above the high end of the company’s guidance. Operating expenses declined by more than $8 million from a year earlier, primarily from lower sales and marketing costs as 8x8 focused on go-to-market efficiency. Net income was $13.6 million, or $0.09 per fully diluted share. Cash flow from operations was $17 million, above the company’s guidance range, although Kraus noted that operating cash flow can vary substantially between quarters due to the timing of collections and payments. Wilson said adoption of the company’s AI products, including AI Studio and Intelligent Customer Assistant, increased 121% year over year. More than 200 organizations were building agents through AI Studio about three and a half months after its official launch, creating more than 2,900 AI agents. More than half of those organizations have moved beyond experimentation to become paying customers, he said. AI Studio remains in beta and is being used by customers across industries including healthcare, IT services, retail, insurance, automotive, energy and logistics. Wilson said customers are using the platform for applications ranging from IT operations to insurance-policy renewals and training human agents in de-escalation techniques. The company also reported that customers using three or more paid 8x8 products increased 18% year over year and now account for approximately 38% of recurring revenue. Revenue from newer products increased 18%, led by Engage, AI Solutions and Analytics. Channel-generated pipeline grew about 25% from the prior-year period. During the quarter, 8x8 introduced Pulse, a product intended to convert conversations into searchable organizational knowledge, and continued expanding AI Studio’s language capabilities. Wilson said the company is concentrating its fiscal 2027 efforts on partner enablement, customer retention and broader multi-product adoption within its installed base. In response to an analyst question, Kraus said both contact-center and unified-communications seat counts rose year over year. However, the company continues to face average selling price pressure in smaller unified-communications accounts as customers renew contracts amid lower competitor pricing. Kraus said the main retention issue is downsell pressure rather than customer losses, adding that the company’s customer losses have been declining. He said retention and average revenue per customer improve materially as clients adopt more products. Wilson said AI is generally serving as a usage-based add-on to customers’ existing per-seat unified communications and contact center subscriptions rather than creating additional pressure on seat-based pricing. He also said 8x8 is working to educate channel partners on its broader product portfolio, including CPaaS, contact center, workforce management, Engage and AI Studio. Management said usage-based offerings should produce higher operating profit dollars and cash flow over time as volumes grow and unit costs decline. Kraus added that AI usage margins are stronger than basic wholesale-type usage margins, and that the mix of usage revenue is gradually shifting toward products with potentially better economics. 8x8 ended the quarter with $90.6 million in cash and cash equivalents and $309.4 million of principal debt outstanding. The debt balance is down nearly $240 million, or about 44%, from its August 2022 peak of $548 million. The company made a $14.5 million term-loan payment during the quarter. Kraus said the company expects the term loan to move from long-term debt to current liabilities ahead of its August 2027 maturity, a standard accounting classification change. He said 8x8 intends to continue scheduled debt repayment and is confident it can refinance its debt before maturity. For the second quarter of fiscal 2027, 8x8 expects: Service revenue of $180 million to $185 million. Total revenue of $185 million to $190 million. Gross margin of 60.5% to 61.5%. Non-GAAP operating margin of 8% to 9%. Non-GAAP diluted earnings per share of $0.07 to $0.08. Cash flow from operations of $9 million to $11 million. For the full fiscal year, the company raised its service revenue forecast to $725 million to $745 million from a prior range of $707 million to $727 million. Total revenue guidance increased to $745 million to $765 million from $727 million to $747 million. 8x8 maintained its outlook for approximately $70 million of non-GAAP operating income at the midpoint, non-GAAP diluted earnings per share of $0.33 to $0.38, and operating cash flow of $45 million to $52 million. 8x8, Inc (NASDAQ: EGHT) is a global provider of cloud-based enterprise communications, collaboration and contact centre solutions. The company's unified communications as a service (UCaaS) platform integrates voice, video, chat, SMS and contact-centre capabilities into a single, software-driven solution. By combining real-time analytics, team messaging and interoperability with third-party business applications, 8x8 aims to simplify communications infrastructure for organisations of all sizes. Founded in 1987 and headquartered in Campbell, California, 8x8 pioneered hosted VoIP services for businesses in the late 1990s and went public on the NASDAQ in 1997. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "8X8 Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

CAMPBELL, Calif., July 15, 2026--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, will release financial results for the first quarter of fiscal 2027 following the close of market on Tuesday, August 4, 2026. The company will host a conference call on the same day at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results. An audio archive of the webcast will be available on the investor relations events and presentation page for 90 days following the live call. 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. Caution Concerning Forward-Looking Statements This press 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. These forward-looking statements include, but are not limited to, statements regarding the expected timing and details of 8x8’s first quarter fiscal 2027 financial results, the expected earnings announcement date of August 4, 2026, the company’s conference call plans, and the expected webcast availability. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which 8x8 operates, and the beliefs and assumptions of management. Actual results may differ materially from those expressed or implied by these forward-looking statements due to a number of factors, including but not limited to changes in market conditions, shifts in customer demand, increased competition, and general economic conditions. For additional information on these and other risks and uncertainties, please refer to the "Risk Factors" section in 8x8’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. 8x8 assumes no obligation to, and does not currently intend to, update any such forward-looking statements, except as required by applicable law. Copyright 2026 8x8, Inc. 8x8 and associated brand assets are trademarks of 8x8, Inc. All rights reserved. View source version on businesswire.com: https://www.businesswire.com/news/home/20260715462083/en/ Contacts 8x8, Inc. Contacts: Media:[email protected] Investor Relations:[email protected]

