"We achieved these results even though the market has become incrementally more competitive... we also achieved an important milestone in our stated objective to return value to shareholders by reducing debts."
— Samuel Wilson
03Detailed Report
EGHT
8x8 Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
In Q1 2025, 8x8 Inc demonstrated resilience amid a challenging competitive landscape, posting a total revenue of $178.15 million, which represents a slight decline both year-over-year and quarter-over-quarter. Despite these pressures, management successfully maintained cash flow from operations at $18.1 million, attributing this achievement to carefully managed costs alongside ongoing investments in innovation and platform enhancements. The continued focus on contact center solutions and the burgeoning growth of CPaaS marked notable strategies influencing performance and future profitability. Management emphasized their commitment to reducing debt, exemplified by the repayment of a $225 million term loan, which aims to strengthen their balance sheet further and enhance investor confidence.
Key Performance Indicators
Revenue
Decreasing
178.15M
QoQ: -0.71% | YoY: -2.80%
Gross Profit
Decreasing
120.96M
67.90% margin
QoQ: -1.21% | YoY: -5.95%
Operating Income
Increasing
-1.37M
QoQ: 90.34% | YoY: 2.55%
Net Income
Increasing
-10.29M
QoQ: 56.38% | YoY: 32.86%
EPS
Increasing
-0.08
QoQ: 57.00% | YoY: 37.15%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: 8x8 reported total revenue of $178.15 million, reflecting a year-over-year decline of 2.80% and a quarterly decline of 0.71%. Gross Profit: Decreased to $120.96 million for a gross margin of 67.9%, down from previous quarters, signaling slight pressure on profitability. Net Income: Reported net loss of $10.29 million (-$0.0817 EPS), though an improvement in losses was noted year-over-year. Management reiterated confidence around adjusted margins on a non-GAAP basis, with operating cash flow managed at $18.1 million. Debt Management: Effective debt reduction strategy reflected through loan repayment and cost management, enhancing liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
178.15M
-2.80%
-0.71%
Gross Profit
120.96M
-5.95%
-1.21%
Operating Income
-1.37M
2.55%
90.34%
Net Income
-10.29M
32.86%
56.38%
EPS
-0.08
37.15%
57.00%
Key Financial Ratios
Gross Profit Margin
Excellent
67.90%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.01%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.06%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.10%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.30
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
4.57
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-6.80x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
2.67x
Price-to-book ratio reasonable for profitable companies
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