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8x8 (EGHT) investor relations material
8x8 Q3 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record service revenue of $180M and total revenue of $185.1M, up 3.6% and 3.5% year-over-year, respectively, with 20th consecutive quarter of positive operating cash flow.
Strategic investments in innovation, operational efficiency, and distribution drove measurable results, with usage-based and AI solutions gaining traction.
Completed migration of all Fuze customers to the integrated platform, improving operational efficiency and customer satisfaction.
14% year-over-year growth in customers with three or more products, and focus on expanding mid-market, enterprise, and public sector customer base.
20th consecutive quarter of positive operating cash flow, totaling $20.7 million.
Financial highlights
Total revenue reached $185.1M and service revenue $179.7M, both up over 3% year-over-year and exceeding guidance.
Usage-based offerings grew nearly 60% year-over-year, now representing 21% of service revenue, up from 14% a year ago.
Gross profit was $120M with a gross margin of 64.8% (non-GAAP) and 63.9% (GAAP), slightly down sequentially due to mix shift toward lower-margin usage-based revenue.
Operating income was $21.7M (non-GAAP, 11.7% margin) and $9.7M (GAAP), both up year-over-year and above guidance.
Net income was $17.1M (non-GAAP) and $5.1M (GAAP); fully diluted EPS $0.12 (non-GAAP), $0.04 (GAAP).
Cash flow from operations was $20.7M; quarter ended with $88.2M in cash after $5M debt prepayment.
Outlook and guidance
Raised Q4 guidance: service revenue expected between $173.5M–$178.5M, total revenue $178.5M–$183.5M, both $7M above prior guidance midpoints.
Q4 gross margin expected at 64–65%, operating margin 8.5–9.5%, and EPS $0.07–$0.08.
Full-year service revenue guidance increased to $708.6M–$713.6M, total revenue $729M–$734M, gross margin 65–66%, operating margin 9.5–10%, and EPS $0.36–$0.37.
FY 2026 cash flow from operations projected at $42M–$45M.
Fiscal 2027 will see headwinds from Fuze churn, especially in the first half, but service revenue growth is still expected.
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