Looking back on video conferencing stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including 8x8 (NASDAQ:EGHT) and its peers. Work is becoming more distributed, both across geographies and devices. In order for businesses to keep functioning efficiently, they need to be able to communicate as well as they did when the teams were co-located, which drives the demand for integrated communication platforms. The 4 video conferencing stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results. Named after its founding year (1987) with "8x8" representing binary code for communications, 8x8 (NASDAQ:EGHT) provides cloud-based contact center and unified communications solutions that enable businesses to manage customer interactions and internal communications through a single platform. 8x8 reported revenues of $185.2 million, up 4.6% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. “Fiscal 2026 marked a turning point for 8x8. We delivered four consecutive quarters of revenue growth, achieved our first GAAP-profitable full fiscal year since 2015, strengthened our balance sheet, and continued expanding our platform capabilities for an era of AI-driven customer engagement,” said Samuel Wilson, Chief Executive Officer at 8x8, Inc. 8x8 scored the biggest analyst estimate beat among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 9.9% since reporting and currently trades at $2.17. Is now the time to buy 8x8? Access our full analysis of the earnings results here, it’s free. Taking its name from the "five nines" (99.999%) standard for optimal service reliability in telecommunications, Five9 (NASDAQ:FIVN) provides cloud-based software that enables businesses to run their contact centers with tools for customer service, sales, and marketing across multiple communication channels. Five9 reported revenues of $305.3 million, up 9.2% year on year, outperforming analysts’ expectations by 1.8%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance beating analysts’ expectations. Five9 pulled off the fastest revenue growth and highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 48.1% since reporting. It currently trades at $25.48. Is now the time to buy Five9? Access our full analysis of the earnings results here, it’s free. Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE:RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services. RingCentral reported revenues of $644.2 million, up 5.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted full-year EPS guidance beating analysts’ expectations but a miss of analysts’ billings estimates. RingCentral delivered the highest guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 7.4% since the results and currently trades at $42.05. Read our full analysis of RingCentral’s results here. Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ:ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually. Zoom reported revenues of $1.24 billion, up 5.5% year on year. This print topped analysts’ expectations by 1.3%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ billings estimates but decelerating growth in large customers. The company added 66 enterprise customers paying more than $100,000 annually to reach a total of 4,534. The stock is down 6.4% since reporting and currently trades at $90.58. Read our full, actionable report on Zoom here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Since January 2026, 8x8 has been in a holding pattern, posting a small return of 3.6% while floating around $1.98. The stock also fell short of the S&P 500’s 9% gain during that period. Is there a buying opportunity in 8x8, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. We don’t have much confidence in 8x8. Here are three reasons why EGHT doesn’t excite us, plus one stock we’d rather own. Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. 8x8’s billings came in at $185.2 million in Q1, and over the last four quarters, its year-on-year growth averaged 4.6%. This performance was underwhelming and suggests that increasing competition is causing challenges in acquiring/retaining customers. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect 8x8’s revenue to stall, close to its 6.7% annualized growth for the past five years. This projection doesn’t excite us and suggests its newer products and services will not lead to better top-line performance yet. While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This is one of the best measures of profitability because it shows how much money a company takes home after developing, marketing, and selling its products. Looking at the trend in its profitability, 8x8’s operating margin might have fluctuated slightly but has generally stayed the same over the last two years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 2.6%. 8x8 falls short of our quality standards. With its shares underperforming the market lately, the stock trades at 0.4× forward price-to-sales (or $1.98 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. We’d recommend looking at our favorite semiconductor picks and shovels play. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

