8x8 (EGHT) has opened FY 2026 with steady top line and choppy bottom line results. Q3 revenue was US$185.1 million and basic EPS was US$0.04, compared with Q2 revenue of US$184.1 million and basic EPS of roughly US$0.01. The company’s revenue moved from US$180.0 million in FY 2025 Q2 to US$177.0 million in Q4 and then to US$185.1 million in FY 2026 Q3. Over the same periods, basic EPS ranged from a loss of about US$0.11 per share to a profit of around US$0.04 per share. Overall, the latest figures suggest a business that is keeping revenue relatively stable while margins remain in focus for investors assessing the path toward more consistent profitability.

See our full analysis for 8x8.

With the headline numbers reported, the next step is to examine how this earnings profile aligns with the key stories investors follow about 8x8, and where the recent results may challenge those narratives.

Losses Shrink On Trailing Basis

• On a trailing 12 month view, 8x8 reported total revenue of US$727.5 million and a net loss of US$3.9 million, which is far smaller than the loss of US$45.4 million reported over the 12 months that ended in FY 2025 Q3.
• What bulls highlight about a multi year reduction in losses of 43.2% per year lines up with this pattern, yet the fact that trailing 12 month EPS is still a loss of US$0.03 per share shows that, even with FY 2026 Q3 net income of US$5.1 million, the company has not yet turned that improvement into consistently positive earnings.
  • Bullish investors often point to improving margins and recurring revenue, and the swing from a net loss of US$5.4 million in FY 2025 Q4 to a net profit of US$5.1 million in FY 2026 Q3 fits that story for this period.
  • At the same time, the continued trailing loss and the unprofitable status over the last year challenge any bullish view that assumes the inflection to sustained profitability has already arrived.

Bulls argue that this kind of shrinking loss base could set up a stronger earnings story if the trend continues, and they are watching how these quarterly profits and losses evolve from here 🐂 8x8 Bull Case

Quarterly Profit, But No TTM Profitability

• Across the last six reported quarters, net income has moved from a loss of US$14.5 million in FY 2025 Q2 to a profit of US$5.1 million in FY 2026 Q3, yet the trailing 12 month period still shows a net loss of US$3.9 million, so the recent profitable quarters have not yet offset earlier losses on a full year basis.
• Bears focus on this gap between individual profitable quarters and the lack of sustained profit, arguing that ongoing unprofitability over the trailing year and the expectation that the company will not reach profitability within the next three years keep the risk profile elevated even after reporting basic EPS of about US$0.04 in FY 2026 Q3.
  • The move from a loss of roughly US$0.11 per share in FY 2025 Q2 to a small profit in FY 2026 Q3 is encouraging for the income statement, but bears argue that earnings which oscillate between small profits and losses can still make long term planning harder.
  • With management not assessed as likely to deliver profitability within three years in the supplied data, critics see the trailing loss as consistent with a slower route to durable positive EPS.

Skeptics point out that until the trailing numbers turn solidly positive, episodic profitable quarters may not be enough to change the longer term risk profile 🐻 8x8 Bear Case

Mixed Valuation Signals At US$2.26

• At a share price of US$2.26, 8x8 trades on a P/S of 0.4x, below the peer average of 1.2x and the US Software industry average of 3.5x, while the supplied DCF fair value is US$1.90, so the stock price sits above that DCF fair value even though the sales multiple is lower than those groups.
• Consensus narrative commentary often points to low relative multiples as a possible value angle, and the 0.4x P/S supports that, but the combination of higher recent share price volatility and the stock trading above the DCF fair value of US$1.90 means investors weighing the balanced view are being asked to reconcile the lower multiple with a modelled cash flow value that is below the current price.
  • Some investors could see the gap between the US$2.26 price and the DCF fair value of US$1.90 as a sign that cash flow based models are more conservative than simple sales multiples suggest.
  • Others may focus more on the trailing 12 month loss of US$3.9 million and the unprofitable status when deciding whether a discount on P/S alone compensates for the recent volatility and earnings profile.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for 8x8 on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment split between shrinking losses and ongoing risks, this is a good moment to look through the data yourself and decide where you stand. If you want a concise view of both sides of the story, take a closer look at the 1 key reward and 2 important warning signs.

See What Else Is Out There

8x8 still reports a trailing 12 month loss, has not yet reached consistent profitability and carries recent volatility between small profits and losses.

If that uneven earnings profile makes you cautious, you can compare it with companies that score well for stability and downside protection by checking out the 67 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.