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Lincoln National Corporation (LNC) Q1 2026 Earnings Call Transcript

Key Takeaways LNC's Q1 adjusted EPS rose 3.7% year over year to $1.66 and beat estimates by 1.8%.Lincoln National's net investment income climbed 9.8% year over year to $1.6 billion.LNC's estimated RBC ratio improved to more than 420% at the end of the first quarter. Lincoln National Corporation (LNC - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.66, which surpassed the Zacks Consensus Estimate by 1.8%. The bottom line rose 3.7% year over year.

Adjusted operating revenues grew 3.9% year over year to $4.9 billion. However, the top line missed the consensus mark by 0.2%.

The quarterly earnings were supported by strong annuity deposits and solid Life Insurance performance. Higher net investment income, favorable equity markets and reduced expenses also contributed to the upside. Nevertheless, the positives were partly offset by a decline in the sales of Group Protection and lower insurance premiums.

Key Takeaways From LNC’s Q1 ResultsLNC’s estimated RBC ratio rose to more than 420% at the first-quarter end.

Insurance premiums inched down 0.1% year over year to $1.7 billion, missing the Zacks Consensus Estimate by 2.4%.

Fee income was $1.4 billion, which improved 0.3% year over year but missed the consensus mark by 1.7%. Net investment income advanced 9.8% year over year to $1.6 billion and beat the consensus mark by 7.5%.

Meanwhile, other revenues of $184 million rose 8.9% year over year in the quarter under review.

Total expenses declined 1.6% year over year to $5.6 billion. Interest credited rose 12.2% year over year to $999 million.

Lincoln National reported a net loss of $172 million compared to the prior-year quarter’s loss of $722 million.

Lincoln National’s Segmental PerformancesThe Annuities and Life Insurance segments form part of LNC’s Retail Solutions business, while Group Protection and Retirement Plan Services units make up the Workplace Solutions business.

The Annuities segment’s operating income totaled $275 million in the first quarter, which fell 5.2% year over year and missed the Zacks Consensus Estimate of $295.6 million due to the impact of a previously disclosed net investment income allocation refinement and unfavorable tax-related items. The unit's operating revenues rose 7.1% year over year to $1.3 billion, driven by 12.7% growth in net investment income, partly offset by a 14.3% decline in insurance premiums. Total annuity deposits were $3.9 billion, which climbed 3.7% year over year.

The Life Insurance unit recorded an operating income of $41 million, improved from the prior-year quarter’s loss of $16 million and beat the consensus mark of $7.2 million. The metric benefited from higher alternative investment income. Operating revenues grew 2.6% year over year to $1.6 billion. Total Life Insurance sales of $129 million advanced 33% year over year. Total deposits grew 2.9% year over year to $1.3 billion.

The Group Protection segment’s operating income increased 10.9% year over year to $112 million and beat the Zacks Consensus Estimate of $110.4 million. The unit was supported by a favorable life experience. Operating revenues totaled $1.6 billion in the quarter under review, which improved 2.2% year over year. The metric was driven by a 2% rise in insurance premiums. Sales of $150 million fell 4.5% year over year.

The Retirement Plan Services segment recorded an operating income of $43 million, which rose 26.5% year over year and beat the consensus mark of $42.3 million. The metric benefited from the expansion of spreads and favorable equity markets. Operating revenues increased 5.8% year over year to $346 million. Total deposits were $4.1 billion, which advanced 0.7% year over year.

Other Operations incurred an operating loss of $111 million, wider than the year-ago quarter’s loss of $95 million and the Zacks Consensus Estimate of $94.5 million.

Lincoln National’s Financial Update (As of March 31, 2026)Lincoln National exited the first quarter with cash and invested cash of $7.3 billion, which declined from the 2025-end level of $9.5 billion. Total assets of $406.2 billion fell from the figure at the 2025-end of $417.2 billion.

Long-term debt amounted to $6 billion, up from the figure of $5.9 billion as of Dec. 31, 2025.

Total stockholders’ equity of $10.2 billion declined from the 2025-end level of $10.9 billion.

Book value per share, excluding accumulated other comprehensive income, was $71.06, which fell from the 2025-end level of $73.10. Adjusted income from operations ROE deteriorated 20 basis points year over year to 8.8%.

LNC’s Dividend UpdateLincoln National paid out quarterly dividends of $86 million.

LNC’s 2026 OutlookIn 2026, the Annuities, Life Insurance, Group Protection and Retirement Plan Services units were projected to account for 58-60%, 8-9%, 24-25% and 8-9%, respectively, of the company’s total operating income earnings.

Management had earlier projected an RBC ratio of more than 420% for 2026 and over the long term.

LNC’s Zacks RankLNC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?Several companies in the insurance space, including RenaissanceRe Holdings Ltd. (RNR - Free Report) , AMERISAFE, Inc. (AMSF - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:

RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%. The bottom line improved from the year-ago quarter’s operating loss of $1.49. Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%. RNR’s quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments.

AMERISAFE reported first-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. The bottom line declined 16.7% year over year. Operating revenues increased 7.9% year over year to $81.75 million but missed the consensus estimate by 0.9%. AMSF’s quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower fee income and weaker investment income. Stronger premium growth partially offsets the downside.

Hartford posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%. Operating revenues totaled $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%. HIG’s weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.

Lincoln National remains a 'Buy,' with shares offering 30% upside and a 5.2% secure dividend yield. LNC's capital position is strong, with a risk-based capital ratio above 420% and leverage at its 25% target. Private credit fears are overstated for LNC, as 75% of its exposure is investment grade and direct lending is just 1.5% of the portfolio.

Few investors deserve to be called legends. But Bill Miller is one of them.

Miller famously beat the S&P 500 (^GSPC +0.49%) for 15 consecutive years, from 1991 to 2005. His specialty is identifying deep value opportunities overlooked or spurned by most investors. The billionaire founded Miller Value Partners in 1999 and served as its chairman and chief investment officer until 2023. His son, Bill Miller IV, now runs the fund, although the legendary investor still owns a stake.

Miller Value Partners continues to use the same approach that made Miller so successful through the years. While the fund unsurprisingly is loaded with value stocks, it also owns several dividend stocks. Here are the three top ultra-high-yield dividend stocks in the fund's portfolio.

Image source: Getty Images.

1. Lincoln National Lincoln National (LNC +1.94%) provides financial products, including annuities, insurance, retirement, and wealth protection, to around 17 million customers. The company's roots date back to 1905. It was named after President Abraham Lincoln.

This financial stock ranks as the second-largest holding in Miller Value Partners' portfolio, comprising nearly 8% of total assets. However, the fund trimmed its position somewhat in the fourth quarter of 2025, selling around 3%.

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Lincoln National's share price has plunged more than 20% year to date after soaring 40% in 2025. The sharp pullback has caused the stock's valuation to become attractive to value investors, with shares trading at only four times forward earnings.

Income investors could also find Lincoln National appealing. The company's forward dividend yield is 5.3%. Although Lincoln National hasn't increased its dividend in recent years, the dividend appears relatively safe, with a payout ratio below 20%.

2. Gray Media Gray Media (GTN 3.19%) is the largest owner of local TV stations in the U.S. It operates in 118 markets, reaching around 37% of the country's households. The company also owns the largest Telemundo Affiliate group as well as other media businesses, including digital media agency Gray Digital Media and Raycom Sports.

The communication stock is Miller Value Partners' third-largest holding. Unlike Lincoln National, Gray Media is a growing position within the fund's portfolio. Miller Value Partners increased its stake in Gray Media by 12% in the fourth quarter of 2025.

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Gray Media has taken investors on a roller coaster ride so far in 2026. However, it's been a decidedly downhill ride in recent years, with the stock sinking more than 80% below its late 2021 peak. This sell-off has pushed Gray Media's forward earnings multiple down to below 2x -- a super-low level.

Meanwhile, the company has continued to pay steady dividends. Its payout ratio of 74% isn't as reassuring as Lincoln National's. But Gray Media's 7.7% dividend yield is especially juicy.

3. Quad/Graphics Quad/Graphics (QUAD +1.07%) focuses on marketing experience, or MX. Its MX Solutions Suite helps customers create marketing content and analyze marketing campaigns. Quad serves around 2,100 clients, including Amazon (AMZN 1.50%), Citigroup (C +1.75%), and Kroger (KR +0.69%).

This stock is the fifth-largest holding in Miller Value Partners' portfolio. The fund increased its position by around 4.4% in the fourth quarter of 2025.

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Unlike Lincoln National and Gray Media, Quad has delivered solid returns so far in 2026. The stock has more than doubled over the last three years. Even with the impressive gains, it remains attractively valued, with shares trading at 6.2 times forward earnings.

Quad/Graphics offers a forward dividend yield of 5.5%. After slashing its dividend between 2019 and 2024, the company has begun to increase its payout over the last couple of years.

Another common denominator We've already seen two common denominators shared by Lincoln National, Gray Media, and Quad/Graphics. First, they're all high-yield dividend stocks. Second, they're all value stocks. However, these three stocks also have another thing in common: None of them are large-cap stocks.

Lincoln National is the biggest of the trio, with a market cap of $6.5 billion. Gray Media and Quad, though, are small-cap stocks, with market caps below $500 million. That shouldn't be surprising. Miller has long held that the best mispriced opportunities are typically smaller stocks that don't receive as much analyst attention.

To be sure, these stocks won't appeal to every investor. Some could view them as value traps. However, ultra-high yields and ultra-low expectations can sometimes create great opportunities for aggressive investors. Just ask Bill Miller.

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RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial (NYSE:LNC) announced today that the board of directors of Lincoln National Corporation declared a quarterly cash dividend of $0.45 per share on the corporation’s common stock. The dividend on the common stock will be payable August 3, 2026, to shareholders of record at the close of business on July 10, 2026.

