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Dec 31, 2025
8x8 Q3 2026 Earnings Report
8x8, Inc. announced its third quarter fiscal year 2026 financial results, reporting record service revenue and continued positive cash flow from operations.
Key Takeaways
8x8, Inc. reported a strong third quarter for fiscal year 2026, with total revenue reaching $185.1 million and service revenue hitting a record $179.7 million. The company achieved its 20th consecutive quarter of positive cash flow from operations, which stood at $20.7 million. Net income was $5.1 million, and diluted EPS was $0.04.
Record service revenue of $179.7 million was achieved, demonstrating strong growth.
The company maintained its streak of positive cash flow from operations for the 20th consecutive quarter, reporting $20.7 million.
Total revenue increased to $185.1 million, up from $178.9 million in the prior year's third quarter.
Non-GAAP operating profit reached $21.7 million, reflecting improved operational performance.
Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal year 2026, 8x8, Inc. anticipates service revenue between $173.5 million and $178.5 million, and total revenue between $178.5 million and $183.5 million. Non-GAAP gross margin is expected to be approximately 64% to 65%, with non-GAAP operating margin in the range of 8.5% to 9.5%. Cash flow from operations is projected to be between $1 million and $4 million.
Positive Outlook
- Anticipated service revenue of $173.5 million to $178.5 million for Q4 2026.
- Projected total revenue of $178.5 million to $183.5 million for Q4 2026.
- Expected non-GAAP gross margin of approximately 64% to 65% for Q4 2026.
- Forecasted non-GAAP operating margin in the range of 8.5% to 9.5% for Q4 2026.
- Anticipated cash flow from operations of $1 million to $4 million for Q4 2026.
Challenges Ahead
- The company does not reconcile forward-looking non-GAAP operating margin or net income per share to GAAP due to significant variability and difficulty in forecasting certain expenses.
- Future hiring and employee turnover may not be reasonably predictable, impacting stock-based compensation expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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