8x8 (EGHT) Q1 2026 earnings summary

Executive summary

• Achieved year-over-year growth in both service and total revenue for the first time in nine quarters, with Q1 FY26 service revenue at $176.3M and total revenue at $181.4M, driven by strong CPaaS and AI-powered solutions adoption.

• Platform adoption and shift to usage-based models accelerated, with CPaaS revenue growing over 30% year-over-year and AI-based solutions revenue up 52%.

• Multi-product strategy gained traction, with over one-third of annual revenue from customers using three or more products (excluding consumption revenue).

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

• Recognized for industry leadership, including awards and rankings for workplace and product innovation.

Financial highlights

• Q1 FY26 total revenue was $181.4M, service revenue $176.3M, both up 2% year-over-year and near the high end of guidance.

• GAAP operating income was $0.6M, non-GAAP operating margin 9%, and adjusted EBITDA $20.7M.

• Gross margin was 66.4% GAAP and 67.8% non-GAAP, down year-over-year due to higher usage-based revenue.

• 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, in the middle of guidance.

Outlook and guidance

• Q2 FY26: Service revenue expected $170M–$175M; total revenue $175M–$180M; non-GAAP gross margin 66%–68%; 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 FX headwinds and margin pressure from usage-based revenue mix.