8x8’s first quarter results in 2026 were marked by a strong market reaction, reflecting investor confidence in the company’s evolving business model and operational execution. Management attributed the notable improvement to growth in usage-based revenue streams and ongoing cost discipline, with CEO Samuel C. Wilson highlighting the strategic integration of AI into the communications platform as a key factor. The quarter also showcased increasing customer adoption of unified, AI-enabled solutions, and continued progress in platform enhancements and partner ecosystem expansion. Is now the time to buy EGHT? Find out in our full research report (it’s free). Revenue: $185.2 million vs analyst estimates of $181.1 million (4.6% year-on-year growth, 2.3% beat) Adjusted EPS: $0.11 vs analyst estimates of $0.08 (41.9% beat) Adjusted Operating Income: $19.76 million vs analyst estimates of $15.87 million (10.7% margin, 24.6% beat) Revenue Guidance for Q2 CY2026 is $182.5 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for the upcoming financial year 2027 is $0.36 at the midpoint Operating Margin: 1.8%, up from 0.2% in the same quarter last year Billings: $185.2 million at quarter end, up 5% year on year Market Capitalization: $310.6 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Siti Panigrahi (Mizuho): Inquired about the conservatism in revenue guidance due to lower visibility in usage-based streams; CEO Samuel C. Wilson explained that usage revenue is not contracted, so forecasts are naturally cautious. Siti Panigrahi (Mizuho): Asked about the gross margin impact of new AI products; Wilson said new AI solutions start at lower margins due to credits and scaling costs, but margins should improve over time. Peter Levine (Evercore): Sought clarity on how usage-based contracts are structured; Wilson detailed that most contracts have no minimums, with discounts for higher commitments, reflecting customer reluctance to overcommit. Peter Levine (Evercore): Queried about the balance between gross margin and OpEx cuts; CFO Kevin Kraus emphasized cheaper routes to market via AI and operational efficiencies to maintain double-digit non-GAAP operating margins. Catharine Trebnick (Rosenblatt Securities): Asked about capital allocation between debt reduction, reinvestment, and share buybacks; Wilson said acquisitions to bolster customer outcomes and further debt paydown are higher priorities than buybacks. In upcoming quarters, the StockStory team will focus on (1) tracking the pace of AI-powered product adoption and the scaling of usage-based revenue streams, (2) monitoring the impact of new partner recruitment and enablement efforts on market reach and sales cycles, and (3) assessing the company’s ability to maintain operating discipline and margin improvement amid product mix changes. Execution on strategic acquisitions and integration of new capabilities will also be critical markers. 8x8 currently trades at $2.14, down from $2.41 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the return to growth to a multi-year strategy shift toward integrated platforms, combining UCaaS, CCaaS, and CPaaS into a single architecture. The company is intentionally shifting pricing from per-seat models to usage and outcome-based models as AI begins to automate routine human interactions. Usage-based revenue, including APIs and AI solutions, grew over 70% year-over-year, now representing approximately 23% of total service revenue. Management views voice infrastructure not as a legacy utility but as a critical strategic control layer for orchestrating human-to-AI and agent-to-agent interactions. The '8x8 Engage' product launch aims to bridge the gap between traditional contact centers and frontline operational teams, addressing a 300% increase in interaction volume. Operational discipline resulted in the first full year of GAAP profitability since 2015, driven by debt reduction and rigorous expense management. Strategic positioning focuses on an 'open integration' layer rather than closed AI ecosystems, allowing customers to adopt new AI models without rebuilding infrastructure. Fiscal 2027 guidance reflects a measured view due to the unpredictable nature of usage-based revenue and geopolitical factors affecting the 40% international revenue mix. Management expects continued gross margin pressure (projected 62.5% to 63.5%) as the revenue mix shifts toward lower-margin usage products, though these carry lower operating costs. The company plans to increase investment in partner recruitment and enablement to address being 'significantly underdistributed' relative to the market opportunity. Strategic capital allocation priorities are ranked as: technology acquisitions to improve customer outcomes, debt repayment, and then share buybacks. Guidance assumes approximately $39.5 million in principal debt payments for the full year to further strengthen the balance sheet. Completed the FUSE migration process and integrated four strategic acquisitions during the fiscal year to enhance messaging and AI capabilities. Debt principal has been reduced by approximately 43% from its 2022 peak, significantly lowering trailing 12-month cash interest payments. Management flagged the difficulty in forecasting AI token costs and usage as a potential variable in future margin performance. The company noted that usage-based contracts often lack high commitment levels initially as customers struggle to forecast their own AI interaction volumes. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the 23% of revenue coming from usage lacks the long-term visibility of contracted seat-based revenue, necessitating a conservative outlook. The guidance also accounts for a shifting geographic mix and unpredictable geopolitical environments in international markets. Traditional UC/CC margins remain stable, while new AI products like AI Studio currently carry lower margins due to introductory customer credits and high initial compute costs. Management emphasized focusing on gross profit dollars rather than percentages, noting that usage revenue requires significantly less operating expense (OpEx) to support. Contracts are typically structured with a base rate and no commitment, with tiered discounts offered as customers increase their committed interaction volumes. Management noted that CFOs are increasingly moving away from 'shelfware' (unused seats) in favor of consumption models to avoid paying for unused capacity. 8x8 differentiates by offering a single platform that consolidates vendors, meeting the demand of the 67% of IT leaders looking to reduce vendor counts. The company claims its 'open' approach allows customers to avoid being locked into a single AI model, providing flexibility as the AI landscape evolves.