About Lincoln Financial
Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2025, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of March 31, 2026, the company has $340 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

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Lincoln Financial (NYSE: LNC) today announced the promotion of three senior leaders to its Senior Management Committee (SMC): Darrel Tedrow as Executive Vice P

Posted by Defense World Staff on Apr 24th, 2026

Cwm LLC raised its holdings in KeyCorp (NYSE:KEY – Free Report) by 159.0% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 130,736 shares of the financial services provider’s stock after acquiring an additional 80,257 shares during the period. Cwm LLC’s holdings in KeyCorp were worth $2,698,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of KEY. Wellington Management Group LLP raised its holdings in shares of KeyCorp by 90.2% in the 3rd quarter. Wellington Management Group LLP now owns 36,370,694 shares of the financial services provider’s stock valued at $679,768,000 after acquiring an additional 17,245,128 shares in the last quarter. Capital World Investors raised its holdings in shares of KeyCorp by 169.2% in the 3rd quarter. Capital World Investors now owns 20,788,957 shares of the financial services provider’s stock valued at $388,546,000 after acquiring an additional 13,067,326 shares in the last quarter. Two Sigma Investments LP purchased a new stake in shares of KeyCorp in the 3rd quarter valued at about $66,683,000. Victory Capital Management Inc. raised its holdings in shares of KeyCorp by 39.6% in the 3rd quarter. Victory Capital Management Inc. now owns 6,856,534 shares of the financial services provider’s stock valued at $128,149,000 after acquiring an additional 1,945,368 shares in the last quarter. Finally, Barclays PLC raised its holdings in shares of KeyCorp by 49.3% in the 3rd quarter. Barclays PLC now owns 5,237,786 shares of the financial services provider’s stock valued at $97,894,000 after acquiring an additional 1,730,046 shares in the last quarter. Hedge funds and other institutional investors own 79.69% of the company’s stock.

KeyCorp News Summary Here are the key news stories impacting KeyCorp this week:

Positive Sentiment: KeyCorp announced a definitive agreement to acquire Clearwater Corporate Finance LLP (Clearwater UK), giving Key its first strategic foothold in Western Europe and bolstering its middle‑market M&A/advisory franchise — a revenue and fee‑generation opportunity that supports long‑term growth in investment banking. KeyCorp to Acquire Clearwater UK, Expanding Financial Advisory Capabilities Positive Sentiment: Key reported a solid Q1 (EPS $0.44 vs. $0.41 consensus; revenue up ~10% y/y to $1.95B) and unveiled a US$1B share buyback program — both supportive of near‑term EPS accretion and valuation multiple expansion. This combination is a clear positive for shareholder returns. KeyCorp (KEY) Valuation Check After Strong Q1 Results And New US$1b Share Buyback Program Neutral Sentiment: Analysts’ Q1‑call questions highlighted key monitoring areas (capital returns, credit trends, margin/expense outlook and deployment of the buyback). These items set the metrics investors will watch but are not immediate binary catalysts. 5 Must-Read Analyst Questions From KeyCorp’s Q1 Earnings Call Neutral Sentiment: Third‑party analyst commentary grouped Key with peers when discussing industry dynamics; useful context but not a standalone catalyst. Monitor further analyst revisions for guidance on ratings or targets. Analysts Offer Insights on Financial Companies: Visa (V), Zions (ZION) and KeyCorp (KEY) Negative Sentiment: The acquisition details did not disclose financial terms publicly, leaving near‑term earnings impact, integration costs and regulatory approvals unclear — factors that can introduce short‑term uncertainty and temper upside until more detail is provided. KeyCorp to acquire UK-based Clearwater Corporate Finance, terms undisclosed KeyCorp Price Performance Shares of KeyCorp stock opened at $22.03 on Friday. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $23.63 billion, a PE ratio of 13.51, a price-to-earnings-growth ratio of 0.71 and a beta of 1.07. The business’s 50-day moving average price is $20.68 and its 200-day moving average price is $20.00. KeyCorp has a 12 month low of $14.43 and a 12 month high of $23.34.

KeyCorp (NYSE:KEY – Get Free Report) last announced its quarterly earnings data on Thursday, April 16th. The financial services provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03. The firm had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.93 billion. KeyCorp had a return on equity of 10.80% and a net margin of 17.03%.The company’s revenue was up 10.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.38 EPS. Sell-side analysts forecast that KeyCorp will post 1.81 EPS for the current fiscal year.

Insider Activity In other news, insider Angela G. Mago sold 62,850 shares of the stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $21.55, for a total transaction of $1,354,417.50. Following the transaction, the insider directly owned 261,415 shares in the company, valued at approximately $5,633,493.25. This represents a 19.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Andrew J. Paine III sold 65,961 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $23.23, for a total value of $1,532,274.03. Following the transaction, the insider owned 166,583 shares in the company, valued at $3,869,723.09. This trade represents a 28.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.56% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth KEY has been the topic of several recent analyst reports. Piper Sandler raised their price target on KeyCorp from $23.00 to $24.00 and gave the company an “overweight” rating in a report on Friday, April 17th. Morgan Stanley lowered their price target on KeyCorp from $26.00 to $24.00 and set an “equal weight” rating on the stock in a report on Tuesday, March 31st. Royal Bank Of Canada raised their price target on KeyCorp from $22.00 to $24.00 and gave the company an “outperform” rating in a report on Friday, April 17th. Evercore reaffirmed an “outperform” rating on shares of KeyCorp in a report on Tuesday. Finally, Barclays raised their price target on KeyCorp from $20.00 to $24.00 and gave the company an “equal weight” rating in a report on Monday, January 5th. Twelve equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $23.13.

Check Out Our Latest Stock Report on KEY

KeyCorp Profile (Free Report)

KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank’s offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.

The company’s product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.

Featured Stories Five stocks we like better than KeyCorp Want to see what other hedge funds are holding KEY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for KeyCorp (NYSE:KEY – Free Report).

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By PYMNTS  |  April 28, 2026

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Treasury solutions provider Qolo has launched an expanded partnership with KeyBank.

The collaboration, announced Tuesday (April 28), has resulted in the debut Key Virtual Card (KeyVC), a virtual commercial card program designed to help businesses more easily monitor and handle payments.

“Managing commercial payments can be complex, often requiring businesses to juggle multiple systems and reporting processes,” Rouzbeh Rotabi, Qolo’s chief operating officer, said in a news release.

“KeyVC is designed to reduce that complexity by allowing clients to use virtual cards alongside other treasury tools, with consistent reporting and simplified reconciliation across payment types. Businesses want payment tools that fit naturally into how they already operate.”

According to the release, the new offering lets KeyBank’s commercial clients create and manage virtual cards within KeyBank’s Virtual Account Management platform (KeyVAM).

By making virtual cards part of the same system clients use for treasury and cash management, the program helps businesses pay suppliers more efficiently while offering stronger spending and reconciliation oversight, the company said.

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“Commercial clients are increasingly looking for simpler and more controlled ways to manage payments,” said John Withrow, head of commercial cards at KeyBank.

“By expanding our partnership with Qolo, we’re making virtual cards easier to use within our existing treasury platforms, helping clients streamline accounts payable, improve visibility, and maintain better control over how and when money is spent.”

Qolo and KeyBank launched KeyVAM in 2024, with the bank making an equity investment in Qolo last year. KeyBank has also turned to Qolo to offer clients embedded banking solutions.

This extension to their partnership comes as businesses are increasingly adopting virtual cards and ACH as they shift away from payment methods like paper checks.

These tools “support digital onboarding, automated approvals and straight-through processing; and they are able to integrate with procurement, accounts payable and treasury systems,” as PYMNTS wrote last month.

One of their benefits is their ability to lessen the friction that appears “when payments live in a separate, analog universe,” that report added.

“Those companies that do it right are starting to see benefits by using digital payments as a strategic tool,” Daniel Artin, head of strategic partnerships at Boost Payment Solutions, said in an interview with PYMNTS earlier this year.

Research by PYMNTS Intelligence shows that small businesses are seeing benefits from these cards that include dispute protection and refunds — cited by 63% of businesses — and the ability to manage liquidity without immediate cash (59%).

, /PRNewswire/ -- Key Private Bank, the high-net worth and ultra-high-net-worth wealth management segment of KeyCorp (NYSE: KEY), has been selected as a winner for 'Regional Private Bank' at the Thirteenth Annual Family Wealth Report Awards, marking the third time the firm has received this distinction.

Key Private Bank was selected for this award for delivering exceptional results through accountability, deep local expertise, and client-centric planning. Selected from a competitive field of finalist institutions, the award recognizes firms that demonstrate excellence in client service, thoughtful innovation, and the delivery of sophisticated wealth management solutions. Key Private Bank's repeated recognition underscores its long‑standing commitment to helping clients navigate complex financial needs across generations.

The annual Family Wealth Report Awards honor the most innovative and outstanding firms, teams, and individuals serving North America's family offices, family wealth managers, and trusted advisor communities. Winners are selected by an independent panel of judges comprising senior leaders from family offices, private banks, advisory firms, and professional service providers with deep industry expertise.

"Earning this recognition again reflects the strength of our advisors, the depth of our capabilities, and the trust our clients place in us," said Cathy O'Malley Kearney, national director and head of Key Private Bank. "Our focus remains on delivering personalized advice and coordinated solutions that help clients protect, grow, and transfer their wealth with confidence."

Family Wealth Report is a leading industry publication covering trends, best practices, and innovation within the global wealth management and family office sector.

About Key Private Bank

Key Private Bank is a provider of wealth management solutions and advice for high-net worth and ultra-high-net-worth clients, including wealth advisory, investment management, trust administration, customized credit, and private banking services. Key's wealth management platform combines the market insights of local advisors with a national team of wealth and investment strategists to deliver personalized advice and expertise to clients. Advisors also leverage partnerships with financial experts to build wealth plans tailored to meet each client's specific need. Key Private Bank's wealth management platform is delivered across 15 of the United States. Key Private Bank has approximately $60 billion in AUM and $124 billion in AUA at March 31, 2026.

About KeyCorp

KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2026.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.

CFMA042426 - 4385628

SOURCE KeyBank

The program empowers business owners to navigate the complexities of their financial operations

, /PRNewswire/ -- In recognition of Small Business Month, KeyBank (NYSE: KEY) is highlighting how its Certified Cash Flow Advisor Program is changing the way it serves small‑to‑midsize businesses—by putting real conversations and practical advice at the center of the relationship.

