Earnings release
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Exhibit 99.1 8x8, Inc. Announces Third Quarter Fiscal Year 2026 Financial Results Record service revenue of $179.7 million Strong year-over-year growth in revenue from usage-based offerings, including AI-based solutions 20th consecutive quarter of positive cash flow from operations CAMPBELL, Calif., February 3, 2026 – 8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the third quarter of fiscal year 2026 ended December 31, 2025. “Our third quarter results reflect continued progress as our strategic investments translated into improving execution across the business," said Samuel Wilson, Chief Executive Officer at 8x8, Inc. "We delivered another quarter of year-over-year revenue growth and solid cash flow performance, while seeing increased customer interest in our new products and AI capabilities. 8x8 Engage continues to gain traction as customers extend communications capabilities to more frontline and customer-facing teams. “Across the industry, AI is reshaping how organizations think about customer engagement. Voice continues to be the preferred way to communicate when interactions are complex, time-sensitive, or high value. At the same time, digital channels are playing an increasingly important role as customers expect faster, more flexible ways to connect. As these engagement models evolve alongside greater emphasis on security, privacy, and vendor consolidation, 8x8 is well positioned with a unified, secure platform designed to help organizations simplify their environments and modernize with confidence,” Wilson added. Third Quarter Fiscal Year 2026 Financial Results: • Total revenue of $185.1 million, compared to $178.9 million in the third quarter of fiscal 2025. • Service revenue of $179.7 million, compared to $173.5 million in the third quarter of fiscal 2025. • GAAP operating income was $9.7 million, compared to GAAP operating income of $9.0 million in the third quarter of fiscal 2025. • Non-GAAP operating profit was $21.7 million, compared to non-GAAP operating profit of $19.1 million in the third quarter of fiscal 2025. • GAAP net income was $5.1 million, compared to GAAP net income of $3.0 million in the third quarter of fiscal 2025. • Non-GAAP net income was $17.1 million, compared to non-GAAP net income of $14.5 million in the third quarter of fiscal 2025. • Adjusted EBITDA was $26.3 million, compared to Adjusted EBITDA of $23.9 million in the third quarter of fiscal 2025. • Cash flow from operations of $20.7 million, compared to cash flow from operations of $27.2 million in the third quarter of fiscal 2025. • Ending cash and equivalents, including restricted cash, of $88.2 million reflected voluntary pre-payment of $5 million of principal on the Company's 2024 Term Loan. The Company has repaid a total of $224 million of debt, reducing total debt outstanding by 41% since August 2022. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to non-GAAP measures is included in the supplemental reconciliation at the end of this release. Recent Business Highlights: Innovation on the 8x8 Platform for CX 8x8 continued to advance the 8x8 Platform for CX with new capabilities that strengthen collaboration, streamline omnichannel engagement, and simplify operations for global enterprises. Recent innovations include: • Integrated Workforce Management: The Company introduced Workforce Management (WFM) as a standard capability in every 8x8 Contact Center seat at no extra cost, enabling organizations to forecast, schedule, and staff more efficiently, simplifying operations for businesses of all sizes. • 8x8 Retail Nationwide, Purpose-Built for Frontline Retail: Integrated with Mobile Device Management (MDM) for secure, large-scale device management, 8x8 Retail Nationwide supports shared handhelds for fast onboarding, and enables centralized remote configuration and control across connected stores, HQ, and warehouses. It expands the Company's retail portfolio alongside 8x8 Social Connect, 8x8 Aftersale Assist, and 8x8 Sales Assist. 1
