8x8

EGHT

Software - Application · Technology

Price

$2.01

-0.01 (-0.50%)

Market Cap

$285.0M

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Strong

Stability

Weak

Valuation

Good

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Share count rising — dilution

+25.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 113.4M (2022) → 142.6M (2026)

Winston Score History

The full picture

8x8 makes software that helps businesses communicate. Its main products are cloud-based phone systems, video meetings, and customer service tools — all bundled into one platform. The company sells to small and mid-sized businesses as well as larger enterprises that want to replace traditional office phone systems with internet-based services.

8x8 earns money through monthly or annual subscriptions, meaning customers pay a recurring fee to use its services. It operates mainly in the United States but also has customers in Europe and other regions, generating roughly $700 million in annual revenue. The company competes in a crowded market against larger rivals like Zoom, Microsoft, and RingCentral, which makes customer retention and pricing pressure ongoing challenges. Its key growth opportunity lies in convincing more businesses to consolidate their phone, messaging, and contact center tools onto a single platform, though its thin operating margins leave little room for error if growth slows.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+68.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$113M/ year

↓ Declining (-8% vs prior year)

15.4% of revenue

In line with sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

4.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$91M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

8x8 is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

61.2%

Premium pricing power — 61.2% gross margin

Profit after running costs

Operating Margin

2.3%

Thin — 2.3% operating margin

Return on the money invested

ROCE

5.9%

Weak — 5.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+3.7%

Slow sales growth (+3.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

1217%

Turns 1217% of profit into real cash

Spare cash per sale

FCF Margin

6.7%

Modest free cash flow (6.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

2.08

Heavy debt load (2.08)

Covers its interest

Interest Cover

1.57x

Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

60.9x

Expensive — P/E 60.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+55.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (60.9 → 5.9)

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Dividends

Not applicable for this business.

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