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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on EGHT

The recent 3-month performance of 8x8, Inc. was negatively driven by FX headwinds and Fuze transition challenges, which led to revenue declines. Despite strong platform growth and AI advancements, the company's revenue was impacted by these external factors. Additionally, the transition of Fuze, a cloud-based communications platform, posed challenges for 8x8, resulting in a decline in revenue.

1.c. Company Highlights

2. 8x8 Delivers Strong Q2 2026 Earnings, Driven by Growth in Usage-Based Revenue

8x8 Inc.'s Q2 2026 earnings report highlighted a strong financial performance, with total revenue reaching $184.1 million and service revenue at $179.1 million, both exceeding guidance. Service revenue grew 2.3% year-over-year, driven by strength in usage-based offerings, and grew nearly 6% excluding Fuze customers. The company's gross profit was $120.9 million, with a gross margin of 65.7%, and operating income was $17.3 million, resulting in a 9.4% operating margin. Fully diluted EPS was $0.09 per share, beating estimates of $0.07. The company's financial performance was also reflected in its debt reduction, with a $10 million term loan prepayment during the quarter and an additional $5 million payment subsequent to quarter-end, reducing debt principal by $224 million or 41% since August 2022.

Publication Date: Nov -06

📋 Highlights
  • Revenue Growth and Guidance:: Total revenue $184.1M, service revenue $179.1M (up 2.3% YoY, 6% excluding Fuze), with FY2026 service revenue guidance $692M–$706M.
  • Gross Profit and Margins:: Gross profit $120.9M (65.7% margin), operating income $17.3M (9.4% margin), reflecting operational efficiency.
  • Debt Reduction and Financial Discipline:: $224M debt reduction since August 2022, including $10M term loan prepayment and $5M post-quarter payment.
  • AI and Product Expansion:: Launched free 8x8 Workforce Management for contact centers, targeting product-led growth, with AI-driven features like real-time call summarization.
  • Market Dynamics:: International revenue growth outpaces U.S. due to price compression in domestic markets, with international operations accounting for ~40% of revenue.

Revenue Growth Drivers

The company's revenue growth was driven by its usage-based offerings, which are becoming a significant contributor to its revenue stream. Usage-based revenue is growing, making up close to 20% of revenue, with a tendency to beat expectations. The company's transition to usage-based revenue is still early, and it wants to see more data before predicting when the year-over-year declines will perpetually end. The average revenue per customer is increasing on a year-over-year basis, particularly with more multiproduct customers.

Product Innovation and AI-Powered Solutions

8x8 is driving innovation through its AI-powered solutions, including real-time call summarization, contact center, and AI-powered transcription. The company is introducing 8x8 Workforce Management available for free to all contact center customers, marking its first product-led growth launch. AI is being used internally to right-size software purchases and is expected to drive cost control without removing efficiency. The company views AI as elevating and enhancing employee work, making it more efficient.

Valuation and Outlook

With a P/E Ratio of -50.44 and an EV/EBITDA of 28.67, the company's valuation metrics indicate that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 0.7%. The company's focus on debt retirement, with a net debt to EBITDA ratio of 11.39, is expected to drive stakeholder value. The company's guidance for Q3 2026 includes service revenue between $172 million and $177 million, and total revenue between $177 million and $182 million.

Regional Performance and M&A Activity

The company's international markets, including the U.K., account for almost 40% of its business and are growing substantially faster than its U.S. operations. The U.S. is experiencing price compression and intense competition, whereas international markets are performing much better. The company is active in the M&A market, looking at tuck-ins for geographic expansion, product portfolio expansion, or customer expansion.

3. NewsRoom

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Boston Partners Buys 1,537,615 Shares of 8×8 Inc $EGHT

Nov -29

Source: defenseworld.net

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8x8 Strengthens Customer Data Privacy With New International Cloud Protection Standard

Nov -25

Source: businesswire.com

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Customers Resolve Issues Faster With New AI, Omnichannel Enhancements From 8x8

Nov -20

Source: businesswire.com

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8x8, Inc. Announces Participation in Upcoming Investor Events

Nov -17

Source: businesswire.com

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EGHT vs. ZM: Which Stock Should Value Investors Buy Now?

Nov -10

Source: zacks.com

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8x8 Sees Surge in AI Adoption as Organizations Race to Deliver Faster, Smarter Customer Engagement

Nov -06

Source: businesswire.com

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Why 8x8 Stock Is Soaring Today

Nov -05

Source: fool.com

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8x8, Inc. (EGHT) Q2 2026 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (24.19%)

6. Segments

Software-as-a-service

Expected Growth: 25.1%

Growing demand for cloud-based communication platforms, increasing adoption of unified communications, and rising need for remote work solutions drive the growth of 8x8's Software-as-a-Service offers.

Other

Expected Growth: 5.2%

The 'Other' segment, comprising non-core products and services, is expected to grow driven by increasing demand for hardware and accessories in the unified communications as a service (UCaaS) market, as well as 8x8's strategic partnerships and expanding customer base.

7. Detailed Products

8x8 Work

A cloud-based unified communications platform that integrates voice, video, and messaging capabilities.

8x8 Contact Center

A cloud-based contact center solution that provides omnichannel engagement, workforce optimization, and analytics.

8x8 Video Meetings

A cloud-based video conferencing platform that enables virtual meetings and collaborations.

8x8 Voice for Microsoft Teams

A cloud-based voice solution that integrates with Microsoft Teams to provide enterprise-grade voice capabilities.

8x8 APIs and SDKs

A set of APIs and SDKs that enable developers to integrate 8x8's communications capabilities into their applications.

8x8 CPaaS

A cloud-based communications platform as a service that enables developers to build custom communications applications.

8. 8x8, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for 8x8, Inc. is medium due to the presence of alternative communication platforms and services.

Bargaining Power Of Customers

The bargaining power of customers for 8x8, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for 8x8, Inc. is medium due to the company's dependence on a few key suppliers for its technology and infrastructure.

Threat Of New Entrants

The threat of new entrants for 8x8, Inc. is high due to the low barriers to entry in the communication technology industry and the presence of new innovative startups.

Intensity Of Rivalry

The intensity of rivalry for 8x8, Inc. is high due to the presence of established competitors and the company's need to continuously innovate to stay ahead in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 82.41%
Debt Cost 7.89%
Equity Weight 17.59%
Equity Cost 11.24%
WACC 8.48%
Leverage 468.46%

11. Quality Control: 8x8, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fastly

A-Score: 4.2/10

Value: 6.5

Growth: 5.9

Quality: 3.7

Yield: 0.0

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Rubicon Technologies

A-Score: 4.1/10

Value: 10.0

Growth: 4.4

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
SmartRent

A-Score: 3.9/10

Value: 8.6

Growth: 5.2

Quality: 4.0

Yield: 0.0

Momentum: 3.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
8x8

A-Score: 3.8/10

Value: 7.1

Growth: 5.6

Quality: 3.1

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Issuer Direct

A-Score: 3.6/10

Value: 7.3

Growth: 2.1

Quality: 4.9

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Model N

A-Score: 3.2/10

Value: 2.4

Growth: 4.8

Quality: 4.0

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.01$

Current Price

2.02$

Potential

-0.00%

Expected Cash-Flows