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8X8
(NASDAQ:EGHT)
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Rating:60Neutral
Price Target:
$2.00
▼(-8.26% Downside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by improving fundamentals (turn to profitability and strong free cash flow) and a positive earnings-call outlook with profitability/cash-flow-focused guidance. These positives are tempered by weak valuation (very high P/E) and only neutral-to-mixed technical signals, alongside ongoing leverage and margin/visibility risks tied to the usage/AI mix shift.
Positive Factors
Free cash flow strength
Consistent positive operating cash flow and ~$52M free cash flow in 2026 indicate durable cash-generation ability. This provides recurrent funding for product investment, debt reduction and working capital, reducing reliance on external financing and improving resilience across 2–6 month horizons.
Negative Factors
Remaining leverage and scheduled repayments
Despite large declines from peak, material term debt (~$309M) and planned ~$39.5M principal payments constrain capital allocation. Elevated leverage reduces flexibility for M&A, R&D or cushioning against cyclical slowdowns and raises refinancing and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Consistent positive operating cash flow and ~$52M free cash flow in 2026 indicate durable cash-generation ability. This provides recurrent funding for product investment, debt reduction and working capital, reducing reliance on external financing and improving resilience across 2–6 month horizons.
Read all positive factors
8X8 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how 8x8’s revenue is split across regions and countries, revealing which markets drive growth, which may be slowing, and how exposure to particular economies or currencies could affect overall results.
Shows how 8x8’s revenue is split across regions and countries, revealing which markets drive growth, which may be slowing, and how exposure to particular economies or currencies could affect overall results.
Data provided by:
The Fly
The Fly8X8 (EGHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$292.07M
Dividend YieldN/A
Average Volume (3M)1.86M
Price to Earnings (P/E)186.8
Beta (1Y)1.79
Revenue Growth2.89%
EPS GrowthN/A
CountryUS
Employees1,948
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.01
Shares Outstanding141,782,320
10 Day Avg. Volume2,129,239
30 Day Avg. Volume1,859,212
Financial Highlights & Ratios
PEG Ratio-1.58
Price to Book (P/B)1.56
Price to Sales (P/S)0.31
P/FCF Ratio4.39
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit1.12
Enterprise Value/Ebitda11.53
Forecast
1Y Price Target
$3.00Price Target Upside37.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.36
Revenue Forecast (FY)$737.77M
8X8 Business Overview & Revenue Model
Company Description
8x8, Inc. delivers a comprehensive suite of cloud-based communication and collaboration tools, encompassing telephony, video conferencing, instant messaging, customer engagement platforms, and powerful API services. These Software-as-a-Service (Sa...
How the Company Makes Money
8x8 makes money primarily by selling recurring, subscription-based cloud software and services to business customers. The core revenue stream is monthly or annual recurring revenue from UCaaS plans (e.g., cloud PBX/voice calling, video meetings, t...
8X8 Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial progress — four consecutive quarters of revenue growth, the first GAAP profitable fiscal year since 2015, robust product launches (8x8 Engage, AI Studio), significant usage-revenue growth (>70% YoY and now ~23% of service revenue), margin-aware operating discipline (10.7% operating margin in Q4), meaningful debt reduction (~43% from peak), and guidance that preserves profitability and cash flow. Offsetting these positives are margin pressure from a growing (but lower-margin) usage mix, limited visibility and quarter-to-quarter variability in usage and AI costs, and remaining leverage on the balance sheet. Overall, the positives materially outweigh the risks cited by management.Positive Updates
Return to Growth and GAAP Profitability
8x8 delivered its fourth consecutive quarter of year-over-year revenue growth and reported its first GAAP profitable full fiscal year since 2015, demonstrating improved execution and operating discipline.
Negative Updates
Gross Margin Pressure from Mix Shift
Consolidated gross margin modestly declined compared with Q3 (64.2% in Q4) due to a shift toward lower-margin usage-based offerings; management noted usage revenue carries a lower margin profile even as it generates profit dollars at scale.
