8X8 Inc /De/EGHT

8x8 Inc. (EGHT) is grappling with a data breach that exposed customer data via a third-party Salesforce integration, just months after reporting razor-thin profits. The company’s latest 10-K filing reveals a net income of $1.6M on $735.8M revenue, with R&D costs swallowing $113M and recurring revenue growth reliant on bundling free tools into existing contracts.

As a provider of cloud-based business communications platforms, 8x8’s value proposition hinges on seamless integration and security. Yet the June breach-where a threat actor exploited Klue Labs’ API to steal data-undermines this narrative. The company’s response included disabling the integration, but the incident highlights vulnerabilities in its ecosystem at a time when it can least afford reputational damage.

Financially, EGHT’s balance sheet shows $146.6M in stockholders’ equity and $93.3M in cash, against $516.2M in liabilities. While service revenue grew 3% YoY to $715.3M, churn remains a critical risk, with management admitting price hikes may be impossible without losing customers. Recent partnerships, including a UK deal with KCOM and a Philippines authentication project, aim to stabilize revenue but have yet to translate into meaningful profit.

Chart-wise, EGHT’s stock has traded in a tight range between $15 and $18 for most of 2026, with volume averaging 1.2M shares daily. The lack of momentum reflects uncertainty over whether the company’s growth initiatives can offset its margin pressures and execution risks. (source: SEC EDGAR filings, https://www.sec.gov/edgar/browse/?CIK=1023731)