8x8 2025 Q4 Earnings Net Loss Narrows by 77.1%

8x8 (EGHT) reported its fiscal 2025 Q4 earnings on May 22nd, 2025. The company posted a total revenue of $171.59 million, slightly below expectations due to a 0.5% decrease from the previous year. However, 8x8 significantly improved its net loss, reporting a reduction to $5.40 million, marking a 77.1% improvement compared to the prior year's quarter. Forward-looking guidance for fiscal Q1 2026 anticipates service revenue between $170 million and $175 million, with total revenue projected between $175 million and $182 million. The company remains optimistic about achieving high single-digit revenue growth by fiscal 2028 as it continues to innovate and refine its platform.

Revenue

8x8 saw a slight decline in total revenue, which amounted to $171.59 million for Q4 2025, down 0.5% compared to the $172.49 million recorded in the same quarter of the previous year.

Earnings/Net Income

8x8 narrowed its quarterly net loss to $5.40 million, showing a significant improvement from the $23.59 million loss in Q4 2024. Earnings per share improved from a loss of $0.19 to $0.04, reflecting better financial health.

Post-Earnings Price Action Review

The strategy of buying EGHT shares following a revenue miss and holding for 30 days underperformed significantly, with a return of -59.33%, compared to a benchmark return of 46.66%. The strategy's excess return was -105.99%, resulting in a compound annual growth rate (CAGR) of -30.26%. Additionally, the strategy faced a maximum drawdown of -73.43% and a negative Sharpe ratio of -0.43, highlighting the substantial risk and poor performance associated with this approach. These metrics underscore the volatility and challenges in the market following a revenue miss and suggest caution for investors considering this strategy.

CEO Commentary

Samuel Wilson, CEO of 8x8 Inc, expressed optimism regarding the company's performance, highlighting a 4.6% year-over-year growth in service revenue excluding Fuze, marking the highest growth rate in ten quarters. He noted that the core business is showing resilience despite macroeconomic challenges, emphasizing ongoing investments in platform innovation and a strong focus on customer outcomes. Wilson indicated that the company is on track to complete the transition of Fuze customers by year-end 2025, which should further enhance operational efficiency and customer retention. He conveyed confidence in achieving high single-digit revenue growth by fiscal 2028 as the business continues to evolve.

Guidance

For fiscal Q1 2026, 8x8 expects service revenue between $170 million and $175 million, with total revenue projected between $175 million and $182 million. The company anticipates a non-GAAP operating margin of 9% to 9.5%, and fully diluted non-GAAP earnings per share are expected to range from $0.07 to $0.09. For the full fiscal year 2026, service revenue is guided to be between $682 million and $702 million, with total revenue expected between $702 million and $724 million, while the operating margin is projected to be between 9% and 10%.

Additional News

Within the last three weeks, 8x8 has actively expanded its presence in the Irish market through an enhanced partnership with CCMA Ireland, reflecting its commitment to growth in Europe. The company also earned multiple accolades, winning Gold and Silver Stevie® Awards for leadership in business communications, highlighting its industry recognition and innovation. Additionally, 8x8 unveiled new AI-powered features aimed at improving customer and employee engagement across its CX platform, showcasing its dedication to technological advancement and customer satisfaction. These developments underscore 8x8's strategic focus on expanding its market reach and enhancing its product offerings.

Article Polishing

8x8 reported its fiscal 2025 Q4 earnings on May 22nd, 2025. The company posted a total revenue of $171.59 million, slightly below expectations due to a 0.5% decrease from the previous year. However, 8x8 significantly improved its net loss, reporting a reduction to $5.40 million, marking a 77.1% improvement compared to the prior year's quarter. Forward-looking guidance for fiscal Q1 2026 anticipates service revenue between $170 million and $175 million, with total revenue projected between $175 million and $182 million. The company remains optimistic about achieving high single-digit revenue growth by fiscal 2028 as it continues to innovate and refine its platform.

Revenue

8x8 saw a slight decline in total revenue, which amounted to $171.59 million for Q4 2025, down 0.5% compared to the $172.49 million recorded in