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• Customer 360 Enhances Agent Productivity and CX: Customer 360 transforms 8x8 Agent Workspace into a unified customer intelligence hub. Agents gain immediate access to interaction history, profile details, and AI-driven insights like sentiment and topic detection, enabling faster, more informed service without switching tools. • Scalable, Controlled Large-Scale Meetings on 8x8 Work: New meeting controls in 8x8 Work support large virtual events, allowing presenters to manage speakers and promote attendees in real time, which are ideal for town halls and webinars. • Accessible, Streamlined Navigation in 8x8 Work: The new Web Content Accessibility Guidelines (WCAG)-compliant Site Map ensures inclusive, one-click access to all features, helping users quickly find tools and navigate the platform efficiently. • Smarter Ring Group Availability in 8x8 Work: Self-service ring group management gives users more control over interruptions, while real-time analytics help teams optimize coverage and improve responsiveness. • Real-Time User Status Reporting: The new User Status report in 8x8 Work delivers live availability data, helping managers make informed staffing decisions and adapt to changing demand. • Native Mitel Support Simplifies Cloud Migration: Native Session Initiation Protocol (SIP) support for Mitel desk phones, helps enterprises preserve hardware, cut costs, and speed cloud adoption. This integration delivers high- quality voice services, faster deployment, and seamless access to the 8x8 Platform for CX, ideal for hybrid and regulated environments. • New Privacy Standard Enhances Cloud Trust: The adoption of ISO/IEC 27018 strengthens personal data protection across the 8x8 Platform for CX. This new certification helps customers reduce compliance risk, accelerate vendor approvals, and trust that privacy is built into every part of their communications. Together, these innovations reflect 8x8's focus on unifying customer and employee experiences through intelligent, secure, and connected communication, empowering organizations to engage more effectively, operate more efficiently, and deliver better outcomes across every interaction. Recognition and Awards • Chief Marketing Officer Bruno Bertini won Platinum in the Pinnacle Business Awards in the category of Executive Leadership. • 8x8 was recognized as a Major Player in the IDC MarketScape: Worldwide AI-Enabled Contact Center Workforce Engagement Management 2025–2026 Vendor Assessment. • Won Gold in the User Experience Design (UX) – Business category at the 2025 London Design Awards for 8x8 Engage. These accolades reflect 8x8's continued commitment to innovation, operational excellence, and helping organizations around the world deliver exceptional customer and employee experiences. Fourth Quarter and Updated Fiscal Year 2026 Financial Outlook: Management provides expected ranges for total revenue, service revenue, non-GAAP operating margin, non-GAAP net income per share, diluted, and cash flow from operations based on its evaluation of the current business environment. The Company emphasizes that these expectations are subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below. "Our third quarter performance reflected improved execution across revenue, non-GAAP operating margin, and cash flow, enabling us to raise our guidance for the fourth quarter and the full fiscal year,” said Kevin Kraus, Chief Financial Officer of 8x8. “This momentum is supported by disciplined cost management, ongoing deleveraging, and a continued focus on generating durable profitability and cash flow.” Fourth Quarter Fiscal Year 2026 Ending March 31, 2026 • Service revenue in the range of $173.5 million to $178.5 million. • Total revenue in the range of $178.5 million to $183.5 million. • Non-GAAP gross margin in the range of approximately 64% to 65%. • Non-GAAP operating margin in the range of approximately 8.5% to 9.5%. • Interest expense of approximately $4.0 million. • Cash interest of approximately $6.1 million. 2
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• Non-GAAP net income per share, diluted, in the range of $0.07 to $0.08, based on a fully-diluted weighted-average share count of approximately 145 million shares. • Cash flow from operations in the range of $1 million to $4 million. Fiscal Year 2026 Ending March 31, 2026 • Service revenue in the range of $708.6 million to $713.6 million. • Total revenue in the range of $729.0 million to $734.0 million. • Non-GAAP gross margin in the range of 65% to 66%. • Non-GAAP operating margin is projected between 9.5% and 10.0%. • Non-GAAP net income per share, diluted, in the range of $0.36 to $0.37, based on a fully-diluted weighted-average share count of approximately 142 million shares. • Cash flow from operations in the range of $42 million to $45 million. The Company does not reconcile its