eght-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


			FORM			10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________to _________

Commission file number: 001-38312

_________________

8x8, INC.

(Exact name of Registrant as Specified in its Charter)

_________________


Delaware						77-0142404
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification Number)

675 Creekside Way

Campbell, CA 95008


(Address of principal executive offices)

(408) 727-1885


(Registrant's telephone number, including area code)

_________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
COMMON STOCK, PAR VALUE $0.001 PER SHARE	EGHT	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the Registrant's Common Stock outstanding as of July 31, 2026 was 144,435,501.

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8X8, INC.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2026


			Page
Forward-Looking Statements and Risk Factors			2
PART I. FINANCIAL INFORMATION			3
Item 1. Financial Statements (unaudited):			3
Condensed Consolidated Balance Sheets			3
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)			4
Condensed Consolidated Statements of Stockholders' Equity			5
Condensed Consolidated Statements of Cash Flows			6
Notes to Unaudited Condensed Consolidated Financial Statements			7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			21
Item 3. Quantitative and Qualitative Disclosures About Market Risk			29
Item 4. Controls and Procedures			29
PART II. OTHER INFORMATION			30
Item 1. Legal Proceedings			30
Item 1A. Risk Factors			30
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			30
Item 3. Defaults Upon Senior Securities			30
Item 4. Mine Safety Disclosures			30
Item 5. Other Information			30
Item 6. Exhibits			31
Signature			32

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Forward-Looking Statements and Risk Factors

Statements contained in this quarterly report on Form 10-Q, or this "Quarterly Report", regarding our expectations, beliefs, estimates, intentions or strategies are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), in each case, as amended from time to time. Any statements contained herein 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," “opportunity,” and similar expressions are intended to identify forward-looking statements.

Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements about: our future financial performance, including revenue, margins, and operating expenses; trends in our business and the technology industry; the sufficiency of our cash, cash equivalents, investments, and operating cash flows to meet our liquidity needs; our ability to service and refinance our debt; our market position, opportunity, and growth strategy; our ability to compete successfully; our product strategy, innovation efforts and evolving artificial intelligence ("AI") capabilities; our ability to operate under evolving macroeconomic conditions, including geopolitical instability, tariffs, inflationary pressures, increased interest rates, supply chain disruptions, decreased economic output, and currency volatility; our ability to attract and retain customers; our ability to expand into new markets and internationally; our ability to manage growth and future expenses; and the impact of recent accounting pronouncements on our consolidated financial statements.

Forward-looking statements may appear throughout this Quarterly Report, including in the section entitled: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (Part I, Item 2). We describe risks and uncertainties that could impact forward-looking statements or cause actual results and events to differ materially in the sections entitled “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Quantitative and Qualitative Disclosures About Market Risk” (Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026, as filed with the Securities and Exchange Commission (the "SEC") on May 22, 2026 (the "Form 10-K")). All forward-looking statements included in this Quarterly Report are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Quarterly Report, which attempts to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

Our fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in this Quarterly Report refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2027 refers to the fiscal year ending March 31, 2027). Unless the context requires otherwise, references to "we," "us," "our," "8x8," and the "Company" refer to 8x8, Inc. and its consolidated subsidiaries. All dollar amounts within this Quarterly Report are in thousands of United States Dollars ("Dollars") unless otherwise noted.

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PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

8X8, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except per share amounts)


	June 30, 2026		March 31, 2026
ASSETS
Current assets:
Cash and cash equivalents	$	90,595	$	93,260
Restricted cash	1,707		1,702

Accounts receivable, net	70,428		57,004
Deferred contract acquisition costs	23,174		25,193
Other current assets	37,809		32,650
Total current assets	223,713		209,809
Property and equipment, net	44,552		45,821
Operating lease, right-of-use assets	28,184		26,672
Intangible assets, net	53,776		57,589
Goodwill	276,408		276,372

Deferred contract acquisition costs, non-current	34,235		34,562
Other assets, non-current	11,938		11,996
Total assets	$	672,806	$	662,821

