8X8 Inc 10-K for FY2026

8X8 Inc (EGHT)

10-K 2026-05-22 For: 2026-03-31

Added on May 22, 2026

About this 10-K

8X8 Inc filed this 10-K on May 22, 2026, covering the fiscal year ended March 31, 2026 (FY2026).

Headline figures

Fiscal year ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $735.75M; up 2.9% from $715.07M a year earlier
Net income: $1.65M; compared with a net loss of $27.21M a year earlier
Diluted EPS: $0.01; compared with -$0.21 a year earlier

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Delaware			77-0142404
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)


Title of each class	Trading Symbol	Name of each exchange on which registered
COMMON STOCK, PAR VALUE $.001 PER SHARE	EGHT	Nasdaq Global Select Market


Part I.		Page
Forward-Looking Statements and Risk Factors		3
Item 1.	Business	4
Item 1A.	Risk Factors	13
Item 1B.	Unresolved Staff Comments	36
Item 1C.	Cybersecurity	36
Item 2.	Properties	37
Item 3.	Legal Proceedings	37
Item 4.	Mine Safety Disclosures	37
Part II.
Item 5.	Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities	38
Item 6.	[Reserved]	39
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	40
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 8.	Financial Statements and Supplementary Data	52
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	86
Item 9A.	Controls and Procedures	86
	R eport of Independent Registered Public Accounting Firm	87
Item 9B.	Other Information	88
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	88
Part III.
Item 10.	Directors, Executive Officers and Corporate Governance	89
Item 11.	Executive Compensation	89
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	89
Item 13.	Certain Relationships and Related Transactions and Director Independence	89
Item 14.	Principal Accountant Fees and Services	89
Part IV.
Item 15.	Exhibits and Financial Statement Schedules	90
Item 16.	Form 10-K Summary	92
Signatures		93


Risk Factors Summary
Risks Related to our Business and Industry
Risks Related to our Products and Operations
Risks Related to Regulatory Matters
Risks Related to Intellectual Property
Risks Related to our Debt, our Stock, and our Charter
General Risk Factors


Period	Total Number of Shares Purchased	Average Price Paid per Share1		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program

May 1, 2025 - May 31, 2025	—	—		—	$	7,065
June 1, 2025 - June 30, 2025	1,000	$	1.83	1,000	$	5,237
Total	1,000			1,000


	Fiscal Year 2026												Fiscal Year 2025
	Three Months Ended												Three Months Ended
(In thousands, except percentages)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Service revenue	$	180,175		$	179,682		$	179,094		$	176,308		$	171,588		$	173,459		$	175,075		$	172,801
% of Total Revenue	97.3		%	97.1		%	97.3		%	97.2		%	96.9		%	97.0		%	96.7		%	97.0		%
Gross profit	$	117,053		$	118,216		$	119,340		$	120,440		$	120,052		$	121,085		$	123,175		$	120,960
% of Total Revenue	63.2		%	63.9		%	64.8		%	66.4		%	67.8		%	67.7		%	68.1		%	67.9		%
Income (loss) from operations	$	3,330		$	9,694		$	5,349		$	565		$	419		$	8,979		$	7,169		$	(1,374)
% of Total Revenue	1.8		%	5.2		%	2.9		%	0.3		%	0.2		%	5.0		%	4.0		%	(0.8)		%
Net income (loss)	$	106		$	5,090		$	767		$	(4,315)		$	(5,401)		$	3,022		$	(14,543)		$	(10,290)
% of Total Revenue	0.1		%	2.8		%	0.4		%	(2.4)		%	(3.1)		%	1.7		%	(8.0)		%	(5.8)		%
Net cash provided by operating activities	$	14,386		$	20,692		$	8,835		$	11,873		$	5,873		$	27,216		$	12,317		$	18,148


	Year Ended March 31,
(in thousands, except percentages)	2026			2025			Change
Service revenue	$	715,259		$	692,923		$	22,336	3.2	%
Percentage of total revenue	97.2		%	96.9		%


	March 31, 2026		March 31, 2025
Cash and cash equivalents	$	93,260	$	88,050
Restricted cash, current1,2	1,702		462

Restricted cash, non-current1	—		812
Total	$	94,962	$	89,324


	Total		Less than 1 year		1-3 years		3-5 years
2028 Notes
Principal payments	$	201,914	$	—	$	201,914	$	—
Interest payments	16,154		8,077		8,077		—
Term Loan1
Principal payments	122,000		39,500		82,500		—
Interest payments2	8,850		7,086		1,764		—
Operating lease obligations3	54,507		12,253		34,314		7,940
Purchase obligations	69,608		61,299		7,168		1,141
Total	$	473,033	$	128,215	$	335,737	$	9,081


