The chart below shows how EGHT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EGHT sees a -1.45% change in stock price 10 days leading up to the earnings, and a +6.51% change 10 days following the report. On the earnings day itself, the stock moves by -0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Beat: 8×8, Inc. reported an EPS of $0.11, exceeding expectations of $0.08.
Q3 2025 Revenue Performance: Total revenue for Q3 2025 was $178.9 million, near the midpoint of guidance, with service revenue at $173.5 million, exceeding guidance by $1 million.
AI Solutions Revenue Growth: New product monthly recurring revenue (MRR) increased over 60% year-over-year, indicating strong growth in AI-based solutions and customer engagement.
Operating Margin Performance: Operating margin for the quarter was 10.7%, slightly above the midpoint of guidance, reflecting effective cost management and operational efficiency.
Consistent Positive Cash Flow: Record cash flow from operations of $27.2 million was achieved, marking the 16th consecutive quarter of positive cash flow.
Negative
Q3 Revenue Performance: Total revenue for Q3 2025 was $178.9 million, which was only near the midpoint of guidance, indicating a lack of significant growth momentum.
Service Revenue Dynamics: Service revenue growth was offset by a decline in revenue from customers still on the Fuze platform, which remains a challenge as it constituted approximately 5% of service revenue.
Gross Margin Analysis: Gross margin for the quarter was 69.5%, which, while within guidance, reflects a negative impact from a higher proportion of lower-margin platform usage revenue, which was 13% of total revenue.
Operating Margin Analysis: Operating margin was reported at 10.7%, slightly above the midpoint of guidance, but indicates limited operational efficiency improvements in a competitive market.
Q4 2025 Service Revenue Outlook: The guidance for Q4 2025 projects service revenue to be between $170 million and $175 million, reflecting a decrease due to foreign exchange rate changes, which could signal ongoing revenue pressure.
8×8, Inc. (NYSE:EGHT) Q3 2025 Earnings Call Transcript
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