8x8 Inc (EGHT)
NASDAQ:EGHT
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8X8
(NASDAQ:EGHT)
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Rating:63Neutral
Price Target:
$2.50
▲(14.68% Upside)
Action:ReiteratedDate:05/03/26
The score is driven by improving fundamentals (especially strong free cash flow) and supportive technical momentum, reinforced by raised guidance and profitability progress on the latest earnings call. The main constraints are elevated leverage, lingering churn-related revenue headwinds, and some margin and cash-flow variability.
Positive Factors
Strong cash generation
Consistent positive operating and free cash flow provides durable internal funding for product development, go-to-market investment, and debt reduction. Strong cash conversion despite slight net losses reduces reliance on external financing and supports execution over the next 2–6 months.
Negative Factors
Elevated leverage
High debt relative to equity constrains strategic flexibility and makes the business more sensitive to interest-rate and cash-flow variability. Elevated leverage limits capacity for M&A or heavy reinvestment and keeps a portion of cash generation dedicated to debt service.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating and free cash flow provides durable internal funding for product development, go-to-market investment, and debt reduction. Strong cash conversion despite slight net losses reduces reliance on external financing and supports execution over the next 2–6 months.
Read all positive factors
8X8 (EGHT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$339.94M
Dividend YieldN/A
Average Volume (3M)1.02M
Price to Earnings (P/E)13.2
Beta (1Y)1.67
Revenue Growth1.41%
EPS Growth91.58%
CountryUS
Employees1,948
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.03
Shares Outstanding139,318,340
10 Day Avg. Volume1,293,260
30 Day Avg. Volume1,024,515
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)2.12
Price to Sales (P/S)0.36
P/FCF Ratio5.18
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit1.38
Enterprise Value/Ebitda14.32
Forecast
1Y Price Target
$2.75Price Target Upside26.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.36
Revenue Forecast (FY)$737.32M
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 oth...
How the Company Makes Money
8x8 primarily makes money by selling subscription-based cloud software and communications services to business customers. The company’s core revenue stream is recurring subscription fees for UCaaS products (e.g., cloud PBX/voice calling, video mee...
8X8 Key Performance Indicators (KPIs)
8X8 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: return to service revenue growth, record service revenue, rapid scaling of usage-based and AI-driven offerings, improved profitability (operating margin and EPS beats), substantial debt reduction, and raised guidance for the fiscal year. Key challenges include near-term revenue headwinds and churn from the Fuze migration, mix-driven gross margin pressure as usage-based revenue scales, seasonality in CPaaS, and a materially lower expected Q4 cash flow due to timing and higher interest payments. Management characterized the quarter as an inflection point but acknowledged execution work ahead to expand installed base and channel reach.Positive Updates
Return to Top-Line Growth and Record Service Revenue
Total revenue of $185.0M and service revenue of $179.7M, both exceeding the high end of guidance by approximately $3M. Service revenue grew ~3.4-3.6% year-over-year and marked the third consecutive quarter of YoY service revenue growth and an all-time record high for service revenue.
Negative Updates
Fuze Decommissioning and Customer Churn Impact
Completion of Fuze customer upgrades created a near-term revenue headwind as not all legacy Fuze customers elected to upgrade. Management quantified a Q4 service revenue headwind from former Fuze customers of approximately $4.5M year-over-year (≈$3M quarter-over-quarter) and expects Fuze-related YoY headwinds to be most pronounced in FY2027 before fully rolling off by Q4 FY2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Return to Top-Line Growth and Record Service Revenue
Total revenue of $185.0M and service revenue of $179.7M, both exceeding the high end of guidance by approximately $3M. Service revenue grew ~3.4-3.6% year-over-year and marked the third consecutive quarter of YoY service revenue growth and an all-time record high for service revenue.
Read all positive updates
Company Guidance
For fiscal Q4 2026 8x8 raised its outlook versus the prior implied midpoint, now expecting service revenue of $173.5–$178.5 million and total revenue of $170.5–$183.5 million (roughly $7 million above the prior implied midpoint), which reflects an estimated year‑over‑year revenue headwind from former Fuze customers of about $4.5 million (≈$3 million QoQ) and anticipated seasonality in CPaaS APIs; management projects gross margin of 64–65%, operating margin of 8.5–9.5% (implying non‑GAAP diluted EPS of $0.07–$0.08 based on ~145 million diluted shares), expected cash interest payments of ≈$6.1 million, and operating cash flow of $1–$4 million. For full‑year fiscal 2026 the company raised service revenue guidance to $708.6–$713.6 million and total revenue to $729–$734 million (each roughly $12–$12.5 million above prior midpoints), with gross margin 65–66%, full‑year operating margin 9.5–10% (≈$71 million non‑GAAP operating income at the midpoint, about $6 million higher than prior midpoint), non‑GAAP EPS of $0.36–$0.37 (assuming ≈142 million diluted shares), and an implied increase in 2026 operating cash flow of about $4 million; management also reiterated that Fuze‑related churn will create headwinds through much of fiscal 2027 (peaking early and expected to fully roll off by Q4) but still expects service revenue growth in FY2027.8X8 Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
38
Negative
Cash Flow
73
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 727.55M | 715.07M | 728.71M | 728.71M | 638.13M | 532.34M |
| Gross Profit | 478.05M | 485.27M | 503.80M | 503.80M | 390.57M | 302.19M |
| EBITDA | 46.18M | 44.01M | 23.06M | 23.06M | -102.68M | -100.91M |
| Net Income | -3.86M | -27.21M | -67.59M | -67.59M | -175.38M | -165.59M |
Balance Sheet | ||||||
| Total Assets | 661.52M | 683.18M | 755.98M | 841.81M | 910.27M | 678.41M |
| Cash, Cash Equivalents and Short-Term Investments | 86.88M | 88.05M | 117.31M | 137.63M | 136.05M | 152.87M |
| Total Debt | 373.59M | 410.26M | 477.63M | 568.87M | 537.46M | 403.83M |
| Total Liabilities | 518.66M | 560.97M | 654.02M | 741.90M | 727.90M | 517.90M |
| Stockholders Equity | 142.86M | 122.20M | 101.96M | 99.91M | 182.37M | 160.50M |
Cash Flow | ||||||
| Free Cash Flow | 51.10M | 50.09M | 62.05M | 33.90M | 10.17M | -49.31M |
| Operating Cash Flow | 65.65M | 63.55M | 78.98M | 48.79M | 34.68M | -14.07M |
| Investing Cash Flow | -17.79M | -16.42M | 8.55M | 6.05M | -159.98M | -36.32M |
| Financing Cash Flow | -72.49M | -75.11M | -83.41M | -37.78M | 105.42M | 13.19M |
8X8 Technical Analysis
Positive
2.18
Price Trends
2.09
Negative
2.01
Negative
1.99
Negative
Market Momentum
-0.04
Negative
56.80
Neutral
89.90
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 1.76, above the 50-day MA of 2.09, and above the 200-day MA of 1.99, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 89.90 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 41 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 0 New Risks
8X8 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $3.79B | 57.31 | -8.90% | ― | 4.78% | ― | |
69 Neutral | $668.31M | 17.45 | 8.24% | ― | 6.09% | -92.59% | |
66 Neutral | $1.98B | 26.41 | 7.96% | ― | 2.90% | 361.26% | |
63 Neutral | $339.94M | 13.24 | -2.93% | ― | 1.41% | 91.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | $169.75M | -4.05 | 31.73% | ― | 0.57% | 31.68% |
* Technology Sector Average
EGHT
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2.69
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50.28%
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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.