8x8’s fourth quarter results were well received by the market, reflecting strong execution on its transition toward usage-based offerings and the integration of AI capabilities. Management attributed the revenue growth to a nearly 60% surge in usage-based products, notably CPaaS APIs, which now account for over 20% of service revenue. CEO Samuel Wilson emphasized, “We are seeing encouraging momentum across multiple dimensions of the business,” highlighting the completion of the Fuze customer migration and a reacceleration in new product sales as key contributors to the quarter’s outperformance.
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8x8 (EGHT) Q4 CY2025 Highlights:
- Revenue: $185.1 million vs analyst estimates of $179.7 million (3.4% year-on-year growth, 2.9% beat)
- Adjusted EPS: $0.12 vs analyst estimates of $0.09 (37.1% beat)
- Adjusted Operating Income: $21.66 million vs analyst estimates of $16.61 million (11.7% margin, 30.4% beat)
- Revenue Guidance for Q1 CY2026 is $181 million at the midpoint, above analyst estimates of $175.9 million
- Operating Margin: 5.2%, in line with the same quarter last year
- Billings: $178.1 million at quarter end, up 2.9% year on year
- Market Capitalization: $374.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From 8x8’s Q4 Earnings Call
- Josh Nichols (B. Riley Securities) asked about the impact of Fuze churn on future service revenue trends. CEO Samuel Wilson confirmed the headwind will decrease gradually and expects it to normalize by year-end.
- Josh Nichols (B. Riley Securities) questioned the sustainability of operating margin improvements amid lower gross margins from usage-based offerings. Wilson explained that operating leverage should improve with scale, and double-digit margins remain a target.
- Siti Panigrahi (Mizuho) inquired about the pace and scope of voice AI adoption. Wilson noted a significant rise in production deployments, with customers increasingly layering new use cases onto existing solutions.
- Peter Levine (Evercore) asked how the shift to usage-based pricing and AI is changing customer engagement and monetization. Wilson described the transition from micro use cases to broader deployments, emphasizing the flexibility and ROI-driven appeal of the model.
- Peter Levine (Evercore) sought color on channel partner strategy. Wilson reported growing pipeline and success in enabling partners to sell AI solutions, which is expected to further boost channel-driven growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of AI-powered product adoption and the transition from pilot to production deployments, (2) measurable progress in expanding channel partnerships and multiproduct customer penetration, and (3) the rate at which former Fuze customer churn subsides. Additionally, we will monitor how usage-based revenue scales relative to traditional SaaS subscriptions and its effect on margins.
8x8 currently trades at $2.70, up from $1.66 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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