KeyBank’s branch in West Valley City, Utah In 2024, KeyBank made a significant investment in expanding this expertise across the organization by providing its advisors with a common framework for engaging business owners through Key Conversations—purposeful discussions focused on how cash moves in and out of a business and how financial processes can work harder for the owner's goals.

Rather than offering one‑size‑fits‑all solutions, Certified Cash Flow Advisors take time to understand the realities of each business. From invoicing and receivables to liquidity, automation, and fraud protection, advisors deliver tailored guidance that addresses operational pain points and helps owner‑operators improve efficiency and profitability. Since inception, KeyBank's advisors have had more than 147,800 conversations with small and midsized businesses across the country. By emphasizing an advice-driven philosophy, KeyBank aims to strengthen relationships with business owners and help them achieve long-term success in an increasingly complex financial landscape.

"Business owners are experts at what they do—but they're often stretched thin trying to do everything," said Mike Walters, President of Business Banking at KeyBank. "Our role is to help our small business owner/operators maximize their business financially so they can grow and thrive. The Key Conversation gives us a way to step back with the client, look holistically at their cash flow, and uncover opportunities that might otherwise be missed. This people‑first approach enables KeyBank to deliver more than transactions -- it provides insight, clarity, and collaboration. By leading with advice instead of products, we're redefining what business banking can be for small businesses."

These conversations are backed by a full suite of business banking capabilities designed to put advice into action. KeyBank's small business clients have access to intuitive digital banking platforms that provide visibility into cash flow, merchant services that accelerate payments and reduce friction at the point of sale, flexible lending solutions tailored to growth and working capital needs, and integrated payroll services that streamline operations. When paired with the insight and expertise of a Certified Cash Flow Advisor, these tools become more than products—they become part of a strategic plan to help business owners work smarter, scale sustainably, and protect what they've built.

In addition, KeyBank recently received five 2026 Best Bank Awards from Coalition Greenwich for the support it provides to small business clients. This reinforces that relationships built on earned trust, combined with best-in-class service and advice-driven solutions help our clients grow in the communities they serve.

Strong advisory relationships are essential to helping business owners adapt, grow, and succeed over the long term, and KeyBank is committed to delivering that partnership every day. Learn more about KeyBank's business banking expertise at www.key.com/smallbusiness.

ABOUT KEYCORP

KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2026. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

All credit products are subject to collateral and/or credit approval, terms, conditions, availability and subject to change.

CFMA #260501-4415928

SOURCE KeyBank

KeyCorp (KEY) Shareholder/Analyst Call Prepared Remarks Transcript

With markets at elevated multiples in May 2026, low share prices can mislead investors into thinking quality is out of reach. Stocks trading below $30 with strong balance sheets offer income, deleveraging stories, or growth at valuations that build in a margin of safety.

Here are five stocks trading under $30 that pair solid books with a credible upside case.

Pfizer (NYSE: PFE) Pfizer (NYSE:PFE | PFE Price Prediction) is a global biopharma whose portfolio spans immunology, oncology, cardiology, and vaccines, anchored by Eliquis, Prevnar, and the Comirnaty/Paxlovid COVID franchise.

Shares last traded at $25.33, below the 52-week high of $28.28, with a 6.68% dividend yield and a forward P/E of 9x. Q4 2025 adjusted EPS of $0.66 beat the $0.57 estimate, and the consensus analyst target sits at $29.19.

The bull case rests on 9% operational lift in the non-COVID portfolio, the Metsera-driven obesity pipeline, and insider conviction: CEO Albert Bourla and 11 directors acquired phantom stock units at $26.67 on April 23, 2026.

Key risk is a $1.5B revenue headwind from 2026 loss of exclusivity combined with MFN drug pricing pressure. The yield-supported setup has management backing the thesis.

AT&T (NYSE: T) AT&T (NYSE:T) is the second-largest US wireless carrier, pairing 5G with a rapidly expanding fiber footprint.

At $24.43, shares carry a forward P/E of 11x and a 4.5% dividend yield. Q1 2026 adjusted EPS came in at $0.57 (+11.8% YoY) on revenue of $31.51B. Analyst target: $30.37.

The bull case is execution and cash. AT&T added 584,000 internet customers in Q1 2026, plans $45B in shareholder returns through 2028, and lifted cash to $18.2B at year-end 2025 from $3.3B a year earlier.

Risks include total debt of $173.99B and legacy wireline declines exceeding 20% in 2026. Converged connectivity plus growing free cash flow makes the dividend durable.

SoFi Technologies (NASDAQ: SOFI) SoFi Technologies (NASDAQ:SOFI) is a digital financial services company holding a national bank charter and the Galileo technology platform.

At $15.71, shares are down 39.99% YTD, even after Q1 2026 produced net income of $166.7M (+134% YoY) and record originations of $12.18B (+68% YoY). Forward P/E is 26x; analyst target $21.10.

The bull case: shareholder equity reached $10.81B while total debt fell from $3.2B to $1.8B over the prior year. CEO Anthony Noto bought 15,545 shares at $16.00 on May 11, 2026 after purchasing 56,000 shares at $17.88 on March 2, 2026.

Risks include personal loan charge-offs at 3.03% and a 27% decline in Technology Platform revenue after a large client departure. The pullback has reset expectations into the growth runway.

Kinross Gold (NYSE: KGC) Kinross Gold (NYSE:KGC) operates gold mines across the US, Brazil, Chile, and Mauritania.

Shares slipped under $30 to $28.51 after an 18.4% one-month pullback, even as the stock remains up 109.22% over one year. Forward P/E sits at 11x against an analyst target of $40.55. Q1 2026 adjusted EPS hit $0.71 on revenue of $2.41B (+61% YoY), with free cash flow of $837.5M.

The balance sheet is pristine: $2.19B in cash against only $3.66B in total liabilities, plus record 2025 FCF of $2.47B and $255.1M of Q1 buybacks.

Primary risk is gold price volatility and geopolitical exposure. The recent pullback creates a window for investors seeking operating leverage to bullion.

KeyCorp (NYSE: KEY) KeyCorp (NYSE:KEY) is a Cleveland-based regional bank serving consumer and commercial clients alongside KeyBanc Capital Markets.

At $21.07, KEY trades at a forward P/E of 12x with a 3.89% dividend yield. Q1 2026 EPS of $0.44 beat the $0.4073 estimate, NIM expanded 29 basis points YoY to 2.87%, and ROTCE topped 13%. Analyst target: $24.97.

Management raised 2026 net interest income guidance to 9-10%, plans $1.3B+ in buybacks, and targets 15%+ ROTCE by year-end 2027.

Watch item: nonperforming assets ticked up to 63 bps from 59 bps. A rising-margin franchise returning capital at scale supports the thesis here.

Bottom Line A share price below $30 is no substitute for diligence. Each name carries identifiable risks alongside balance sheet strengths. Investors should size positions to their risk tolerance and verify the latest disclosures before acting.

With Treasury yields sliding and the broader market trading near record highs, retail investors hunting for reliable passive income are getting squeezed. That makes brand-name dividend payers trading under $40 a share unusually interesting right now: you get household-name stability, room to compound shares, and yields that comfortably top what a savings account is paying. A $5,000 starter position in each of the three names below puts roughly $15,000 to work and turns into a meaningful quarterly paycheck.

With that in mind, here are three blue-chip dividend stocks trading under $40 that income investors should have on their radar today.

AT&T (NYSE: T) AT&T (NYSE:T | T Price Prediction) is the converged telecom giant pairing nationwide 5G wireless with one of the fastest-growing fiber footprints in the country. At $24.98, a $5,000 allocation buys roughly 200 shares, an accessible entry point for almost any retail portfolio.

The fundamentals back up the income thesis. Q1 2026 adjusted EPS came in at $0.57, up 11.8% year over year, on revenue of $31.51 billion, while management guided 2026 adjusted EPS to $2.25 to $2.35 with free cash flow above $18 billion. The quarterly dividend sits at $0.2775, or $1.11 annualized, a payout AT&T has held steady for eight straight quarters and has committed to maintain through 2028. That works out to roughly a roughly 4.4% yield, or about about $222 a year on a $5,000 stake.

The bull case is simple: 584,000 fiber net adds in Q1, a path to 60 million fiber locations by 2030, and $8 billion in buybacks planned for 2026. The clear risk is the balance sheet: $138.4 billion in total debt and net debt/EBITDA of 2.71x leave little margin for error. For income investors who can stomach that, AT&T remains a credible long-duration paycheck.

Kinder Morgan (NYSE: KMI) Kinder Morgan (NYSE:KMI) operates the largest natural gas pipeline network in the United States, a toll-road business model that throws off remarkably steady cash. Shares trade at $34.31, up 27.2% year to date, so a $5,000 stake gets you roughly 145 shares.

Q4 2025 adjusted EPS of $0.39 beat the $0.37 consensus, capping a year of 12.4% revenue growth and a 17% jump in net income. Management is guiding 2026 adjusted EPS to $1.36 and just raised the dividend target to $1.19 per share, a 2% bump. At the current price that is roughly a roughly 3.4% yield, or about about $170 a year on $5,000.

The bull case is structural. Kinder Morgan touches roughly 70% of the markets driving future data-center power demand, carries a $10 billion project backlog, and just earned an S&P upgrade to BBB+ in January 2026. The risk is leverage of 3.8x net debt to EBITDA and permit timing on new builds. For investors who want infrastructure-grade dividend income tied to the AI power buildout, KMI fits the bill.

KeyCorp (NYSE: KEY) KeyCorp (NYSE:KEY) is the Cleveland-based regional bank behind KeyBank and KeyBanc Capital Markets. At $20.92, a $5,000 investment buys roughly 239 shares, the largest share count of the three.

Q1 2026 EPS of $0.44 beat the $0.41 estimate and grew 33% year over year, with net interest margin expanding 29 basis points to 2.87%. Tangible book value per share rose 18% YoY to $13.77, and management is targeting $1.30 billion or more in buybacks for 2026. The $0.205 quarterly dividend, or $0.82 annualized, yields about roughly 3.9%, generating roughly roughly $196 a year on $5,000.

