8X8 (EGHT) AI Stock Analysis

• Market Cap: $258.03M
• Dividend Yield: N/A
• Average Volume (3M): 783.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: -0.73%
• EPS Growth: 67.98%
• Country: US
• Employees: 1,948
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 0.08
• Shares Outstanding: 135,092,910
• 10 Day Avg. Volume: 563,898
• 30 Day Avg. Volume: 783,526
• PEG Ratio: 0.15
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 5.18
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 17.21
• 1Y Price Target: $2.32
• Price Target Upside: 21.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 49 Neutral
• Price Target: $2.00 ▲(4.71% Upside)

8X8's overall stock score reflects strong revenue growth and positive corporate actions, but is weighed down by financial instability, bearish technical indicators, and valuation challenges. The company's high leverage and negative profitability are significant risks, while recent earnings call insights and corporate events provide some optimism for future performance.

Positive Factors

Capital Structure Improvements

There are encouraging signs of underlying stabilization at EGHT, from accelerating ex-Fuze growth and improved capital structure.

New Product Growth

EGHT is experiencing some success with new products, evidenced by 60% growth in new products and 84% growth in AI-based solutions.

Negative Factors

Fuze Transition Challenges

The transition of Fuze continues to be a significant obstacle, with challenges in returning to growth.

Legacy Customer Base

The legacy Fuze base continues to be a headwind with approximately 100 remaining customers not migrated.

Revenue and Margin Pressure

Operating challenges remain, including finalizing go to market updates, near term margin pressure and a competitive environment.

8X8 Business Overview & Revenue Model

Company Description

8x8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small and mid-size businesses, mid-market and larger enterprises, government agencies, and other organizations worldwide. The company offers unified communications, team collaboration, video conferencing, contact center, data and analytics, communication APIs, and other services. It provides 8x8 Work, a self-contained end-to-end united communications solution that delivers enterprise voice with public switched telephone network connectivity, video meetings, and unified messaging, as well as direct messages, public and private team messaging rooms, and short and multimedia services; 8x8 Contact Center, a multi-channel cloud-based contact center solution; and 8x8 CPaaS, a set of global communications Platform-as-a-Service. The company also offers and X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration, and contact center solutions. It markets its services to end users through search engine marketing and optimization, third-party lead generation sources, industry conferences, trade shows, Webinars, and digital advertising channels, as well as direct sales organization. The company was incorporated in 1987 and is headquartered in Campbell, California.

How the Company Makes Money

8x8 makes money primarily through subscription-based services for its cloud communication platforms, including UCaaS and CCaaS. Businesses pay recurring fees to access 8x8’s communication tools, which include voice, video conferencing, team messaging, and contact center solutions. Key revenue streams include monthly or annual subscriptions for these services, professional services for implementation and customization, and additional charges for advanced features or higher-tier plans. The company also benefits from strategic partnerships with value-added resellers and telecommunications providers, which help expand its market reach and customer base.

8X8 Financial Statement Overview

Summary

8X8 demonstrates strong revenue growth, but profitability and financial stability remain areas of concern. The high leverage and negative return on equity highlight financial risks, while cash flow management shows some stability despite recent declines in free cash flow growth. The company needs to focus on improving operational efficiency and reducing debt to enhance its financial health.

Income Statement

8X8's income statement shows a mixed performance. The company has achieved a positive revenue growth rate of 44.9% in the TTM, indicating strong top-line growth. However, profitability remains a challenge, with a negative net profit margin of -3.81% and a low EBIT margin of 0.67%. The gross profit margin is relatively healthy at 67.86%, but the company needs to improve its operational efficiency to achieve sustainable profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.36, indicating significant leverage, which could pose financial risks. The return on equity is negative at -24.21%, reflecting ongoing losses. The equity ratio is low, suggesting limited equity financing. Overall, the balance sheet highlights the need for improved financial stability and reduced reliance on debt.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -5.54% in the TTM, but the company maintains a strong free cash flow to net income ratio of 0.92, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is 0.38, suggesting moderate cash flow coverage. While cash flow management is relatively stable, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	718.28M	715.07M	728.71M	743.94M	638.13M	532.34M
Gross Profit	484.75M	485.27M	503.80M	502.46M	390.57M	302.19M
EBITDA	33.47M	44.01M	23.06M	14.82M	-102.68M	-100.91M
Net Income	-21.24M	-27.21M	-67.59M	-73.14M	-175.38M	-165.59M
Balance Sheet
Total Assets	684.35M	683.18M	755.98M	840.88M	910.27M	678.41M
Cash, Cash Equivalents and Short-Term Investments	81.31M	88.05M	117.31M	137.63M	136.05M	152.87M
Total Debt	263.70M	410.26M	477.63M	568.87M	537.46M	403.83M
Total Liabilities	556.16M	560.97M	654.02M	740.98M	727.90M	517.90M
Stockholders Equity	128.19M	122.20M	101.96M	99.91M	182.37M	160.50M
Cash Flow
Free Cash Flow	55.30M	50.09M	62.05M	33.90M	10.17M	-49.31M
Operating Cash Flow	57.28M	63.55M	78.98M	48.79M	34.68M	-14.07M
Investing Cash Flow	-17.71M	-16.42M	8.55M	6.05M	-159.98M	-36.32M
Financing Cash Flow	-92.09M	-75.11M	-83.41M	-37.78M	105.42M	13.19M

8X8 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGHT, the sentiment is Negative. The current price of 1.91 is below the 20-day moving average (MA) of 1.98, above the 50-day MA of 1.89, and below the 200-day MA of 2.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 14.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EGHT.

8X8 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTM	69 Neutral	$0.00	37.45	5.22%	―	-0.54%	626.94%
VTEX	67 Neutral	$1.06B	71.46	6.26%	―	7.71%	―
Sector *	62 Neutral	£517.09M	24.54	-6.45%	2.78%	3.08%	-16.36%
RNG	60 Neutral	$2.12B	―	16.58%	―	6.47%	90.60%
DOMO	58 Neutral	$655.83M	―	48.46%	―	-0.81%	9.83%
EGHT	49 Neutral	$258.03M	―	-18.25%	―	-0.73%	67.98%
NUKK	―	$35.66M	0.31		―	―	―

8X8 Corporate Events

8×8 Amends Term Loan Agreement for Flexibility

On July 29, 2025, 8×8, Inc. amended its existing Term Loan Credit Agreement with Wells Fargo Bank and other lenders to enhance financial flexibility for future acquisitions and maintain its current leverage ratio. The company has reduced its term loan principal by approximately $219 million since August 2022, including recent prepayments, leaving an outstanding balance of $127 million. The amendment supports 8×8’s long-term growth and investor return strategies, allowing for voluntary prepayments without penalties and no mandatory payments due until June 2026.

The most recent analyst rating on (EGHT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on 8X8 stock, see the EGHT Stock Forecast page.

8×8 Approves Key Proposals at Annual Meeting

On July 25, 2025, 8×8, Inc. held its annual meeting of stockholders where key proposals were voted on, including the election of eight directors, ratification of Grant Thornton LLP as the independent accounting firm, approval of executive compensation, and amendments to increase shares in the Employee Stock Purchase Plan and the 2022 Equity Incentive Plan. The stockholders approved all proposals, impacting the company’s governance and financial strategies by ensuring continuity in leadership and expanding stock-based compensation plans.

The most recent analyst rating on (EGHT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on 8X8 stock, see the EGHT Stock Forecast page.