Profit milestone as 8x8 (NASDAQ: EGHT) grows AI usage revenue
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
8x8 reported a profitable fiscal 2026 with modest growth and rising AI-driven usage revenue. Total revenue rose 3% to $735.8 million, and service revenue grew 3% to $715.3 million. The company achieved GAAP operating income of $18.9 million and GAAP net income of $1.6 million, compared with a net loss a year earlier.
Non-GAAP operating profit was $75.1 million, while cash from operations was $55.8 million. In Q4, revenue increased 5% year over year to $185.2 million, and usage-based revenue grew more than 70%, reaching about 23% of service revenue. 8x8 ended March 31, 2026 with $95.0 million in cash and $323.9 million of debt, having reduced total debt from prior years.
For fiscal 2027, management guides to total revenue of $727–$747 million, non-GAAP operating margin of 9–10%, non-GAAP diluted EPS of $0.33–$0.38, and operating cash flow of $45–$52 million, reflecting an ongoing mix shift toward usage-based and AI-related services.
Positive
- Return to GAAP profitability and stronger earnings: Fiscal 2026 GAAP net income was $1.6 million versus a $27.2 million loss in 2025, while non-GAAP net income increased to $57.5 million from $48.3 million, indicating a meaningful improvement in underlying profitability.
- Rapid growth in AI- and API-linked usage revenue: Usage-based revenue grew more than 50% year-over-year for fiscal 2026 and over 70% in Q4, rising from about 14% to 23% of service revenue, highlighting traction in higher-growth, AI-driven products.
- Debt reduction and ongoing cash generation: Total debt stood at $323.9 million at March 31, 2026 and has been cut by roughly 41% since an August 2022 peak of $548 million, supported by positive operating cash flow of $55.8 million in fiscal 2026 and 21 consecutive positive quarters.
Negative
- None.
Insights
8x8 turned GAAP-profitable and grew usage-based, AI-linked revenue, while guiding to sustained margins and cash generation.
8x8 delivered a strategic inflection in fiscal 2026: total revenue grew 3% to $735.8 million, and GAAP net income swung from a $27.2 million loss to a $1.6 million profit. Non-GAAP operating profit of $75.1 million shows the underlying business now consistently generates earnings.
Growth is increasingly driven by usage-based offerings tied to communications APIs, AI solutions, and digital channels. In Q4, total revenue rose 5% year over year to $185.2 million, while usage-based revenue exceeded 70% growth and reached roughly 23% of service revenue, up from 14% a year earlier. This mix supports scalability but pressures gross margin, which declined to 63.2% GAAP in Q4.
Management reduced total debt to $323.9 million at March 31, 2026 and later prepaid additional term loan principal, signaling balance sheet repair alongside profitability. Fiscal 2027 guidance for revenue of $727–$747 million, non-GAAP operating margin of 9–10%, and operating cash flow of $45–$52 million suggests a focus on stable growth and cash, with execution depending on continued AI and usage-based adoption.
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
FY 2026 total revenue: $735.8 million
FY 2026 GAAP net income: $1.6 million
Q4 2026 total revenue: $185.2 million
+5 more
8 metrics
FY 2026 total revenue
$735.8 million
Fiscal year 2026, up 3% vs fiscal 2025
FY 2026 GAAP net income
$1.6 million
Versus $27.2 million GAAP net loss in fiscal 2025
Q4 2026 total revenue
$185.2 million
Fourth quarter fiscal 2026, 5% year-over-year growth
Q4 2026 usage-based revenue mix
23% of service revenue
Up from approximately 14% in Q4 fiscal 2025
FY 2026 operating cash flow
$55.8 million
Cash provided by operating activities in fiscal 2026
Cash balance
$95.0 million
Cash, cash equivalents and restricted cash at March 31, 2026
Debt outstanding
$323.9 million
Total principal amount of debt at March 31, 2026
FY 2027 revenue guidance
$727–$747 million
Fiscal year 2027 total revenue outlook
Key Terms
usage-based revenue, non-GAAP operating margin, Adjusted EBITDA, CPaaS APIs, +2 more
6 terms
usage-based revenue financial
"Usage-based revenue, which includes communication APIs, AI solutions, digital channels, and usage-based telecom services, grew more than 70% year-over-year in the fourth quarter"
non-GAAP operating margin financial
"Non-GAAP operating margin in the range of approximately 8.5% to 9.5%"
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, amortization of capitalized internal-use software costs, and other income, net from non-GAAP net income"
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.
CPaaS APIs technical
"Usage-based revenue, which includes our CPaaS APIs, digital channels, and AI-based solutions, represented approximately 23% of total service revenue"
agentic AI technical
"we introduced native agentic AI capabilities through AI Studio, enabling customers to build and deploy AI-powered voice and digital agents"
Agentic AI refers to computer systems that can make their own decisions and take actions without needing someone to tell them what to do each time. It's like giving a robot a degree of independence to solve problems or achieve goals on its own, which matters because it could change how we work and interact with technology in everyday life.
communication APIs technical
"More than 5 billion digital interactions flowed across 8x8 communication APIs during fiscal 2026"
Communication APIs are software tools that let apps and systems send and receive phone calls, text messages, video, chat and notifications by connecting to telecom and messaging networks. They matter to investors because they let businesses add or scale customer contact features quickly and cheaply, affect user engagement and recurring revenue potential, and can change cost structure or compliance risk—think of them as a universal socket that plugs applications into real‑world communication channels.
Earnings Snapshot
Q4 2026 total revenue: $185.2 million · Guidance included
Q4 2026 and fiscal year 2026
Q4 2026 total revenue
$185.2 million
+5% year-over-year
FY 2026 total revenue
$735.8 million
+3% year-over-year
FY 2026 GAAP net income
$1.6 million
versus $27.2 million loss in fiscal 2025
Q4 2026 non-GAAP operating income
$19.8 million
up from $17.7 million in Q4 fiscal 2025
Guidance
For fiscal 2027, 8x8 guides to total revenue of $727–$747 million, non-GAAP operating margin of 9–10%, non-GAAP diluted EPS of $0.33–$0.38, and operating cash flow of $45–$52 million.
