Start here if you're new
what it is
8x8 sells business calling and support tools to 60,000 customers in 180 countries.
how it gets paid
Last year Inc made $715M in revenue. 8x8 Work was the main engine at $286M, or 40% of sales.
why growth slowed
Revenue fell 1.9% last year. The $551M quarter matters because it shows the business still has scale.
what just happened
Last quarter revenue hit $551M, EPS was $0.01, and gross margin held at 65.0%.
At a glance
C+ balance sheet — struggling to keep the lights on
40/100 earnings predictability — expect surprises
53.8x trailing p/e — you're paying up for this one
-$0.21 fy2024 eps est
$8M fy2022 rev est
xvary composite: 29/100 — weak
What they do
8x8 sells business calling and support tools to 60,000 customers in 180 countries.
You do not replace 2.5 million paid business licenses overnight. 8x8 sits inside calling, meetings, and support lines for more than 60,000 customers. Leaving means moving the whole phone system, not just one app.
How they make money
$715M
annual revenue · their business grew -1.9% last year
8x8 Work
$286M
flat
8x8 Contact Center
$180M
up
Voice and calling
$110M
dn
APIs and analytics
$65M
up
Team collaboration and other
$74M
dn
The products that matter
unified communications platform
XCaaS Platform
$185M in Q3 FY2026 revenue
XCaaS is 8x8's bundled software for calls, messaging, video, and customer support. The number shown here moved from $181.4M in Q1 to $184.1M in Q2 and $185M in Q3 FY2026. That is better. It still looks more like stabilization than escape velocity.
core platform
customer experience software
8x8 Engage
15–20% market growth
This is the growth angle in the story. The cloud customer-experience market referenced here is projected to grow 15–20% annually through 2026. The missing piece is segment revenue. So you should treat this as opportunity, not evidence.
growth bet
recurring subscription base
Service Revenue
$701M · 98% of sales
This $701M stream is nearly the whole company. If it returns to steady growth, the turnaround case gets cleaner fast. If it keeps shrinking, that is the entire bear case in one line.
98% of revenue
Key numbers
$715M
annual revenue
This is the top line. It is big enough to matter and small enough to wobble.
$336M
debt
Debt is larger than the stock value. That is a blunt reminder who gets paid first.
65.0%
gross margin
The business keeps 65 cents of each sales dollar before overhead. That is the part worth keeping.
1.6
beta
The stock moves about 60% more than the market. Your nerves are part of the cost.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $336M (54% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for EGHT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Last quarter revenue hit $551M, EPS was $0.01, and gross margin held at 65.0%.
Revenue was up 197% vs. prior year, but EPS only reached $0.01. The 65.0% gross margin says the product still throws off solid dollars before overhead.
$551M
revenue
$0.01
eps
65.0%
gross margin
revenue jump
The $551M quarter matters because it shows the business still has scale, even while EPS stayed at $0.01.
source: company earnings report, 2026
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What could go wrong
EGHT is trying to repair credibility while carrying more long-term debt than its entire equity market value. That is a narrow bridge for a company with slipping sales.
med
The debt story is bigger than the stock story
Long-term debt is $336M, debt to equity is 245%, and debt is 54% of capital. The company is worth about $291M in the market.
If operating results wobble, the capital structure becomes the headline fast. You are not just underwriting software execution here.
med
Annual revenue is still going the wrong way
Annual revenue declined 1.9% vs. prior year even though the latest quarter improved sequentially.
If that quarterly improvement fades, the stock loses the one argument holding it up — that the worst part of the decline is over.
med
Margin slippage would travel straight into confidence
Gross margin is 63.9%, and each one-point decline cuts about $1.85M from gross profit based on the $185M quarter shown here.
When a software company with a weak rating starts giving up margin, investors usually read that as competition, discounting, or both.
med
The category is crowded and the proof is thin
8x8 competes against larger communications and contact-center platforms while producing just 8.2% return on invested capital.
Without clear evidence of pricing power in this snapshot, winning business gets expensive and keeping it gets harder.
A $291M equity value against $336M of long-term debt does not leave much room for another reset. That is the real risk math.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q4 FY2026 earnings release
Expected late April 2026. You want revenue to stay at or above the recent $185M level, not slip back into the low-$180M range.
metric
Gross margin at 63.9%
Each point matters. A move lower would chip away at the operating credibility this turnaround has only started to rebuild.
trend
Quarterly revenue progression
Q1 was $181.4M, Q2 was $184.1M, and Q3 was $185M. The next print tells you whether that line is still bending up or flattening out again.
risk
Debt load versus market value
With $336M in long-term debt and a $291M market cap, you should track the balance sheet as closely as the product roadmap.
Analyst rankings
earnings predictability
40 / 100
Earnings predictability: 40/100. In human-speak, analysts do not see clean, repeatable quarters yet.
street target
$2.23
Consensus target: $2.23 versus a $2.69 stock price. The street still wants execution to outrun the story.
source: institutional data
Institutional activity
institutional ownership data for EGHT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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