8X8 INC /DE/EGHT

8X8 INC /DE/ Fair Value Disclosure

10-KFiled May 22, 20262 min read
Fair Value Measurements
Cash and cash equivalents were as follows (in thousands):
As of March 31, 2026
Fair ValueCash and Cash EquivalentsRestricted Cash
(Current & Non-current)
Cash$74,645 $72,943 $1,702 
Level 1:
Money market funds20,317 20,317 — 
Total assets$94,962 $93,260 $1,702 
As of March 31, 2025
Fair ValueCash and Cash EquivalentsRestricted Cash
(Current & Non-current)
Cash$64,765 $63,953 $812 
Level 1:
Money market funds24,559 24,097 462 
Total assets$89,324 $88,050 $1,274 
As of March 31, 2024, cash, cash equivalents and restricted cash of $116.7 million included $116.3 million and $0.5 million of cash and cash equivalents, restricted cash and non-current 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 (see Note 1, The Company and Significant Accounting Policies).
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 March 31, 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 March 31, 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 consolidated statements of operations and comprehensive income (loss).
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 March 31, 2026 and March 31, 2025 (dollars in thousands):
March 31, 2026March 31, 2025
Estimated fair value of detachable warrants$233 $1,096 
Unobservable inputs:
Stock volatility78.8 %79.8 %
Risk-free rate3.7 %3.9 %
Expected term1.3 years2.4 years
As of March 31, 2026 and March 31, 2025, the estimated fair value of the Company's convertible senior notes due in 2028 was $187.7 million and $171.1 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 March 31, 2026 and 2025, the carrying value of the Company's Term Loan approximates its estimated fair value.

Historical Timeline

Fiscal YearFiled
2026May 22, 2026Showing above
2025May 22, 2025
2024May 21, 2024
2023May 25, 2023
2022May 27, 2022
2021May 17, 2021
2020May 19, 2020
2019May 21, 2019
2018May 30, 2018
2017May 30, 2017
2016May 31, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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