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 May 19, 2026 , 8x8, Inc. (the "Company") issued a press release announcing its financial results for the quarter and fiscal year ended March 31, 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 (the "Exchange Act"), 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 May 19, 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: May 19, 2026
| 8x8, Inc. | ||||||||
| By: /s/ KEVIN KRAUS | ||||||||
| Kevin Kraus | ||||||||
| Chief Financial Officer (Principal Financial Officer) | ||||||||
Exhibit 99.1
8x8, Inc. Reports Fourth Quarter and Fiscal Year 2026 Financial Results
•Record fourth quarter and full-year service revenue, with four consecutive quarters of year-over-year revenue growth
•Fiscal 2026 usage-based revenue grew more than 50% year-over-year and fourth quarter usage-based revenue grew more than 70% year-over-year
•Achieved GAAP profitability for the quarter and full fiscal year, while strengthening balance sheet and reducing debt
•Introduced native agentic AI capabilities with AI Studio, launched general availability of 8x8 EngageTM, and added support for OpenAI's latest real-time voice model
CAMPBELL, Calif., May 19, 2026 – 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the fourth quarter and fiscal year 2026 ended March 31, 2026.
“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. “As AI reshapes enterprise communications, organizations require open, integrated platforms capable of orchestrating trusted interactions across voice, messaging, APIs, workflows, and AI-driven engagement at global scale.
“AI is changing the architecture and economics of customer engagement in real time,” Wilson continued. “The challenge is delivering interactions that are trusted, intelligent, seamless, and scalable across both human and AI-driven engagement. More than 5 billion digital interactions flowed across 8x8 communication APIs during fiscal 2026, and that scale, combined with our global communications infrastructure and open AI architecture, positions us favorably for the next generation of customer engagement. Customers do not want to be locked into yesterday’s AI model or a closed ecosystem. They want agile, open platforms that can evolve as quickly as innovation itself while helping them deliver better customer experiences, build trust, and strengthen customer loyalty. This is what we are building.”
Fiscal Year 2026 Financial Results:
•Total revenue increased 3% to $735.8 million, compared to $715.1 million in fiscal 2025.
•Service revenue increased 3% to $715.3 million, compared to $692.9 million in fiscal 2025.
•GAAP operating income was $18.9 million, an increase of 25% compared to GAAP operating income of $15.2 million in fiscal 2025.
•Non-GAAP operating profit was $75.1 million, a decrease of 4% compared to non-GAAP operating profit of $78.4 million in fiscal 2025.
•GAAP net income was $1.6 million, compared to GAAP net loss of $27.2 million in fiscal 2025.
•Non-GAAP net income was $57.5 million, compared to non-GAAP net income of $48.3 million in fiscal 2025.
•Cash provided by operating activities was $55.8 million, compared to $63.6 million in fiscal 2025.
Fourth Quarter Fiscal 2026 Financial Results:
•Total revenue increased 5% to $185.2 million, compared to $177.0 million in the fourth quarter of fiscal 2025.
•Service revenue increased 5% to $180.2 million, compared to $171.6 million in the fourth quarter of fiscal 2025.
•GAAP gross margin was 63%, compared to 68% in the same period last year. Non-GAAP gross margin was 64%, compared to 69% in the same period last year.
•GAAP operating income was $3.3 million, compared to GAAP operating income of $0.4 million in the fourth quarter of fiscal 2025.
•Non-GAAP operating income was $19.8 million, compared to non-GAAP operating income of $17.7 million in the fourth quarter of fiscal 2025.
•GAAP net income was $0.1 million, compared to GAAP net loss of $5.4 million in the fourth quarter of fiscal 2025.
•Non-GAAP net income was $16.6 million, compared to non-GAAP net income of $11.3 million in the fourth quarter of fiscal 2025.
•Cash provided by operating activities was $14.4 million for the fourth quarter of fiscal 2026, compared to $5.9 million in the same period last year.
•Cash, cash equivalents, and restricted cash were $95.0 million on March 31, 2026, compared to $89.3 million on March 31, 2025. The cash, cash equivalents, and restricted cash balance on March 31, 2026 reflects principal payments of $30.0 million on the Term Loan during fiscal 2026.
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•Total principal amount of debt outstanding on March 31, 2026 was $323.9 million, compared to $353.9 million at the end of fiscal 2025.
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 closing the operational gaps that most commonly stall CX and IT teams with new capabilities added to the 8x8 Platform for CX. Recent innovations include:
•8x8 AI Studio, a modern AI development environment now in early availability, lets organizations use natural language to build, test, deploy, and manage AI agents and agentic workflows natively on the 8x8 Platform on the channels they already use, without new infrastructure or additional vendors.
•8x8 Integration SDK, Now Generally Available: Technology partners and customers can build, deploy, and scale CRM integrations – including homegrown and industry-specific platforms – directly into the 8x8 Platform without requiring a standard professional services engagement.
•New Dashboards in 8x8 Work Analytics: IT teams gain live visibility into call queues, call quality, unreturned calls, and device health, replacing static reports that surfaced problems after the fact.
•8x8 EngageTM, Now Generally Available: a purpose-built solution that extends CX-grade tools, AI-powered insights, and unified voice and digital engagement to customer-facing teams outside the contact center.
•8x8 Focus Time Metrics: When agents handle multiple simultaneous digital interactions, supervisors have no reliable way to know where attention is going. Focus Time Metrics tracks how agents distribute focus across concurrent conversations, including duration and frequency per interaction, so supervisors can coach on actual behavior and staff appropriately for digital volume.
•8x8 Silent Mobile Authentication, Now Generally Available: Verifies users in the background using carrier network intelligence via GSMA Open Gateway; no code to enter, no step to complete. Reduces login abandonment and credential exposure, and addresses vulnerabilities one-time passcodes cannot, including SIM-swap and phishing. Available globally through 8x8's carrier network.
Industry Recognition
•Won Gold in the User Experience (UX) - Product UX category at the 2026 New York Product Design Awards for 8x8 Engage.
•Recognized across five categories in the 24th Annual American Business Awards, including Gold Stevie Awards for Customer Service Team of the Year and Achievement in Management, Telecommunications. In the past three years, 8x8 has been recognized with 21 Stevie Awards.
•Named a Leader in the IDC MarketScape: Worldwide Communications Engagement Platform 2026 Vendor Assessment.
•Named a Leader in the Omdia Universe: Customer Engagement Platforms, 2026.
•8x8 was named a Strong Performer in the Gartner® Peer Insights™ “Voice of the Customer” for Unified Communications as a Service.
