UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to _________ Commission file number 000-38312 8x8, Inc. (Exact name of Registrant as Specified in its Charter) Delaware 77-0142404 (State or Other Jurisdiction of Incorp ...

8x8 generated $63.6 million in operating cash flow in FY2025, bringing its two-year total to over $142 million marking the highest consecutive two-year period of non-GAAP operating cash flow in company history.8x8, Inc. (EGHT -2.78%) reported fourth quarter and fiscal year 2025 results on May 19, 2025, highlighting accelerated growth in core service revenue (non-GAAP) and record multi-year cash generation (non-GAAP). The company made significant progress in platform innovation, customer upgrades, and debt r ...

Group 1: Earnings Performance - 8x8 reported quarterly earnings of $0.08 per share, matching the Zacks Consensus Estimate, and consistent with earnings from the previous year [1] - The company had revenues of $177.04 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.56% and down from $179.41 million a year ago [2] - Over the last four quarters, 8x8 has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2][3] Group 2: Stock Performance and Outlook - 8x8 shares have declined approximately 32.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The future performance of 8x8's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $177.61 million, and for the current fiscal year, it is $0.37 on revenues of $716.4 million [7] Group 3: Industry Context - The Internet - Software industry, to which 8x8 belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact 8x8's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q4 was $177 million, near the midpoint of guidance, while service revenue totaled $171.6 million, also near the midpoint of guidance [29] - Year-over-year growth in service revenue, excluding Fuse customers, accelerated to 4.6% from 2.7% in Q3, marking the highest growth rate in 10 quarters [10] - For fiscal year 2025, service revenue excluding Fuse customers grew 2.8%, compared to 1.8% in fiscal year 2024 [10] - Gross margin for the quarter was 69%, at the low end of guidance, driven by a revenue mix with lower margin platform usage revenue growing to approximately 13.5% of total revenue [30] - Operating margin was 10%, at the high end of guidance, with stock-based compensation declining to 4.6% of total revenue, a multiyear low [31] Business Line Data and Key Metrics Changes - The number of customers with three or more products increased 13% year-over-year to over 700 customers, indicating successful cross-selling [11] - Sales of Microsoft Teams integration saw new license sales up 72% in Q4, with cumulative licenses sold growing 30% year-over-year to over 550,000 seats [12] - The transition from the legacy Fuse platform is on track, with remaining revenue from Fuse customers reduced to under 5% of service revenue, down from approximately 11% in Q4 2024 [29] Market Data and Key Metrics Changes - The company noted a shift in the economic picture due to recent tariff actions and global uncertainty, impacting sales cycles and spending [7] - The U.S. market experienced some chaos in March and April, with elongated deal cycles, while the rest of the world continued to perform steadily [44] Company Strategy and Development Direction - The company is focused on building a durable, cash-generative business that creates long-term value, emphasizing disciplined execution and platform innovation [7] - A massive transformation began in fiscal year 2023, with a clear plan to fix the financial model, invest in innovation, and improve customer experience outcomes [9] - The go-to-market model has been rebuilt around solution selling and partner enablement, with ongoing adjustments to improve performance [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing a solid foundation for growth and the expectation of high single-digit revenue growth and double-digit operating margins in the coming years [25] - The company anticipates that the headwinds from the Fuse platform will lessen significantly in fiscal year 2027, allowing for improved growth rates [25] - Management remains realistic about challenges ahead but sees signs of a tailwind, with growth accelerating in the core business [24] Other Important Information - The combined cash flow from operations for fiscal years 2024 and 2025 is the highest in the company's history, representing over half of its market capitalization [10] - The company has made significant progress in debt reduction, with over $209 million reduced since August 2022, enhancing financial flexibility [28] Q&A Session Summary Question: What are you hearing from your field reps regarding macro impacts? - Management noted elongated deal cycles and some shrinking depending on urgency, with a calmer environment in May compared to earlier months [42][43] Question: Can you clarify the status of your go-to-market changes? - The company is approximately 60-70% through the go-to-market rebuild, focusing on solution selling and fine-tuning processes [46] Question: What is the adjusted service revenue growth forecast for fiscal year 2026, excluding Fuse? - The company expects positive growth rates for fiscal year 2026, with the headwinds from Fuse expected to diminish [48][52] Question: What is driving the expected high single-digit growth by fiscal year 2028? - Growth is anticipated from increased multi-product customers, improved retention rates, and the rollout of new products [76][80] Question: How is the cash flow guidance for fiscal year 2026 structured? - The guidance reflects investments in growth, with a focus on maintaining stable net income despite some margin compression [60] Question: Why is the company winning in the CCaaS space? - The company offers a complete solution with best-in-breed technology from a single vendor, which is appealing to mid-market and enterprise customers [64][66]