The bull case is leverage to a steeper yield curve, with KeyCorp guiding 2026 revenue up around 7% and net interest income up 9% to 10%. The risk is credit: nonperforming assets ticked up to 63 basis points from 59, and consumer loan balances are still shrinking. For investors comfortable owning a regional bank, KeyCorp offers a strong yield plus capital return.

Each of these names carries real business risk, and a high yield can mask balance-sheet stress if you do not look closely. Use this list as a starting point for your own research into payout coverage, debt loads, and sector outlook before putting $5,000 to work.

, /PRNewswire/ -- KeyCorp (NYSE: KEY) announced today that Clark Khayat, Chief Financial Officer, will speak at the Morgan Stanley US Financials Conference on Wednesday, June 10, 2026, at 1:00 p.m. ET.

KeyCorp plans to review its performance, strategy, and outlook, and the discussion may include forward-looking statements and other material information. The live audio webcast will be available on the day of the conference at www.key.com/ir. If you are unable to join the live webcast, or wish to hear a re-broadcast, access www.key.com/ir and select Events & Presentations.

ABOUT KEYCORP
KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $189 billion at March 31, 2026. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

SOURCE KeyCorp

Investors with an interest in Banks - Major Regional stocks have likely encountered both KeyCorp (KEY - Free Report) and State Street Corporation (STT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

KeyCorp and State Street Corporation are both sporting a Zacks Rank of #2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

KEY currently has a forward P/E ratio of 11.92, while STT has a forward P/E of 13.11. We also note that KEY has a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STT currently has a PEG ratio of 0.88.

Another notable valuation metric for KEY is its P/B ratio of 1.34. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, STT has a P/B of 1.85.

These metrics, and several others, help KEY earn a Value grade of B, while STT has been given a Value grade of D.

Both KEY and STT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KEY is the superior value option right now.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at KeyCorp (KEY - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. KeyCorp currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if KEY is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For KEY, shares are up 2.02% over the past week while the Zacks Banks - Major Regional industry is up 2.12% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.93% compares favorably with the industry's 7.21% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of KeyCorp have increased 15.82% over the past quarter, and have gained 38.61% in the last year. In comparison, the S&P 500 has only moved 9.34% and 23.96%, respectively.

Investors should also pay attention to KEY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. KEY is currently averaging 11,845,738 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with KEY.

Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost KEY's consensus estimate, increasing from $1.81 to $1.83 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that KEY is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep KeyCorp on your short list.

SoundHound AI stock is gaining positive traction. Why are SOUN shares climbing? Omnichannel AI Deal Expands Enterprise ReachSoundHound AI says it plans to acquire LivePerson to combine its voice agentic AI with LivePerson's digital messaging, positioning the combined business as an end-to-end omnichannel conversational AI platform.

The company says the deal creates one of the most comprehensive enterprise footprints in the space, including 25 of the Fortune 100, and it expects a $500M revenue opportunity with an accelerated path to profitability.

The broader market is also trading in a risk-on tone, with the S&P 500 up 0.2% and the Nasdaq up 0.29% as market breadth stays slightly positive.

Critical Levels To Watch for SOUN StockSoundHound's chart is still working through a longer-term downtrend, but the recent rebound is trying to reassert itself after the March swing low. The stock is trading 23.2% above its 20-day simple moving average (SMA) and 8% below its 100-day SMA, which points to strong short-term momentum but a still-challenged intermediate trend.

The moving average structure remains a headwind: the 20-day SMA is below the 50-day SMA, and the death cross (50-day SMA below the 200-day SMA) that occurred in January signals the longer trend has been bearish. The moving average convergence divergence (MACD), a trend/momentum measure, is currently above its signal line with a positive histogram, which leans toward improving upside pressure versus the prior downswing.

The stock's 12-month gain of 12.6% shows it has produced net upside over the past year, even though it remains far below the October 2025 52-week high of $22.17. With the 52-week low set in March at $5.83 and a nearby resistance zone around $9.00, traders often watch whether rallies can hold above recent breakout attempts rather than fading back into the prior range.

Key Resistance: $9.00 — an area where recent rallies have tended to stall. Key Support: $7.00 — a level where buyers have recently shown up. SOUN Earnings Preview For MayLooking further out, the next major catalyst for the stock arrives with the May 7 (estimated) earnings report.

EPS Estimate: Loss of 7 cents (Down from a loss of 6 cents YoY) Revenue Estimate: $42.62 million (Up from $29.13 million YoY) SOUN Stock Price Movement TodaySOUN Stock Price Activity: SoundHound AI shares were up 1.20% at $8.42 at the time of publication on Tuesday, according to Benzinga Pro data.

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Today's Change

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SoundHound AI (SOUN 1.21%), a provider of voice AI solutions for the automotive, TV, IoT, and customer service industries, closed at $7.85, down 5.65%. Shares declined after news of an all-stock LivePerson acquisition. Investors will be watching the shareholder dilution from the deal and for execution on omnichannel AI growth targets. Trading volume reached 54.2 million shares, about 107% above its three-month average of 26.2 million shares. SoundHound AI IPO'd in 2022 and has grown 5% since going public.

How the markets moved todayThe S&P 500 slipped 0.65% to 7,063, while the Nasdaq Composite fell 0.59% to finish at 24,260. Among software (application) peers, C3.ai closed at $9.20 (-1.97%) and BigBear.ai ended at $3.79 (-1.30%), reflecting cautious sentiment around AI software names.

What this means for investorsSoundHound AI made a big move today, acquiring conversational AI peer LivePerson and its Conversational Cloud for roughly $250 million, including LivePerson’s debt balance. The complementary deal forms a powerhouse in the conversational AI niche, serving 25 of the Fortune 100 and 12 of the top 15 global banks.

Management believes the combined company will generate between $350 million and $400 million in revenue in 2027, and that cross-selling could push this figure to $500 million as the two firms integrate. While the all-equity deal will be dilutive to shareholders, SOUN’s balance sheet is projected to remain debt-free. Projected to more than double its sales in 2027, SOUND remains an intriguing stock, especially if it keeps advancing toward profitability.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.

Key Takeaways SoundHound's LivePerson deal targets one platform for voice, text, chat, mobile and web channels.SOUN would add nearly 1B LivePerson messages monthly to strengthen its data moat.SOUN cites a $500M revenue opportunity and expects no debt after closing the $43M equity deal. SoundHound AI’s (SOUN - Free Report) planned acquisition of LivePerson could become one of the most important moves in the company’s growth journey. The transaction would combine SoundHound’s proprietary voice AI and agentic AI capabilities with LivePerson’s established digital messaging and customer engagement platform. This would create a more complete conversational AI ecosystem spanning voice, text, chat, mobile and web channels.

For enterprises, customer interactions are increasingly moving across multiple channels. Many customers may start a conversation through voice and later continue through text or web chat. A unified platform that manages these touchpoints seamlessly can become highly valuable. That is where this acquisition could strengthen SoundHound’s market relevance.

Shares of SoundHound gained 3.7% in the after-hour trading session yesterday.

SOUN Gains Stronger Scale and Data MoatOne of the biggest benefits from the acquisition is the combined scale of customer interactions. LivePerson powers nearly one billion customer messages per month, while SoundHound already handles billions of voice interactions annually. Together, the companies would control a vast dataset across both digital and voice environments.

That matters because conversational AI improves with more real-world interactions. Larger datasets can help train models, improve intent recognition, boost automation rates and deliver more accurate responses. This could enhance SoundHound’s competitive edge against rivals in the rapidly growing AI customer service market.

SoundHound Expands Customer Reach Across IndustriesThe deal would also significantly expand SoundHound’s enterprise footprint. The combined company is expected to operate across more than 30 countries and serve major customers, including 12 of the top 15 global banks, four of the top five global airlines, four of the top five global automakers and more than 10 leading telecom providers.

This diversification could reduce dependence on any single end market. While SoundHound has built strong traction in automotive, restaurants and enterprise voice solutions, LivePerson adds stronger exposure to financial services, telecom, travel, healthcare and retail.

Revenue Synergies Could Lift SOUN’s GrowthThe acquisition may also unlock strong cross-selling opportunities. SoundHound can introduce its voice AI offerings to LivePerson’s large enterprise customer base, while its existing clients can adopt LivePerson’s digital messaging tools.

Management said the combined business could reach a $500 million revenue opportunity based on the current customer base alone. That suggests meaningful upside without relying solely on new customer wins.

Attractive Deal Structure Strengthens SOUN OutlookSoundHound is set to acquire LivePerson at an equity value of $43 million, reflecting an approximately 22% premium to LivePerson’s 30-day volume-weighted average valuation. Upon closing, SoundHound expects to receive $74 million from LivePerson’s cash balance prior to repayment of the 2026 Convertible Senior Notes. Including discounted treatment of the remaining debt, the transaction implies a total enterprise value of nearly $250 million.

SoundHound ended 2025 with $248 million in cash and no debt. Management expects the combined company to maintain a strong balance sheet with no debt after closing, while the added scale could accelerate the path to profitability.

The LivePerson acquisition appears strategically attractive. It could make SoundHound a more diversified, scaled and data-rich conversational AI company. If integration execution remains strong, the deal may support faster revenue growth, stronger margins and improved long-term shareholder value.

How SOUN Is Positioned Against Key AI RivalsAmong notable competitors, Microsoft (MSFT - Free Report) remains a major force in conversational AI through its Azure cloud platform, Copilot offerings and OpenAI partnership. Microsoft benefits from deep enterprise relationships, vast financial resources and global distribution reach. The company can bundle AI solutions with productivity software, cloud infrastructure and security tools, creating a powerful ecosystem advantage.

However, Microsoft’s broader focus spans many categories, while SoundHound remains more specialized in voice AI, automotive and customer interaction use cases. That focused approach may help SoundHound move faster in niche markets where tailored deployment matters.

Another competitor is NICE Ltd. (NICE - Free Report) , a leader in customer experience software and contact-center automation. NICE has built a strong presence among enterprises seeking AI-driven customer service solutions. The company offers analytics, workforce management and digital engagement tools, making it a well-established rival in enterprise service automation.

