8x8 Extends Revenue Growth Into Fiscal 2027

The Tip Desk · August 4, 2026 · 4 min read

The communications platform posted record service revenue of $185.3 million and total revenue of $190.2 million in the quarter ended June 30, 2026.

8x8, Inc. (EGHT), a global business communications platform provider, extended a run of year-over-year revenue growth into the first quarter of fiscal 2027, posting a fifth consecutive quarter of that increase.

Total revenue rose 5% to $190.2 million from $181.4 million a year earlier. Service revenue, the bulk of the mix, increased 5% to $185.3 million from $176.3 million. The company said it exceeded its guidance for revenue, non-GAAP operating margin and operating cash flow. Chief Executive Officer Samuel Wilson said organizations were looking for practical ways to use AI to improve customer experiences and employee productivity without adding complexity.

Gross margin compressed. GAAP gross margin was 61%, compared with 66% in the first quarter of fiscal 2026. Non-GAAP gross margin was 62%, compared with 68%. Cost of service revenue was $67.6 million, or 36.5% of service revenue, versus $53.8 million, or 30.5%, a year earlier.

GAAP operating income was $4.4 million, compared with $0.6 million a year earlier. Non-GAAP operating income was $18.9 million, or a 9.9% margin, compared with $16.3 million, or 9.0%, in the year-ago quarter. GAAP net loss narrowed to $1.2 million, or $0.01 a share, from a $4.3 million loss, or $0.03 a share. Non-GAAP net income was $13.6 million, or $0.09 a share diluted, compared with $10.7 million, or $0.08 a share.

Sales and marketing expense fell to $58.8 million from $68.2 million. Research and development was $28.4 million, essentially unchanged. General and administrative expense was $24.8 million. Transaction-related costs of $2.5 million were added back in the non-GAAP operating profit reconciliation.

Cash provided by operating activities was $17.0 million, compared with $11.9 million a year earlier. Cash, cash equivalents and restricted cash were $92.3 million on June 30, 2026, compared with $95.0 million at the end of fiscal 2026. The June 30 balance reflected a $14.5 million principal payment on the 2024 Term Loan. Total principal amount of debt outstanding was $309.4 million, compared with $323.9 million at fiscal 2026 year-end.

The company said adoption of AI solutions accelerated as customers used AI Studio to build a wide variety of AI agents. New capabilities added to the 8x8 Platform for CX included 8x8 Pulse, 8x8 Resolve and 8x8 AI Routing, each available for select customers, plus support for multiple AI models, voice-powered agent building and one-click connectors in AI Studio, a new App Store and a native Synthflow integration.

Chief Financial Officer Kevin Kraus said that as customers increasingly adopt usage-based communications and AI solutions, revenue mix will continue to evolve. He said those offerings carry a different gross margin profile than SaaS software subscriptions and that the company’s focus remains on growing operating income dollars, generating cash and allocating capital with discipline.

For the second quarter of fiscal 2027 ending September 30, 2026, the company expects service revenue of $180 million to $185 million and total revenue of $185 million to $190 million. Non-GAAP gross margin is expected in a range of approximately 60.5% to 61.5%, and non-GAAP operating margin in a range of approximately 8.0% to 9.0%. Non-GAAP net income per share, diluted, is expected in a range of $0.07 to $0.08 on about 149 million shares. Cash flow from operations is expected in a range of $9 million to $11 million. Interest expense is expected at approximately $3.9 million and cash interest at approximately $5.9 million.

For fiscal 2027 ending March 31, 2027, the company expects service revenue of $725 million to $745 million and total revenue of $745 million to $765 million. Non-GAAP gross margin is expected in a range of 60.5% to 61.5% and non-GAAP operating margin in a range of 8.8% to 9.8%. Non-GAAP net income per share, diluted, is expected in a range of $0.33 to $0.38 on about 150 million shares. Cash flow from operations is expected in a range of $45 million to $52 million.