			Page
FINANCIAL STATEMENTS:
Report of Independent Registered Public Accounting Firm (Grant Thornton, LLP, Bellevue, Washington, PCAOB ID: 248)			53
Report of Independent Registered Public Accounting Firm (Baker Tilly US, LLP, San Jose, California, PCAOB ID: 23)			54
Consolidated Balance Sheets			55
Consolidated Statements of Operations and Comprehensive Income (Los s)			56
Consolidated Statements of Stockholders' Equity			57
Consolidated Statements of Cash Flows			58
Notes to Consolidated Financial Statements			59


	March 31, 2026		March 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	93,260	$	88,050
Restricted cash	1,702		462

Accounts receivable, net	57,004		49,680
Deferred contract acquisition costs	25,193		30,935
Other current assets	32,650		34,739
Total current assets	209,809		203,866
Property and equipment, net	45,821		47,919
Operating lease, right-of-use assets	26,672		33,508
Intangible assets, net	57,589		67,949
Goodwill	276,372		271,530
Restricted cash, non-current	—		812
Deferred contract acquisition costs, non-current	34,562		44,239
Other assets, non-current	11,996		13,354
Total assets	$	662,821	$	683,177

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	36,714	$	45,773
Accrued and other liabilities	69,867		63,025
Operating lease liabilities	10,357		11,102
Deferred revenue	36,699		37,751
Term loan, current	39,218		11,593
Total current liabilities	192,855		169,244
Operating lease liabilities, non-current	39,100		49,196
Deferred revenue, non-current	181		706
Convertible senior notes, non-current	199,830		198,790
Term loan	82,431		139,581
Other liabilities, non-current	1,815		3,456
Total liabilities	516,212		560,973
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of March 31, 2026 and 2025	—		—
Common stock: $0.001 par value, 300,000 shares authorized, 141,164 shares and 134,355 shares issued and outstanding at March 31, 2026 and 2025, respectively	141		134
Additional paid-in capital	1,038,745		1,018,902
Accumulated other comprehensive loss	(6,204)		(9,111)
Accumulated deficit	(886,073)		(887,721)
Total stockholders' equity	146,609		122,204
Total liabilities and stockholders' equity	$	662,821	$	683,177


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
	Shares	Amount
Balance at March 31, 2023	114,659	$	115	$	905,635	$	(12,927)	$	(792,917)	$	99,906
Issuance of common stock under stock plans	7,613	7		(7)		—		—		—
ESPP share issuance	1,884	2		4,882		—		—		4,884
Stock-based compensation expense	—	—		63,386		—		—		63,386
Issuance of common stock under stock plans related to Fuze acquisition	1,038	1		(1)		—		—		—
Unrealized investment gain	—	—		—		280		—		280
Foreign currency translation adjustment	—	—		—		1,094		—		1,094
Net loss	—	—		—		—		(67,592)		(67,592)
Balance at March 31, 2024	125,194	125		973,895		(11,553)		(860,509)		101,958
Issuance of common stock under stock plans	6,445	7		(7)		—		—		—
ESPP share issuance	2,387	2		3,690		—		—		3,692
Common shares withheld for settlement of taxes in connection with equity-based compensation	(175)	—		(420)		—		—		(420)
Stock-based compensation expense	—	—		41,200		—		—		41,200
Issuance of common stock related to acquisitions	504	—		544		—		—		544
Unrealized investment loss	—	—		—		(5)		—		(5)
Foreign currency translation adjustment	—	—		—		2,447		—		2,447
Net loss	—	—		—		—		(27,212)		(27,212)
Balance at March 31, 2025	134,355	134		1,018,902		(9,111)		(887,721)		122,204
Issuance of common stock under stock plans	6,668	6		(6)		—		—		—
Common shares withheld for settlement of taxes in connection with equity-based compensation	(710)	—		(1,351)		—		—		(1,351)
ESPP share issuance	1,851	2		2,827		—		—		2,829
Repurchase of common stock	(1,000)	(1)		(1,847)		—		—		(1,848)
Stock-based compensation expense	—	—		20,220		—		—		20,220
Foreign currency translation adjustment	—	—		—		2,907		—		2,907
Net income	—	—		—		—		1,648		1,648
Balance at March 31, 2026	141,164	$	141	$	1,038,745	$	(6,204)	$	(886,073)	$	146,609


