Cloud communications provider 8x8 (NASDAQ:EGHT) beat Wall Street's revenue expectations in Q2 CY2026, with sales up 4.9% year on year to $190.2 million. Guidance for next quarter's revenue was better than expected at $187.5 million at the midpoint, 1.7% above analysts' estimates. Its non-GAAP profit of $0.09 per share was in line with analysts' consensus estimates.
Is now the time to buy 8x8? Find out in our full research report .
8x8 (EGHT) Q2 CY2026 Highlights:
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Revenue:$190.2 million vs analyst estimates of $182.3 million (4.9% year-on-year growth, 4.3% beat)
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Adjusted EPS:$0.09 vs analyst estimates of $0.08 (in line)
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Adjusted EBITDA:$23.15 million vs analyst estimates of $22.45 million (12.2% margin, 3.1% beat)
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The company lifted its revenue guidance for the full yearto $755 million at the midpoint from $737 million, a 2.4% increase
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Management reiterated its full-year Adjusted EPS guidanceof $0.36 at the midpoint
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Operating Margin:2.3%, up from 0.3% in the same quarter last year
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Free Cash Flow Margin:7.4%, similar to the previous quarter
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Billings:$188.8 million at quarter end, up 2.1% year on year
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Market Capitalization:$292.1 million
Company Overview
Named after its founding year (1987) with "8x8" representing binary code for communications, 8x8 (NASDAQ:EGHT) provides cloud-based contact center and unified communications solutions that enable businesses to manage customer interactions and internal communications through a single platform.
Revenue Growth
A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, 8x8's sales grew at a weak 5.9% compounded annual growth rate over the last five years. This was below our standard for the software sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. 8x8's recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. We're wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.
This quarter, 8x8 reported modest year-on-year revenue growth of 4.9% but beat Wall Street's estimates by 4.3%. Company management is currently guiding for a 1.8% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges.
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Billings
Billings is a non-GAAP metric that is often called "cash revenue" because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
8x8's billings came in at $188.8 million in Q2, and over the last four quarters, its growth was underwhelming as it averaged 1.3% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth.
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
It's relatively expensive for 8x8 to acquire new customers as its CAC payback period checked in at 488.7 months this quarter. The company's slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low.
Key Takeaways from 8x8's Q2 Results
We were impressed by how significantly 8x8 blew past analysts' adjusted operating income expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its EPS guidance for next quarter missed and its full-year EPS guidance was in line with Wall Street's estimates. Overall, this print was mixed but still had some key positives. The stock remained flat at $2.24 immediately following the results.
So should you invest in 8x8 right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free .
