8X8 (EGHT) AI Stock Analysis

• Market Cap: $290.47M
• Dividend Yield: N/A
• Average Volume (3M): 798.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• Revenue Growth: -0.73%
• EPS Growth: 67.98%
• Country: US
• Employees: 1,948
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.08
• Shares Outstanding: 136,368,840
• 10 Day Avg. Volume: 490,876
• 30 Day Avg. Volume: 798,571
• 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: 1.98
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 13.82
• 1Y Price Target: $1.98
• Price Target Upside: -2.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: $2.00 ▼(-1.96% Downside)

8X8's overall stock score reflects strong revenue growth and strategic improvements in financial flexibility. However, profitability challenges, high leverage, and valuation concerns weigh heavily. The earnings call and corporate events provide positive strategic direction, but technical indicators suggest neutral momentum.

Positive Factors

Revenue Growth

The return to year-over-year growth after nine quarters indicates a positive shift in business momentum, suggesting improved market positioning and product adoption, which are crucial for long-term success.

Debt Reduction

Significant debt reduction enhances financial flexibility and reduces interest burden, improving the company's ability to invest in growth opportunities and withstand economic fluctuations.

AI and Customer Engagement

Increased adoption of AI-driven solutions enhances customer engagement and operational efficiency, positioning 8x8 as a leader in innovative communication technologies.

Negative Factors

High Leverage

High leverage poses financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns, which could impact long-term stability.

Profitability Challenges

Ongoing profitability challenges highlight the need for improved operational efficiency. Sustained losses can hinder reinvestment in the business and affect shareholder value.

Gross Margin Pressure

Decreasing gross margins due to a shift towards lower-margin revenue streams can pressure overall profitability, requiring strategic adjustments to maintain financial health.

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 generates revenue primarily through subscription-based models for its cloud communication services. The company offers various plans for its VoIP, video conferencing, and messaging services, which are billed monthly or annually. Key revenue streams include recurring subscription fees from businesses utilizing its UCaaS and CCaaS solutions, as well as additional charges for premium features and services. 8X8 also benefits from partnerships with technology providers and channel partners, expanding its market reach and customer base. The company's emphasis on customer retention and upselling additional services further contributes to its earnings.

8X8 Financial Statement Overview

Summary

8X8 shows strong revenue growth but struggles with profitability and financial stability. High leverage and negative return on equity pose risks, while cash flow management is stable despite recent declines.

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	41.70M	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	81.42M	88.05M	117.31M	137.63M	136.05M	152.87M
Total Debt	393.39M	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	51.27M	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: Positive
• Last Price: 2.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.04 is above the 20-day moving average (MA) of 2.00, above the 50-day MA of 1.97, and below the 200-day MA of 2.20, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.09 is Neutral, 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
GTM	73 Outperform	3.83B	45.89	5.75%	―	-0.54%	626.94%
VTEX	70 Neutral	831.57M	84.62	5.34%	―	4.51%	8241.83%
RNG	65 Neutral	2.86B	-233.80	4.24%	―	6.47%	90.60%
DOMO	53 Neutral	707.12M	-8.79	40.43%	―	>-0.01%	9.72%
EGHT	52 Neutral	$290.47M	―	-18.25%	―	-0.73%	67.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.

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.