•Named a Metrigy 2026 MetriStar Top Provider winner for both CCaaS and CPaaS Platforms.
•Chief Marketing Officer Bruno Bertini won Gold in the Noble Awards in the category of Executives & Professionals - Outstanding Chief Marketing Officer (CMO).
First Quarter and Fiscal 2027 Financial Outlook
Management provides expected ranges for total revenue, service revenue, non-GAAP operating margin, non-GAAP net income per share, diluted, and cash flow from operations 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 "Forward-Looking Statements" below.
"Our guidance reflects both the macro and geopolitical uncertainty in the current environment and a continued mix shift toward usage-based revenue, the part of our business tied to AI adoption and communications APIs, where customer demand is strongest,” said Kevin Kraus, Chief Financial Officer at 8x8, Inc. “We expect this shift to continue and we are actively working to expand gross margins within this portfolio. As the usage business scales, we believe it supports our ability to grow operating income in dollars and strengthen cash flow over time.”
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First Quarter Fiscal 2027 Ending June 30, 2026
•Service revenue in the range of $175 million to $180 million.
•Total revenue in the range of $180 million to $185 million.
•Non-GAAP gross margin in the range of approximately 63.5% to 64.5%.
•Non-GAAP operating margin in the range of approximately 8.5% to 9.5%.
•Interest expense of approximately $3.9 million.
•Cash interest of approximately $1.8 million.
•Non-GAAP net income per share, diluted, in the range of $0.08 to $0.09, based on a fully-diluted weighted-average share count of approximately 147 million shares.
•Cash flow from operations in the range of $10 million to $12 million.
Fiscal Year 2027 Ending March 31, 2027
•Service revenue in the range of $707 million to $727 million.
•Total revenue in the range of $727 million to $747 million.
•Non-GAAP gross margin in the range of 62.5% to 63.5%.
•Non-GAAP operating margin in the range of 9.0% to 10.0%.
•Non-GAAP net income per share, diluted, in the range of $0.33 and $0.38, based on a fully-diluted weighted-average share count of approximately 150 million shares.
•Cash flow from operations between $45 million and $52 million.
The Company does not reconcile its forward-looking estimates of 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 common stock, 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 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.
All projections are on a non-GAAP basis. Additionally, our increased emphasis on profitability and cash flow generation may not be successful. The reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we don't anticipate and may not achieve the desired outcome.
Conference Call Information:
Management will host a conference call to discuss earnings results on May 19, 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/BIe9ccfd2c6e5440d8a50b7474cb3f76cc
•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 Communication, 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.
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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 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, including voice, contact center, video, messaging, and communication application programming interfaces, as well as our competitors' use of AI, in which we compete, 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. Our increased emphasis on profitability and cash flow generation may not be successful; and the reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we do not anticipate and may not achieve the desired outcome.
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, Inc. 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, 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
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, certain legal and regulatory 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, certain legal and regulatory costs, 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 or loss on remeasurement of warrants, and other income. Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation, amortization of capitalized internal-use software costs, and other 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. They 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 its 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 of its 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.
8x8, Inc.
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6
8X8, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share amounts)
| Three Months Ended March 31, | Years Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Service revenue | $ | 180,175 | $ | 171,588 | $ | 715,259 | $ | 692,923 | |||||||||||||||
| Other revenue | 5,071 | 5,455 | 20,493 | 22,147 | |||||||||||||||||||
| Total revenue | 185,246 | 177,043 | 735,752 | 715,070 | |||||||||||||||||||
| Cost of service revenue | 61,566 | 49,818 | 232,602 | 200,094 | |||||||||||||||||||
| Cost of other revenue | 6,627 | 7,173 | 28,101 | 29,704 | |||||||||||||||||||
| Total cost of revenue | 68,193 | 56,991 | 260,703 | 229,798 | |||||||||||||||||||
| Gross profit | 117,053 | 120,052 | 475,049 | 485,272 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 29,510 | 29,950 | 112,983 | 123,211 | |||||||||||||||||||
| Sales and marketing | 59,872 | 66,844 | 252,404 | 264,461 | |||||||||||||||||||
| General and administrative | 24,341 | 22,839 | 90,724 | 82,407 | |||||||||||||||||||
| Total operating expenses | 113,723 | 119,633 | 456,111 | 470,079 | |||||||||||||||||||
| Income from operations | 3,330 | 419 | 18,938 | 15,193 | |||||||||||||||||||
| Interest expense | (4,368) | (5,153) | (17,765) | (28,856) | |||||||||||||||||||
| Other income (expense), net | 1,010 | (200) | 2,353 | (10,400) | |||||||||||||||||||
| Income (loss) before provision for income taxes | (28) | (4,934) | 3,526 | (24,063) | |||||||||||||||||||
| Provision (benefit) for income taxes | (134) | 467 | 1,878 | 3,149 | |||||||||||||||||||
| Net income (loss) | $ | 106 | $ | (5,401) | $ | 1,648 | $ | (27,212) | |||||||||||||||
| Net income (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 0.00 | $ | (0.04) | $ | 0.01 | $ | (0.21) | |||||||||||||||
| Diluted | $ | 0.00 | $ | (0.04) | $ | 0.01 | $ | (0.21) | |||||||||||||||
