8X8 (EGHT) AI Stock Analysis

• Market Cap: $263.43M
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• Revenue Growth: -1.87%
• EPS Growth: 61.90%
• Country: US
• Employees: 1,948
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Application
• EPS (TTM): 0.08
• Shares Outstanding: 135,092,910
• 10 Day Avg. Volume: 712,932
• 30 Day Avg. Volume: 1,244,037
• PEG Ratio: -0.22
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.51
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: 4.84
• 1Y Price Target: $2.35
• Price Target Upside: 19.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $2.00 ▲(2.04%Upside)

8X8's stock score reflects a company on the path to recovery, with operational improvements and strong cash flow management. However, challenges in achieving net profitability and high leverage weigh on the financial performance. Technical indicators show positive short-term momentum, while valuation remains a concern due to ongoing net losses. The earnings call provides a positive outlook, but macroeconomic challenges and the Fuze transition introduce risks.

Positive Factors

Capital Structure

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

Product Strategy

Platform-based customers with three or more products have average annual recurring revenue about three times higher than two-product customers.

Revenue 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

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

Market Competition

UCaaS competition in the U.S. remains intense.

Operating Margins

Operating margins are likely to decrease as the company invests in growth.

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 potential for financial recovery with positive EBIT and EBITDA margins, yet struggles with net profitability due to high leverage and inconsistent revenue growth. The company shows strong cash flow management but needs to focus on reducing debt and sustaining revenue growth.

Income Statement

8X8's income statement reveals a company working towards recovery. The gross profit margin improved to 67.87% from the previous years, indicating strong cost management. However, the net profit margin remains negative, at -3.81%, reflecting ongoing profitability challenges. Notably, EBIT and EBITDA margins have turned positive this year, showing operational improvement. Revenue growth has been inconsistent, with a decline in the latest fiscal year. Overall, while there are signs of operational improvement, the company needs to address profitability issues to strengthen its financial standing.

Balance Sheet

8X8's balance sheet shows a stable equity base but high leverage, with a debt-to-equity ratio of 3.36, which poses a financial risk. The equity ratio stands at 17.89%, indicating limited equity financing. Return on equity is negative due to net losses, highlighting profitability challenges. The company needs to manage its debt levels and improve profitability to enhance financial stability.

Cash Flow

The cash flow statement for 8X8 displays positive trends. The operating cash flow to net income ratio is strong, demonstrating effective cash generation from operations despite net losses. Free cash flow has improved, indicating better cash management. However, the free cash flow growth rate is negative due to a decrease in free cash flow compared to the previous year. The company exhibits good cash flow management, but sustained free cash flow generation is crucial for future growth and stability.

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

8X8 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.96
• 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 Positive. The current price of 1.96 is above the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.84, and below the 200-day MA of 2.28, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 19.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGHT.

8X8 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAND	67 Neutral	$469.36M	―	-0.32%	―	18.51%	97.57%
EGHT	66 Neutral	$263.43M	―	-24.28%	―	-1.87%	61.90%
AUDC	65 Neutral	$267.71M	19.16	9.33%	3.33%	-1.13%	61.49%
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%
NVTS	59 Neutral	$1.20B	―	-26.43%	―	-16.95%	-2.47%
SMRT	58 Neutral	$185.58M	―	-22.66%	―	-25.43%	-135.09%
ONTF	52 Neutral	$216.20M	―	-24.47%	―	-8.39%	7.79%

8X8 Corporate Events

8×8 Strengthens Board with New Director Appointment

8×8, Inc. has appointed John Pagliuca, CEO of N-able, to its Board of Directors, bringing extensive leadership experience in the SaaS industry. Pagliuca’s expertise in driving revenue and business growth is expected to be a valuable asset to 8×8, which focuses on enhancing customer experience through integrated communication solutions. With this appointment, 8×8 aims to strengthen its board as it continues to innovate and expand in the business communications market.