forward-looking estimates of non-GAAP operating margin to the corresponding GAAP measure of GAAP operating margin or non-GAAP net income per share, basic and diluted, to the corresponding GAAP measure of GAAP net income (loss) per share due to the significant variability of, and difficulty in making accurate forecasts and projections with regards to, the various expenses excluded by these metrics. For example, future hiring and employee turnover may not be reasonably predictable, stock-based compensation expense depends on variables that are largely not within the control of nor predictable by management, such as the market price of 8x8 common stock, and may also be significantly impacted by events like acquisitions, the timing and nature of which are difficult to predict with accuracy. The actual amounts of these excluded items could have a significant impact on the Company's GAAP operating margin and GAAP net income (loss) per share, basic and diluted. Accordingly, management believes that reconciliations of these forward-looking non-GAAP financial measures to their corresponding GAAP measures are not available without unreasonable effort. See the "Explanation of GAAP to Non-GAAP Reconciliation" below for the definition of non-GAAP operating margin and non-GAAP net income per share, basic and diluted. All projections are on a non-GAAP basis. Additionally, our increased emphasis on profitability and cash flow generation may not be successful. The reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we don't anticipate and may not achieve the desired outcome. Conference Call & Supporting Materials Information: Management will host a conference call to discuss earnings results on February 3, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will last approximately 60 minutes. Participants may: • Register to participate in the live call at https://register-conf.media- server.com/register/BI6ccc922365744b3487cf6a6c8de4a61d • Access the live webcast and replay, as well as the CEO Letter and Financial Highlights from the Company’s investor relations Events page at https://investors.8x8.com/news-events/events-presentations. Participants should plan to dial in or log on 10 minutes prior to the start time. The webcast will be archived on 8x8's website for a period of at least 30 days. For additional information, visit https://www.investors.8x8.com/. About 8x8 Inc. 8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on the industry's most integrated platform for Customer Experience—combining Contact Center, Unified Communication, and CPaaS solutions. The 8x8® Platform for CX integrates AI at every level to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. We help customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook. Copyright 2026 8x8, Inc. 8x8 and associated brand assets are trademarks of 8x8, Inc. All rights reserved. Forward-Looking Statements: This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to: changing industry trends; market opportunities; the potential success and impact of our investments in artificial intelligence technologies; our strategic transformation initiatives; our ability to drive increased platform and multi-product 3
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adoption; our ability to increase profitability and cash flow; our position in the market and pace of our innovation; and our financial outlook, revenue growth, and profitability. You should not place undue reliance on such forward-looking statements. Actual results could differ materially from those projected in forward-looking statements depending on a variety of factors, including, but not limited to: customer adoption and demand for our products may be lower than we anticipate; the impact of economic downturns on us and our customers; ongoing volatility and conflict in the political environment; general inflationary pressures; competitive dynamics of the cloud communication and collaboration markets, including voice, contact center, video, messaging, and communication application programming interfaces, as well as our competitors' use of AI, in which we compete, may change in ways we are not anticipating; third parties may assert ownership rights in our IP, which may limit or prevent our continued use of the core technologies behind our solutions; our customer churn rate may be higher than we anticipate; and our investments in new products and our acquisitions and potential acquisitions may not result in meeting our revenue or operating margin targets we forecast in our guidance, for a particular quarter or for the full fiscal year. Our increased emphasis on profitability and cash flow generation may not be successful; and the reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we do not anticipate and may not achieve the desired outcome. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward- looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future. Explanation of GAAP to Non-GAAP Reconciliation The Company has provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these Non-GAAP financial measures internally to understand, manage, and evaluate the business, and to make operating decisions. Management believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. Management also believes that some of 8x8’s investors use these Non-GAAP financial measures as an additional tool in evaluating 8x8's "core operating performance" in the ordinary, ongoing, and customary course of the Company's operations. Core operating performance excludes items that are non-cash, not expected to recur, or not reflective of ongoing financial results. Management also believes that looking at the Company’s core operating performance provides consistency in period-to-period comparisons and trends. These Non-GAAP financial measures may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which limits the usefulness of these measures for comparative purposes. Management recognizes that these Non-GAAP financial measures have limitations as analytical tools, including the fact that management must exercise judgment in determining which types of items to exclude from the Non-GAAP financial information. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these Non-GAAP financial measures to their most directly comparable GAAP financial measures in the table titled "Reconciliation of GAAP to Non-GAAP Financial Measures". Detailed explanations of the adjustments from comparable GAAP to Non-GAAP financial measures are as follows: Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of Other Revenue Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service Revenue, which is Cost of Service Revenue excluding amortization of intangible assets, stock-based compensation expense and related employer payroll taxes, certain legal and regulatory costs, and certain severance, transition and contract exit costs; and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other Revenue excluding stock-based compensation expense and related employer payroll taxes, certain legal and regulatory costs, and certain severance, transition and contract exit costs. Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin as a percentage of Other Revenue are computed as Service Revenue less Non-GAAP Cost of Service Revenue divided by Service Revenue and Other Revenue less Non-GAAP Cost of Other Revenue divided by Other Revenue, respectively. Non-GAAP Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total Revenue. Management believes the Company’s investors benefit from understanding these adjustments and from an 4
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alternative view of the Company’s Cost of Service Revenue and Cost of Other Revenue, as well as the Company's Service, Other and Total Revenue Gross Margin performance compared to prior periods and trends. Non-GAAP Operating Profit and Non-GAAP Operating Margin Non-GAAP Operating Profit excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, acquisition and integration expenses, certain legal and regulatory costs, and certain severance, transition and contract exit costs from Operating Profit. Non-GAAP Operating Margin is Non-GAAP Operating Profit divided by Revenue. Management believes that these exclusions provide investors with a supplemental view of the Company’s ongoing operating performance. Non-GAAP Net Income and Adjusted EBITDA Non-GAAP Net Income excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, acquisition and integration expenses, certain legal and regulatory costs, certain severance, transition and contract exit costs, amortization of debt discount and issuance cost, loss on debt extinguishment, gain or loss on remeasurement of warrants, and other income. Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation, amortization of capitalized internal-use software costs, and other income, net from non-GAAP net income. Management believes the Company’s investors benefit from understanding these adjustments and an alternative view of our net income performance as compared to prior periods and trends. Non-GAAP Net Income Per Share – Basic and Non-GAAP Net Income Per Share - Diluted Non-GAAP Net Income Per Share – Basic is Non-GAAP Net Income divided by the weighted-average basic shares outstanding. Non-GAAP Net Income Per Share – Diluted is Non-GAAP Net Income divided by the weighted-average diluted shares outstanding. Diluted shares outstanding include the effect of potentially dilutive securities from stock-based benefit plans and convertible senior notes. These potentially dilutive securities are excluded from the computation of net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. They are added for the computation of diluted net income per share on a non-GAAP basis in periods when 8x8 has net profit on a non- GAAP basis as their inclusion provides a better indication of 8x8’s underlying business performance. Management believes the Company’s investors benefit by understanding our Non-GAAP net income performance as reflected in a per share calculation as ways of measuring performance by ownership in the Company. Management believes these adjustments offer investors a useful view of the Company’s diluted net income per share as compared to prior periods and trends. Management evaluates and makes decisions about its business operations based on Non-GAAP financial information by excluding items management does not consider to be “core costs” or “core proceeds.” Management believes some of its investors also evaluate our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Management excludes the amortization of acquired intangible assets, which primarily represents a non-cash expense of technology and/or customer relationships already developed, to provide a supplemental way for investors to compare the Company’s operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. Stock-based compensation expense has been excluded because it is a non-cash expense and relies on valuations based on future conditions and events, such as the market price of 8x8 common stock, that are difficult to predict and/or largely not within the control of management. The related employer payroll taxes for stock-based compensation are excluded since they are incurred only due to the associated stock-based compensation expense. Acquisition and integration expenses consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal and other professional services, due diligence, integration, and other closing costs, which are costs that vary significantly in amount and timing. Legal and regulatory costs include litigation and other professional services, as well as certain tax and regulatory liabilities. Severance, transition and contract exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts. Debt amortization expenses relate to the non-cash accretion of the debt discount. 8x8, Inc. Media: PR@8x8.com Investor Relations: Investor.relations@8x8.com 5
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8X8, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited, in thousands except per share amounts) Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Service revenue $ 179,682 $ 173,459 $ 535,084 $ 521,335 Other revenue 5,368 5,423 15,422 16,692 Total revenue 185,050 178,882 550,506 538,027 Cost of service revenue 59,515 50,529 171,036 150,276 Cost of other revenue 7,319 7,268 21,474 22,531 Total cost of revenue 66,834 57,797 192,510 172,807 Gross profit 118,216 121,085 357,996 365,220 Operating expenses: Research and development 27,191 29,833 83,473 93,261 Sales and marketing 60,513 65,644 192,532 197,617 General and administrative 20,818 16,629 66,383 59,568 Total operating expenses 108,522 112,106 342,388 350,446 Income from operations 9,694 8,979 15,608 14,774 Interest expense (4,587) (5,842) (13,397) (23,703) Other income (expense), net 511 793 1,343 (10,200) Income (loss) before provision for income taxes 5,618 3,930 3,554 (19,129) Provision for income taxes 528 908 2,012 2,682 Net income (loss) $ 5,090 $ 3,022 $ 1,542 $ (21,811) Net income (loss) per share: Basic $ 0.04 $ 0.02 $ 0.01 $ (0.17) Diluted $ 0.04 $ 0.02 $ 0.01 $ (0.17) Weighted average number of shares: Basic 138,781 130,970 136,861 128,750 Diluted 142,926 135,742 141,346 128,750 Comprehensive income (loss) Net income (loss) $ 5,090 $ 3,022 $ 1,542 $ (21,811) Unrealized loss on investments in securities — — — (5) Foreign currency translation adjustment 701 (9,321) 5,133 (1,312) Comprehensive income (loss) $ 5,791 $ (6,299)$ 6,675 $ (23,128) 6
