8x8, Inc. (NASDAQ: EGHT) posts $190.2M Q1 revenue and higher profits
Rhea-AI Filing Summary
8x8, Inc. reported results for the quarter ended June 30, 2026, the first quarter of fiscal 2027. Total revenue was $190.2 million, up 5% year over year, with service revenue of $185.3 million, also up 5%. Platform usage revenue, including CPaaS and AI-based solutions, grew 63% year over year and reached approximately 26% of service revenue.
GAAP gross margin declined to 61.2% from 66.4% as mix shifted toward lower-margin usage revenue, but GAAP operating income improved to $4.4 million and GAAP net loss narrowed to $1.2 million. On a non-GAAP basis, operating income was $18.9 million and net income was $13.6 million, both higher than a year earlier.
Operating cash flow was $17.0 million, the 22nd consecutive positive quarter. Cash, cash equivalents and restricted cash totaled $92.3 million, while total debt fell to $309.4 million after a $14.5 million term-loan prepayment. Management now expects fiscal 2027 total revenue of $745–$765 million and second-quarter revenue of $185–$190 million, with non-GAAP operating margins in the high-single digits.
Positive
- Total debt reduced to $309.4 million, down about 44% since August 2022, strengthening the balance sheet.
- Non-GAAP operating income of $18.9 million and $17.0 million in operating cash flow extend a multi-year record of positive profitability.
Negative
- GAAP gross margin declined to 61.2% from 66.4% as revenue mix shifted toward lower-margin platform usage.
- GAAP net loss persisted at $1.2 million despite higher revenue and improved operating income.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total revenue: $190.2 million
Service revenue: $185.3 million
GAAP gross margin: 61.2%
+5 more
8 metrics
Total revenue
$190.2 million
Quarter ended June 30, 2026, up 5% year over year
Service revenue
$185.3 million
Quarter ended June 30, 2026, up 5% year over year
GAAP gross margin
61.2%
Quarter ended June 30, 2026, down from 66.4% a year earlier
Non-GAAP operating income
$18.9 million
Quarter ended June 30, 2026, up from $16.3 million in Q1 fiscal 2026
Non-GAAP net income
$13.6 million
Quarter ended June 30, 2026, up from $10.7 million a year earlier
Operating cash flow
$17.0 million
Quarter ended June 30, 2026, 22nd consecutive positive quarter
Cash, cash equivalents and restricted cash
$92.3 million
Balance as of June 30, 2026
Total principal debt outstanding
$309.4 million
As of June 30, 2026, after $14.5 million term-loan prepayment
Key Terms
CPaaS, platform usage revenue, non-GAAP operating margin, Adjusted EBITDA, +1 more
5 terms
CPaaS technical
"including our usage-based CPaaS programmable APIs, digital channels, and AI-based solutions"
A Communications Platform as a Service (CPaaS) is a cloud-based toolkit that lets companies add voice calls, text messages, video and chat features to their apps or websites without building the underlying phone or messaging systems. Think of it as a plug-and-play communications engine developers drop into software. Investors watch CPaaS because it often produces usage-based and recurring revenue, can scale quickly with customer communication needs, and benefits from trends like remote work and digital customer service.
platform usage revenue financial
"Platform usage revenue, which includes our CPaaS programmable APIs, digital channels, and AI-based solutions"
non-GAAP operating margin financial
"Non-GAAP operating margin in the range of 8.8% to 9.8%"
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
Adjusted EBITDA financial
"Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
convertible senior notes financial
"convertible senior notes, non-current, $200,091 as of June 30, 2026"
Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.