| Weighted average number of shares: | |||||||||||||||||||||||
| Basic | 140,141 | 132,877 | 137,669 | 129,767 | |||||||||||||||||||
| Diluted | 145,399 | 132,877 | 142,629 | 129,767 | |||||||||||||||||||
| Comprehensive income (loss) | |||||||||||||||||||||||
| Net income (loss) | $ | 106 | $ | (5,401) | $ | 1,648 | $ | (27,212) | |||||||||||||||
| Unrealized gain (loss) on investments in securities | — | — | — | (5) | |||||||||||||||||||
| Foreign currency translation adjustment | (2,226) | 3,759 | 2,907 | 2,447 | |||||||||||||||||||
| Comprehensive income (loss) | $ | (2,120) | $ | (1,642) | $ | 4,555 | $ | (24,770) | |||||||||||||||
7
8X8, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
| March 31, 2026 | March 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 93,260 | $ | 88,050 | |||||||
| Restricted cash | 1,702 | 462 | |||||||||
| Accounts receivable, net | 57,004 | 49,680 | |||||||||
| Deferred contract acquisition costs | 25,193 | 30,935 | |||||||||
| Other current assets | 32,650 | 34,739 | |||||||||
| Total current assets | 209,809 | 203,866 | |||||||||
| Property and equipment, net | 45,821 | 47,919 | |||||||||
| Operating lease, right-of-use assets | 26,672 | 33,508 | |||||||||
| Intangible assets, net | 57,589 | 67,949 | |||||||||
| Goodwill | 276,372 | 271,530 | |||||||||
| Restricted cash, non-current | — | 812 | |||||||||
| Deferred contract acquisition costs, non-current | 34,562 | 44,239 | |||||||||
| Other assets, non-current | 11,996 | 13,354 | |||||||||
| Total assets | $ | 662,821 | $ | 683,177 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 36,714 | $ | 45,773 | |||||||
| Accrued and other liabilities | 69,867 | 63,025 | |||||||||
| Operating lease liabilities | 10,357 | 11,102 | |||||||||
| Deferred revenue | 36,699 | 37,751 | |||||||||
| Term loan, current | 39,218 | 11,593 | |||||||||
| Total current liabilities | 192,855 | 169,244 | |||||||||
| Operating lease liabilities, non-current | 39,100 | 49,196 | |||||||||
| Deferred revenue, non-current | 181 | 706 | |||||||||
| Convertible senior notes, non-current | 199,830 | 198,790 | |||||||||
| Term loan | 82,431 | 139,581 | |||||||||
| Other liabilities, non-current | 1,815 | 3,456 | |||||||||
| Total liabilities | 516,212 | 560,973 | |||||||||
| Stockholders' equity: | |||||||||||
Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of March 31, 2026 and 2025 | — | — | |||||||||
Common stock: $0.001 par value, 300,000 shares authorized, 141,164 shares and 134,355 shares issued and outstanding at March 31, 2026 and 2025, respectively | 141 | 134 | |||||||||
| Additional paid-in capital | 1,038,745 | 1,018,902 | |||||||||
| Accumulated other comprehensive loss | (6,204) | (9,111) | |||||||||
| Accumulated deficit | (886,073) | (887,721) | |||||||||
| Total stockholders' equity | 146,609 | 122,204 | |||||||||
| Total liabilities and stockholders' equity | $ | 662,821 | $ | 683,177 | |||||||
8
8X8, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Years Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 1,648 | $ | (27,212) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation | 6,609 | 7,387 | |||||||||
| Amortization of intangible assets | 14,203 | 19,104 | |||||||||
| Amortization of capitalized internal-use software costs | 11,456 | 12,729 | |||||||||
| Amortization of debt discount and issuance costs | 1,369 | 2,466 | |||||||||
| Amortization of deferred contract acquisition costs | 33,082 | 37,977 | |||||||||
| Allowance for credit losses | (438) | 1,843 | |||||||||
| Operating lease expense, net of accretion | 10,868 | 11,631 | |||||||||
| Stock-based compensation expense | 20,370 | 39,940 | |||||||||
| Loss on debt extinguishment | 147 | 12,325 | |||||||||
| Gain on remeasurement of warrants | (864) | (2,225) | |||||||||
| Other | (185) | (346) | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable, net | (5,771) | 7,845 | |||||||||
| Deferred contract acquisition costs | (17,108) | (23,988) | |||||||||
| Other current and non-current assets | (450) | (7,617) | |||||||||
| Accounts payable and accrued liabilities | (17,357) | (24,810) | |||||||||
| Deferred revenue | (1,793) | (3,495) | |||||||||
| Net cash provided by operating activities | 55,786 | 63,554 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (3,675) | (2,401) | |||||||||
| Capitalized internal-use software costs | (12,302) | (11,066) | |||||||||
| Purchase of cost investment | — | (771) | |||||||||
| Maturities of investments | — | 1,048 | |||||||||
| Business combination, net of cash acquired | (4,757) | (3,234) | |||||||||
| Net cash used in investing activities | (20,734) | (16,424) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of common stock under employee stock plans | 2,829 | 3,692 | |||||||||
| Repurchase of common stock | (1,848) | — | |||||||||
| Payments for debt issuance and amendment costs | (70) | (1,517) | |||||||||
| Repayment of principal on term loan | (30,000) | (273,000) | |||||||||
| Gross proceeds from term loan | — | 200,000 | |||||||||
| Other financing activities | (1,351) | (4,281) | |||||||||
| Net cash used in financing activities | (30,440) | (75,106) | |||||||||
| Effect of exchange rate changes on cash | 1,026 | 577 | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 5,638 | (27,399) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of year | 89,324 | 116,723 | |||||||||
| Cash, cash equivalents and restricted cash, end of year | $ | 94,962 | $ | 89,324 | |||||||
9
8X8, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
| Three Months Ended | Years Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP cost of service revenue (as a percentage of service revenue) | $ | 61,566 | 34.2% | $ | 49,818 | 29.0% | $ | 232,602 | 32.5% | $ | 200,094 | 28.9% | |||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | (514) | (824) | (2,048) | (7,176) | |||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense and related employer payroll taxes | (377) | (759) | (1,852) | (4,454) | |||||||||||||||||||||||||||||||||||||||||||
| Legal and regulatory costs | — | — | — | 55 | |||||||||||||||||||||||||||||||||||||||||||
| Severance, transition and contract exit costs | (824) | (81) | (1,875) | (655) | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP cost of service revenue (as a percentage of service revenue) | $ | 59,851 | 33.2% | $ | 48,154 | 28.1% | $ | 226,827 | 31.7% | $ | 187,864 | 27.1% | |||||||||||||||||||||||||||||||||||
