8x8 Q1 Revenue Rises 2%, Non-GAAP EPS at $0.08, Eighteenth Consecutive Quarter of Positive Operating Cash Flow

8x8 reported Q1 fiscal 2026 revenue of $181.4 million, a 2% increase from the prior year. Non-GAAP EPS was $0.08, matching the prior-year period. Cash flow from operations was $11.9 million, marking the 18th consecutive quarter of positive cash flow but a notable decline from a year ago. The company continues to invest in its unified platform strategy and transition away from legacy products.

8x8 Inc. (EGHT) reported its Q1 fiscal 2026 earnings, revealing a slight miss on EPS but exceeding revenue expectations. The company posted an EPS of $0.08, falling short of the $0.09 forecast, marking an 11.11% surprise to the downside. However, revenue came in at $181.4 million, surpassing the expected $177.98 million [2].

The stock price saw an after-hours increase of 2.14%, closing at $1.91, and further surged 9.63% in premarket trading. This positive market reaction reflects investor optimism despite the mixed results.

Key Takeaways
8x8’s revenue exceeded forecasts, driven by strong service revenue growth. EPS missed expectations, attributed to increased usage-based revenue impacting margins. The stock price rose significantly in aftermarket trading, reflecting investor optimism. Continued focus on AI and CPaaS solutions indicates strategic growth areas. Reduced debt and financial flexibility through amended loan agreements.

Company Performance
8x8 Inc. returned to year-over-year growth for the first time in nine quarters, with total revenue reaching $181.4 million. The company highlighted a 2% improvement in service revenue and a significant increase in usage-based revenue, now constituting 17% of total service revenue. This shift contributed to a slight decline in gross margins, which InvestingPro data shows stands at 67.86% for the last twelve months.

The firm continues to focus on AI-enabled tools and CPaaS solutions, which are driving product innovation and adoption. With an overall Financial Health Score of 2.35 (rated as "FAIR"), the company shows resilience despite challenging market conditions.

Financial Highlights
- Revenue: $181.4 million, up from the forecasted $177.98 million
- Earnings per share: $0.08, below the forecast of $0.09
- Gross margin: 67.8%, slightly down due to revenue mix
- Positive cash flow from operations: $11 million
- Cash and equivalents: $82.2 million

8x8 Inc. continues to invest in its unified platform strategy and transition away from legacy products. The company's focus on AI and CPaaS solutions highlights its strategic growth areas, while reduced debt and financial flexibility through amended loan agreements position the company for future opportunities.

References:
[1] https://seekingalpha.com/news/4478685-kyndryl-outlines-1_8b-hyperscaler-revenue-target-for-fiscal-2026-as-ai-consulting-and-margin
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-8x8-inc-q1-2025-misses-eps-forecast-stock-rises-93CH-4171666