	March 31, 2026		March 31, 2025
Contract assets, current (component of Other current assets)	$	6,113	$	7,009
Contract assets, non-current (component of Other non-current assets)	6,356		7,268
Deferred revenue, current	36,699		37,751
Deferred revenue, non-current	181		706


	As of March 31, 2026
	Fair Value		Cash and Cash Equivalents		Restricted Cash (Current & Non-current)
Cash	$	74,645	$	72,943	$	1,702
Level 1:
Money market funds	20,317		20,317		—





Total assets	$	94,962	$	93,260	$	1,702


	As of March 31, 2025
	Fair Value		Cash and Cash Equivalents		Restricted Cash (Current & Non-current)
Cash	$	64,765	$	63,953	$	812
Level 1:
Money market funds	24,559		24,097		462





Total assets	$	89,324	$	88,050	$	1,274


	Year Ended March 31,
	2026		2025		2024
Service revenue	$	715,259	$	692,923	$	700,579
Other revenue	20,493		22,147		28,126
Total revenue	735,752		715,070		728,705
Cost of service revenue	232,602		200,094		192,960
Cost of other revenue	28,101		29,704		31,945
Total cost of revenue	260,703		229,798		224,905
Gross profit	475,049		485,272		503,800
Operating expenses:
Research and development	112,983		123,211		136,216
Sales and marketing	252,404		264,461		271,944
General and administrative	90,724		82,407		112,209
Impairment of long-lived assets	—		—		11,034
Total operating expenses	456,111		470,079		531,403
Income (loss) from operations	18,938		15,193		(27,603)
Interest expense	(17,765)		(28,856)		(39,824)
Other income (expense), net	2,353		(10,400)		3,477
Income (loss) before provision for income taxes	3,526		(24,063)		(63,950)
Provision for income taxes	1,878		3,149		3,642
Net income (loss)	$	1,648	$	(27,212)	$	(67,592)
Net income (loss) per share:
Basic	$	0.01	$	(0.21)	$	(0.56)
Diluted	$	0.01	$	(0.21)	$	(0.56)
Weighted average number of shares:
Basic	137,669		129,767		121,106
Diluted	142,629		129,767		121,106
Comprehensive income (loss)
Net income (loss)	$	1,648	$	(27,212)	$	(67,592)
Unrealized gain (loss) on investments in securities	—		(5)		280
Foreign currency translation adjustment	2,907		2,447		1,094
Comprehensive income (loss)	$	4,555	$	(24,770)	$	(66,218)


	Year Ended March 31,
	2026		2025		2024
Cash flows from operating activities:
Net income (loss)	$	1,648	$	(27,212)	$	(67,592)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	6,609		7,387		8,301
Amortization of intangible assets	14,203		19,104		20,395
Amortization of capitalized internal-use software costs	11,456		12,729		18,486

Amortization of debt discount and issuance costs	1,369		2,466		4,472
Amortization of deferred contract acquisition costs	33,082		37,977		40,181
Allowance for credit losses	(438)		1,843		2,236
Operating lease expense, net of accretion	10,868		11,631		10,934
Impairment of right-of-use assets	—		—		11,034
Stock-based compensation expense	20,370		39,940		61,910
Loss on debt extinguishment	147		12,325		1,766
Gain on remeasurement of warrants	(864)		(2,225)		(2,176)
Loss on disposal of assets	—		—		179
Other	(185)		(346)		680
Changes in assets and liabilities:
Accounts receivable, net	(5,771)		7,845		753
Deferred contract acquisition costs	(17,108)		(23,988)		(22,879)
Other current and non-current assets	(450)		(7,617)		(2,348)
Accounts payable and accrued liabilities	(17,357)		(24,810)		(4,182)
Deferred revenue	(1,793)		(3,495)		(3,165)
Net cash provided by operating activities	55,786		63,554		78,985
Cash flows from investing activities:
Purchases of property and equipment	(3,675)		(2,401)		(2,650)

Capitalized internal-use software costs	(12,302)		(11,066)		(14,289)
Purchases of investments	—		—		(6,174)
Purchase of cost investment	—		(771)		—

Maturities of investments	—		1,048		31,659
Business combination, net of cash acquired	(4,757)		(3,234)		—
Net cash provided by (used in) investing activities	(20,734)		(16,424)		8,546
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans	2,829		3,692		4,884
Repurchase of common stock	(1,848)		—		—