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	38,121	$	36,714
Accrued and other liabilities	92,065		69,867
Operating lease liabilities	10,693		10,357
Deferred revenue	35,334		36,699
Term loan, current	37,277		39,218
Total current liabilities	213,490		192,855
Operating lease liabilities, non-current	39,473		39,100
Deferred revenue, non-current	247		181
Convertible senior notes, non-current	200,091		199,830
Term loan, non-current	69,985		82,431
Other liabilities, non-current	1,703		1,815
Total liabilities	524,989		516,212
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of June 30, 2026 and March 31, 2026	—		—
Common stock: $0.001 par value, 300,000 shares authorized, 143,970 shares and 141,164 shares issued and outstanding as of June 30, 2026 and March 31, 2026, respectively	144		141
Additional paid-in capital	1,041,051		1,038,745
Accumulated other comprehensive loss	(6,105)		(6,204)
Accumulated deficit	(887,273)		(886,073)
Total stockholders' equity	147,817		146,609
Total liabilities and stockholders' equity	$	672,806	$	662,821

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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8X8, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands, except per share amounts)


	Three Months Ended June 30,
	2026		2025
Service revenue	$	185,346	$	176,308
Other revenue	4,824		5,053
Total revenue	190,170		181,361
Cost of service revenue	67,635		53,822
Cost of other revenue	6,164		7,099
Total cost of revenue	73,799		60,921
Gross profit	116,371		120,440
Operating expenses:
Research and development	28,406		28,364
Sales and marketing	58,750		68,184
General and administrative	24,836		23,327

Total operating expenses	111,992		119,875
Income from operations	4,379		565
Interest expense	(4,179)		(3,968)
Other income (expense), net	(408)		364
Loss before provision for income taxes	(208)		(3,039)
Provision for income taxes	992		1,276
Net loss	$	(1,200)	$	(4,315)
Net loss per share:
Basic and diluted	$	(0.01)	$	(0.03)

Weighted average number of shares:
Basic and diluted	141,973		134,809

Comprehensive income (loss)
Net loss	$	(1,200)	$	(4,315)

Foreign currency translation adjustment	99		6,258
Comprehensive income (loss)	$	(1,101)	$	1,943

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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8X8, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited, in thousands)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
	Shares	Amount
Balance at March 31, 2026	141,164	$	141	$	1,038,745	$	(6,204)	$	(886,073)	$	146,609
Issuance of common stock under stock plans	3,654	4		(4)		—		—		—
Common shares withheld for settlement of taxes in connection with equity-based compensation	(848)	(1)		(1,683)		—		—		(1,684)
Stock-based compensation expense	—	—		3,993		—		—		3,993
Foreign currency translation adjustment	—	—		—		99		—		99
Net loss	—	—		—		—		(1,200)		(1,200)
Balance at June 30, 2026	143,970	$	144	$	1,041,051	$	(6,105)	$	(887,273)	$	147,817


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
	Shares	Amount
Balance at March 31, 2025	134,355	$	134	$	1,018,902	$	(9,111)	$	(887,721)	$	122,204
Issuance of common stock under stock plans	2,692	3		(3)		—		—		—
Common shares withheld for settlement of taxes in connection with equity-based compensation	(300)	—		(489)		—		—		(489)
Repurchase of common stock	(1,000)	(1)		(1,847)		—		—		(1,848)
Stock-based compensation expense	—	—		6,380		—		—		6,380
Foreign currency translation adjustment	—	—		—		6,258		—		6,258
Net loss	—	—		—		—		(4,315)		(4,315)
Balance at June 30, 2025	135,747	$	136	$	1,022,943	$	(2,853)	$	(892,036)	$	128,190

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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8X8, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


	Three Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net loss	$	(1,200)	$	(4,315)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	1,410		1,690
Amortization of intangible assets	3,835		3,501
Amortization of capitalized internal-use software costs	2,856		2,673

Amortization of debt discount and issuance costs	330		336
Amortization of deferred contract acquisition costs	7,051		8,956
Allowance for credit losses	607		290
Operating lease expense, net of accretion	2,595		2,854

Stock-based compensation expense	4,055		6,352
Loss on debt extinguishment	44		81
Gain on remeasurement of warrants	(71)		(209)

Other	188		(368)
Changes in assets and liabilities:
Accounts receivable, net	(14,407)		(9,503)
Deferred contract acquisition costs	(4,611)		(4,471)
Other current and non-current assets	(9,273)		(2,997)
Accounts payable and accrued liabilities	24,979		3,347
Deferred revenue	(1,354)		3,656
Net cash provided by operating activities	17,034		11,873
Cash flows from investing activities:
Purchases of property and equipment	(694)		(377)

Capitalized internal-use software costs	(2,225)		(4,039)





