Share repurchases reflect disciplined capital allocation and commitment in aligning employee equity compensation with shareholder interests
8×8, Inc., the industry’s most integrated Platform provider for CX that combines Contact Center, Unified Communication, and CPaaS solutions, 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 8×8’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 8×8’s long-term strategy to manage dilution from employee equity and stock purchase programs over time. The action complements 8×8’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.
Marketing Technology Insights: PriceSpider Doubles Down on Innovation With New Product Features and Integrations
“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 8×8, 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.
Marketing Technology Insights: Tinuiti Introduces AI SEO, the Newest Evolution of Its Search Offering
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 – 8×8 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, 8×8 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 8×8’s Employee Stock Purchase Plan (ESPP).
Marketing Technology Insights: Acxiom and LoopMe Launch Survey-Based Custom Audience Partnership
Source – Businesswire
For media inquiries, you can write to our MarTech Newsroom at sudipto@intentamplify.com
