8x8 (EGHT) Q2 2025 earnings summary

Executive summary

• Q2 FY25 total revenue was $181.0M, with service revenue at $175.1M; both declined year-over-year but exceeded guidance, and the company achieved both GAAP and non-GAAP operating profitability, marking the 15th consecutive quarter of positive operating cash flow.

• AI-based and new product sales grew over 60% year-over-year, with AI-based solutions up over 200% year-over-year, and customer retention and satisfaction remained high.

• The company continued to win new customers across retail, healthcare, IT, and other sectors, with multi-product deals and large-scale deployments.

• Over 3 million paid business licenses and more than 500,000 8x8 Voice for Teams user licenses were reported.

• Transformation initiatives and ecosystem expansion, including new technology partners, are driving operational efficiency and growth.

Financial highlights

• Q2 FY25 service revenue was $175.1M, total revenue $181.0M, both down year-over-year; GAAP operating income was $7.2M, non-GAAP operating profit $21.5M, and adjusted EBITDA $26.7M.

• Gross margin (GAAP) was 68.1%, non-GAAP gross margin was 70.2%–71.5%, both slightly down year-over-year.

• Net loss was $14.5M (GAAP), or $(0.11) per share; non-GAAP net income was $12.1M.

• Cash and cash equivalents at quarter-end were $117.4M–$118M.

• Remaining performance obligations increased $20M sequentially to $800M.

Outlook and guidance

• Q3 FY25: Service revenue guidance $171M–$174M, total revenue $177M–$182M, non-GAAP operating margin 10%–11%.

• FY25: Service revenue $690M–$701M, total revenue $714M–$727M, non-GAAP operating margin 10.25%–11%, non-GAAP EPS $0.32–$0.35.

• Management remains cautious due to macroeconomic headwinds, usage-based revenue variability, and FX uncertainty.