However, NICE is more rooted in legacy contact-center platforms, whereas SoundHound emphasizes next-generation voice AI and agentic automation. As businesses modernize customer engagement systems, SoundHound’s innovation speed could help it compete effectively against NICE.

SOUN’s Price Performance, Valuation & EstimatesSoundHound shares have gained 13.9% in the past month compared with the industry’s growth of 1.8%.

SOUN’s 1-Month Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 13.46, above the industry’s average of 12.51.

SOUN’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has remained unchanged at 9 cents, although the expected loss remains narrower than the previous year’s loss of 13 cents.

EPS Trend of SOUN Stock

Image Source: Zacks Investment Research

SOUN’s Zacks RankSOUN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Insiders may stand to receive substantial financial benefits not available to ordinary shareholders.

The proposed transactions may contain terms that could limit superior competing offers.

Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to:

TruBridge, Inc. (NASDAQ: TBRG)'s sale to Inventurus Knowledge Solutions, Inc. for $26.25 in cash per share. If you are a TruBridge shareholder, click here to learn more about your rights and options.  

Helix Energy Solutions Group, Inc. (NYSE: HLX)'s merger with Hornbeck Offshore Services, Inc. Upon closing of the proposed transaction, Helix shareholders will own approximately 45% of the combined company on a fully diluted basis. If you are a Helix shareholder, click here to learn more about your legal rights and options.

LivePerson, Inc. (NASDAQ: LPSN)'s sale to SoundHound AI, Inc. for an equity value of $43 million. If you are a LivePerson shareholder, click here to learn more about your rights and options.

On behalf of shareholders, Halper Sadeh LLC may seek increased consideration, additional disclosures and information, or other relief and benefits.

Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

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SoundHound AI stock is moving in positive territory. Why is SOUN stock advancing? What Is SoundHound’s LivePerson Acquisition Catalyst?SoundHound AI is doubling down on its conversational tech leadership with a definitive agreement to acquire LivePerson, merging agentic voice AI with digital messaging to create a powerhouse omnichannel platform.

This strategic combination grants the company an elite enterprise pedigree, headlined by 25 of the Fortune 100, while positioning it to capture a massive $500 million revenue opportunity.

By streamlining the customer experience across all digital and vocal touchpoints, SoundHound expects this acquisition to drastically shorten its runway to sustainable profitability.

Critical Technical Levels for SOUN StockSoundHound is still trying to repair a longer-term downtrend after peaking in October 2025 and bottoming at a swing low in March. The stock is trading 12.2% above its 20-day simple moving average (SMA) and 12.5% below its 100-day SMA, which points to improving near-term demand but a still-choppy intermediate trend.

The moving average setup remains a headwind, with the 20-day SMA below the 50-day SMA and the death cross in January (50-day SMA below the 200-day SMA) keeping the longer trend tilted bearish. The moving average convergence divergence (MACD), a trend/momentum measure, is above its signal line with a positive histogram, which leans toward strengthening upside pressure versus the prior downswing.

Over the past 12 months, the stock is down 15.67%, which fits the idea that rallies have struggled to turn into a sustained uptrend. It's also well below the $22.17 52-week high from October 2025 and above the $5.83 52-week low set in March, framing the current move as a rebound attempt rather than a full reset.

Key Resistance: $9.00 — a level where recent rallies have tended to stall. Key Support: $7.00 — an area where buyers have recently shown up. What Is SoundHound AI and Its Business Model?SoundHound AI is an innovator of conversational intelligence, offering an independent Voice AI platform that enables businesses across industries to deliver high-quality conversational experiences to customers. Its voice AI focuses on speed and accuracy across numerous languages, targeting use cases in retail, financial services, healthcare, automotive, smart devices and restaurants.

The company's products include Smart Answering, Smart Ordering, Dynamic Drive-Thru and Amelia AI Agents, which are designed to automate and improve customer interactions across voice and digital channels. That's why the LivePerson acquisition plan is a key narrative driver: it's meant to deepen SoundHound's omnichannel reach by pairing voice AI with digital messaging for large enterprise deployments.

SoundHound Earnings Preview For MayThe countdown is on: SoundHound is set to report earnings on May 7.

EPS Estimate: Loss of 5 cents (Up from a loss of 6 cents YoY) Revenue Estimate: $42.59 million (Up from $29.13 million YoY) Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $14.50. Recent analyst moves include:

DA Davidson: Buy (Maintains Target to $14.00) (April 22) HC Wainwright & Co.: Buy (Lowers Target to $20.00) (March 2) Piper Sandler: Neutral (Lowers Target to $9.00) (Feb. 27) SOUN Stock Price Action Update on FridaySOUN Stock Price Activity: SoundHound AI shares were up 3.32% at $8.08 at the time of publication on Friday, according to Benzinga Pro data.

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Voice and agentic AI specialist SoundHound AI (NASDAQ:SOUN) just delivered its sixth straight earnings beat, and our model has digested the results. Here is where the 24/7 Wall St. price target lands.

Our price target for SoundHound is $17.91, implying 85.98% upside from the current $9.63 share price. Our recommendation is buy with a moderate confidence level of 50%, reflecting the wide range of credible outcomes for a high-beta AI growth name still operating at a loss.

24/7 Wall St. Price Target Summary Metric Value Current Price $9.63 24/7 Wall St. Price Target $17.91 Upside 85.98% Recommendation BUY Confidence Level 50% A Volatile Run Into Record Q1 Numbers SoundHound has whipsawed traders. Shares climbed 20.98% in the past week and 43.73% over the past month, yet the stock is still down 3.41% year to date and sits 34% off the 52-week high of $22.17 with a 52-week low of $5.83.

The catalyst is a clean Q1 FY2026 print. Revenue hit $44.2 million, up 52% YoY, with the core automotive and IoT vertical growing 88% organically. EPS came in at -$0.06, the sixth consecutive consensus beat.

Management reaffirmed FY2026 revenue guidance of $225 million to $260 million and projected at minimum $350 million to $400 million in FY2027 once the LivePerson acquisition closes in the second half of 2026.

The Case for $22 and Higher Bulls have a real script. The LivePerson (NASDAQ:LPSN) deal targets a $500 million combined revenue opportunity serving 25 of the Fortune 100, while OASYS, the new self-learning agentic AI platform, opens enterprise budgets.

Recent wins include a 7-figure Japanese OEM commitment, integration across Walmart (NYSE:WMT | WMT Price Prediction) Walmart’s ONN TV brand, and expansion with one of the world’s largest banks across 100 global markets. H.C. Wainwright carries a $20 price target and Cantor Fitzgerald is at $15. Our bull case lands at $22.77.

What Could Go Wrong SoundHound burned $26.3 million in operating cash during Q1, and GAAP gross margin compressed 5.4 percentage points to 31.1% on vendor true-up costs. A P/S ratio of 21.4x against an industry average of 3.4x leaves no margin for execution slips.

Bulls would counter that the gross margin hit was a one-time vendor adjustment, that non-GAAP gross margin was 60.5% in Q4 2025, and that $215.6 million in cash funds the runway. Still, our bear case sits at $14.11 if LivePerson integration slips or AI multiples compress.

The Bottom Line on SoundHound My price target of $17.91 implies meaningful upside, and the recommendation is buy at 50% confidence. The factor that tips the scale is the FY2027 revenue ramp toward $350 million to $400 million.

The bull thesis strengthens if LivePerson closes on schedule and OASYS lands at least one new Fortune 100 logo by year end. The thesis weakens if cash burn widens beyond Q1 levels or FY2026 guidance gets trimmed.

SoundHound Price Prediction 2026-2030 Looking further out, here is where our model projects SoundHound could trade, assuming current growth and margin trajectory hold.

Year 24/7 Wall St. Price Target 2026 $17.91 2030 $52.21 These projections assume SoundHound executes on the LivePerson integration and sustains agentic AI traction. Significant upside or downside could result from enterprise AI multiple shifts or a slowdown in voice AI adoption.

When SoundHound AI (SOUN 1.21%) reported strong revenue growth for its 2026 first-quarter results, the stock price started to slide.

One reason may have been disappointment that the company maintained its 2026 full-year revenue forecast of $225 million to $260 million. What seemed to be a main culprit for the stock price drop, however, is SoundHound's intention to buy LivePerson (LPSN 3.77%).

Some may view it as a money pit, but SoundHound believes it will be a meaningful revenue generator. The determining factor will be how well SoundHound can cross-sell and extract value from LivePerson.

Image source: Getty Images.

Reasons for optimism around the LivePerson deal LivePerson primarily develops text-based conversational artificial intelligence (AI) agents for various business use cases. For instance, in the retail sector, AI agents can send customers information about their orders and answer questions about those orders. As another example, in the healthcare sector, AI agents can coordinate appointments and provide patient follow-up contact.

LivePerson complements SoundHound's business, which is voice-based AI technology. That can create cross-selling opportunities, and if the acquisition clears regulatory approval, SoundHound expects LivePerson to contribute $100 million to total revenue in 2027, which is projected to fall in a range of $350 million to $400 million.

The appeal of the deal is substantial revenue acceleration for SoundHound, but there's a reason the stock price is dropping.

Today's Change

(

-1.21

%) $

-0.09

Current Price

$

6.92

Markets are skeptical There are a few reasons why the market may be showing its displeasure with this deal by sending the stock price lower. The first is that, despite SoundHound's impressive revenue growth, it is unprofitable; it's trying to buy LivePerson but hasn't yet shown it can make its own business profitable.

The second reason for the skepticism about this deal is that LivePerson has suffered extensive losses and is struggling. It reported a net loss of $134.2 million in 2024 and $67.2 million in 2025, and the stock price has dropped nearly 100% over the last five years.

Finally, the deal is structured as an all-stock transaction valued at $43 million, and SoundHound will also offer cash and stock to settle LivePerson's debt. New shares being issued can quickly cause negative sentiment due to fears of shareholder dilution.

What matters most in this deal SoundHound is positioning itself to be a leader in the AI agent market, which is expected to grow significantly. The global AI agent market was only valued at $7.6 billion in 2025, but by 2033, it's expected to be a $182.9 billion market, according to Grand View Research.

