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8x8, Inc. (NASDAQ:EGHT), a company currently showing strong free cash flow yield according to InvestingPro data, announced Monday that it executed a first amendment to its existing term loan credit agreement with Wells Fargo (NYSE:WFC) Bank and other lenders. According to a press release statement based on a recent SEC filing, the amendment was signed on July 29 and modifies certain financial ratio requirements related to permitted acquisitions, while maintaining the company’s consolidated total net leverage ratio at its current level for the duration of the agreement.
The company reported that, as of July 2025, it has reduced its term loan principal by approximately $219 million, or about 40%, since its peak in August 2022. This reduction includes a voluntary prepayment of $15 million during the first quarter of fiscal 2026 and an additional $10 million prepayment made in connection with the amendment. Following these payments, the outstanding principal balance stands at $127 million. With total debt of $410 million and a current ratio of 1.2, the company maintains adequate liquidity while managing its debt obligations.
8x8 stated that the recent prepayment does not affect its scheduled quarterly principal payments. No additional mandatory principal payments are due during fiscal 2026, with the next scheduled payment set for June 30, 2026.
The original credit agreement, established on July 11, 2024, provided for a delayed draw term loan facility of up to $200 million, maturing on August 15, 2027. On August 5, 2024, 8x8 used the facility and cash on hand to fully repay its previous term loan.
The company noted that the facility allows for voluntary prepayment without premium or penalty. There are no pending acquisitions, but the amendment provides added flexibility should opportunities arise.
All information in this article is based on a press release statement and details disclosed in the company’s recent SEC filing.
In other recent news, 8x8 Inc reported its fourth-quarter 2025 financial results, with earnings per share aligning with expectations at $0.08. However, the company experienced a slight revenue shortfall, reporting $177 million against the anticipated $181.65 million. Additionally, 8x8 launched a new authentication service, 8x8 Verif8, aimed at enhancing security for businesses amidst a rise in global cyberattacks. In a move to manage stock dilution, the company repurchased 1 million shares for approximately $1.85 million. Evercore ISI recently updated its outlook on 8x8, reducing the stock price target from $3.00 to $2.00 while maintaining an In Line rating. This adjustment follows the company’s mixed fourth-quarter results and a cautious forecast for fiscal year 2026 due to an uncertain macroeconomic environment. Despite challenges in the U.S. market, 8x8 noted improvements in May, while international markets remained stable.
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