Earnings Snapshot
Total revenue: $190.2 million · Guidance included
Quarter ended June 30, 2026 (Q1 fiscal 2027)
Total revenue
$190.2 million
increased 5% year over year from $181.4 million
Service revenue
$185.3 million
increased 5% year over year from $176.3 million
GAAP gross margin
61.2%
declined from 66.4% in the first quarter of fiscal 2026
Non-GAAP operating income
$18.9 million
up from $16.3 million in the first quarter of fiscal 2026
Non-GAAP net income
$13.6 million
up from $10.7 million in the first quarter of fiscal 2026
Cash flow from operations
$17.0 million
increased from $11.9 million in the first quarter of fiscal 2026
Guidance
For Q2 fiscal 2027, management expects service revenue of $180–$185 million, total revenue of $185–$190 million, non-GAAP gross margin of 60.5%–61.5%, non-GAAP operating margin of 8.0%–9.0%, diluted non-GAAP EPS of $0.07–$0.08, interest expense of about $3.9 million, cash interest of about $5.9 million, and operating cash flow of $9–$11 million. For fiscal 2027, management projects service revenue of $725–$745 million, total revenue of $745–$765 million, non-GAAP gross margin of 60.5%–61.5%, non-GAAP operating margin of 8.8%–9.8%, diluted non-GAAP EPS of $0.33–$0.38 on about 150 million diluted shares, and operating cash flow of $45–$52 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were 8x8 (EGHT) revenues for Q1 fiscal 2027?
8x8 reported total revenue of $190.2 million in Q1 fiscal 2027, with service revenue of $185.3 million, both up 5% year over year. Platform usage revenue grew 63% and represented about 26% of total service revenue, reflecting increased adoption of CPaaS and AI-based offerings.
How profitable was 8x8 (EGHT) in the quarter ended June 30, 2026?
8x8 generated GAAP operating income of $4.4 million but recorded a GAAP net loss of $1.2 million. On a non-GAAP basis, operating income was $18.9 million and net income was $13.6 million, with non-GAAP gross margin at 61.6% and operating margin at 9.9%.
What guidance did 8x8 (EGHT) provide for Q2 fiscal 2027?
For Q2 fiscal 2027, management expects service revenue of $180–$185 million and total revenue of $185–$190 million. Outlook includes non-GAAP gross margin of 60.5%–61.5%, non-GAAP operating margin of 8.0%–9.0%, diluted non-GAAP EPS of $0.07–$0.08, and operating cash flow of $9–$11 million.
What is 8x8 (EGHT) full-year fiscal 2027 financial outlook?
For fiscal 2027, 8x8 projects service revenue of $725–$745 million and total revenue of $745–$765 million. Management targets non-GAAP gross margin of 60.5%–61.5%, non-GAAP operating margin of 8.8%–9.8%, diluted non-GAAP EPS of $0.33–$0.38, and operating cash flow of $45–$52 million.
How is 8x8 (EGHT) managing debt and liquidity?
8x8 ended Q1 fiscal 2027 with $92.3 million in cash, cash equivalents and restricted cash and $309.4 million of total debt. The company prepaid $14.5 million of its 2024 Term Loan and has reduced total debt by $239 million, or about 44%, since August 2022.
How fast is 8x8 (EGHT) growing AI and platform usage revenue?
Platform usage revenue, including CPaaS and AI-based solutions, grew 63% year over year and reached about 26% of service revenue. Adoption of AI solutions such as AI Studio and Intelligent Customer Assistant increased 121% year over year and 68% sequentially, with over 200 organizations building more than 2,900 AI agents.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM | |||||||||||
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices including zip code)
(408 ) 727-1885
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On August 4, 2026 , 8x8, Inc. (the "Company") announced its financial results for the quarter ended June 30, 2026 by issuing a Press Release and Stockholder Letter & Financial Highlights. A copy of each of the Press Release and Stockholder Letter & Financial Highlights is furnished as Exhibit 99.1 and 99.2, respectively, to this report and should be read in conjunction with the statements regarding forward-looking statements, which are included in the text of such exhibits.
The Company makes reference to non-GAAP financial information in the accompanying exhibits. A reconciliation of these non-GAAP financial measures to the GAAP financial measures is contained in the relevant exhibit. We are not able to reconcile forward-looking non-GAAP financial measures because we are unable to predict without unreasonable effort the exact amount or timing of the reconciling items. The variability of these items could have a significant impact on our future GAAP financial results.
The information contained herein and in the accompanying exhibits are furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| Exhibit | Description | |||||||
99.1 | Press release dated August 4, 2026 | |||||||
99.2 | Stockholder Letter & Financial Highlights | |||||||
| 104 | Cover Page Interactive Data File, formatted in Inline XBRL. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 4, 2026
| 8x8, Inc. | ||||||||
| By: /s/ KEVIN KRAUS | ||||||||
| Kevin Kraus | ||||||||
| Chief Financial Officer (Principal Financial Officer) | ||||||||
Exhibit 99.1
8x8, Inc. Reports Record Revenue in First Quarter of Fiscal Year 2027
•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 4, 2026 – 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.
