8x8 (EGHT) investor relations material

Executive summary

• Returned to year-over-year growth in service and total revenue for the first time in nine quarters, with Q1 service revenue at $176.3M and total revenue at $181.4M, driven by strong CPaaS and platform adoption.

• Achieved 18th consecutive quarter of positive cash flow from operations, totaling $11.9M.

• Usage-based revenue, especially from CPaaS, grew over 30% year-over-year, now 17% of service revenue, up from 12% last year.

• AI-driven innovation and multi-product adoption accelerated, with voice AI interactions up more than 7x year-over-year and over one-third of annual revenue from customers using three or more products.

• Net loss narrowed to $4.3M from $10.3M year-over-year, with GAAP operating income turning positive at $0.6M.

Financial highlights

• Q1 total revenue: $181.4M (up from $178.1M); service revenue: $176.3M (up from $172.8M); gross margin: 66.4% GAAP, 67.8% non-GAAP.

• Non-GAAP operating margin: 9%; GAAP operating margin: 0.3%.

• Adjusted EBITDA was $20.7M, down from $25.8M year-over-year.

• Cash flow from operations was $11.9M–$12M; cash and equivalents at quarter-end totaled $82.2M.

• Non-GAAP fully diluted EPS was $0.08; net loss per share improved to $(0.03) from $(0.08) year-over-year.

Outlook and guidance

• Q2 service revenue expected between $170M–$175M; total revenue $175M–$180M; non-GAAP operating margin 8–9%; non-GAAP EPS $0.06–$0.08.

• FY26 service revenue $685M–$700M; total revenue $706M–$720M; non-GAAP operating margin 8.5–9.5%; non-GAAP EPS $0.28–$0.33; cash flow from operations $35M–$45M.

• Guidance reflects lower gross margins due to rapid growth in lower-margin platform solutions and FX headwinds.

• No specific quantitative guidance provided for future quarters in some reports.