Share repurchases reflect disciplined capital allocation and commitment in aligning employee equity compensation with shareholder interests
8x8, Inc. (NASDAQ:EGHT), the industry's most integrated Platform provider for CX that combines Contact Center, Unified Communication, and CPaaS solutions, today announced that it has repurchased one million shares of its common stock for an aggregate purchase price of approximately $1.85 million in recent open market transactions. The transactions were executed under 8x8's existing share repurchase program authorized by the Company's Board of Directors in 2017.
The open market repurchases are one of several elements of 8x8's long-term strategy to manage dilution from employee equity and stock purchase programs over time. The action complements 8x8's broader strategy to return value to investors and optimize the Company's capital structure through disciplined capital allocation, including share repurchases, debt reduction, and accretive investments.
"This is the first time we have repurchased equity 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, Inc.
"Our capital allocation decisions reflect confidence in our strategy, our operational momentum, and our ability to generate sustainable, profitable growth and cash flow," added Wilson. "We are committed to managing equity dilution, rewarding long-term shareholders, and funding innovation that helps our customers deliver exceptional experiences."
The Company's share repurchase activity, conducted between June 6, 2025 and June 13, 2025, took place after the filing of its Annual Report on Form 10-K for fiscal year 2025 on May 22, 2025. The timing followed the completion of customary financial and legal reviews, which showed the Company remained fully compliant with the covenants of the Company's 2024 Term Loan agreement. All repurchases were completed prior to the beginning of the Company's first quarter quiet period. This activity should not be interpreted as an indication of future repurchase plans, which may vary based on market conditions, capital allocation priorities, lending covenants, and other factors.
Balance Sheet Optimization Strengthens Financial Position, Enhances Long-Term Shareholder Value
Since the restructuring of the Company's balance sheet in August 2022 – which included the exchange of a substantial portion of its 2024 Convertible Notes for 2028 Convertible Notes, securing a term loan due in 2027, and repurchasing approximately 10.7 million shares of common stock – 8x8 has reduced total debt by more than $209 million, or nearly 40%. Debt reduction, as well as the subsequent refinancing of the term loan in July 2024 at a lower variable interest rate, resulted in a decrease in quarterly contractual interest expense from a peak of approximately $10 million in the fourth quarter of fiscal year 2023 to less than $5 million in the fourth quarter of fiscal year 2025. Over the same period, shareholders' equity has 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.
In parallel, 8x8 has made significant strides in lowering the cost of its equity compensation programs. 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. The decline stems, in part, from a compensation model shift initiated in fiscal year 2024 which emphasized cash-based compensation for most employees. All employees remain eligible to benefit from future share appreciation through 8x8's Employee Stock Purchase Plan (ESPP).
About 8x8 Inc.
8x8, Inc. (NASDAQ:EGHT) connects people and organizations through seamless communication on the industry's most integrated platform for Customer Experience – combining Contact Center, Unified Communication, and CPaaS solutions. The 8x8® Platform for CX integrates AI at every level to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. 8x8 helps customer experience and IT leaders become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.
Forward Looking Statements:
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to: our ongoing commitment to reduce future dilution from employee stock programs; our future and broader strategy, operational momentum and ability to generate sustainable, profitable growth and cash flow; the funding of future innovation; and our future repurchase plans. You should not place undue reliance on such forward-looking statements. Actual results could differ materially from those projected in forward-looking statements depending on a variety of factors including, but not limited to, our ability to grow future revenues, develop and innovate products that are competitive in the market, generate profitable growth and cash flow to pay down existing debt and make future stock repurchases; and market conditions, capital allocation priorities, lending covenants and other factors that may impact our future repurchase plans. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Copyright 8x8, Inc. 8x8® is a trademark of 8x8, Inc. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250617084345/en/
8x8, Inc. Contacts:
Media:
[email protected]
Investor Relations:
[email protected]