8x8 repurchases 1 million shares as part of dilution management

CAMPBELL, Calif. - 8x8, Inc. (NASDAQ:EGHT) has repurchased 1 million shares of its common stock for approximately $1.85 million in recent open market transactions, the company announced Tuesday. The stock, currently trading at $1.74, has seen significant volatility with a 37% decline over the past six months, according to InvestingPro data.

The transactions, executed between June 6 and June 13, were conducted under the company’s existing share repurchase program authorized in 2017. This marks 8x8’s first equity repurchase not associated with a financing activity since October 2017.

"This demonstrates our financial strength and ongoing commitment to reduce dilution from employee stock programs over time," said Samuel Wilson, Chief Executive Officer at 8x8. The company maintains a current ratio of 1.2 and has generated $61.15 million in levered free cash flow over the last twelve months, as reported by InvestingPro, which indicates solid operational efficiency.

The company, which provides integrated customer experience solutions combining contact center, unified communication, and CPaaS technologies, completed the repurchases after filing its Annual Report on Form 10-K for fiscal year 2025 on May 22.

Since restructuring its balance sheet in August 2022, 8x8 has reduced its total debt by more than $209 million, or nearly 40%. The company also noted that shareholders’ equity increased 44% from $85 million at the end of the second quarter of fiscal year 2023 to $122 million at the end of fiscal year 2025.

The value of equity awards granted to employees has decreased from approximately $194 million (30% of revenue) in fiscal year 2022 to $20 million (3% of revenue) in fiscal year 2025, according to the press release statement.

The company indicated that the timing of future repurchases may vary based on market conditions, capital allocation priorities, and other factors. Based on InvestingPro’s Fair Value analysis, 8x8 appears to be currently undervalued, with analysts projecting profitability this year. For deeper insights into 8x8’s valuation and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, 8x8 Inc reported its fourth-quarter 2025 financial results, revealing steady earnings per share of $0.08, which met analyst expectations. However, the company’s revenue fell short of forecasts, reaching $177 million compared to the anticipated $181.65 million. The company continues to face macroeconomic challenges, which have impacted its performance, particularly in the U.S. market. Evercore ISI recently adjusted its price target for 8x8, lowering it from $3.00 to $2.00, while maintaining an In Line rating due to mixed fourth-quarter results and a cautious outlook for fiscal year 2026.

8x8 has also announced the planned end-of-life for the Fuze platform by the end of calendar year 2025, with Fuze-related revenue now accounting for less than 5% of total service revenue. Despite these challenges, the company reported a 2.8% growth in core service revenue for fiscal year 2025, excluding Fuze. The company aims for high single-digit revenue growth by fiscal year 2028, driven by expansion into higher market segments, partnerships, and increased use of AI products. Additionally, 8x8’s strategic initiatives include product innovations and a focus on reducing debt and diversifying revenue streams.

The company projects service revenue between $170 million and $175 million for fiscal Q1 2026 and aims for full fiscal year 2026 service revenue of $682 million to $702 million. Management has expressed confidence in their business model and ongoing transformation efforts, highlighting continued innovation and customer engagement as key areas of focus. Despite the current challenges, 8x8 remains committed to building a durable, cash-generative business that creates long-term value.

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