| GAAP service revenue margin (as a percentage of service revenue) | $ | 118,609 | 65.8% | $ | 121,770 | 71.0% | $ | 482,657 | 67.5% | $ | 492,829 | 71.1% | |||||||||||||||||||||||||||||||||||
| Non-GAAP service revenue margin (as a percentage of service revenue) | $ | 120,324 | 66.8% | $ | 123,434 | 71.9% | $ | 488,432 | 68.3% | $ | 505,059 | 72.9% | |||||||||||||||||||||||||||||||||||
| GAAP cost of other revenue (as a percentage of other revenue) | $ | 6,627 | 130.7% | $ | 7,173 | 131.5% | $ | 28,101 | 137.1% | $ | 29,704 | 134.1% | |||||||||||||||||||||||||||||||||||
| Stock-based compensation expense and related employer payroll taxes | (79) | (218) | (397) | (1,213) | |||||||||||||||||||||||||||||||||||||||||||
| Legal and regulatory costs | — | — | — | 62 | |||||||||||||||||||||||||||||||||||||||||||
| Severance, transition and contract exit costs | (88) | (195) | (1,533) | (581) | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP cost of other revenue (as a percentage of other revenue) | $ | 6,460 | 127.4% | $ | 6,760 | 123.9% | $ | 26,171 | 127.7% | $ | 27,972 | 126.3% | |||||||||||||||||||||||||||||||||||
| GAAP other revenue margin (as a percentage of other revenue) | $ | (1,556) | (30.7)% | $ | (1,718) | (31.5)% | $ | (7,608) | (37.1)% | $ | (7,557) | (34.1)% | |||||||||||||||||||||||||||||||||||
| Non-GAAP other revenue margin (as a percentage of other revenue) | $ | (1,389) | (27.4)% | $ | (1,305) | (23.9)% | $ | (5,678) | (27.7)% | $ | (5,825) | (26.3)% | |||||||||||||||||||||||||||||||||||
| GAAP gross margin (as a percentage of total revenue) | $ | 117,053 | 63.2% | $ | 120,052 | 67.8% | $ | 475,049 | 64.6% | $ | 485,272 | 67.9% | |||||||||||||||||||||||||||||||||||
| Non-GAAP gross margin (as a percentage of total revenue) | $ | 118,935 | 64.2% | $ | 122,129 | 69.0% | $ | 482,754 | 65.6% | $ | 499,234 | 69.8% | |||||||||||||||||||||||||||||||||||
| Operating Profit: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP income from operations (as a percentage of total revenue) | $ | 3,330 | 1.8% | $ | 419 | 0.2% | $ | 18,938 | 2.6% | $ | 15,193 | 2.1% | |||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 3,616 | 3,808 | 14,203 | 19,104 | |||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense and related employer payroll taxes | 4,903 | 8,615 | 22,037 | 41,822 | |||||||||||||||||||||||||||||||||||||||||||
| Transaction-related costs | 3,249 | 541 | 3,445 | 1,101 | |||||||||||||||||||||||||||||||||||||||||||
Legal and regulatory costs(1) | 648 | 102 | 3,127 | (9,365) | |||||||||||||||||||||||||||||||||||||||||||
| Severance, transition and contract exit costs | 4,018 | 4,226 | 13,330 | 10,592 | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP operating profit (as a percentage of total revenue) | $ | 19,764 | 10.7% | $ | 17,711 | 10.0% | $ | 75,080 | 10.2% | $ | 78,447 | 11.0% | |||||||||||||||||||||||||||||||||||
| Net Income (Loss): | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) (as a percentage of total revenue) | $ | 106 | 0.1% | $ | (5,401) | (3.1)% | $ | 1,648 | 0.2% | $ | (27,212) | (3.8)% | |||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 3,616 | 3,808 | 14,203 | 19,104 | |||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense and related employer payroll taxes | 4,903 | 8,615 | 22,037 | 41,822 | |||||||||||||||||||||||||||||||||||||||||||
| Transaction-related costs | 3,249 | 541 | 3,445 | 1,101 | |||||||||||||||||||||||||||||||||||||||||||
Legal and regulatory costs(1) | 648 | 102 | 3,127 | (9,365) | |||||||||||||||||||||||||||||||||||||||||||
| Severance, transition and contract exit costs | 4,018 | 4,226 | 13,330 | 10,592 | |||||||||||||||||||||||||||||||||||||||||||
| Amortization of debt discount and issuance cost | 310 | 321 | 1,369 | 2,466 | |||||||||||||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | — | 113 | 147 | 12,325 | |||||||||||||||||||||||||||||||||||||||||||
| Gain on warrants remeasurement | (261) | (1,028) | (864) | (2,225) | |||||||||||||||||||||||||||||||||||||||||||
| Other income | — | — | (926) | (348) | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense effects, net (2) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP net income (as a percentage of total revenue) | $ | 16,589 | 9.0% | $ | 11,297 | 6.4% | $ | 57,516 | 7.8% | $ | 48,260 | 6.7% | |||||||||||||||||||||||||||||||||||
Interest expense(3, 4) | 4,058 | 4,832 | 17,322 | 26,390 | |||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | (134) | 467 | 1,878 | 3,149 | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation | 1,529 | 1,765 | 6,609 | 7,387 | |||||||||||||||||||||||||||||||||||||||||||
| Amortization of capitalized internal-use software costs | 2,852 | 2,748 | 11,456 | 12,729 | |||||||||||||||||||||||||||||||||||||||||||
| Other expense (income), net | (749) | 1,115 | (1,636) | 648 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA (as a percentage of total revenue) | $ | 24,145 | 13.0% | $ | 22,224 | 12.6% | $ | 93,145 | 12.7% | $ | 98,563 | 13.8% | |||||||||||||||||||||||||||||||||||
| Shares used in computing net income (loss) per share amounts: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 140,141 | 132,877 | 137,669 | 129,767 | |||||||||||||||||||||||||||||||||||||||||||
| Diluted | 145,399 | 138,678 | 142,629 | 133,654 | |||||||||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) per share - Basic | $ | 0.00 | $ | (0.04) | $ | 0.01 | $ | (0.21) | |||||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) per share - Diluted | $ | 0.00 | $ | (0.04) | $ | 0.01 | $ | (0.21) | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP net income per share - Basic | $ | 0.12 | $ | 0.09 | $ | 0.42 | $ | 0.37 | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP net income per share - Diluted | $ | 0.11 | $ | 0.08 | $ | 0.40 | $ | 0.36 | |||||||||||||||||||||||||||||||||||||||
(1) Amounts include an out-of-period adjustment associated with state and local taxes for the year ended March 31, 2025.
(2) Non-GAAP adjustments do not have a material impact on our federal income tax provision due to past non-GAAP losses.
(3) Amount includes capitalized interest related to property, plant and equipment from general borrowing costs during the year ended March 31, 2026.
(4) Amounts represent contractual interest expense related to our outstanding debt and does not include capitalized interest and amortization of debt discount and issuance costs.
