8X8 (EGHT) AI Stock Analysis

• Market Cap: $263.42M
• Dividend Yield: N/A
• Average Volume (3M): 666.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 0.25%
• EPS Growth: 92.10%
• Country: US
• Employees: 1,948
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.09
• Shares Outstanding: 138,640,370
• 10 Day Avg. Volume: 557,790
• 30 Day Avg. Volume: 666,155
• 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: 2.29
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: 13.19
• 1Y Price Target: $2.35
• Price Target Upside: 23.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): $720.76M

• Rating: 48 Neutral
• Price Target: $2.00 ▲(5.26% Upside)

8X8's overall stock score reflects strong revenue growth and innovation in AI, but is weighed down by financial instability, high leverage, and profitability challenges. Technical indicators and valuation metrics further contribute to a cautious outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for 8X8's services, suggesting a robust market position and effective business model.

AI and Innovation

AI integration enhances product offerings, potentially increasing customer retention and attracting new clients, supporting long-term growth.

Debt Reduction

Significant debt reduction improves financial stability and flexibility, allowing for potential reinvestment in growth initiatives.

Negative Factors

High Leverage

High leverage poses financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder long-term financial health and shareholder returns.

Gross Margin Decline

Declining gross margins could pressure profitability, impacting the company's ability to sustain competitive pricing and invest in innovation.

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 low margins indicate financial risk, despite efficient cash flow management.

Income Statement

8X8's income statement shows a mixed performance. The company has achieved a positive revenue growth rate of 43.1% in the TTM, indicating strong sales momentum. However, the net profit margin remains negative at -0.82%, reflecting ongoing profitability challenges. The gross profit margin is healthy at 66.67%, but the EBIT and EBITDA margins are relatively low at 1.51% and 2.41%, respectively, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.06, indicating significant leverage and potential financial risk. The return on equity is negative at -17.95%, highlighting profitability issues. The equity ratio stands at 19.85%, suggesting a moderate level of equity financing. Overall, the balance sheet reflects financial instability and a need for improved capital structure management.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -4.69% in the TTM, indicating potential cash generation issues. However, the operating cash flow to net income ratio is positive at 0.29, suggesting some ability to convert earnings into cash. The free cash flow to net income ratio is strong at 0.91, indicating efficient cash flow management relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	718.65M	715.07M	728.71M	728.71M	638.13M	532.34M
Gross Profit	482.02M	485.27M	503.80M	503.80M	390.57M	302.19M
EBITDA	45.82M	44.01M	23.06M	23.06M	-102.68M	-100.91M
Net Income	-11.01M	-27.21M	-67.59M	-67.59M	-175.38M	-165.59M
Balance Sheet
Total Assets	683.18M	683.18M	755.98M	841.81M	910.27M	678.41M
Cash, Cash Equivalents and Short-Term Investments	88.05M	88.05M	117.31M	137.63M	136.05M	152.87M
Total Debt	410.26M	410.26M	477.63M	568.87M	537.46M	403.83M
Total Liabilities	560.97M	560.97M	654.02M	741.90M	727.90M	517.90M
Stockholders Equity	122.20M	122.20M	101.96M	99.91M	182.37M	160.50M
Cash Flow
Free Cash Flow	61.32M	50.09M	62.05M	33.90M	10.17M	-49.31M
Operating Cash Flow	72.18M	63.55M	78.98M	48.79M	34.68M	-14.07M
Investing Cash Flow	-16.66M	-16.42M	8.55M	6.05M	-159.98M	-36.32M
Financing Cash Flow	-101.27M	-75.11M	-83.41M	-37.78M	105.42M	13.19M

8X8 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 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 1.9 is below the 20-day moving average (MA) of 1.92, below the 50-day MA of 1.98, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 13.50 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	71 Outperform	$2.95B	29.89	6.51%	―	1.47%	1077.70%
VTEX	66 Neutral	$692.71M	102.50	6.53%	―	3.62%	-20.45%
RNG	63 Neutral	$2.36B	192.86	―	―	5.45%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DOMO	50 Neutral	$460.14M	―	―	―	>-0.01%	9.72%
EGHT	48 Neutral	$263.42M	―	-4.88%	―	0.25%	92.10%

8X8 Corporate Events

8×8 Inc. Balances Growth and Challenges in Earnings Call

The recent earnings call for 8×8 Inc. presented a mixed sentiment, balancing optimism with caution. The company showcased positive strides in revenue growth, AI innovation, and significant debt reduction. However, challenges such as a decline in gross margin, potential revenue decline in Q3, and pricing pressures in the U.S. market were also acknowledged. The overall sentiment reflects a company navigating both opportunities and hurdles.

8×8, Inc. Reports Revenue Growth and Platform Innovation

8×8, Inc. is a global provider of business communication solutions, specializing in integrated platforms for customer experience, including contact center, unified communication, and CPaaS solutions. The company leverages AI to enhance operational efficiency and customer engagement.

8×8 Inc. Earnings Call: Growth Amid Challenges

The recent earnings call for 8×8 Inc. painted a picture of cautious optimism. The company highlighted a return to growth, buoyed by strong performance in CPaaS solutions and effective debt reduction strategies. However, challenges such as a decline in gross margin, foreign exchange impacts, and lower operating margin guidance were also noted, indicating a mixed outlook moving forward.