Executive Summary
In Q2 2025, 8x8 Inc (EGHT) demonstrated resilience amidst challenging market dynamics, delivering a total revenue of $180.998 million, a 1.6% increase sequentially but a 2.16% decrease year-over-year. The company achieved an operating income of $7.169 million and managed to maintain a gross profit margin of 68.1%. Management highlighted significant strides in the Communications Platform as a Service (CPaaS), with platform usage revenue up over 20% year-over-year, reflecting strong customer engagement and innovation strategies. CEO Samuel Wilson emphasized that revenues from customers on the 8x8 platform (excluding Fuze) were notably up, reinforcing the effectiveness of their transformation initiatives.
Key Performance Indicators
QoQ: 621.76% | YoY:377.55%
QoQ: -41.33% | YoY:-95.16%
QoQ: -34.64% | YoY:-78.28%
Key Insights
**Revenue Performance**: Q2 2025 revenue was $180.998 million, a 1.6% increase from Q1 2025, but down 2.16% YoY due to the phased migration from the Fuze platform, which now represents only 7% of service revenue (down from 12% last year). Non-GAAP operating income stood at $21.5 million, reflecting growing operational efficiency.
**Profitability**: Operating income was $7.169 million, yielding an operating income ratio of 3.9%. Gross margin was recorded at 68.1%, and non-GAAP operating margin im...
Financial Highlights
Revenue Performance: Q2 2025 revenue was $180.998 million, a 1.6% increase from Q1 2025, but down 2.16% YoY due to the phased migration from the Fuze platform, which now represents only 7% of service revenue (down from 12% last year). Non-GAAP operating income stood at $21.5 million, reflecting growing operational efficiency.
Profitability: Operating income was $7.169 million, yielding an operating income ratio of 3.9%. Gross margin was recorded at 68.1%, and non-GAAP operating margin improved to 11.9% compared to 11.3% in Q1 2025.
Cash Flow and Balance Sheet: Positive operational cash flow of $12.3 million was reported, and the company reduced its debt by $25 million, leaving a total debt of $369 million, with a net debt-to-EBITDA ratio of 2.6x.
Income Statement
Metric |
Value |
YoY Change |
QoQ Change |
Revenue |
181.00M |
-2.16% |
1.60% |
Gross Profit |
123.18M |
-3.69% |
1.83% |
Operating Income |
7.17M |
377.55% |
621.76% |
Net Income |
-14.54M |
-95.16% |
-41.33% |
EPS |
-0.11 |
-78.28% |
-34.64% |
Key Financial Ratios
operatingProfitMargin
3.96%
operatingCashFlowPerShare
$0.1
freeCashFlowPerShare
$0.11
Management Commentary
- Samuel Wilson, CEO: "We delivered a quarter of solid performance doing better than expected for key financial metrics like service and total revenue and non-GAAP operating income."
- Kevin Kraus, CFO: "Fiscal Q2 is our 15th quarter in a row of positive cash flow from operations and non-GAAP operating profit, trends we expect to continue."
- Continued focus on research and development at 15% of revenue to drive innovation, focusing on customer success with substantial improvements in retention metrics and satisfaction scores persisted through the quarter.
"Our revenue generated by customers on the 8x8 platform was up on a year-over-year and quarter-over-quarter basis." - Samuel Wilson
â Samuel Wilson, CEO
"We expect service revenue to be in the range of $171 million to $174 million for Q3 2025." - Kevin Kraus},
â Kevin Kraus, CFO
Forward Guidance
Looking forward, management expects a sequential decline in service revenue for Q3 2025 due to market seasonality and expects to generate service revenue in the range of $171 to $174 million. For the full fiscal year 2025, total revenue is anticipated to range between $714 million and $727 million. Significant emphasis will continue on optimizing the CPaaS offerings, targeting a gross margin of 70% for service revenue overall.