This article first appeared on GuruFocus. Total Revenue: $185.2 million, a 4.6% year-over-year growth. Service Revenue: $180.2 million, growing 5% year over year. Usage-Based Revenue: Grew more than 70% year over year, representing approximately 23% of service revenue. Gross Profit: Approximately $118.9 million. Gross Margin: 64.2% of revenue. Operating Income: $19.8 million, with a 10.7% operating margin. Net Income: $16.6 million. Earnings Per Share (EPS): $0.11 per share, $0.03 above the high end of guidance. Cash Flow from Operations: $14.4 million for the quarter. Cash and Cash Equivalents: $93.3 million at quarter-end. Debt Reduction: Principal debt reduced to $309.4 million from $548 million in August 2022. Fiscal 2027 Guidance - Service Revenue: Expected between $707 million and $727 million. Fiscal 2027 Guidance - Total Revenue: Expected between $727 million and $747 million. Fiscal 2027 Guidance - Gross Margin: Anticipated between 62.5% and 63.5%. Fiscal 2027 Guidance - Operating Margin: Projected between 9% and 10%. Fiscal 2027 Guidance - Cash Flow from Operations: Expected between $45 million and $52 million. Warning! GuruFocus has detected 3 Warning Sign with EGHT. Is EGHT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 8x8 Inc (NASDAQ:EGHT) achieved its first GAAP profitable full fiscal year since 2015, marking a significant financial milestone. The company reported four consecutive quarters of year-over-year revenue growth, demonstrating consistent performance. Usage-based revenue, including CPaaS communications APIs and AI solutions, grew more than 70% year over year, now representing 23% of service revenue. 8x8 Inc (NASDAQ:EGHT) successfully reduced its debt by approximately 43% from its August 2022 peak, strengthening its balance sheet. The company expanded its platform capabilities with new AI-driven solutions like AI Studio, enhancing customer engagement and operational efficiency. Gross margin percentage declined due to a shift towards usage-based offerings, which carry a lower margin profile. The company faces challenges in forecasting usage-based revenue due to its variable nature, impacting visibility into future financial performance. There is geopolitical uncertainty affecting 8x8 Inc (NASDAQ:EGHT)'s international revenue, which constitutes about 40% of its total revenue. The integration of new AI products initially results in lower gross margins, as costs associated with AI are difficult to predict. Despite operational improvements, the company acknowledges the difficulty in managing token usage and costs associated with AI, which could impact profitability. Q: Could you walk us through the fiscal year '27 service revenue guidance and any factors influencing the projected growth? A: Samuel Wilson, CEO, explained that usage now constitutes 23% of revenue, which introduces variability as it's not contracted. This leads to a conservative forecast approach. Kevin Kraus, CFO, added that with 40% of revenue being international, geopolitical factors also contribute to a cautious outlook. Q: Can you break down the gross margin guidance, particularly the impact of traditional CPaaS and newer AI solutions? A: Samuel Wilson, CEO, noted that traditional UC and CC business margins have been stable, while CPaaS has seen a shift towards more margin-rich products. New AI products initially have lower margins due to startup costs but are expected to improve as they scale. Kevin Kraus, CFO, emphasized that usage revenue has lower operational costs, allowing more profit to fall to the bottom line. Q: How are contracts structured under the outcome-based pricing model, and what commitments do customers make? A: Samuel Wilson, CEO, explained that contracts are structured with a reasonable per-usage rate and discounts for commitments. Customers often prefer minimal commitments due to uncertainty in AI product usage, leading to a focus on usage-based pricing to avoid unused commitments. Q: What is the strategy for gross margin improvement and operating expense management? A: Kevin Kraus, CFO, highlighted the focus on cheaper routes to market and deploying AI for operational efficiencies. The aim is to maintain double-digit non-GAAP operating income percentages by adapting to margin changes and leveraging lower-cost usage revenue. Q: How does 8x8 prioritize capital allocation between debt reduction, AI investment, and other areas? A: Samuel Wilson, CEO, stated that the priority is acquiring technologies to improve customer outcomes, followed by debt reduction and share buybacks. Kevin Kraus, CFO, mentioned a planned $39.5 million debt repayment for fiscal 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.