SUNNYVALE, Calif., Sept. 03, 2026 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a leading provider of AI-powered knowledge management and customer experience automation solutions, today announced financial results for its fiscal 2026 fourth quarter and full fiscal year ended June 30, 2026.
"Fiscal 2026 was a pivotal year for eGain. AI Knowledge is emerging as a distinct operating layer in the enterprise -- the infrastructure that makes every other AI initiative, from agents to copilots to automation, trustworthy and accurate -- rather than another point application in another silo. Gartner's decision to create a dedicated Magic Quadrant for Customer Service Knowledge Management Systems, and to name eGain a Leader in its inaugural edition, validates both the category and the position we've spent years building toward," said Ashu Roy, eGain's CEO.
"This validation is showing up in the numbers. Total revenue grew 3% for the year, a rate that reflects two trends in our business. First, our investment in AI Knowledge drove 20% year-over-year growth in AI customer revenue. Second, the managed decline in our profitable legacy business."
"As we enter fiscal 2027, we're all in on the AI Knowledge opportunity. We believe the market is still early in recognizing how foundational trusted knowledge infrastructure will be to enterprise AI, and we intend to lead it."
Fiscal 2026 Fourth Quarter Financial Highlights
-- Total revenue was $22.2 million, compared to $23.2 million in Q4 fiscal
2025.
-- AI customer revenue grew 11% year over year.
-- GAAP gross margin was 72%, compared to 73% in Q4 fiscal 2025.
-- Non-GAAP gross margin was 72%, compared to 73% in Q4 fiscal 2025.
-- GAAP net income was $1.3 million, or $0.05 per share on a basic and
diluted basis, compared to GAAP net income of $30.9 million, or $1.13 per
share on a basic basis and $1.11 per share on a diluted basis, in Q4
fiscal 2025, which includes the impact of a tax benefit of approximately
$29.0 million from the release of a majority of the company's valuation
allowance in Q4 fiscal 2025.
-- Non-GAAP net income was $2.1 million, or $0.08 per share on a basic and
diluted basis, compared to non-GAAP net income of $2.4 million, or $0.09
per share on a basic and diluted basis, in Q4 fiscal 2025.
-- Adjusted EBITDA was $2.2 million, representing a 10% margin, compared to
$4.5 million, or a 19% margin, in Q4 fiscal 2025.
-- Total cash and cash equivalents were $73.3 million as of June 30, 2026,
compared to $62.9 million as of June 30, 2025.
Fiscal 2026 Full Year Financial Highlights
-- Total revenue was $91.1 million, compared to $88.4 million in the same
period last year.
-- AI customer revenue grew 20% year over year.
-- AI customer annual recurring revenue $(ARR)$ grew 13% year over year and
represented 72% of total SaaS ARR as of June 30, 2026.
-- GAAP gross margin was 73%, compared to 70% in the same period last year.
-- Non-GAAP gross margin was 74%, compared to 71% in the same period last
year.
-- GAAP net income was $8.9 million, or $0.33 per share on a basic basis and
$0.32 per share on a diluted basis, compared to GAAP net income of $32.3
million, or $1.15 per share on a basic and $1.13 per share on a diluted
basis, in the same period last year. This includes the impact of a tax
benefit of approximately $29.0 million from the release of a majority of
the company's valuation allowance in fiscal 2025.
-- Non-GAAP net income was $13.0 million, or $0.48 per share on a basic
basis and $0.47 per share on a diluted basis, compared to non-GAAP net
income of $5.7 million, or $0.20 per share on a basic and diluted basis,
in the same period last year.
-- Adjusted EBITDA was $13.6 million, representing a 15% margin, compared to
$8.6 million, or a 10% margin, in the same period last year.
-- Cash provided by operating activities was $21.2 million, or an operating
cash flow margin of 23%.
-- Total shares repurchased were approximately 1,607,000 at an average price
of $7.16 per share, totaling $11.5 million.
Fiscal 2027 First Quarter and Fiscal 2027 Financial Guidance
For the first quarter of fiscal 2027 ending September 30, 2026, eGain expects:
-- Total revenue between $20.9 million and $21.4 million.
-- AI customer revenue between $13.7 million and $14.0 million.
-- GAAP net income of $500,000 to $1.1 million, or between $0.02 and $0.04
per share.
-- Includes stock-based compensation expense of approximately
$900,000.
-- Non-GAAP net income between $1.4 million and $2.0 million, or between
$0.05 and $0.08 per share.
-- Adjusted EBITDA between $1.4 million and $1.9 million, or a margin
between 7% and 9%.
For the fiscal 2027 full year ending June 30, 2027, eGain expects:
-- Total revenue between $84.5 million and $86.0 million.