Fourth Quarter & Fiscal Year 2025 Ended March 31, 2025 May 19, 2025 Copyright 2025 8x8, Inc. or its affiliates. All rights reserved. Forward looking statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimate ...

Revenue Performance - Fourth quarter service revenue was $172 million, and total revenue was $177 million, reflecting a 2% decrease from the previous year[1]. - Fiscal year 2025 service revenue totaled $693 million, with total revenue at $715 million, down from $728.7 million in fiscal 2024[7]. - Total revenue for Q1 2025 was $177.043 million, a decrease of 1.9% from $179.413 million in Q1 2024[32]. - Service revenue for Q1 2025 was $171.588 million, down from $172.490 million in Q1 2024, reflecting a decline of 0.5%[32]. - Gross profit for Q1 2025 was $120.052 million, compared to $122.444 million in Q1 2024, indicating a decrease of 2.0%[32]. Profitability Metrics - GAAP operating income increased by 155% to $15.2 million compared to a loss of $27.6 million in fiscal 2024[7]. - Non-GAAP operating profit decreased by 17% to $78.4 million from $94.7 million in fiscal 2024[7]. - Non-GAAP operating profit for Q1 2025 was $419 thousand, compared to a loss of $14.219 million in Q1 2024[32]. - The net loss for the year ended March 31, 2025, was $27,212,000, an improvement from a net loss of $67,592,000 in 2024[37]. - GAAP net loss for the three months ended March 31, 2025, was $5,401,000, representing 3.1% of total revenue, compared to a loss of $23,591,000 (13.1%) for the same period in 2024[40]. Cash Flow and Liquidity - Cash flow from operations for fiscal year 2025 was $64 million, with $5.9 million in the fourth quarter[1][7]. - Cash and cash equivalents decreased to $88.050 million as of March 31, 2025, down from $116.262 million a year earlier[34]. - Net cash provided by operating activities for the year ended March 31, 2025, was $63,554,000, a decrease from $78,985,000 in 2024[37]. - Cash, cash equivalents, and restricted cash at the end of the year was $89,324,000, down from $116,723,000 at the beginning of the year[37]. Debt and Liabilities - The total principal amount of debt outstanding decreased to $353.9 million from $426.9 million at the end of fiscal 2024[10]. - Total liabilities decreased to $560.973 million as of March 31, 2025, down from $654.021 million a year earlier[34]. - The company incurred $273,000,000 in principal repayment on term loans during the year ended March 31, 2025[37]. Future Projections - The company expects first quarter fiscal 2026 service revenue to be between $170 million and $175 million, and total revenue between $175 million and $182 million[17]. - Non-GAAP net income per share for fiscal year 2026 is projected to be between $0.34 and $0.37, based on approximately 144 million shares[17]. Operational Developments - The company is focused on upgrading remaining customers on the Fuze service platform, expecting completion by the end of calendar year 2025[2]. - New AI-powered features have been introduced across the 8x8 Platform for CX to enhance customer engagement and operational efficiency[9][11]. Stock-Based Compensation and Expenses - Stock-based compensation expense for the year ended March 31, 2025, was $39,940,000, a decrease from $61,910,000 in 2024[37]. - Stock-based compensation expense for the three months ended March 31, 2025, was $8,615,000, down from $15,865,000 in the same period last year[40]. Comprehensive Loss - The company reported a comprehensive loss of $1.642 million for Q1 2025, compared to a comprehensive loss of $25.606 million in Q1 2024[32].