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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 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."
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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.
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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:
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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.
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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.
Media:
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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 | |||||||
7
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 | |||||||
8
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 | |||||||
9
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.
Q1 2027 CEO Letter & Financial Highlights Exhibit 99.2
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 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're encouraged by the progress we're seeing across the business and remain focused on disciplined execution to drive long-term growth and shareholder value. Samuel C. Wilson, Chief Executive Officer Exhibit 99.2
Dear Stockholders, Customers, Partners and Employees, We delivered a strong start to fiscal 2027, with record service revenue, our fifth consecutive quarter of year-over-year revenue growth, and results that exceeded our guidance ranges for revenue, non-GAAP operating margin and operating cash flow. Usage-based revenue grew more than 60% year over year, helping drive service revenue growth of 5% compared to the first quarter of fiscal 2026, and both GAAP and non-GAAP operating profit increased. These results matter not only because of what we delivered in the quarter, but because of what they suggest about the progress of our broader transformation. After several years of investment in the 8x8 Platform, we are beginning to see that work translate into broader customer adoption and improved business performance. What gives me the most confidence is what sits beneath the financial results. Customers are adopting more of the platform, using our AI capabilities in production environments and increasingly recognizing the breadth of what 8x8 can now deliver. Q1 2027 Letter to Stockholders Exhibit 99.2 3
A multi-year transformation This did not begin last quarter, and it is not a new strategy created in response to the recent acceleration in artificial intelligence. Over the past several years, including through the acquisition and integration of Fuze, we accelerated our investments in research and development, product innovation and the underlying infrastructure required to deliver reliable enterprise communications around the world. We strengthened our global voice network, enhanced security, quality and availability, unified more of our communications portfolio, expanded our programmable communications capabilities and built AI directly into the platform. I think of that work in three phases. The first phase was about rebuilding and integrating the foundation: a unified communications platform supported by a high-quality, highly available global voice network with enterprise-grade security and reliability. The second phase was about accelerating innovation on that foundation. We expanded the platform beyond traditional unified communications and contact center capabilities into programmable communications, conversational intelligence, workforce engagement and native AI development. Rather than creating another collection of point products, we designed these capabilities to work together and draw from the same communications infrastructure and interaction data. We are now entering the third phase: translating the platform’s breadth and pace of innovation into broader awareness, adoption and durable growth. Our go-to-market capabilities now need to catch up with how rapidly the portfolio has evolved. When I meet with customers and partners, one comment comes up surprisingly often: “I didn’t know you did that.” As CEO, I find that both gratifying and humbling. It tells me we have built far more capability than many people realize. It also reminds me that innovation alone is not enough. We must make it easier for customers and partners to understand what the 8x8 Platform can do, connect those capabilities to measurable business outcomes and adopt more of the platform over time. That is why our priorities for fiscal 2027 are becoming a truly partner-first organization, improving customer retention and increasing multi-product adoption. Q1 2027 Letter to Stockholders Exhibit 99.2 4