	Year Ended March 31,
	2026		2025		2024
United States	$	447,309	$	478,338	$	507,507
United Kingdom	127,062		124,124		121,920
Other international1	161,381		112,608		99,278
Total revenue	$	735,752	$	715,070	$	728,705


	March 31, 2026			March 31, 2025
Estimated fair value of detachable warrants	$	233		$	1,096
Unobservable inputs:
Stock volatility	78.8		%	79.8		%
Risk-free rate	3.7		%	3.9		%
Expected term	1.3 years			2.4 years


	March 31, 2026		March 31, 2025
Trade accounts receivable	$	51,191	$	50,839
Unbilled trade accounts receivable	10,663		4,972
Less: allowance for credit losses	(1,253)		(1,898)
Less: allowance for sales reserves	(3,597)		(4,233)
Total accounts receivable, net	$	57,004	$	49,680


	March 31, 2026				March 31, 2025
	Credit Losses		Sales Reserves		Credit Losses		Sales Reserves
Beginning balance	$	(1,898)	$	(4,233)	$	(2,746)	$	(2,502)
(Reserve) provision	(548)		(8,110)		(1,001)		(5,355)
Write-offs (recoveries)	1,193		8,746		1,849		3,624
Ending balance	$	(1,253)	$	(3,597)	$	(1,898)	$	(4,233)


	March 31, 2026		March 31, 2025
Capitalized internal-use software	$	168,870	$	143,866
Computer equipment	50,141		49,892
Leasehold improvements	28,266		28,239
Furniture and fixtures	10,346		10,767
Construction in progress	—		11,981
Total property and equipment	257,623		244,745
Less: accumulated depreciation and amortization	(211,802)		(196,826)
Total property and equipment, net	$	45,821	$	47,919


	March 31, 2026		March 31, 2025
Prepaid expense	$	23,556	$	21,769
Contract assets	6,113		7,009
Other current assets	2,981		5,961
Total other current assets	$	32,650	$	34,739


	March 31, 2026		March 31, 2025
Accrued compensation	$	21,649	$	17,745
Accrued taxes	23,238		24,186
Other accrued liabilities	24,980		21,094
Total accrued and other liabilities	$	69,867	$	63,025


	March 31, 2026							March 31, 2025
	Weighted Average Remaining Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	4.8	$	106,342	$	(52,673)	$	53,669	$	105,881	$	(40,670)	$	65,211
Developed technology	2.5	50,063		(46,177)		3,886		46,696		(44,003)		2,693
Trade names and domains	2.8	671		(637)		34		630		(585)		45
Total acquired identifiable intangible assets		$	157,076	$	(99,487)	$	57,589	$	153,207	$	(85,258)	$	67,949


2027	$	13,055
2028	12,335
2029	12,153
2030	11,134
2031 and thereafter	8,912
Total	$	57,589


Balance at March 31, 2024	$	266,574
Acquired goodwill	4,269
Foreign currency translation	687
Balance at March 31, 2025	271,530
Acquired goodwill	3,073
Foreign currency translation	1,769
Balance at March 31, 2026	$	276,372


	March 31, 2026	March 31, 2025
Weighted average remaining lease term	4.5 years	5.4 years
Weighted average discount rate	4.6%	4.7%


	March 31, 2026				March 31, 2025
	2024 Term Loan		2028 Notes			Total		2024 Term Loan		2028 Notes		Total
Principal	$	122,000	$	201,914		$	323,914	$	152,000	$	201,914	$	353,914
Unamortized debt discount and issuance costs	(351)		(2,084)			(2,435)		(826)		(3,124)		(3,950)
Net carrying amount	$	121,649	$	199,830		$	321,479	$	151,174	$	198,790	$	349,964
Current portion of long-term debt	39,218		—			39,218		11,593		—		11,593
Non-current portion of long-term debt	$	82,431	$	199,830		$	282,261	$	139,581	$	198,790	$	338,371


	Year Ended March 31, 2026						Year Ended March 31, 2025						Year Ended March 31, 2024
	Contractual interest expense		Amortization1		Total		Contractual interest expense		Amortization1		Total		Contractual interest expense		Amortization1		Total
2024 Term Loan	$	9,245	$	329	$	9,574	$	8,828	$	362	$	9,190	$	—	$	—	$	—
2022 Term Loan	—		—		—		9,466		1,110		10,576		27,022		3,135		30,157
2028 Notes	8,077		1,040		9,117		8,096		994		9,090		8,065		974		9,039
2024 Notes	—		—		—		—		—		—		265		363		628
Total debt interest2	$	17,322	$	1,369	$	18,691	$	26,390	$	2,466	$	28,856	$	35,352	$	4,472	$	39,824