The biggest question is obviously whether SoundHound can extract value from the deal. This deal could deliver long-term revenue growth and bring the company closer to profitability, but that answer will only come with time. That warrants a cautious approach to starting a new position or adding to an existing one.

Tool Calling Designed for More Reliability, GPT-5-Class Reasoning, and Improved Transcription Are Available Now in Early Availability

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, has added support for OpenAI's latest voice AI mode, GPT Realtime 2, to 8x8 AI Studio, providing businesses running live voice agents a more dependable foundation for customer interactions. The update is available today for customers in the 8x8 AI Studio early availability. Existing agents continue running on the current model until customers explicitly opt in via the agent editor.

The most visible changes are designed to enable voice agents that handle requests more reliably, conversations that are transcribed more accurately, and a record of every interaction that is clean enough to use. GPT Realtime 2 brings GPT-5-class reasoning and a 128K context window – so AI agents can stay on track through longer, more complex conversations without losing the thread. Supervisors can review interactions with confidence, book appointments, or route calls to the right team to complete those tasks with fewer errors - fewer dropped lookups, missed transfers, and incomplete bookings – backed by a model that is materially more reliable at tool calling.

More control over how AI agents think. For teams running agents that handle multi-step requests – verifying an account, checking inventory, escalating a case – GPT Realtime 2 introduces a per-AI agent reasoning effort control. Most customer interactions work best at the standard setting; more complex, tool-heavy workflows can be dialed up when the situation calls for it, with the tradeoff of added response time – giving teams the ability to optimize for speed or thoroughness depending on the use case.

More accurate transcription, automatically. Every voice session now defaults to Realtime-Whisper in 8x8 AI Studio, OpenAI's latest transcription model. Customer service teams see cleaner records in the call log and in the live advisor interface without changing any AI agent settings. Accurate transcription means supervisors can review interactions with confidence, AI agents have the full picture when picking up a conversation, and businesses can act on what customers actually said.

No disruption to existing AI agents. Agents currently in production continue running on their existing configuration until teams choose to update them. The 8x8 AI Studio already recognizes GPT Realtime 2 and will recommend it for tool-heavy or reasoning-intensive use cases on request. When switching models in the agent editor, AI Studio now automatically substitutes a compatible voice if needed and logs the change – without interrupting workflows.

"When a voice agent conversation doesn’t go as planned – it can't pull up the account, drops the transfer, loses the thread – the customer feels it immediately,” said Hunter Middleton, Chief Product Officer at 8x8, Inc. “This update targets these failure modes that matter in live customer interactions."

To learn more, see the 8x8 AI Studio user guide at docs.8x8.studio or existing customers can contact their 8x8 account team.

8x8, Inc. is committed to the responsible use of artificial intelligence and the protection of customer data. The 8x8 Platform for CX is developed and operated in accordance with established security standards, applicable compliance frameworks, and internal governance policies, including privacy-by-design principles that safeguard personal data on the 8x8 platform. Full details are available at trust.8x8.com.

About 8x8, Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world 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.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the expected capabilities and availability of 8x8 AI Studio with GPT Realtime 2, anticipated improvements in voice agent reliability and transcription accuracy, the expected benefits of GPT-5-class reasoning for customer interactions, and 8x8’s plans to recommend GPT Realtime 2 for tool-heavy and reasoning-intensive use cases. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. For a discussion of these risks and uncertainties, please refer to 8x8’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 8x8 assumes no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

Copyright 2026 8x8, Inc. 8x8 and associated brand assets are trademarks of 8x8, Inc. All rights reserved.

More News From 8x8, Inc.

CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the fourth quarter and fiscal year 2026 ended March 31, 2026.

“Fiscal 2026 marked a turning point for 8x8. We delivered four consecutive quarters of revenue growth, achieved our first GAAP-profitable full fiscal year since 2015, strengthened our balance sheet, and continued expanding our platform capabilities for an era of AI-driven customer engagement,” said Samuel Wilson, Chief Executive Officer at 8x8, Inc. “As AI reshapes enterprise communications, organizations require open, integrated platforms capable of orchestrating trusted interactions across voice, messaging, APIs, workflows, and AI-driven engagement at global scale.

“AI is changing the architecture and economics of customer engagement in real time,” Wilson continued. “The challenge is delivering interactions that are trusted, intelligent, seamless, and scalable across both human and AI-driven engagement. More than 5 billion digital interactions flowed across 8x8 communication APIs during fiscal 2026, and that scale, combined with our global communications infrastructure and open AI architecture, positions us favorably for the next generation of customer engagement. Customers do not want to be locked into yesterday’s AI model or a closed ecosystem. They want agile, open platforms that can evolve as quickly as innovation itself while helping them deliver better customer experiences, build trust, and strengthen customer loyalty. This is what we are building.”

Fiscal Year 2026 Financial Results:

Total revenue increased 3% to $735.8 million, compared to $715.1 million in fiscal 2025. Service revenue increased 3% to $715.3 million, compared to $692.9 million in fiscal 2025. GAAP operating income was $18.9 million, an increase of 25% compared to GAAP operating income of $15.2 million in fiscal 2025. Non-GAAP operating profit was $75.1 million, a decrease of 4% compared to non-GAAP operating profit of $78.4 million in fiscal 2025. GAAP net income was $1.6 million, compared to GAAP net loss of $27.2 million in fiscal 2025. Non-GAAP net income was $57.5 million, compared to non-GAAP net income of $48.3 million in fiscal 2025. Cash provided by operating activities was $55.8 million, compared to $63.6 million in fiscal 2025. Fourth Quarter Fiscal 2026 Financial Results:

Total revenue increased 5% to $185.2 million, compared to $177.0 million in the fourth quarter of fiscal 2025. Service revenue increased 5% to $180.2 million, compared to $171.6 million in the fourth quarter of fiscal 2025. GAAP gross margin was 63%, compared to 68% in the same period last year. Non-GAAP gross margin was 64%, compared to 69% in the same period last year. GAAP operating income was $3.3 million, compared to GAAP operating income of $0.4 million in the fourth quarter of fiscal 2025. Non-GAAP operating income was $19.8 million, compared to non-GAAP operating income of $17.7 million in the fourth quarter of fiscal 2025. GAAP net income was $0.1 million, compared to GAAP net loss of $5.4 million in the fourth quarter of fiscal 2025. Non-GAAP net income was $16.6 million, compared to non-GAAP net income of $11.3 million in the fourth quarter of fiscal 2025. Cash provided by operating activities was $14.4 million for the fourth quarter of fiscal 2026, compared to $5.9 million in the same period last year. Cash, cash equivalents, and restricted cash were $95.0 million on March 31, 2026, compared to $89.3 million on March 31, 2025. The cash, cash equivalents, and restricted cash balance on March 31, 2026 reflects principal payments of $30.0 million on the Term Loan during fiscal 2026. Total principal amount of debt outstanding on March 31, 2026 was $323.9 million, compared to $353.9 million at the end of fiscal 2025. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to non-GAAP measures is included in the supplemental reconciliation at the end of this release.

Recent Business Highlights:

Platform Innovation Highlights

8x8 continued to focus on closing the operational gaps that most commonly stall CX and IT teams with new capabilities added to the 8x8 Platform for CX. Recent innovations include:

8x8 AI Studio, a modern AI development environment now in early availability, lets organizations use natural language to build, test, deploy, and manage AI agents and agentic workflows natively on the 8x8 Platform on the channels they already use, without new infrastructure or additional vendors. 8x8 Integration SDK, Now Generally Available: Technology partners and customers can build, deploy, and scale CRM integrations – including homegrown and industry-specific platforms – directly into the 8x8 Platform without requiring a standard professional services engagement. New Dashboards in 8x8 Work Analytics: IT teams gain live visibility into call queues, call quality, unreturned calls, and device health, replacing static reports that surfaced problems after the fact. 8x8 Engage™, Now Generally Available: a purpose-built solution that extends CX-grade tools, AI-powered insights, and unified voice and digital engagement to customer-facing teams outside the contact center. 8x8 Focus Time Metrics: When agents handle multiple simultaneous digital interactions, supervisors have no reliable way to know where attention is going. Focus Time Metrics tracks how agents distribute focus across concurrent conversations, including duration and frequency per interaction, so supervisors can coach on actual behavior and staff appropriately for digital volume. 8x8 Silent Mobile Authentication, Now Generally Available: Verifies users in the background using carrier network intelligence via GSMA Open Gateway; no code to enter, no step to complete. Reduces login abandonment and credential exposure, and addresses vulnerabilities one-time passcodes cannot, including SIM-swap and phishing. Available globally through 8x8's carrier network. Industry Recognition

Won Gold in the User Experience (UX) - Product UX category at the 2026 New York Product Design Awards for 8x8 Engage. Recognized across five categories in the 24th Annual American Business Awards, including Gold Stevie Awards for Customer Service Team of the Year and Achievement in Management, Telecommunications. In the past three years, 8x8 has been recognized with 21 Stevie Awards. Named a Leader in the IDC MarketScape: Worldwide Communications Engagement Platform 2026 Vendor Assessment. Named a Leader in the Omdia Universe: Customer Engagement Platforms, 2026. 8x8 was named a Strong Performer in the Gartner® Peer Insights™ “Voice of the Customer” for Unified Communications as a Service. Named a Metrigy 2026 MetriStar Top Provider winner for both CCaaS and CPaaS Platforms. Chief Marketing Officer Bruno Bertini won Gold in the Noble Awards in the category of Executives & Professionals - Outstanding Chief Marketing Officer (CMO). First Quarter and Fiscal 2027 Financial Outlook

Management provides expected ranges for total revenue, service revenue, non-GAAP operating margin, non-GAAP net income per share, diluted, and cash flow from operations based on its evaluation of the current business environment. The Company emphasizes that these expectations are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.

“Our guidance reflects both the macro and geopolitical uncertainty in the current environment and a continued mix shift toward usage-based revenue, the part of our business tied to AI adoption and communications APIs, where customer demand is strongest,” said Kevin Kraus, Chief Financial Officer at 8x8, Inc. “We expect this shift to continue and we are actively working to expand gross margins within this portfolio. As the usage business scales, we believe it supports our ability to grow operating income in dollars and strengthen cash flow over time.”

