8x8 (EGHT) investor relations material

Executive summary

• Achieved four consecutive quarters of year-over-year revenue growth and first GAAP profitable full fiscal year since 2015, with record service and total revenue in Q4 and FY 2026.

• Usage-based revenue, including CPaaS, AI, and digital channels, grew over 70% YoY in Q4 and over 50% for FY 2026, now representing 23% of service revenue.

• Strengthened balance sheet and reduced debt, with $30M in principal payments during FY 2026 and total principal debt at $323.9M at year-end.

• Platform strategy focused on open integration, orchestration, and AI-driven customer engagement, with strong customer adoption and competitive wins.

• Launched 8x8 Engage, AI Studio, and integrated strategic acquisitions, maintaining disciplined operating expense management.

Financial highlights

• Q4 total revenue: $185.2M (+4.6% YoY); service revenue: $180.2M (+5% YoY); FY 2026 total revenue: $735.8M (+3% YoY); service revenue: $715.3M (+3% YoY).

• Q4 gross profit: $118.9M; gross margin: 64.2%; Q4 GAAP operating income: $3.3M; non-GAAP operating income: $19.8M (10.7% margin).

• FY 2026 GAAP operating income: $18.9M (+25% YoY); non-GAAP operating profit: $75.1M (10.2% margin).

• Q4 GAAP net income: $0.1M; non-GAAP net income: $16.6M; FY 2026 GAAP net income: $1.6M; non-GAAP net income: $57.5M.

• Cash flow from operations: $14.4M in Q4; $55.8M for FY 2026; cash and equivalents: $95M at year-end.

Outlook and guidance

• Q1 FY27: Service revenue $175M–$180M; total revenue $180M–$185M; non-GAAP gross margin 63.5%–64.5%; operating margin 8.5%–9.5%; EPS $0.08–$0.09; cash flow from operations $10M–$12M.

• FY27: Service revenue $707M–$727M; total revenue $727M–$747M; non-GAAP gross margin 62.5%–63.5%; operating margin 9%–10%; EPS $0.33–$0.38; cash flow from operations $45M–$52M.

• Plan to make $39.5M in principal debt payments in FY27.