Communications infrastructure for the AI era Artificial intelligence is not making communications less important. It is making communications infrastructure more important. Every AI agent must communicate—with customers, employees, business applications and, increasingly, other AI agents. Voice, messaging, video, contact center interactions and programmable APIs are becoming the interfaces between people and intelligent software. Voice has a particularly important role in that transition. It remains one of the most natural and widely used ways for people to interact, and it will be an essential interface as AI agents become more capable and broadly adopted. Delivering a production-quality voice experience requires more than attaching a language model to an application. It requires reliable communications infrastructure, global connectivity, low latency, orchestration, security and the ability to move an interaction between AI and human resources without losing context. This is where we believe 8x8 is differentiated. The 8x8 Platform brings together unified communications, contact center, programmable communications, conversational data, orchestration and native AI development in a common architecture. An AI agent and a human employee can draw from the same interaction history and operate across the same communications environment. Every conversation can become useful enterprise data, every channel can become programmable and every interaction can become more intelligent. For small and midsized organizations in particular, this matters. These businesses increasingly must compete on customer experience with much larger enterprises, but they often lack comparable IT and development resources. Our goal is to make enterprise-grade communications and AI capabilities accessible without requiring customers to assemble, integrate and maintain a complex collection of vendors. Evidence of growing adoption The most encouraging part of the quarter was seeing customers expand how they use the platform. Customer adoption of our AI solutions, including AI Studio and 8x8 Intelligent Customer Assistant, grew 121% year over year and 68% sequentially. As of the end of July, more than 200 organizations were active in AI Studio, and had built more than 2,900 AI agents. Customers are using these agents in production environments, not simply conducting experiments. Examples include virtual receptionists, multilingual voice assistants, after-hours support, outbound renewal workflows and first-line IT service desks operating across voice, web chat and WhatsApp. One insurance customer built voice agents that remind policyholders to renew and help customers whose coverage has lapsed begin the reinstatement process. Q1 2027 Letter to Stockholders Exhibit 99.2 5
AI Studio is important not only because of its early adoption, but because of what it represents strategically. AI Studio is our agentic AI builder, internally developed and built natively into 8x8 Platform. It enables customers to connect communications channels, business systems, dashboards and analytics into purpose-built applications simply and easily, using natural- language prompts. Customers can build AI agents without adding vendors or consultants, or undertaking a lengthy custom-development project. That levels the playing field for smaller organizations and creates a significant opportunity for our reseller partners. AI Studio can allow a partner to act as a virtual systems integrator—building differentiated applications for individual customers, industries and use cases on top of the 8x8 Platform. Beyond AI, the number of customers using three or more paid 8x8 products increased 18% year over year. These customers now represent approximately 38% of recurring revenue, compared with 35% one year ago. Overall recurring revenue from newer products grew 18% year over year. Those metrics matter because they indicate that customers are increasingly viewing 8x8 as a platform rather than as a provider of a single communications product. Innovation organized around customer outcomes We introduced a broad range of capabilities during the quarter. Rather than viewing them as a list of separate product announcements, I believe they are best understood through the customer outcomes they enable. Making enterprise knowledge accessible Businesses generate valuable information through calls, meetings, email, internal discussions and support interactions, but much of that information remains isolated inside individual applications or departments. 8x8 Pulse is designed to change that. It captures and indexes interactions across calls, meetings, emails and support tickets, turning conversational data into a searchable and actionable source of organizational knowledge. Because it operates on our conversational data foundation, customers can connect communications data with relevant business context while retaining governance, auditability and access controls. Making AI easier to build and deploy We continued rapidly expanding AI Studio with multi-model support, voice-powered agent building, one-click connectors to third-party business applications, conversion of existing phone-tree IVRs into AI workflows and live simultaneous voice translation across multiple languages in early availability. The objective across these capabilities is straightforward: make AI easy to try, build, deploy, manage and pay for. Q1 2027 Letter to Stockholders Exhibit 99.2 6