First Quarter Fiscal 2027 Ending June 30, 2026

Service revenue in the range of $175 million to $180 million. Total revenue in the range of $180 million to $185 million. Non-GAAP gross margin in the range of approximately 63.5% to 64.5%. Non-GAAP operating margin in the range of approximately 8.5% to 9.5%. Interest expense of approximately $3.9 million. Cash interest of approximately $1.8 million. Non-GAAP net income per share, diluted, in the range of $0.08 to $0.09, based on a fully-diluted weighted-average share count of approximately 147 million shares. Cash flow from operations in the range of $10 million to $12 million. Fiscal Year 2027 Ending March 31, 2027

Service revenue in the range of $707 million to $727 million. Total revenue in the range of $727 million to $747 million. Non-GAAP gross margin in the range of 62.5% to 63.5%. Non-GAAP operating margin in the range of 9.0% to 10.0%. Non-GAAP net income per share, diluted, in the range of $0.33 and $0.38, based on a fully-diluted weighted-average share count of approximately 150 million shares. Cash flow from operations between $45 million and $52 million. The Company does not reconcile its forward-looking estimates of non-GAAP operating margin to the corresponding GAAP measure of GAAP operating margin or non-GAAP net income per share, basic and diluted, to the corresponding GAAP measure of GAAP net income (loss) per share due to the significant variability of, and difficulty in making accurate forecasts and projections with regards to, the various expenses excluded by these metrics. For example, future hiring and employee turnover may not be reasonably predictable, stock-based compensation expense depends on variables that are largely not within the control of nor predictable by management, such as the market price of 8x8 common stock, and may also be significantly impacted by events like acquisitions, the timing and nature of which are difficult to predict with accuracy. The actual amounts of these excluded items could have a significant impact on the Company's GAAP operating margin and GAAP net income (loss) per share, basic and diluted. Accordingly, management believes that reconciliations of these forward-looking non-GAAP financial measures to their corresponding GAAP measures are not available without unreasonable effort. See the “Explanation of GAAP to Non-GAAP Reconciliation” below for the definition of non-GAAP operating margin and non-GAAP net income per share, basic and diluted.

All projections are on a non-GAAP basis. Additionally, our increased emphasis on profitability and cash flow generation may not be successful. The reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we don't anticipate and may not achieve the desired outcome.

Conference Call Information:

Management will host a conference call to discuss earnings results on May 19, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call is expected to last approximately 60 minutes. Participants may:

Register to participate in the live call at https://register-conf.media-server.com/register/BIe9ccfd2c6e5440d8a50b7474cb3f76cc. Access the live webcast and replay from the Company’s investor relations events and presentations page at https://www.investors.8x8.com/news-events/events-presentations. Participants should plan to dial in or log on 10 minutes prior to the start time. The webcast will be archived on 8x8's website for a period of at least 30 days. For additional information, visit https://www.investors.8x8.com/.

About 8x8 Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience—combining Contact Center, Unified Communication, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world 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.

Copyright 2026 8x8, Inc. 8x8, Engage and associated brand assets are trademarks of 8x8, Inc. All rights reserved. GARTNER and PEER INSIGHTS are registered trademarks and service marks of Gartner, Inc. and/or its affiliates. All rights reserved.

Caution Concerning 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, as amended. 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, statements regarding: changing industry trends; market opportunities; the potential success and impact of our investments in artificial intelligence technologies; our ability to drive increased platform and multi-product adoption; our ability to increase profitability and cash flow; our position in the market and the direction of our innovation; the expected capabilities, availability and customer reception of our products and services and our financial outlook, revenue growth, and profitability.

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: customer adoption and demand for our products may be lower than we anticipate; the impact of economic downturns on us and our customers; ongoing volatility and conflict in the political environment; general inflationary pressures; competitive dynamics of the cloud communication and collaboration markets, including voice, contact center, video, messaging, and communication application programming interfaces, as well as our competitors' use of AI, in which we compete, may change in ways we are not anticipating; third parties may assert ownership rights in our IP, which may limit or prevent our continued use of the core technologies behind our solutions; our customer churn rate may be higher than we anticipate; and our investments in new products and acquisitions may not generate the revenue or efficiencies that we expect. As a result, we could fail to meet the revenue or operating margin targets we forecast in our guidance, for a particular quarter or for the full fiscal year. Our increased emphasis on profitability and cash flow generation may not be successful; and the reduction in our total costs as a percentage of revenue may negatively impact our revenue and our business in ways we do not anticipate and may not achieve the desired outcome.

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.

Explanation of GAAP to Non-GAAP Reconciliation

The Company has provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these Non-GAAP financial measures internally to understand, manage, and evaluate the business, and to make operating decisions. Management believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. Management also believes that some of 8x8’s investors use these Non-GAAP financial measures as an additional tool in evaluating 8x8's "core operating performance" in the ordinary, ongoing, and customary course of the Company's operations. Core operating performance excludes items that are non-cash, not expected to recur, or not reflective of ongoing financial results. Management also believes that looking at the Company’s core operating performance provides consistency in period-to-period comparisons and trends.

These Non-GAAP financial measures may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which limits the usefulness of these measures for comparative purposes. Management recognizes that these Non-GAAP financial measures have limitations as analytical tools, including the fact that management must exercise judgment in determining which types of items to exclude from the Non-GAAP financial information. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these Non-GAAP financial measures to their most directly comparable GAAP financial measures in the table titled "Reconciliation of GAAP to Non-GAAP Financial Measures". Detailed explanations of the adjustments from comparable GAAP to Non-GAAP financial measures are as follows:

Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of Other Revenue

Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service Revenue, which is Cost of Service Revenue excluding amortization of intangible assets, stock-based compensation expense and related employer payroll taxes, certain legal and regulatory costs, and certain severance, transition and contract exit costs; and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other Revenue excluding stock-based compensation expense and related employer payroll taxes, certain legal and regulatory costs, and certain severance, transition and contract exit costs.

Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin

Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin as a percentage of Other Revenue are computed as Service Revenue less Non-GAAP Cost of Service Revenue divided by Service Revenue and Other Revenue less Non-GAAP Cost of Other Revenue divided by Other Revenue, respectively. Non-GAAP Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total Revenue. Management believes the Company’s investors benefit from understanding these adjustments and from an alternative view of the Company’s Cost of Service Revenue and Cost of Other Revenue, as well as the Company's Service, Other and Total Revenue Gross Margin performance compared to prior periods and trends.

Non-GAAP Operating Profit and Non-GAAP Operating Margin

Non-GAAP Operating Profit excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, certain legal and regulatory costs, and certain severance, transition and contract exit costs from Operating Profit. Non-GAAP Operating Margin is Non-GAAP Operating Profit divided by Revenue. Management believes that these exclusions provide investors with a supplemental view of the Company’s ongoing operating performance.

Non-GAAP Net Income and Adjusted EBITDA

Non-GAAP Net Income excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, certain legal and regulatory costs, certain severance, transition and contract exit costs, amortization of debt discount and issuance cost, loss on debt extinguishment, gain or loss on remeasurement of warrants, and other income. Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation, amortization of capitalized internal-use software costs, and other income, net from non-GAAP net income. Management believes the Company’s investors benefit from understanding these adjustments and an alternative view of our net income performance as compared to prior periods and trends.

Non-GAAP Net Income Per Share – Basic and Non-GAAP Net Income Per Share - Diluted

Non-GAAP Net Income Per Share – Basic is Non-GAAP Net Income divided by the weighted-average basic shares outstanding. Non-GAAP Net Income Per Share – Diluted is Non-GAAP Net Income divided by the weighted-average diluted shares outstanding. Diluted shares outstanding include the effect of potentially dilutive securities from stock-based benefit plans and convertible senior notes. These potentially dilutive securities are excluded from the computation of net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. They are added for the computation of diluted net income per share on a non-GAAP basis in periods when 8x8 has net profit on a non-GAAP basis as their inclusion provides a better indication of 8x8’s underlying business performance. Management believes the Company’s investors benefit by understanding our Non-GAAP net income performance as reflected in a per share calculation as ways of measuring performance by ownership in the Company. Management believes these adjustments offer investors a useful view of the Company’s diluted net income per share as compared to prior periods and trends.

Management evaluates and makes decisions about its business operations based on Non-GAAP financial information by excluding items management does not consider to be “core costs” or “core proceeds.” Management believes some of its investors also evaluate our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Management excludes the amortization of acquired intangible assets, which primarily represents a non-cash expense of technology and/or customer relationships already developed, to provide a supplemental way for investors to compare the Company’s operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. Stock-based compensation expense has been excluded because it is a non-cash expense and relies on valuations based on future conditions and events, such as the market price of 8x8 common stock, that are difficult to predict and/or largely not within the control of management. The related employer payroll taxes for stock-based compensation are excluded since they are incurred only due to the associated stock-based compensation expense. Transaction-related costs consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal and other professional services, due diligence, integration, transaction and other closing costs, which are costs that vary significantly in amount and timing. Legal and regulatory costs include litigation and other professional services, as well as certain tax and regulatory liabilities. Severance, transition and contract exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts. Debt amortization expenses relate to the non-cash accretion of the debt discount.