Q4 2026 CEO Letter & Financial Highlights Exhibit 99.2
AI is changing the architecture and economics of customer engagement in real time. The challenge is delivering interactions that are trusted, intelligent, seamless, and scalable across both human and AI-driven engagement. More than 5 billion digital interactions flowed across 8x8 communication APIs during fiscal 2026, and that scale, combined with our global communications infrastructure and open AI architecture, positions us favorably for the next generation of customer engagement. Customers do not want to be locked into yesterday’s AI model or a closed ecosystem. They want agile, open platforms that can evolve as quickly as innovation itself while helping them deliver better customer experiences, build trust and strengthen customer loyalty. This is what we are building. Samuel C. Wilson, Chief Executive Officer Exhibit 99.2
Fourth Quarter Fiscal 2026 Dear Stockholders, Customers, Partners and Employees, Fiscal 2026 marked a turning point for 8x8. Our Q4 results demonstrated improving execution, operating discipline, and growing momentum across the business. We delivered four consecutive quarters of year-over-year revenue growth, generated our first GAAP-profitable full fiscal year since 2015, increased net income and earnings per share, and strengthened our balance sheet, all while continuing to reposition the company around the long-term transformation underway in enterprise communications and customer experience. Q4 2026 Letter to Stockholders Exhibit 99.2 3
Building for the Next Phase of Enterprise Communications More importantly, we believe fiscal 2026 validated the strategy we have been building toward for several years. The communications market is undergoing a structural transition. Enterprises are moving away from disconnected point solutions and toward integrated platforms that combine communications, customer engagement, APIs, AI, and workflow automation. At the same time, the industry is shifting from traditional seat-based economics toward usage-based engagement models tied directly to customer interactions and business outcomes. We built 8x8 for this transition. Today, our platform combines carrier-grade global voice infrastructure, programmable communication APIs, UCaaS, CCaaS, digital engagement, authentication capabilities, workflow orchestration, and embedded AI into a single architecture designed to support both human and AI-driven interactions at enterprise scale. Why Communications Infrastructure Matters in the AI Era We believe this matters more than ever in the AI era. Voice is not a legacy channel in an AI-driven world. It is the bridge between automated execution and human judgment. As enterprises move from human-to-human communications toward human-to-agent and agent-to-agent interactions, communications infrastructure increasingly becomes a strategic control layer. Reliability, security, trust, and orchestration are foundational requirements for every interaction. The challenge is no longer using AI to generate responses or drive engagement. We are already seeing both generative and agentic AI drive a surge in the use of communication APIs across voice, messaging, and digital channels for both inbound and outbound customer engagement. More than 5 billion interactions were enabled through our communication APIs in fiscal 2026, resulting in record usage-based revenue. Usage based revenue, which includes communication APIs, AI solutions, digital channels, and usage-based telecom services, grew more than 70% year-over-year in the fourth quarter and represented approximately 23% of service revenue, up from approximately 14% in the fourth quarter of fiscal 2025. We believe this reflects a broader industry shift. Customers increasingly want platforms capable of orchestrating trusted, AI-enabled customer interactions across voice, messaging, APIs, workflows, and human escalation paths at global scale. The real challenge is not generating interactions. Delivering interactions that feel seamless, secure, intelligent, and trustworthy is much harder. AI agents must be able to hear clearly, understand intent accurately, authenticate securely, and know exactly when to hand Q4 2026 Letter to Stockholders Exhibit 99.2 4
interactions to a human employee. That requires more than another AI model. It requires highly reliable communications infrastructure and a platform capable of orchestrating interactions seamlessly across both human and agentic layers. The Shift Toward Open and Adaptable AI Platforms This shift is redefining where value accrues in enterprise communications. We believe the winners in this next phase of the market will not simply be companies with AI models, but companies that can combine carrier-grade infrastructure with orchestration across communications, workflows, APIs, analytics, and customer engagement. One of the defining characteristics of the current AI cycle is how quickly the technology is evolving. Models that were state-of-the-art a year ago, or even six months ago, are rapidly being replaced by systems that are faster, more capable, and significantly lower cost. In that kind of environment, customers do not want to be locked into a single model, vendor, or AI architecture. They want platforms that can evolve alongside the market. Our approach has been different from many of our peers. Instead of building around a single AI model or closed ecosystem, we have focused on building an open integration and orchestration layer directly into the platform itself. This allows customers to adopt new AI capabilities quickly, integrate emerging models as the landscape evolves, and deploy AI across voice, messaging, and customer engagement workflows without rebuilding infrastructure. It also gives customers flexibility in how they scale adoption. Organizations can start with embedded capabilities such as conversational AI, analytics, workforce engagement management, or communications APIs directly within the platform, while preserving the ability to integrate more advanced or specialized solutions over time. More importantly, this approach helps customers simplify increasingly complex technology environments. Instead of stitching together disconnected communications, AI, analytics, and workflow tools, organizations are increasingly looking for platforms that reduce operational friction, accelerate deployment, improve security and governance, and allow them to adopt new innovation without constantly rebuilding infrastructure. Accelerating Innovation Across the Platform That strategy drove significant innovation across the platform during fiscal 2026. In March 2026, we announced general availability of 8x8 Engage, extending customer engagement beyond the traditional contact center into frontline, sales, and operational teams. Customer adoption has been strong, with customers increasing more than 300% year-over- year. We believe this momentum reflects another important market shift. Customer engagement is no longer confined to the formal contact center. Organizations increasingly need every customer- facing employee, from sales and service teams to field and frontline operations, connected through a common engagement and data platform. Q4 2026 Letter to Stockholders Exhibit 99.2 5