Customers can select the model best suited to an individual agent, connect agents to systems they already use and build or modify workflows using natural language. A consumption-based model also allows customers to begin incrementally rather than committing to a large implementation before they have demonstrated value. Making every interaction more intelligent 8x8 AI Routing extends intelligent routing beyond the boundaries of the traditional contact center. It can connect a customer with the best-qualified resource across the organization, whether that person is a contact center agent, a subject-matter expert or a back-office employee. It can also work with 8x8 AI Studio, 8x8 Intelligent Customer Assistant, existing IVRs and third-party bots, allowing the routing layer to become more valuable as customers add new channels and capabilities. We also expanded 8x8 Workforce Management, our first product-led growth initiative, with AI- powered quality management, forecasting and scheduling improvements. Adoption of 8x8 Workforce Management within our installed base has more than doubled since the product was announced in November 2025. 8x8 Resolve, currently in closed beta, brings critical communications and incident alerts into the same platform employees use for daily work, while 8x8 Engage extends customer-engagement capabilities to experts and employees outside the formal contact center. These offerings broaden both the range of problems the platform can solve and the number of people within an organization who can contribute to the customer experience. Independent recognition during the quarter reinforced the progress we are making. 8x8 was recognized in the 2026 Gartner® Magic Quadrant™ for Unified Communications as a Service and as a Leader in the Metrigy CCaaS MetriRank 2026. Our unified communications, contact center and retail customer-service innovations also received industry awards. We view this recognition as external validation of both the breadth of the platform and the quality of the innovation taking place across the company. Turning innovation into performance A strong platform does not automatically translate into growth. Commercial execution matters. Our first priority is becoming a truly partner-first organization. Partners expand our reach into geographies, customer segments and industries that would be difficult to address efficiently through direct sales alone. They are also well positioned to create customer-specific and vertical applications using AI Studio and the broader platform. Channel-generated new-business pipeline increased approximately 25% year over year and 8% sequentially during the quarter. We also introduced 8x8 Small Business, a self-service, consumption-based offering developed with our partner community for businesses with fewer than 100 users. It gives direct resell partners greater flexibility to serve smaller customers without fixed seat counts or unnecessary product bundles, with deployment possible in as little as five days. Q1 2027 Letter to Stockholders Exhibit 99.2 7
Our second priority is improving customer satisfaction and retention. Our focus is on engaging customers around outcomes, helping them understand the full breadth of the platform, and giving partners better tools and information to support regular customer business reviews. Our third priority is expanding multi-product adoption. The increase in customers using three or more paid products is an encouraging early indicator, but we believe the opportunity within the installed base remains substantial. Product-led growth, self-enablement and consumption- based pricing should make it easier for customers to discover and adopt additional capabilities without a disruptive replacement project. An expanding opportunity and evolving revenue model The market is increasingly moving toward a higher mix of consumption-based revenue. We view that transition positively. The market for customer engagement through programmable communications and agentic AI interactions is evolving rapidly, creating a -growing opportunity for 8x8. Consumption-based pricing also reduces barriers to adoption. Customers can begin with a defined use case, measure the outcome and expand as value becomes clear. In this model, customer value and our revenue grow together. While this shift can drive higher top-line growth for 8x8, as we have seen in recent quarters, it also results in a higher mix of lower-gross-margin platform usage revenue, resulting in lower gross margin compared to prior periods. However, gross margin alone does not define the economic value of the model. In the first quarter, both GAAP and non-GAAP operating profit increased year over year even as the mix of platform usage revenue increased, providing evidence that revenue growth can produce greater operating profit dollars and cash flow over time. The road ahead We believe we are still in the early stages of one of the most significant technology transitions in decades. As AI becomes embedded in customer interactions, employee workflows and business processes, demand for reliable communications infrastructure, programmable channels, contextual data and intelligent orchestration should continue to grow. I believe 8x8 is well positioned to help shape that future. We have spent several years building a platform that combines a high-quality global voice network, unified communications, contact center, programmable communications, conversational data and native AI development in a way that we believe few companies can match. The next phase is about making sure the market understands what we have built and translating that innovation into broader adoption. The road to our long-term ambition will not always be a straight line. Customer buying patterns will change, technology will continue to advance, our revenue mix will evolve and our execution will matter every quarter. This can lead to variability in short term results. Q1 2027 Letter to Stockholders Exhibit 99.2 8
