📊 EGHT Key Takeaways
Is 8X8 Inc. /DE/ (EGHT) a Good Investment?
8X8 generates healthy gross margins (64.6%) and positive free cash flow, but operates under severe financial stress with interest coverage of 1.0x—barely covering debt service from operating income. Razor-thin net margins (0.2%) and high leverage (2.19x D/E) paired with anemic 2.9% revenue growth leave minimal buffer for operational decline or refinancing risk.
8x8 has improved to marginal profitability and generates positive free cash flow, which shows some operational stabilization. However, declining revenue, very thin operating and net margins, and heavy leverage with weak interest coverage materially limit financial flexibility. The fundamentals suggest a fragile turnaround rather than a durable high-quality growth profile.
8X8 Inc. /DE/ Key Strengths (EGHT)
- Gross margin of 64.6% demonstrates strong pricing power and product-market fit in core services
- Positive free cash flow of 52.1M enables debt service despite minimal net profitability
- Net income growth of 106% YoY shows recent operational improvements from low base of 0.8M
- Positive free cash flow generation with a 7.0% FCF margin
- Gross margin of 65.0% indicates an attractive underlying software/services model
- Return to positive operating income and net income signals improved cost discipline
EGHT Stock Risks: 8X8 Inc. /DE/ Investment Risks
- Interest coverage ratio of 1.0x is critical red flag—operating income barely covers interest expense with zero margin for operational decline
- Operating margin of 2.6% and net margin of 0.2% reflect severe profitability weakness and operational inefficiency
- High debt burden of 321.5M against 146.6M equity (2.19x D/E) with weak revenue growth (2.9%) creates acute refinancing risk if rates elevated
- Revenue declined 1.9% year over year, pointing to weak top-line momentum
- Debt/equity of 2.25x and interest coverage of 1.1x indicate elevated balance-sheet risk
- Net margin of 0.3% leaves little cushion against execution issues or macro pressure
Key Metrics to Watch
- Interest coverage ratio—any decline signals immediate refinancing pressure
- Operating margin expansion—must exceed 2.6% to build financial flexibility
- Revenue growth acceleration—current 2.9% insufficient to support debt load; 8%+ needed for deleveraging
- Revenue growth and customer retention/expansion trends
- Interest coverage and debt reduction progress
8X8 Inc. /DE/ (EGHT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
8X8 Inc. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EGHT Profit Margin, ROE & Profitability Analysis
EGHT vs Technology Sector: How 8X8 Inc. /DE/ Compares
How 8X8 Inc. /DE/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is 8X8 Inc. /DE/ Stock Overvalued? EGHT Valuation Analysis 2026
Based on fundamental analysis, 8X8 Inc. /DE/ shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
8X8 Inc. /DE/ Balance Sheet: EGHT Debt, Cash & Liquidity
EGHT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: 8X8 Inc. /DE/'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.56 indicates the company is currently unprofitable.
EGHT Revenue Growth, EPS Growth & YoY Performance
EGHT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $178.9M | $767.0K | $0.01 |
| Q2 2026 | $181.0M | $767.0K | $0.01 |
| Q1 2026 | $178.1M | -$4.3M | $-0.03 |
| Q3 2025 | $178.9M | $3.0M | $0.02 |
| Q2 2025 | $181.0M | -$7.5M | $-0.06 |
| Q1 2025 | $178.1M | -$10.3M | $-0.08 |
| Q3 2024 | $181.0M | -$7.5M | $-0.17 |
| Q2 2024 | $185.0M | -$7.5M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
8X8 Inc. /DE/ Dividends, Buybacks & Capital Allocation
EGHT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for 8X8 Inc. /DE/ (CIK: 0001023731)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781038123.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781038091.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781038061.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781038033.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781038003.xml | View → |
❓ Frequently Asked Questions about EGHT
What is the AI rating for EGHT?
8X8 Inc. /DE/ (EGHT) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EGHT's key strengths?
Claude: Gross margin of 64.6% demonstrates strong pricing power and product-market fit in core services. Positive free cash flow of 52.1M enables debt service despite minimal net profitability. ChatGPT: Positive free cash flow generation with a 7.0% FCF margin. Gross margin of 65.0% indicates an attractive underlying software/services model.
What are the risks of investing in EGHT?
Claude: Interest coverage ratio of 1.0x is critical red flag—operating income barely covers interest expense with zero margin for operational decline. Operating margin of 2.6% and net margin of 0.2% reflect severe profitability weakness and operational inefficiency. ChatGPT: Revenue declined 1.9% year over year, pointing to weak top-line momentum. Debt/equity of 2.25x and interest coverage of 1.1x indicate elevated balance-sheet risk.
What is EGHT's revenue and growth?
8X8 Inc. /DE/ reported revenue of $735.8M.
Does EGHT pay dividends?
8X8 Inc. /DE/ does not currently pay dividends.
Where can I find EGHT SEC filings?
Official SEC filings for 8X8 Inc. /DE/ (CIK: 0001023731) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EGHT's EPS?
8X8 Inc. /DE/ has a diluted EPS of $0.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EGHT's fundamental grade?
Based on our AI fundamental analysis in June 2026, 8X8 Inc. /DE/ has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EGHT stock overvalued or undervalued?
Valuation metrics for EGHT: ROE of 1.1% (sector avg: 22%), net margin of 0.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is EGHT's AI grade for 2026?
Our dual AI analysis gives 8X8 Inc. /DE/ a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EGHT's free cash flow?
8X8 Inc. /DE/'s operating cash flow is $55.8M, with capital expenditures of $3.7M. FCF margin is 7.1%.
How does EGHT compare to other Technology stocks?
Vs Technology sector averages: Net margin 0.2% (avg: 18%), ROE 1.1% (avg: 22%), current ratio 1.09 (avg: 2.5).
Is 8X8 Inc. /DE/ carrying too much debt?
EGHT has a debt-to-equity ratio of 2.19x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.09 suggests adequate short-term liquidity.