8x8, Inc.

What they do

8x8 combines contact center, unified communications, and communications platform-as-a-service (APIs) into a single AI-powered platform sold primarily on a per-user subscription basis. It serves customers from small businesses to large global enterprises, with an increasing strategic focus on mid-market, small and mid-sized enterprise, and public sector organizations with 500 to 10,000 employees. The company reaches customers through direct sales and indirect channels including technology solutions distributors, value-added resellers, and carrier partnerships covering over 100 countries.

Revenue drivers

• Service revenue (UCaaS and CCaaS subscriptions) — Subscription plans sold per user with tiered functionality; service revenue was $715.3 million in fiscal 2026 and $185.3 million in Q1 fiscal 2027.
• Platform usage revenue — As-used revenue from communications APIs, digital and voice AI interactions, and telephony minutes; usage revenue grew 56% in fiscal 2026 and 63% in Q1 fiscal 2027.
• Other revenue — Professional services and sales of office phones and hardware equipment.
• International operations — International revenue grew from approximately 33% of total revenue in fiscal 2025 to approximately 39% in fiscal 2026, and to approximately 44% in Q1 fiscal 2027.

Recent performance

In Q1 fiscal 2027 (quarter ended June 30, 2026), service revenue rose 5% to $185.3 million from $176.3 million a year earlier. Gross margin fell to 61.2% from 66.4%. Operating income was $4.4 million versus $0.6 million, and net loss narrowed to $1.2 million from $4.3 million. Cash provided by operating activities was $17.0 million, up from $11.9 million. For full fiscal 2026, service revenue was $715.3 million, income from operations was $18.9 million, and net income attributable to 8x8 was $1.6 million.

Strategy

8x8 completed migrating all legacy Fuze customers onto the 8x8 platform on December 31, 2025, moving the business to a single unified platform. The company's six strategy pillars center on a unified CX platform, AI Studio for building voice and digital AI agents, and a Customer Interaction Data Platform that contextualizes interaction data. Management's stated fiscal 2027 priorities are becoming a partner-first organization, improving customer retention, and increasing multi-product adoption within the installed base. The company continues to invest in R&D, its global voice network, security, and native AI capabilities, and describes a third phase of translating platform breadth into broader adoption and durable growth.

Risks

• History of losses — 8x8 has a history of losses and anticipates continued losses, with the risk factor summary flagging this explicitly.
• Customer churn and retention — Future increases in customer churn and dependence on new customer acquisition, retention, and upsell to existing customers could reduce revenue.
• Intense competition — The company operates in an intensely competitive industry and depends on new products and services to maintain and grow its business.
• Macroeconomic and small-business exposure — Difficult economic conditions, inflation, tariffs, interest rates, and currency volatility could hurt results, and 8x8's installed base includes small businesses that are disproportionately affected by macroeconomic headwinds.

Outlook

Management said Q1 fiscal 2027 exceeded guidance for revenue, non-GAAP operating margin, and operating cash flow, with record service revenue and a fifth consecutive quarter of year-over-year revenue growth. CEO Samuel C. Wilson said the company is entering a third phase of translating its platform's breadth into broader awareness, adoption, and durable growth, with fiscal 2027 priorities of partner-first go-to-market, customer retention, and multi-product adoption. Management continues to monitor AI adoption pace and currency exposure as international revenue rises as a share of total revenue.