In mid-April 2026, we introduced native agentic AI capabilities through AI Studio, enabling customers to build and deploy AI-powered voice and digital agents directly on the 8x8 Platform for CX using natural language prompts. During the fourth quarter, we also expanded platform capabilities across analytics, authentication, CRM integrations, and orchestration workflows designed to simplify deployment and improve how AI-powered interactions move across human and digital engagement channels. This same integration-first platform strategy allows us to rapidly integrate new technologies as the AI landscape evolves. In May 2026 we moved quickly to support OpenAI’s latest real-time voice capabilities, reinforcing our broader strategy of building an open and adaptable AI integration layer rather than depending on a single model provider or proprietary ecosystem. The same philosophy also shapes how we approach technology partnerships and tuck-in acquisitions. Our partnership with Synthflow AI expands the capabilities of AI Studio and strengthens our position in agentic AI-powered engagement. Our acquisition of Maven Labs expanded our messaging, automation, and digital customer engagement capabilities, while our acquisition of CallRoute strengthened our Microsoft Teams integration strategy and will simplify platform-to- platform migrations. Customer Wins Reinforce Strategic Direction Most importantly, we believe our customer wins continue to validate this strategy. During the quarter, we won several highly competitive opportunities where customers selected 8x8 to consolidate fragmented communications and customer engagement environments onto a single integrated platform. In the U.S., an insurance company replaced two competitors with a full 8x8 UCaaS and CCaaS deployment after evaluating six competing vendors. A healthcare organization operating more than 100 locations implemented an 8x8 omnichannel engagement solution integrating voice, SMS, web chat, and Salesforce to modernize patient communications. Internationally, a UK automotive retailer selected 8x8 to replace a legacy on-premise environment with a combined UC and contact center deployment through one of our channel partners, and a bank in the Philippines selected 8x8 to strengthen authentication and fraud prevention capabilities ahead of new anti-fraud compliance requirements. Across these wins, customers consistently prioritized integrated workflows, trusted infrastructure, AI-ready engagement capabilities, flexible deployment models, analytics, and security over disconnected point solutions. Expanding Distribution and Simplifying Adoption We are also evolving our go-to-market strategy alongside the platform itself. Q4 2026 Letter to Stockholders Exhibit 99.2 6
Partners have always played a critical role in the communications and customer experience markets because they maintain trusted customer relationships and expand geographic and commercial reach. We believe 8x8 remains significantly under-distributed relative to the size of the opportunity. As a result, we are increasing our investment in partner recruitment, enablement, onboarding, automation, and deployment tools that make it easier to do business with 8x8 and easier for partners to deliver solutions to their customers. While we are still in the early phases of our partner-focused initiative, we are seeing encouraging results and enter fiscal 2027 with more partner momentum than we have seen in several years. At the same time, we are exploring new pricing and deployment models that reduce the decision risk traditionally associated with enterprise software purchases and simplify trial, activation, and adoption. Our AI and communications API offerings are already sold on a consumption basis, and we believe usage-based engagement models will continue becoming increasingly important across the market over time. We also introduced our first product-led growth initiative during the quarter for our workforce engagement management offering. The solution is embedded directly into the platform, visible from the supervisor workspace, and can be activated and deployed in minutes. These approaches reduce barriers to adoption, accelerate time-to-value, and better align our go-to-market motions with the increasingly rapid pace of product innovation. Operational Discipline and Financial Progress Fiscal 2026 was also a year of operational discipline and foundational progress across the business. We completed the Fuze customer migration process, continued integrating strategic acquisitions, reduced debt meaningfully, improved cash generation, and maintained disciplined operating expense management while continuing to invest in innovation, infrastructure, and AI capabilities. At the same time, we increasingly embraced AI internally to improve operational efficiency, accelerate product development, enhance customer interactions, and simplify workflows across the organization. We believe AI will reshape not only customer engagement, but also how enterprise software companies operate, innovate, and scale. The market is evolving quickly. AI is accelerating product cycles, changing customer buying behavior, compressing deployment timelines, and shifting software economics toward more flexible consumption and engagement models. We believe the companies best positioned to succeed in this environment will be those that can combine trusted infrastructure, rapid innovation, operational agility, and disciplined execution at scale. We believe 8x8 is increasingly positioned to compete effectively on that basis. Q4 2026 Letter to Stockholders Exhibit 99.2 7
Looking Ahead As we enter fiscal 2027, our overarching objective remains straightforward: drive sustainable growth, profitability, and cash flow. We are on a multi-year journey as we build a diversified, durable business. Our priorities remain clear: • Expand our global communications infrastructure for AI-driven customer engagement. • Deliver innovation that enables seamless human-to-human, human-to-agent, and agent-to- agent interactions that build trust at every stage of the customer journey. • Scale our partner and distribution ecosystem globally. • Continue driving operational discipline and efficiency. The past several years required discipline, focus, and transformation. As we enter fiscal 2027, we believe 8x8 is operating from a position of greater strength, with a clearer strategy, stronger platform, and growing confidence in our ability to compete aggressively in a rapidly evolving market. On behalf of the leadership team, thank you to our customers, partners, employees, and shareholders for your continued trust and support. Samuel Wilson Chief Executive Officer Q4 2026 Letter to Stockholders Exhibit 99.2 8
Q4 was our fourth consecutive quarter of year-over-year growth, capping a fiscal year in which we returned 8x8 to growth, achieved healthy operating profit and meaningfully strengthened our balance sheet. We exceeded our guidance ranges for service revenue, total revenue, operating profit, earnings per share, and cash flow from operations for the quarter. We had another record quarter for service revenue and we have had positive operating profit and cash flow from operations in every quarter for over 5 years.” Kevin Kraus, Chief Financial Officer Q4 2026 Letter to Stockholders Exhibit 99.2 9
