8x8, Inc. Reports Strong Revenue Growth and Cash Flow for FY2025

8x8, Inc. (NASDAQ:EGHT) shows impressive growth with a 4.6% increase in service revenue. Record operating cash flow and reduced debt enhance its financial position, presenting a strong investment outlook. Investors should be optimistic about the company's forward trajectory.

Date: 20-05-2025

AI Rating: 7

**8x8, Inc. Overview**: 8x8's latest financial report reveals significant momentum, especially in service revenue growth and cash generation. The company's strategic pivot in product offerings and market engagement has led to these encouraging results. During Q4 FY2025, the company reported a year-over-year quarterly service revenue growth of 4.6%, a substantial improvement from the previous quarter's 2.7%. The simplification of product offerings, particularly the transition from the legacy Fuze platform, has further bolstered revenue stability.

**Earnings Per Share (EPS) and Revenue Growth**: Although specific EPS data wasn't included in the report, the revenue growth trajectory is apparent. The company expects total revenue for FY2026 between $702 million and $724 million, indicating a positive outlook. As it continues moving away from legacy customer reliance, investors might anticipate a sustained upward trend in revenues.

**Net Income and Profit Margins**: While detailed net income figures are not directly stated, management projects non-GAAP operating margins to reach between 9% to 10%. This projection signifies an improvement in profitability, which should excite investors if met.

**Free Cash Flow (FCF) and Cash Position**: 8x8 reported significant operating cash flow of $5.9 million for Q4 and a total of $63.6 million for the fiscal year. The cumulative cash flow over the last two years has surpassed $142 million, indicating strong cash generation capabilities. The company's debt reduction also highlights its commitment to maintaining a healthy balance sheet, having retired approximately 38% of its peak debt since August 2022.

**Return on Equity (ROE)**: Detailed ROE data wasn’t provided, but the improvement in cash flow and operational margins suggests a positive trend in financial returns on equity, which could enhance investor confidence.

**Conclusion**: The future looks promising for 8x8 as it continues enhancing its service portfolio and addressing customer retention and revenue growth. Investors should monitor its earnings results closely to assess whether these strategic advancements translate into sustained performance and shareholder value.

Stocks: EGHT