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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's Strategic Investments Drive Growth and Operational Efficiency

8x8, Inc. reported a strong third-quarter 2026 earnings, with service revenue reaching $179.7 million and total revenue hitting $185 million, exceeding guidance ranges. The company's operating income was $21.7 million, with an 11.7% operating margin. Non-GAAP earnings per share came in at $0.12, beating estimates of $0.09. The company's usage-based offerings, including CPaaS APIs, digital channels, and AI solutions, grew nearly 60% year-over-year and represented 21% of service revenue.

Publication Date: Feb -17

📋 Highlights
  • Service Revenue Growth: Achieved $179.7M, marking third consecutive quarter of year-over-year growth.
  • Usage-Based Revenue Expansion: CPaaS APIs, digital channels, and AI solutions grew 60% YoY, contributing 21% of service revenue.
  • Operating Efficiency: Maintained 11.7% operating margin with $21.7M operating income and $20.7M cash flow from operations.
  • Debt Reduction: Reduced principal debt by $224M (41%) since August 2022, improving financial flexibility.
  • Full-Year Guidance Raised: Now forecasts $708.6–$713.6M service revenue and $729–$734M total revenue, up from prior targets.

Operational Highlights

The company achieved its third consecutive quarter of year-over-year service revenue growth and twentieth consecutive quarter of positive operating cash flow. 8x8 generated $20.7 million in cash flow from operations and has reduced debt principal by $224 million or 41% since August 2022. The upgrade of the Fuze customer base to the 8x8 platform has been completed, setting the stage for improved customer interaction, expansion opportunities, and efficient operations.

Guidance and Outlook

For Q4 2026, the company expects service revenue to be $173.5-$178.5 million and total revenue $170.5-$183.5 million. 8x8 raises its full-year guidance, anticipating service revenue of $708.6-$713.6 million and total revenue of $729-$734 million. Non-GAAP earnings per share are expected to be $0.36-$0.37 for the year. Analysts estimate next year's revenue growth at 0.8%, indicating a moderate pace.

Valuation and Metrics

The company's current valuation metrics show a P/E Ratio of -95.4, P/B Ratio of 2.58, and P/S Ratio of 0.52. The EV/EBITDA ratio stands at 16.16, while the Free Cash Flow Yield is 13.63%. The Net Debt / EBITDA ratio is 7.0, indicating a relatively high debt burden. These metrics suggest that the market is pricing in a certain level of growth, but the high debt levels and negative earnings per share may be a concern for investors.

3. NewsRoom

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8x8 Smart Assist Helps Contact Centers Resolve Faster, Deliver More Consistent CX, and Increase Agent Satisfaction

Feb -19

Source: businesswire.com

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8x8 Launches Platform-Wide Upgrades to Simplify CX, Cutting Handle Times and Streamlining Workforce Management

Feb -18

Source: businesswire.com

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8×8 Inc (NASDAQ:EGHT) Receives Consensus Rating of “Hold” from Brokerages

Feb -17

Source: defenseworld.net

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3 Internet Software Stocks to Buy From a Challenging Industry

Feb -11

Source: zacks.com

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New Strong Buy Stocks for February 11th

Feb -11

Source: zacks.com

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8x8 and PLDT Enterprise Launch Silent Mobile Authentication in The Philippines

Feb -11

Source: businesswire.com

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EGHT or FFIV: Which Is the Better Value Stock Right Now?

Feb -09

Source: zacks.com

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8x8 Q3: Strong Execution Amid Lingering Structural Challenges

Feb -09

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
Issuer Direct

A-Score: 4.3/10

Value: 8.2

Growth: 2.1

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Rubicon Technologies

A-Score: 4.3/10

Value: 10.0

Growth: 4.4

Quality: 5.5

Yield: 0.0

Momentum: 6.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Fastly

A-Score: 4.2/10

Value: 6.2

Growth: 5.8

Quality: 3.8

Yield: 0.0

Momentum: 7.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
SmartRent

A-Score: 3.9/10

Value: 7.9

Growth: 5.2

Quality: 4.0

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Model N

A-Score: 3.3/10

Value: 2.4

Growth: 4.8

Quality: 3.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
8x8

A-Score: 3.2/10

Value: 6.7

Growth: 5.6

Quality: 3.2

Yield: 0.0

Momentum: 2.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.29$

Current Price

2.29$

Potential

-0.00%

Expected Cash-Flows