But if we continue to expand our partner ecosystem, improve retention, increase multi-product adoption and innovate around measurable customer outcomes, we believe we can deliver durable revenue growth, increasing operating profit and cash flow over time. Ultimately, that is what gives me confidence in our future. Our responsibility as management is not to optimize for a single quarter. It is to build an enduring company that creates increasing value for customers, partners, employees and shareholders over many years. We believe the investments we have made, the strategy we are executing and the opportunity ahead position us to do exactly that. Thank you to our customers for their trust, to our partners for their collaboration and to our employees for their commitment and execution. Samuel Wilson Chief Executive Officer Q1 2027 Letter to Stockholders Exhibit 99.2 9
We continue to execute against a financial model designed to support long- term value creation. As customers increasingly adopt our usage-based communications and AI solutions, revenue mix will continue to evolve. While our platform usage offerings carry a lower 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. Kevin Kraus, Chief Financial Officer Q1 2027 Letter to Stockholders Exhibit 99.2 10
Financial Highlights Our financial performance in the first quarter reflected continued disciplined execution and the strength of our evolving business model. We delivered our fifth consecutive quarter of year-over-year revenue growth, exceeded our guidance for service revenue, total revenue, operating profit and cash flow from operations, and generated earnings per share at the high end of our guidance range. We also extended our track record of financial discipline, generating positive non-GAAP operating profit and cash flow from operations in every quarter for more than five years. Reflecting our strong start to the year and confidence in our business trends, we raised our full-year revenue outlook while maintaining our non- GAAP operating income and cash flow expectations. As we discussed last quarter, we are intentionally leaning into the fastest-growing areas of the communications market, including our usage-based CPaaS and AI offerings. While this ongoing shift in revenue mix moderates consolidated gross margin percentage, these solutions expand our addressable market and generate meaningful operating income and cash flow as they scale. We again increased operating profit year-over-year while continuing to strengthen our balance sheet and reduce debt, demonstrating our ability to expand operating income even as our revenue mix continues to evolve. We remain focused on growing operating income dollars, generating strong cash flow and creating long-term shareholder value through disciplined execution and thoughtful investment in our highest-growth opportunities. Q1 2027 Letter to Stockholders Exhibit 99.2 11
Revenue & Business Performance We delivered record service and total revenue, driven by 63% year-over year growth in platform usage revenue. • Total Revenue reached $190.2 million, an increase of 5% year-over-year. • Record Service Revenue of $185.3 million, an increase of 5% year-over-year, driven by strength in our usage-based offerings. • Platform usage revenue, which includes our CPaaS programmable APIs, digital channels, and AI- based solutions, represented approximately 26% of total service revenue, up from 17% in Q1 last year. Revenue Service Revenue (US $ millions) $176 $180 $185 Q1 2026 Q4 2026 Q1 2027 Total Revenue (US $ millions) $181 $185 $190 Q1 2026 Q4 2026 Q1 2027 Profitability & Margin The shift in mix to lower-gross-margin platform usage revenue resulted in a lower gross margin compared to the first quarter of fiscal 2026. The decline in gross margin % was offset by lower operating expenses, and both GAAP and non-GAAP operating profit increased year over year. • GAAP Gross Profit was $116.4 million, or 61.2% of revenue, compared to gross profit of $120.4 million, or 66.4% of revenue, in the first quarter of fiscal 2026. • Non-GAAP Gross Profit was $117.2 million, or 61.6% of revenue, compared to non-GAAP gross profit of $123.0 million, or 67.8% of revenue, in the first quarter of fiscal 2026. The year-over-year decline in gross profit reflected a higher mix of platform usage revenue. • GAAP Operating Income was $4.4 million, or 2.3% of revenue, and positive for the seventh consecutive quarter. • Non-GAAP Operating Income of $18.9 million, or 9.9% of revenue, increased year-over-year and exceeded the high end of our guidance range. Q1 2027 Letter to Stockholders Exhibit 99.2 12