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8X8, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands except per share amounts) December 31, 2025 March 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 86,882 $ 88,050 Restricted cash 1,318 462 Accounts receivable, net 54,740 49,680 Deferred contract acquisition costs 26,131 30,935 Other current assets 34,809 34,739 Total current assets 203,880 203,866 Property and equipment, net 46,939 47,919 Operating lease, right-of-use assets 29,634 33,508 Intangible assets, net 57,386 67,949 Goodwill 274,004 271,530 Restricted cash, non-current — 812 Deferred contract acquisition costs, non-current 37,009 44,239 Other assets, non-current 12,670 13,354 Total assets $ 661,522 $ 683,177 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 36,004 $ 45,773 Accrued and other liabilities 69,850 63,025 Operating lease liabilities 10,574 11,102 Deferred revenue 36,813 37,751 Term loan, current 26,700 11,593 Total current liabilities 179,941 169,244 Operating lease liabilities, non-current 41,850 49,196 Deferred revenue, non-current 333 706 Convertible senior notes, non-current 199,598 198,790 Term loan 94,872 139,581 Other liabilities, non-current 2,070 3,456 Total liabilities 518,664 560,973 Stockholders' equity: Preferred stock: $0.001 par value, 5,000 shares authorized, none issued andoutstanding as of December 31, 2025 and March 31, 2025 — — Common stock: $0.001 par value, 300,000 shares authorized, 139,293 shares and134,355 shares issued and outstanding as of December 31, 2025 and March 31,2025, respectively 139 134 Additional paid-in capital 1,032,876 1,018,902 Accumulated other comprehensive loss (3,978) (9,111) Accumulated deficit (886,179) (887,721) Total stockholders' equity 142,858 122,204 Total liabilities and stockholders' equity $ 661,522 $ 683,177 7
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8X8, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) Nine Months Ended December 31, 2025 2024 Cash flows from operating activities: Net income (loss) $ 1,542 $ (21,811) Adjustments to reconcile net income (loss) to net cash provided by operatingactivities: Depreciation 5,080 5,622 Amortization of intangible assets 10,587 15,296 Amortization of capitalized internal-use software costs 8,604 9,981 Amortization of debt discount and issuance costs 1,059 2,145 Amortization of deferred contract acquisition costs 25,291 28,981 Allowance for credit losses (253) 1,425 Operating lease expense, net of accretion 8,244 8,907 Stock-based compensation expense 15,867 31,710 Loss on debt extinguishment 147 12,212 Gain on remeasurement of warrants (603) (1,197) Other (145) 855 Changes in assets and liabilities: Accounts receivable, net (3,483) 5,146 Deferred contract acquisition costs (12,383) (17,581) Other current and non-current assets (3,218) (1,943) Accounts payable and accruals (13,198) (19,181) Deferred revenue (1,738) (2,886) Net cash provided by operating activities 41,400 57,681 Cash flows from investing activities: Purchases of property and equipment (3,098) (2,045) Capitalized internal-use software costs (9,714) (8,462) Purchase of cost investment — (771) Maturities of investments — 1,048 Net cash used in investing activities (12,812) (10,230) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 1,228 1,681 Payments for repurchases of common stock (1,848) — Payments for debt issuance and amendment costs (70) (1,517) Repayment of principal on term loan (30,000) (258,000) Gross proceeds from term loan — 200,000 Other financing activities (1,153) (1,261) Net cash used in financing activities (31,843) (59,097) Effect of exchange rate changes on cash 2,131 (450) Net decrease in cash and cash equivalents (1,124) (12,096) Cash, cash equivalents and restricted cash, beginning of period 89,324 116,723 Cash, cash equivalents and restricted cash, end of period $ 88,200 $ 104,627 Supplemental disclosures of cash flow information: Interest paid $ 11,269 $ 19,517 Income taxes paid $ 2,130 $ 3,094 Payables and accruals for property and equipment $ — $ 2,861 8