Payments for other investing activities	(229)		—
Net cash used in investing activities	(3,148)		(4,416)
Cash flows from financing activities:

Repurchase of common stock	—		(1,848)


Repayment of principal on term loan	(14,500)		(15,000)




Other financing activities	(1,684)		(489)
Net cash used in financing activities	(16,184)		(17,337)
Effect of exchange rate changes on cash	(362)		2,788
Net decrease in cash and cash equivalents	(2,660)		(7,092)
Cash, cash equivalents and restricted cash, beginning of year	94,962		89,324
Cash, cash equivalents and restricted cash, end of period	$	92,302	$	82,232

Supplemental disclosures of cash flow information:
Interest paid	$	1,806	$	2,567
Income taxes paid	$	479	$	574
Payables and accruals for property and equipment	$	80	$	21

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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8X8, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — UNAUDITED

1. The Company and Significant Accounting Policies

The Company

8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996. The Company trades under the symbol "EGHT" on the Nasdaq Global Select Market.

The Company is a leading Software-as-a-Service ("SaaS") provider of contact center, voice, video, chat, and enterprise-class API solutions powered by one global cloud communications platform. 8x8 empowers workforces worldwide by connecting individuals and teams, so they can collaborate faster and work smarter from anywhere. 8x8 provides real-time business analytics and intelligence, giving its customers unique insights across all interactions and channels on its platform, so they can support a distributed and hybrid working model while delighting their end-customers and accelerating their business. A majority of all revenue is generated from communication services subscriptions and platform usage. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of its integrated technology platform.

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in the Company's annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2026 and notes thereto included in the Form 10-K.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one operating and reportable segment.

In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2027.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to revenue recognition, current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and value and useful life of long-lived assets (including intangible assets and right-of-use assets), capitalized internal-use software costs, benefit period for deferred contract acquisition costs, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, convertible senior notes fair value, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.

Significant Accounting Policies

There have been no material changes from the significant accounting policies previously disclosed in Part II, Item 8 of the Form 10-K, except for the following:

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) available to stockholders (numerator) by the weighted average number of vested, unrestricted shares of common stock outstanding during the period (denominator). Diluted net income per share is computed on the basis of the weighted average number of shares of common stock, plus the effect of dilutive potential shares of common stock outstanding during the period. Dilutive potential shares of common stock from stock options, shares under the Amended and Restated 1996 Employee Stock Purchase Plan (the "ESPP"), Restricted Stock Units ("RSUs"), Performance Stock Units ("PSUs") and warrants are computed using the treasury stock method. Potential shares of common stock attributable to the Company's convertible senior notes due 2028 (the "2028 Notes") as discussed below in Note 8, Convertible Senior Notes and Term Loan, are evaluated using the if-converted method, which requires testing both cash and share settlement assumptions and applying the more dilutive result. For periods where a net loss was recognized, basic and diluted net loss per share are the same, as the effect of potential shares of common stock would be anti-dilutive.

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Change in Reporting Presentation

The Company has revised its anti-dilutive shares disclosure for the three months ended June 30, 2025 to include approximately 28.2 million potential shares of common stock attributable to its 2028 Notes. These shares are anti-dilutive in all periods presented under the if-converted method. This revision had no impact on basic or diluted net loss per share and the condensed consolidated financial statements for any period presented. See Note 11, Net Loss Per Share, for further details.

Recently Adopted Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies whether the induced conversion guidance can be applied to the settlement of a convertible debt instrument that does not require the issuance of equity securities upon conversion. This update is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company has adopted ASU 2024-04 on a prospective basis, and this ASU does not have a material impact on the condensed consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, providing a practical expedient to calculating current expected credit loss by assuming that the current conditions as of the balance sheet date will not change for the remaining life of the asset. This expedient can only be applied to current accounts receivable and current contract assets. This update is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods, and this update is applied prospectively. The Company has elected the expedient and adopted ASU 2025-05 on a prospective basis during the three months ended June 30, 2026. This ASU does not have a material impact on the condensed consolidated financial statements.