Read all updates
Q4-2026 Updates
Positive
Negative
Return to Growth and GAAP Profitability
8x8 delivered its fourth consecutive quarter of year-over-year revenue growth and reported its first GAAP profitable full fiscal year since 2015, demonstrating improved execution and operating discipline.
Read all positive updates
Company Guidance
Management guided Q1 FY27 service revenue of $175–180M and total revenue of $180–185M with a gross margin of 63.5–64.5%, operating margin of 8.5–9.5%, non‑GAAP diluted EPS of $0.08–0.09 (assuming ~147M fully diluted shares), cash interest of about $1.8M and operating cash flow of $10–12M. For full FY27 they forecast service revenue of $707–727M and total revenue of $727–747M, gross margin 62.5–63.5%, operating margin 9–10% (≈$70M non‑GAAP operating income at the midpoint), non‑GAAP EPS $0.33–0.38 (assuming ~150M diluted shares), operating cash flow $45–52M, and $39.5M of term‑loan principal repayments; they also noted the ongoing mix shift to usage revenue (≈23% of service revenue in Q4) that can pressure consolidated gross margin percentages while adding profit dollars as the business scales.8X8 Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
49
Neutral
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 735.75M | 715.07M | 728.71M | 728.71M | 638.13M |
| Gross Profit | 475.05M | 485.27M | 503.80M | 503.80M | 390.57M |
| EBITDA | 53.56M | 44.01M | 23.06M | 23.06M | -102.68M |
| Net Income | 1.65M | -27.21M | -67.59M | -67.59M | -175.38M |
Balance Sheet | |||||
| Total Assets | 662.82M | 683.18M | 755.98M | 841.81M | 910.27M |
| Cash, Cash Equivalents and Short-Term Investments | 93.26M | 88.05M | 117.31M | 137.63M | 136.05M |
| Total Debt | 370.94M | 410.26M | 477.63M | 568.87M | 537.46M |
| Total Liabilities | 516.21M | 560.97M | 654.02M | 741.90M | 727.90M |
| Stockholders Equity | 146.61M | 122.20M | 101.96M | 99.91M | 182.37M |
Cash Flow | |||||
| Free Cash Flow | 52.04M | 50.09M | 62.05M | 33.90M | 10.17M |
| Operating Cash Flow | 55.72M | 63.55M | 78.98M | 48.79M | 34.68M |
| Investing Cash Flow | -20.73M | -16.42M | 8.55M | 6.05M | -159.98M |
| Financing Cash Flow | -30.37M | -75.11M | -83.41M | -37.78M | 105.42M |
8X8 Technical Analysis
Positive
2.18
Price Trends
2.07
Negative
2.03
Positive
2.01
Positive
Market Momentum
<0.01
Negative
59.17
Neutral
90.38
Negative
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 2.18 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 2.07, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 90.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGHT.
8X8 Risk Analysis
8X8 disclosed 44 risk factors in its most recent earnings report. 8X8 reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Failure to innovate and adapt in response to rapidly evolving technological changes in the midst of an intensely competitive market may harm our competitive position and business prospects. Q1, 2026
2.
Our industry is subject to rapid technological change, and we must develop and sell incremental and new features and components of our solutions to maintain and grow our business. Q1, 2026
3.
As AI solutions perform an increasing proportion of interactions, if we cannot replace decreases in subscription revenue from licenses with revenue from increases in the use of our consumption- and usage-based services (much of which is driven by additional AI solutions), our revenue, results of operations and business will be harmed. Q1, 2026
8X8 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $673.42M | 31.01 | 9.69% | ― | 8.25% | -99.84% | |
71 Outperform | $3.43B | 42.91 | -16.71% | ― | 4.90% | ― | |
62 Neutral | $866.47M | 7.40 | 8.36% | ― | 3.64% | 230.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $292.07M | 186.82 | 1.20% | ― | 2.89% | ― | |
46 Neutral | $162.09M | -2.59 | 29.35% | ― | 0.35% | 29.79% |
* Technology Sector Average
EGHT
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6.22%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.