Core Insights - 8×8, Inc. is set to release its fourth-quarter earnings results on May 19, with analysts expecting earnings of 8 cents per share, unchanged from the previous year [1] - The projected quarterly revenue is $177.98 million, a decrease from $179.41 million a year earlier [1] - The company has recently expanded its market presence in Ireland through a partnership with CCMA Ireland [1] Analyst Ratings - Rosenblatt analyst Catherine Trebnick maintained a Buy rating but reduced the price target from $3.3 to $2.7 [7] - Wells Fargo analyst Michael Turrin maintained an Underweight rating and cut the price target from $2 to $1.5 [7] - Morgan Stanley analyst Meta Marshall also maintained an Underweight rating, lowering the price target from $2.6 to $1.9 [7] - Mizuho analyst Siti Panigrahi kept an Underperform rating and decreased the price target from $2.5 to $2 [7] - Barclays analyst Ryan Macwilliams maintained an Equal-Weight rating and raised the price target from $2.5 to $3 [7]

Core Viewpoint - The focus is on identifying undervalued stocks using the Zacks Rank system and Style Scores, with a specific emphasis on value investing strategies that have proven successful across various market conditions [2][3]. Company Analysis - 8x8 (EGHT) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3]. - EGHT has a Price-to-Book (P/B) ratio of 1.84, which is significantly lower than its industry's average P/B of 4.77, suggesting that the stock may be undervalued [4]. - The P/B ratio for EGHT has fluctuated between a high of 4.09 and a low of 1.84 over the past 52 weeks, with a median of 2.84 [4]. - The Price-to-Cash Flow (P/CF) ratio for EGHT is 5.49, which is also lower than the industry's average P/CF of 13.93, further indicating potential undervaluation [5]. - Over the past year, EGHT's P/CF has ranged from a high of 23.04 to a low of 5.49, with a median of 10.82 [5]. - The combination of these metrics suggests that EGHT is likely being undervalued, supported by a strong earnings outlook [6].

Core Viewpoint - 8x8, Inc. (EGHT) has experienced a significant decline in share price, dropping 19.6% since the release of its third-quarter fiscal 2025 results, underperforming both the broader technology sector and its industry peers [1][3]. Financial Performance - Total revenues for 8x8 fell by 1.2% year-over-year and sequentially, amounting to $179 million in the third quarter of fiscal 2025, primarily due to expected revenue declines from customers on the Fuze platform and over $2 million in forex headwinds [3][13]. - The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings is 8 cents per share, indicating no year-over-year change, while revenues are expected to decline by 0.76% to $178.04 million [13]. - For the full fiscal year 2025, revenue estimates are pegged at $716.06 million, reflecting a 1.74% year-over-year decline, with earnings expected to be 36 cents per share, down 23.40% year-over-year [14]. Strategic Developments - 8x8 is enhancing its customer experience platform by integrating Contact Center, Unified Communications, and CPaaS, which aims to streamline customer interactions and improve operational efficiency [5]. - The company has expanded its 8x8 Secure Pay service to facilitate secure payments across various channels, enhancing customer experience through automation [6]. - The introduction of the 8x8 Intelligent Customer Assistant with a Voice Intelligent Directory aims to improve customer interactions by connecting callers to the right contacts more efficiently [7]. Growth Initiatives - The acquisition of Fuze has strengthened 8x8's Experience Communications as a Service (XCaaS) platform, expanding its global presence, particularly in Europe, and ensuring a smooth integration process [9]. - Partnerships, such as with CallCabinet, enhance compliance capabilities for users on Microsoft Teams, reinforcing 8x8's commitment to delivering certified solutions for business communications [10]. - 8x8 is focusing on expanding its international presence, particularly in the Asia-Pacific region, where it secured its largest deal to date with a leading auto manufacturer [11]. Market Engagement - A major U.S. retailer has engaged 8x8 for a new contact center, marking the largest follow-on deal in the company's history, indicating strong customer engagement and growth potential [12].

Core Viewpoint - 8x8 (EGHT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for 8x8 reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - The Zacks Consensus Estimate for 8x8 has increased by 300% over the past three months, although the expected earnings per share for the fiscal year ending March 2025 is projected to be $0.36, representing a year-over-year decline of 23.4% [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of 8x8 to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].