Recently Issued Not Yet Adopted Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220): Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures, and issued subsequent amendments to the implementation guidance (including ASU 2025-01), which requires companies to disclose additional information about specific expense categories in the notes to financial statements. This guidance will be effective for the Company's annual disclosures beginning for the fiscal year ending March 31, 2028 and for interim period disclosures beginning in the fiscal year ending March 31, 2029. The Company is currently evaluating the impact this guidance will have on the presentation of its condensed consolidated financial statements and accompanying notes.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which updates the accounting model by replacing the project stage approach with a probable-to-complete threshold, relocates website development guidance into Subtopic 350-40, and requires enhanced disclosures for capitalized software costs. This guidance will be effective for the Company's interim and annual disclosures beginning for the fiscal year ending March 31, 2029. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements and accompanying notes.

There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the three months ended June 30, 2026 that are of significance or potential significance to us.

2. Segment and Revenue Information

Segment Information

The Company operates in and reports its results in a single operating and reportable segment offering SaaS solutions through the Company's Platform for Customer Experience ("CX"), which delivers unified communications-as-a-service ("UCaaS"), contact center-as-a-service ("CCaaS"), and communications platform-as-a-service ("CPaaS"). The Company derives revenue in the United States, United Kingdom and other international geographical locations from service revenue, other revenue and manages the business activities on a consolidated basis.

The Company's Chief Executive Officer ("CEO"), who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company, has been identified as the chief operating decision maker ("CODM"). The CEO manages and reviews financial information presented on a consolidated basis and uses consolidated net income (loss) for purposes of making operating decisions, evaluating operating expenses, assessing financial performance and the allocation of resources. The measure of segment assets is reported on the consolidated balance sheets as total assets. Our CODM does not assess segment performance or make decisions using asset or liability information. The consolidated financial information provided to the CODM, including significant expenses, is presented in a manner consistent with the information already disclosed in the accompanying condensed consolidated financial statements and the notes thereto.

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Disaggregation of Revenue

The Company believes that the nature, amount, timing, and uncertainty of its revenue and cash flows are most appropriately depicted by (i) geographic region and (ii) type of revenue or service provided. Revenue is disaggregated between subscription and platform usage, as these categories reflect key differences in economic characteristics, including recurring, over-time subscription revenue and variable, usage-based revenue driven by customer consumption.

The following table sets forth the revenue geographic information based on the billing address of customers for each period (in thousands):


	Three Months Ended June 30,
	2026		2025
United States	$	105,801	$	113,091
United Kingdom	33,320		30,731
Other International1	51,049		37,539
Total revenue	$	190,170	$	181,361

Service revenue consists of communication services subscriptions and platform usage revenue and related fees from our UCaaS, CCaaS and CPaaS offerings. Subscription, platform usage, and other revenue were as follows (in thousands):


	Three Months Ended June 30,
	2026		2025
Service revenue
Subscription revenue	$	137,429	$	146,921
Platform usage revenue	47,917		29,387
Total service revenue	185,346		176,308
Other revenue	4,824		5,053
Total revenue	$	190,170	$	181,361

Contract Balances

The following table provides amounts of contract assets and deferred revenue from contracts with customers (in thousands):


	June 30, 2026		March 31, 2026
Contract assets, current (component of Other current assets)	$	7,105	$	6,113
Contract assets, non-current (component of Other non-current assets)	5,743		6,356
Deferred revenue, current	35,334		36,699
Deferred revenue, non-current	247		181

Contract assets are recorded for contract consideration not yet invoiced but for which the performance obligations are completed. Contract assets, net of allowances for credit losses, are included in other current assets or other assets in the Company's condensed consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. The allowance applied to our contract assets as of June 30, 2026 and March 31, 2026 and the activity in this account, including the current-period provision for expected credit losses for the three months ended June 30, 2026, was not material. As of March 31, 2025, contract assets, current and non-current were $7.0 million and $7.3 million, respectively. Accounts receivable, net, which also represents a contract balance arising from contracts with customers, including trade accounts receivable and unbilled trade accounts receivable, is disclosed in Note 4, Financial Statement Components.

The change in contract assets was primarily driven by the recognition of revenue for the fulfillment of performance obligations in advance of billing. The change in deferred revenue was primarily driven by the recognition of subscription and professional services revenue on previously invoiced non-monthly contracts, partially offset by new non-monthly invoices billed during the period. As of March 31, 2025, deferred revenue, current and non-current, was $37.8 million and $0.7 million, respectively. During the three months ended June 30, 2026 and June 30, 2025, the Company recognized revenue of approximately $18.2 million and $16.5 million that was included in deferred revenue at the beginning of the fiscal year, respectively.

1 No individual country within "Other International" represented 10% or more of the Company’s total revenue for the three months ended June 30, 2026 or 2025.