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8X8, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited, in thousands except per share amounts) Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Cost of Revenue: GAAP cost of service revenue (as apercentage of service revenue) $ 59,515 33.1 % $ 50,529 29.1 % $ 171,036 32.0 % $ 150,276 28.8 % Amortization of acquired intangibleassets (513) (2,117) (1,534) (6,352) Stock-based compensationexpense and related employerpayroll taxes (417) (857) (1,475) (3,695) Legal and regulatory costs — 55 — 55 Severance, transition and contractexit costs (26) 3 (1,051) (574) Non-GAAP cost of service revenue(as a percentage of service revenue) $ 58,559 32.6 % $ 47,613 27.4 % $ 166,976 31.2 % $ 139,710 26.8 % GAAP service revenue margin (as apercentage of service revenue) $ 120,167 66.9 % $ 122,930 70.9 % $ 364,048 68.0 % $ 371,059 71.2 % Non-GAAP service revenue margin(as a percentage of service revenue) $ 121,123 67.4 % $ 125,846 72.6 % $ 368,108 68.8 % $ 381,625 73.2 % GAAP cost of other revenue (as apercentage of other revenue) $ 7,319 136.3 % $ 7,268 134.0 % $ 21,474 139.2 % $ 22,531 135.0 % Stock-based compensationexpense and related employerpayroll taxes (82) (272) (318) (995) Legal and regulatory costs — 62 — 62 Severance, transition and contractexit costs (649) (130) (1,445) (386) Non-GAAP cost of other revenue (asa percentage of other revenue) $ 6,588 122.7 % $ 6,928 127.8 % $ 19,711 127.8 % $ 21,212 127.1 % GAAP other revenue margin (as apercentage of other revenue) $ (1,951) (36.3)% $ (1,845) (34.0)% $ (6,052) (39.2)% $ (5,839) (35.0)% Non-GAAP other revenue margin (asa percentage of other revenue) $ (1,220) (22.7)% $ (1,505) (27.8)% $ (4,289) (27.8)% $ (4,520) (27.1)% GAAP gross margin (as a percentageof total revenue) $ 118,216 63.9 % $ 121,085 67.7 % $ 357,996 65.0 % $ 365,220 67.9 % Non-GAAP gross margin (as apercentage of total revenue) $ 119,903 64.8 % $ 124,341 69.5 % $ 363,819 66.1% $ 377,105 70.1% Operating Profit: GAAP income from operations (as apercentage of total revenue) $ 9,694 5.2 % $ 8,979 5.0 % $ 15,608 2.8 % $ 14,774 2.7 % Amortization of acquired intangibleassets 3,584 5,098 10,587 15,296 Stock-based compensationexpense and related employerpayroll taxes 4,463 9,769 17,134 33,207 Acquisition and integration costs 196 244 196 560 Legal and regulatory costs 927 (6,849) 2,479 (9,467) Severance, transition andcontract exit costs 2,795 1,847 9,312 6,366 Non-GAAP operating profit (as apercentage of total revenue) $ 21,659 11.7 % $ 19,088 10.7 % $ 55,316 10.0 % $ 60,736 11.3 % (1) 9
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Net Income (Loss): GAAP net income (loss) (as apercentage of total revenue) $ 5,090 2.8 % $ 3,022 1.7 % $ 1,542 0.3 % $ (21,811) (4.1)% Amortization of acquired intangibleassets 3,584 5,098 10,587 15,296 Stock-based compensation expenseand related employer payroll taxes 4,463 9,769 17,134 33,207 Acquisition and integration costs 196 244 196 560 Legal and regulatory costs 927 (6,849) 2,479 (9,467) Severance, transition andcontract exit costs 2,795 1,847 9,312 6,366 Amortization of debt discount andissuance costs 361 427 1,059 2,145 Loss on debt extinguishment 20 216 147 12,212 (Gain) loss on warrantsremeasurement (357) 813 (603) (1,197) Other income — (116) (926) (348) Income tax expense effects, net — — — — Non-GAAP net income (as apercentage of total revenue) $ 17,079 9.2 % $ 14,471 8.1 % $ 40,927 7.4 % $ 36,963 6.9 % Interest expense 4,226 5,415 13,264 21,558 Provision for income taxes 528 908 2,012 2,682 Depreciation 1,689 1,866 5,080 5,622 Amortization of capitalized internal-use software costs 2,919 2,959 8,604 9,981 Other income, net (174) (1,706) (887) (467) Adjusted EBITDA (as a percentage oftotal revenue) $ 26,267 14.2 % $ 23,913 13.4 % $ 69,000 12.5 % $ 76,339 14.2 % Shares used in computing net income(loss) per share amounts: Basic 138,781 130,970 136,861 128,750 Diluted 142,926 135,742 141,346 131,744 GAAP net income (loss) per share -Basic $ 0.04 $ 0.02 $ 0.01 $ (0.17) GAAP net income (loss) per share -Diluted $ 0.04 $ 0.02 $ 0.01 $ (0.17) Non-GAAP net income per share -Basic $ 0.12 $ 0.11 $ 0.30 $ 0.29 Non-GAAP net income per share -Diluted $ 0.12 $ 0.11 $ 0.29 $ 0.28 (1) Amounts include an out-of-period adjustment associated with state and local taxes for the three and nine months ended December 31, 2024. (2) Amount includes capitalized interest related to property, plant and equipment from general borrowing costs during the nine months ended December 31, 2025. (3) Non-GAAP adjustments do not have a material impact on our federal income tax provision due to past non-GAAP losses. (4) Amounts represent contractual interest expense related to our outstanding debt and does not include capitalized interest and amortization of debt discount and issuance costs. (1) (2) (3) (4) 10