8x8 Reports 3.3% Revenue Growth to $185.1 Million in Q3 Fiscal 2026

8x8, Inc. reported its financial results for the third quarter of fiscal year 2026, revealing a total revenue of $185.1 million, a 3.3% increase from $178.9 million in the same period last year. The company’s service revenue, which constitutes the majority of its income, rose to $179.7 million, up from $173.5 million, driven primarily by a $14 million increase in platform usage revenue, particularly in the Asia-Pacific region. However, this was partially offset by a decline in subscription revenue, primarily from former Fuze customers, which decreased by $7.8 million.

In terms of profitability, 8x8 reported a net income of $5.1 million, or $0.04 per share, compared to a net income of $3 million, or $0.02 per share, in the prior year. The company’s operating income also improved to $9.7 million from $9 million year-over-year. Despite these gains, the cost of service revenue increased significantly, rising by 17.8% to $59.5 million, largely due to higher network and carrier service provider costs. This increase in costs resulted in a gross profit margin of 63.9%, down from 67.7% in the previous year.

Operationally, 8x8 has focused on expanding its customer base, particularly in the mid-market and public sector segments, which has led to an increase in customer engagement metrics. The company reported a total of approximately 50,000 small business customers, although macroeconomic conditions continue to pose risks to this segment. The company’s total assets decreased to $661.5 million from $683.2 million, while total liabilities also fell to $518.7 million from $561 million, reflecting a reduction in debt obligations.

Strategically, 8x8 has been investing in research and development to enhance its platform capabilities, particularly in artificial intelligence. The company has also expanded its Technology Partner Ecosystem to provide tailored solutions for specific use cases. Looking ahead, 8x8 anticipates continued revenue growth driven by innovation and customer retention strategies, despite potential challenges from macroeconomic factors such as inflation and geopolitical instability. The company remains committed to improving its operational efficiency and sales effectiveness to support its long-term growth objectives.