8X8, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

  Three Months Ended March 31,

Years Ended March 31,

2026

2025

2026

2025

Service revenue

$

180,175

$

171,588

$

715,259

$

692,923

Other revenue

5,071

5,455

20,493

22,147

Total revenue

185,246

177,043

735,752

715,070

Cost of service revenue

61,566

49,818

232,602

200,094

Cost of other revenue

6,627

7,173

28,101

29,704

Total cost of revenue

68,193

56,991

260,703

229,798

Gross profit

117,053

120,052

475,049

485,272

Operating expenses:

Research and development

29,510

29,950

112,983

123,211

Sales and marketing

59,872

66,844

252,404

264,461

General and administrative

24,341

22,839

90,724

82,407

Total operating expenses

113,723

119,633

456,111

470,079

Income from operations

3,330

419

18,938

15,193

Interest expense

(4,368

)

(5,153

)

(17,765

)

(28,856

)

Other income (expense), net

1,010

(200

)

2,353

(10,400

)

Income (loss) before provision for income taxes

(28

)

(4,934

)

3,526

(24,063

)

Provision (benefit) for income taxes

(134

)

467

1,878

3,149

Net income (loss)

$

106

$

(5,401

)

$

1,648

$

(27,212

)

Net income (loss) per share:

Basic

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

Diluted

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

Weighted average number of shares:

Basic

140,141

132,877

137,669

129,767

Diluted

145,399

132,877

142,629

129,767

Comprehensive income (loss)

Net income (loss)

$

106

$

(5,401

)

$

1,648

$

(27,212

)

Unrealized gain (loss) on investments in securities

—

—

—

(5

)

Foreign currency translation adjustment

(2,226

)

3,759

2,907

2,447

Comprehensive income (loss)

$

(2,120

)

$

(1,642

)

$

4,555

$

(24,770

)

8X8, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

  March 31, 2026

March 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$

93,260

$

88,050

Restricted cash

1,702

462

Accounts receivable, net

57,004

49,680

Deferred contract acquisition costs

25,193

30,935

Other current assets

32,650

34,739

Total current assets

209,809

203,866

Property and equipment, net

45,821

47,919

Operating lease, right-of-use assets

26,672

33,508

Intangible assets, net

57,589

67,949

Goodwill

276,372

271,530

Restricted cash, non-current

—

812

Deferred contract acquisition costs, non-current

34,562

44,239

Other assets, non-current

11,996

13,354

Total assets

$

662,821

$

683,177

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

36,714

$

45,773

Accrued and other liabilities

69,867

63,025

Operating lease liabilities

10,357

11,102

Deferred revenue

36,699

37,751

Term loan, current

39,218

11,593

Total current liabilities

192,855

169,244

Operating lease liabilities, non-current

39,100

49,196

Deferred revenue, non-current

181

706

Convertible senior notes, non-current

199,830

198,790

Term loan

82,431

139,581

Other liabilities, non-current

1,815

3,456

Total liabilities

516,212

560,973

Stockholders' equity:

Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of March 31, 2026 and 2025

—

—

Common stock: $0.001 par value, 300,000 shares authorized, 141,164 shares and 134,355 shares issued and outstanding at March 31, 2026 and 2025, respectively

141

134

Additional paid-in capital

1,038,745

1,018,902

Accumulated other comprehensive loss

(6,204

)

(9,111

)

Accumulated deficit

(886,073

)

(887,721

)

Total stockholders' equity

146,609

122,204

Total liabilities and stockholders' equity

$

662,821

$

683,177

8X8, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

  Years Ended March 31,

2026

2025

Cash flows from operating activities:

Net income (loss)

$

1,648

$

(27,212

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation

6,609

7,387

Amortization of intangible assets

14,203

19,104

Amortization of capitalized internal-use software costs

11,456

12,729

Amortization of debt discount and issuance costs

1,369

2,466

Amortization of deferred contract acquisition costs

33,082

37,977

Allowance for credit losses

(438

)

1,843

Operating lease expense, net of accretion

10,868

11,631

Stock-based compensation expense

20,370

39,940

Loss on debt extinguishment

147

12,325

Gain on remeasurement of warrants

(864

)

(2,225

)

Other

(185

)

(346

)

Changes in assets and liabilities:

Accounts receivable, net

(5,771

)

7,845

Deferred contract acquisition costs

(17,108

)

(23,988

)

Other current and non-current assets

(450

)

(7,617

)

Accounts payable and accrued liabilities

(17,357

)

(24,810

)

Deferred revenue

(1,793

)

(3,495

)

Net cash provided by operating activities

55,786

63,554

Cash flows from investing activities:

Purchases of property and equipment

(3,675

)

(2,401

)

Capitalized internal-use software costs

(12,302

)

(11,066

)

Purchase of cost investment

—

(771

)

Maturities of investments

—

1,048

Business combination, net of cash acquired

(4,757

)

(3,234

)

Net cash used in investing activities

(20,734

)

(16,424

)

Cash flows from financing activities:

Proceeds from issuance of common stock under employee stock plans

2,829

3,692

Repurchase of common stock

(1,848

)

—

Payments for debt issuance and amendment costs

(70

)

(1,517

)

Repayment of principal on term loan

(30,000

)

(273,000

)

Gross proceeds from term loan

—

200,000

Other financing activities

(1,351

)

(4,281

)

Net cash used in financing activities

(30,440

)

(75,106

)

Effect of exchange rate changes on cash

1,026

577

Net increase (decrease) in cash, cash equivalents and restricted cash

5,638

(27,399

)

Cash, cash equivalents and restricted cash, beginning of year

89,324

116,723

Cash, cash equivalents and restricted cash, end of year

$

94,962

$

89,324

8X8, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

  Three Months Ended

Years Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Cost of Revenue:

GAAP cost of service revenue (as a percentage of service revenue)

$

61,566

34.2

%

$

49,818

29.0

%

$

232,602

32.5

%

$

200,094

28.9

%

Amortization of acquired intangible assets

(514

)

(824

)

(2,048

)

(7,176

)

Stock-based compensation expense and related employer payroll taxes

(377

)

(759

)

(1,852

)

(4,454

)

Legal and regulatory costs

—

—

—

55

Severance, transition and contract exit costs

(824

)

(81

)

(1,875

)

(655

)

Non-GAAP cost of service revenue (as a percentage of service revenue)

$

59,851

33.2

%

$

48,154

28.1

%

$

226,827

31.7

%

$

187,864

27.1

%

GAAP service revenue margin (as a percentage of service revenue)

$

118,609

65.8

%

$

121,770

71.0

%

$

482,657

67.5

%

$

492,829

71.1

%

Non-GAAP service revenue margin (as a percentage of service revenue)

$

120,324

66.8

%

$

123,434

71.9

%

$

488,432

68.3

%

$

505,059

72.9

%

GAAP cost of other revenue (as a percentage of other revenue)

$

6,627

130.7

%

$

7,173

131.5

%

$

28,101

137.1

%

$

29,704

134.1

%

Stock-based compensation expense and related employer payroll taxes

(79

)

(218

)

(397

)

(1,213

)

Legal and regulatory costs

—

—

—

62

Severance, transition and contract exit costs

(88

)

(195

)

(1,533

)

(581

)

Non-GAAP cost of other revenue (as a percentage of other revenue)

$

6,460

127.4

%

$

6,760

123.9

%

$

26,171

127.7

%

$

27,972

126.3

%

GAAP other revenue margin (as a percentage of other revenue)

$

(1,556

)

(30.7

)%

$

(1,718

)

(31.5

)%

$

(7,608

)

(37.1

)%

$

(7,557

)

(34.1

)%

Non-GAAP other revenue margin (as a percentage of other revenue)

$

(1,389

)

(27.4

)%

$

(1,305

)

(23.9

)%

$

(5,678

)

(27.7

)%

$

(5,825

)

(26.3

)%

GAAP gross margin (as a percentage of total revenue)

$

117,053

63.2

%

$

120,052

67.8

%

$

475,049

64.6

%

$

485,272

67.9

%

Non-GAAP gross margin (as a percentage of total revenue)

$

118,935

64.2

%

$

122,129

69.0

%

$

482,754

65.6

%

$

499,234

69.8

%

Operating Profit:

GAAP income from operations (as a percentage of total revenue)

$

3,330

1.8

%

$

419

0.2

%

$

18,938

2.6

%

$

15,193

2.1

%

Amortization of acquired intangible assets

3,616

3,808

14,203

19,104

Stock-based compensation expense and related employer payroll taxes

4,903

8,615

22,037

41,822

Transaction-related costs

3,249

541

3,445

1,101

Legal and regulatory costs(1)

648

102

3,127

(9,365

)

Severance, transition and contract exit costs

4,018

4,226

13,330

10,592

Non-GAAP operating profit (as a percentage of total revenue)

$

19,764

10.7

%

$

17,711

10.0

%

$

75,080

10.2

%

$

78,447

11.0

%

Net Income (Loss):

GAAP net income (loss) (as a percentage of total revenue)

$

106

0.1

%

$

(5,401

)

(3.1

)%

$

1,648

0.2

%

$

(27,212

)

(3.8

)%

Amortization of acquired intangible assets

3,616

3,808

14,203

19,104

Stock-based compensation expense and related employer payroll taxes

4,903

8,615

22,037

41,822

Transaction-related costs

3,249

541

3,445

1,101

Legal and regulatory costs(1)

648

102

3,127

(9,365

)

Severance, transition and contract exit costs

4,018

4,226

13,330

10,592

Amortization of debt discount and issuance cost

310

321

1,369

2,466

Loss on debt extinguishment

—

113

147

12,325

Gain on warrants remeasurement

(261

)

(1,028

)

(864

)

(2,225

)

Other income

—

—

(926

)

(348

)

Income tax expense effects, net (2)

—

—

—

—

Non-GAAP net income (as a percentage of total revenue)

$

16,589

9.0

%

$

11,297

6.4

%

$

57,516

7.8

%

$

48,260

6.7

%

Interest expense(3, 4)

4,058

4,832

17,322

26,390

Provision (benefit) for income taxes

(134

)

467

1,878

3,149

Depreciation

1,529

1,765

6,609

7,387

Amortization of capitalized internal-use software costs

2,852

2,748

11,456

12,729

Other expense (income), net

(749

)

1,115

(1,636

)

648

Adjusted EBITDA (as a percentage of total revenue)

$

24,145

13.0

%

$

22,224

12.6

%

$

93,145

12.7

%

$

98,563

13.8

%

Shares used in computing net income (loss) per share amounts:

Basic

140,141

132,877

137,669

129,767

Diluted

145,399

138,678

142,629

133,654

GAAP net income (loss) per share - Basic

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

GAAP net income (loss) per share - Diluted

$

0.00

$

(0.04

)

$

0.01

$

(0.21

)

Non-GAAP net income per share - Basic

$

0.12

$

0.09

$

0.42

$

0.37

Non-GAAP net income per share - Diluted

$

0.11

$

0.08

$

0.40

$

0.36

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