Financial Highlights Looking back, fiscal 2026 was a year of meaningful progress on the financial fundamentals of the business. We returned 8x8 to year-over-year revenue growth, expanded our usage- based offerings, and delivered positive operating margins in every quarter, meeting or exceeding our guidance each time. We also significantly reduced our debt and cash interest costs, driving net income growth over 19% for the year. The discipline we applied to managing the business gave us the flexibility to invest where the business needed it most while still expanding profitability. Our forward planning reflects continued focus on these same priorities. We remain focused on driving growth, profitability, and cash flow while continuing to improve the efficiency, agility, and scalability of the business. We view the work ahead as a multi-year journey, and we believe the foundation we built in fiscal 2026 positions us well for what comes next. Q4 2026 Letter to Stockholders Exhibit 99.2 10
Revenue & Business Performance • Total Revenue reached $185.2 million, an increase of 5% year-over-year. • Record Service Revenue of $180.2 million, an increase of 5% year-over-year, driven by strength in our usage-based offerings. • Usage-based revenue, which includes our CPaaS APIs, digital channels, and AI-based solutions, represented approximately 23% of total service revenue, up from 14% in Q4 last year. Revenue Service Revenue (US $ millions) $172 $180 $180 Q4 2025 Q3 2026 Q4 2026 Total Revenue (US $ millions) $177 $185 $185 Q4 2025 Q3 2026 Q4 2026 Profitability & Margin • GAAP Gross Profit was $117.1 million, or 63.2% of revenue, compared to gross profit of $120.1 million, or 67.8% of revenue, in the fourth quarter of fiscal 2025. ◦ Non-GAAP Gross Profit was $118.9 million, or 64.2% of revenue, compared to non-GAAP gross profit of $122.1 million, or 69.0% of revenue, in the fourth quarter of fiscal 2025. The year-over-year decline in gross profit reflected a higher mix of usage-based platform revenue. • GAAP Operating Income was $3.3 million, or 1.8% of revenue, and positive for the seventh consecutive quarter. ◦ Non-GAAP Operating Income of $19.8 million, or 10.7% of revenue, increased year-over-year and exceeded the high end of our guidance range. • GAAP net income per share (diluted) was $0.00, compared to GAAP net loss per share of $0.04 per share in the fourth quarter of fiscal 2025. ◦ Non-GAAP net income per share (diluted) was $0.11, compared to $0.08 per share in the year ago quarter. The year-over-year increase in GAAP and non-GAAP net income per share (diluted) reflected higher operating income and lower interest expense relative to the prior period. Q4 2026 Letter to Stockholders Exhibit 99.2 11
Non-GAAP Gross Margins1 71.9% 67.4% 66.8%69.0% 64.8% 64.2% Service Gross Margin Total Gross Margin Q4 2025 Q3 2026 Q4 2026 Non-GAAP Operating Income and Margin1 Non-GAAP Operating Income (US$ millions) Non-GAAP Operating Margin (% of revenue) $18 $22 $20 Q4 2025 Q3 2026 Q4 2026 10.0% 11.7% 10.7% Q4 2025 Q3 2026 Q4 2026 1. See Appendix for reconciliation of Non-GAAP metrics to nearest GAAP metric. Q4 2026 Letter to Stockholders Exhibit 99.2 12
Operating Cash Flow • Cash Flow from Operations was $14.4 million, marking the 21st consecutive quarter of positive cash flow. • Ended the quarter with $95.0 million in cash, cash equivalents, and restricted cash. Balance Sheet & Debt Management • Stockholders equity increased to $146.6 million, up 20% from the end of Q4 2025. • The Company has reduced total debt outstanding by $224 million (or ~41%) since the August 2022 peak of $548 million. • Subsequent to year-end in April 2026, the Company made a $14.5 million prepayment on the 2024 Term Loan. The remaining principal amount of the 2024 Term Loan after the repayment is $107.5 million. Total debt after the repayment $309.4 million. $95M Cash at quarter end $14M Q4 Operating Cash Flow Q4 2026 Letter to Stockholders Exhibit 99.2 13
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. Q4 2026 Letter to Stockholders Exhibit 99.2 14
Reconciliation Of GAAP To Non-GAAP Financial Measures (Unaudited, in thousands) Three Months Ended 3/31/2026 12/31/2025 3/31/2025 Cost of Revenue GAAP cost of service revenue $ 61,566 $ 59,515 $ 49,818 Amortization of acquired intangible assets (514) (513) (824) Stock-based compensation expense and related employer payroll taxes (377) (417) (759) Severance, transition and contract exit costs (824) (26) (81) Non-GAAP cost of service revenue $ 59,851 $ 58,559 $ 48,154 GAAP service revenue margin $ 118,609 $ 120,167 $ 121,770 Non-GAAP service revenue margin $ 120,324 $ 121,123 $ 123,434 GAAP cost of other revenue $ 6,627 $ 7,319 $ 7,173 Stock-based compensation expense and related employer payroll taxes (79) (82) (218) Severance, transition and contract exit costs (88) (649) (195) Non-GAAP cost of other revenue $ 6,460 $ 6,588 $ 6,760 GAAP other revenue margin $ (1,556) $ (1,951) $ (1,718) Non-GAAP other revenue margin $ (1,389) $ (1,220) $ (1,305) GAAP gross margin $ 117,053 $ 118,216 $ 120,052 Non-GAAP gross margin $ 118,935 $ 119,903 $ 122,129 Operating Profit GAAP income from operations $ 3,330 $ 9,694 $ 419 Amortization of acquired intangible assets 3,616 3,584 3,808 Stock-based compensation expense and related employer payroll taxes 4,903 4,463 8,615 Transaction-related expenses 3,249 196 541 Legal and regulatory costs 648 927 102 Severance, transition and contract exit costs 4,018 2,795 4,226 Non-GAAP operating profit $ 19,764 $ 21,659 $ 17,711 Q4 2026 Letter to Stockholders Exhibit 99.2 15
Q4 2026 Letter to Stockholders Exhibit 99.2 16
FAQ
How did 8x8 (EGHT) perform financially in fiscal year 2026?
8x8 grew modestly and returned to GAAP profitability in fiscal 2026. Total revenue increased 3% to $735.8 million, service revenue rose to $715.3 million, and GAAP net income reached $1.6 million versus a $27.2 million loss in 2025, reflecting better operating leverage and lower interest expense.
What were 8x8 (EGHT) results for the fourth quarter of fiscal 2026?
In Q4 2026, 8x8 delivered higher revenue and earnings. Total revenue was $185.2 million, up 5% year over year, with service revenue of $180.2 million. GAAP operating income was $3.3 million and non-GAAP operating income was $19.8 million, while operating cash flow reached $14.4 million.
What guidance did 8x8 (EGHT) give for fiscal 2027?
8x8 expects stable revenue and solid margins in fiscal 2027. Management projects total revenue between $727 million and $747 million, non-GAAP operating margin of 9–10%, non-GAAP diluted EPS of $0.33–$0.38, and operating cash flow of $45–$52 million, reflecting continued focus on profitability and cash generation.
How strong is 8x8 (EGHT)’s balance sheet after fiscal 2026?
8x8 exited fiscal 2026 with improved liquidity and lower debt. The company held $95.0 million in cash, cash equivalents, and restricted cash at March 31, 2026 and had $323.9 million of total debt, after making $30.0 million of term-loan principal payments during the year and additional prepayments after year-end.
What are 8x8 (EGHT)’s non-GAAP profitability metrics for fiscal 2026?
Non-GAAP profitability remained solid for 8x8 in fiscal 2026. Non-GAAP operating profit was $75.1 million, or about 10.2% of revenue, while non-GAAP net income totaled $57.5 million. Adjusted EBITDA reached $93.1 million, underscoring recurring earnings power after excluding non-cash and unusual items.