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Remaining Performance Obligations

The Company's subscription terms typically range from one year to five years. Contract revenue from the remaining performance obligations that had not yet been recognized as of June 30, 2026 was approximately $640.0 million. This amount excludes contracts with an original expected length of less than one year. The Company expects to recognize revenue on approximately 88% of the remaining performance obligations over the next 24 months, including approximately 64% of the remaining performance obligations estimated to be recognized within 12 months, and approximately 12% estimated to be recognized over the remainder of the subscription period.

Deferred Contract Acquisition Costs

Deferred sales commissions are considered incremental and recoverable costs of acquiring customer contracts. Amortization of deferred contract acquisition costs for the three months ended June 30, 2026 and 2025 was approximately $7.1 million and $9.0 million, respectively. There were no material write-offs during the three months ended June 30, 2026 and 2025.

The following table provides amounts of deferred contract acquisition costs from contracts with customers (in thousands):


	June 30, 2026		March 31, 2026
Deferred contract acquisition costs	$	23,174	$	25,193
Deferred contract acquisition costs, non-current	34,235		34,562

3. Fair Value Measurements

Cash, cash equivalents, and available-for-sale investments were as follows (in thousands):


	As of June 30, 2026
	Fair Value		Cash and Cash Equivalents		Restricted Cash (Current and Non-Current)
Cash	$	72,402	$	70,695	$	1,707
Level 1:
Money market funds	19,900		19,900		—
Total assets	$	92,302	$	90,595	$	1,707


	As of March 31, 2026
	Fair Value		Cash and Cash Equivalents		Restricted Cash (Current and Non-Current)
Cash	$	74,645	$	72,943	$	1,702
Level 1:
Money market funds	20,317		20,317		—
Total assets	$	94,962	$	93,260	$	1,702

As of June 30, 2025, cash, cash equivalents and restricted cash of $82.2 million included $81.3 million and $0.9 million of cash and cash equivalents and restricted cash, respectively.

To support its current operations, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The restricted cash component is related to accrued holdbacks for business combinations.

The Company uses the Black-Scholes option-pricing valuation model to value its detachable warrants from inception and at each reporting period. During the three months ended June 30, 2026, the Company used historical volatility to determine the fair value of the warrants liability due to the low trading volume and moneyness assessment as of June 30, 2026. Changes in the fair values of the detachable warrants liability are recorded as a gain (loss) on warrants remeasurement within other income (expense), net in the condensed consolidated statements of operations and comprehensive income (loss).

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The following table presents additional information about valuation techniques and inputs used for the detachable warrants (see Note 8, Convertible Senior Notes and Term Loan) that are measured at fair value and categorized within Level 3 as of June 30, 2026 and March 31, 2026 (dollars in thousands):


	June 30, 2026			March 31, 2026
Estimated fair value of detachable warrants	$	161		$	233
Unobservable inputs:
Stock volatility	79.4		%	78.8		%
Risk-free rate	4.0		%	3.7		%
Expected term	1.1 years			1.3 years

As of June 30, 2026 and March 31, 2026, the estimated fair value of the Company’s convertible senior notes due in 2028 was $186.5 million and $187.7 million, respectively (see Note 8, Convertible Senior Notes and Term Loan). The fair value of the convertible senior notes was determined based on the closing price of each of the securities on the last trading day of the reporting period, and each is Level 2 in the fair value hierarchy due to limited trading activity of the debt instruments. As of June 30, 2026 and March 31, 2026, the carrying value of the Company’s 2024 Term Loan approximates its estimated fair value.

4. Financial Statement Components

Accounts receivable, net consisted of the following (in thousands):


	June 30, 2026		March 31, 2026
Trade accounts receivable	$	64,200	$	51,191
Unbilled trade accounts receivable	10,744		10,663
Less: allowance for credit losses	(1,449)		(1,253)
Less: allowance for sales reserves	(3,067)		(3,597)
Total accounts receivable, net	$	70,428	$	57,004

Allowances for credit losses and sales reserves consisted of the following (in thousands):


	Three Months Ended June 30, 2026				Year Ended March 31, 2026
	Credit Losses		Sales Reserves		Credit Losses		Sales Reserves
Beginning balance	$	(1,253)	$	(3,597)	$	(1,898)	$	(4,233)
(Reserve) provision	(553)		(1,670)		(548)		(8,110)
Write-offs (recoveries)