			Shares of Common Stock Reserved
Stock options outstanding			15
Restricted & performance stock units outstanding			13,340
Shares available under the 2017 Plan			902
Shares available under the 2022 Plan			12,004
Shares available for future issuance under ESPP			4,425
Total shares of common stock reserved			30,686


	RSU		PSU		ESPP
Unrecognized stock-based compensation expense	$	13,417	$	1,105	$	610
Weighted-average amortization period	1.8 years		0.7 years		0.8 years


	Number of Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in Years)
Balance at March 31, 2023	12,993	$	8.56	1.84
Granted	7,186	3.85
Vested and released	(7,613)	8.87
Forfeited	(2,241)	7.13
Balance at March 31, 2024	10,325	5.36		1.75
Granted	7,897	2.10
Vested and released	(6,446)	5.99
Forfeited	(1,547)	3.88
Balance at March 31, 2025	10,229	2.67		0.94
Granted	7,501	1.85
Vested and released	(5,992)	2.84
Forfeited	(1,947)	2.38
Balance at March 31, 2026	9,791	$	2.00	0.86


Year Ended March 31,	Value per Weighted Average Share		Volatility Range			Risk-Free Interest Rate Range
2024	$	3.25	68.85%	—	68.97%	4.03%	—	4.08%


	March 31, 2026		March 31, 2025		March 31, 2024
Domestic	$	(6,932)	$	(25,368)	$	(66,585)
International	10,458		1,305		2,635
Income (loss) before provision for income taxes	$	3,526	$	(24,063)	$	(63,950)


Current:	March 31, 2026		March 31, 2025		March 31, 2024
Federal	$	129	$	505	$	714
State	290		1,065		2,384
Foreign	1,459		1,579		544
Total current income tax provision	$	1,878	$	3,149	$	3,642


	March 31, 2026		March 31, 2025
Deferred tax assets:
Net operating loss carryforwards	$	262,720	$	268,818
Research and development and other credit carryforwards	28,303		27,565
Stock-based compensation	6,046		6,600
Reserves and allowances	14,767		14,441
Operating lease liability	14,527		15,997
Capitalized IRC 174 costs	69,907		74,610
Fixed assets and intangibles	9,563		6,282
Gross deferred tax assets	405,833		414,313
Valuation allowance	(373,937)		(368,773)
Total deferred tax assets	$	31,896	$	45,540
Deferred tax liabilities:
Intangibles	(5,841)		(15,172)
Deferred contract acquisition costs	(17,685)		(21,004)
Operating lease, right-of-use asset	(8,484)		(9,478)
Net deferred taxes	$	(114)	$	(114)


	March 31, 2026
	Amount		Percentage
Tax provision at federal statutory rate	$	740	21.0	%
State and local income taxes, net of federal income tax effect1	139		3.9	%
Effect of cross border tax laws
Foreign income taxed in the United States	1,683		47.7	%
Foreign-Derived Intangible Income (FDII) deduction	(249)		(7.1)	%
GILTI Deduction	(37)		(1.1)	%
Tax credits
Federal research and development tax credits	(769)		(21.8)	%
Changes in valuation allowance	(1,185)		(33.6)	%
Nontaxable or nondeductible items
Excess tax benefit on stock awards	1,368		38.8	%
Other share-based payment award related items	409		11.6	%
Meals and Entertainment	190		5.4	%
162(m) limitation	176		5.0	%
Other	89		2.5	%
Changes in unrecognized tax benefits	(42)		(1.2)	%
Other
Return to provision adjustments	104		2.9	%
Foreign tax effects
Singapore
Changes in valuation allowance	(284)		(8.1)	%
Statutory rate difference between Singapore and United States	(58)		(1.6)	%
Netherlands
Foreign exchange gains/losses	(127)		(3.6)	%
Other	(49)		(1.4)	%
Romania
Statutory rate difference between Romania and United States	(128)		(3.6)	%
United Kingdom
Foreign exchange gains/losses	(254)		(7.2)	%
Statutory rate difference between United Kingdom and United States	164		4.7	%
Other	(25)		(0.7)	%
Other foreign jurisdictions2	23		0.6	%
Total	$	1,878	53.1	%


	Year Ended March 31, 2026
U.S. federal taxes	$	—
U.S. state taxes	780
Non U.S. taxes	1,620
Total income taxes paid, net	$	2,400