Non-GAAP Gross Margins1 70.6% 66.8% 63.9%67.8% 64.2% 61.6% Service Gross Margin Total Gross Margin Q1 2026 Q4 2026 Q1 2027 Non-GAAP Operating Expenses and Total Costs1,2,3 58.8% 53.5% 51.7% 91.0% 89.3% 90.1% Non-GAAP Operating Expenses Total Costs Q1 2026 Q4 2026 Q1 2027 Non-GAAP Operating Income and Margin1 Non-GAAP Operating Income (US $ millions) $16 $20 $19 Q1 2026 Q4 2026 Q1 2027 Non-GAAP Operating Margin (% of revenue) 9.0% 10.7% 9.9% Q1 2026 Q4 2026 Q1 2027 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. 2. Non-GAAP Operating Expenses includes non-GAAP R&D, Sales and Marketing, and G&A expenses, but does not include non-GAAP Cost of Total Revenue (“COGS”). 3. Non-GAAP Total Costs is defined as Non-GAAP Operating Expenses plus Non-GAAP Cost of Total Revenue (“COGS”). Q1 2027 Letter to Stockholders Exhibit 99.2 13
Operating Cash Flow and Cash Balance • Cash Flow from Operations was $17.0 million, marking the 22nd consecutive quarter of positive cash flow. • Trailing twelve month cash flow was $60.9 million. • Cash, cash equivalents and restricted cash totaled $92.3 million on June 30, 2026. Capital Allocation • Stockholders equity increased to $147.8 million, up 15% from the end of Q1 2026, reflecting positive GAAP operating income and operating cash flow, as well as continued repayments of outstanding principal on the 2024 Term Loan. • The Company made a $14.5 million pre-payment of principal on the 2024 Term Loan, bringing the remaining principal amount outstanding on the term loan to $107.5 million on June 30, 2026. Total debt outstanding at quarter end, including the 2028 Convertible Notes, was $309.4 million. Since August 2022, the Company has reduced total debt outstanding by $239 million (or ~44%). Ending Principal Amount Outstanding by Quarter ($ millions) $500.0 $500.0 $548.1 $542.1 $520.2 $515.2 $490.2 $490.2 $490.2 $426.9 $426.9 $401.9 $368.9 $353.9 $338.9 $328.9 $323.9 $323.9 $309.4 $500.0 $500.0 $96.2 $90.2 $68.3 $63.3 $63.3 $63.3 $63.3 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $201.9 $250.0 $250.0 $250.0 $250.0 $225.0 $225.0 $225.0 $225.0 $225.0 $200.0 $167.0 $152.0 $137.0 $127.0 $122.0 $122.0 $107.5 2024 Notes 2028 Notes 2022 Term Loan 2024 Term Loan Q4'22 Q1'23 Aug'22 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Q4’26 Q1’27 $— $200.0 $400.0 $600.0 Q1 2027 Letter to Stockholders Exhibit 99.2 14
Forward-Looking Statements: This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," “opportunity,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements about: our future financial performance, including revenue, margins, and operating expenses; trends in our business and the technology industry; the sufficiency of our cash, cash equivalents, investments, and operating cash flows to meet our liquidity needs; our ability to service our debt or secure additional debt; our market position, opportunity, and growth strategy; our ability to compete successfully; our product strategy, innovation efforts and evolving artificial intelligence ("AI") capabilities; our ability to operate under evolving macroeconomic conditions, including geopolitical conflicts, tariffs, inflationary pressures, and currency volatility; our ability to attract and retain customers; our ability to expand into new markets and internationally; our ability to manage growth and future expenses; and the impact of recent accounting pronouncements on our consolidated financial statements. 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 our Form 10-K for the fiscal year ending March 31, 2026 filed by 8x8, Inc. with the Securities and Exchange Commission as well as our other filings. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. 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 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, certain severance and transition and contract exit costs from Operating Profit (Loss). 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. Q1 2027 Letter to Stockholders Exhibit 99.2 15
Reconciliation of GAAP To Non-GAAP Financial Measures (Unaudited, in thousands) Three Months Ended 6/30/2026 3/31/2026 6/30/2025 Cost of Revenue GAAP cost of service revenue $ 67,635 $ 61,566 $ 53,822 Amortization of acquired intangible assets (514) (514) (507) Stock-based compensation expense and related employer payroll taxes (201) (377) (582) Transaction-related costs (33) — — Severance, transition and contract exit costs 91 (824) (944) Non-GAAP cost of service revenue $ 66,978 $ 59,851 $ 51,789 GAAP service revenue profit $ 117,711 $ 118,609 $ 122,486 Non-GAAP service revenue profit $ 118,368 $ 120,324 $ 124,519 GAAP cost of other revenue $ 6,164 $ 6,627 $ 7,099 Stock-based compensation expense and related employer payroll taxes (84) (79) (147) Severance, transition and contract exit costs (105) (88) (353) Non-GAAP cost of other revenue $ 5,975 $ 6,460 $ 6,599 GAAP other revenue loss $ (1,340) $ (1,556) $ (2,046) Non-GAAP other revenue loss $ (1,151) $ (1,389) $ (1,546) GAAP gross profit $ 116,371 $ 117,053 $ 120,440 Non-GAAP gross profit $ 117,217 $ 118,935 $ 122,973 Operating Profit GAAP income from operations $ 4,379 $ 3,330 $ 565 Amortization of acquired intangible assets 3,835 3,616 3,501 Stock-based compensation expense and related employer payroll taxes 4,305 4,903 6,909 Transaction-related expenses 2,517 3,249 — Legal and regulatory costs 566 648 835 Severance, transition and contract exit costs 3,285 4,018 4,523 Non-GAAP operating profit $ 18,887 $ 19,764 $ 16,333 Q1 2027 Letter to Stockholders Exhibit 99.2 16
Q1 2027 Letter to Stockholders Exhibit 99.2 Copyright 2026 8x8, Inc. or its affiliates. All rights reserved.