-- AI customer revenue between $59.5 million and $60.5 million.
-- GAAP net loss between $2.0 million and $3.0 million, or between $0.08 and
$0.11 per share.
-- Includes stock-based compensation expense of approximately $4.0
million.
-- Non-GAAP net income between $1.0 million and $2.0 million, or between
$0.04 and $0.07 per share.
-- Adjusted EBITDA between $650,000 and $1.4 million, or a margin of 1% to
2%.
Guidance Assumption:
-- Weighted average shares outstanding are expected to be approximately 26.6
million for the first quarter of fiscal 2027 and 26.8 million for the
full fiscal year 2027.
Key Business Metrics:
We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions.
Total SaaS ARR is defined as the recurring revenue from SaaS subscriptions, normalized over a period of one year.
AI customer ARR is defined as Total SaaS ARR from customers who actively utilize one or more of our AI offerings. This amount includes all offerings associated with a customer and not solely the AI offerings.
AI customer revenue is defined as the total revenue generated from customers who actively utilize one or more of our AI offerings, inclusive of their SaaS and Professional Services revenue. This amount includes all offerings associated with a customer and not solely the AI offerings.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as supplemental information relating to eGain's operating results, including adjusted EBITDA and non-GAAP net income. Adjusted EBITDA is defined as net income, adjusted for the impact of depreciation and amortization, issuance of common stock warrant for services, stock-based compensation expense, interest income, net, provision for income taxes, benefit from income tax where applicable, other income (expense), net and severance and related charges. Non-GAAP net income measure is adjusted for benefit from income taxes related to the release of valuation allowance, issuance of common stock warrant for services, and stock-based compensation expense. eGain's management has analyzed the effect of these non-GAAP adjustments on our provision for income taxes and believes the change in our provision for income taxes would not be substantial. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. eGain's management uses these non-GAAP measures to compare our performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in our financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business. In addition, this press release includes eGain's non-GAAP net income and adjusted EBITDA guidance for future periods, non-GAAP measures used to describe eGain's expected performance. We have not presented a reconciliation of eGain's non-GAAP net income or adjusted EBITDA to future net income, the most comparable GAAP financial measure, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliation is not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure.
Conference Call Information
eGain will discuss its fiscal 2026 fourth quarter and full year financial results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) and ask to join the eGain earnings call. A live and archived webcast of the call will also be accessible on the "Investors" section of eGain's website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and will remain available for one week. To access the phone replay, dial 855-669-9658 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 1145039.
About eGain
eGain is a leading provider of AI-powered knowledge management and customer experience automation solutions. With over 25 years of experience in knowledge management, eGain helps enterprises unify siloed content, automate trusted knowledge workflows, and deliver measurable AI-ROI through proven frameworks and methods. Global 2000 companies across industries rely on eGain to transform customer service, improve employee productivity, reduce costs, and accelerate AI adoption. Visit www.egain.com for more information.
Gartner Disclaimer
Gartner, Magic Quadrant for Customer Service Knowledge Management Systems, Pri Rathnayake, Jennifer MacIntosh, Patrick Quinlan, Drew Kraus, 16 July 2026.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the first quarter of fiscal 2027 and fiscal 2027 full year ending June 30, 2027; our beliefs regarding the validity of our business strategy; our investment in AI customer business; the expected profitability and cash-generating capacity of our legacy business; demand for our products and market opportunity; and our market position. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the first quarter of fiscal 2027 and fiscal 2027 full year ending June 30, 2027. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, and financial condition; the pace of technological advancements in generative AI and the adaptability of our services to incorporate these advancements; market demand for AI-enabled solutions; risks associated with new product releases and new services and product features; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third-party distribution channels; risks related to our international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; general political or destabilizing events, including war, intensified international hostilities, conflict or acts of terrorism; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including those addressing data privacy, cyber-security and cross-border data transfers; and other risks detailed from time to time in eGain's public filings, including eGain's quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2026 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission's website at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law.
eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corporation in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.
Investor Relations
Todd Kehrli or Jim Byers
PondelWilkinson, Inc.
tkehrli@pondel.com
jbyers@pondel.com
eGain Corporation
Condensed Consolidated Balance Sheets
(in thousands, except par value data)
(unaudited)
June 30, June 30,
2026 2025
---------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 73,336 $ 62,909
Restricted cash 8 8
Accounts receivable, less provision for
credit losses of $28 and $7 as of June
30, 2026 and 2025, respectively 24,391 32,775
Costs capitalized to obtain revenue
contracts, net 776 1,148
Prepaid expenses 2,811 2,841
Other current assets 669 886
--------
Total current assets 101,991 100,567
Property and equipment, net 872 670
Operating lease right-of-use assets 2,516 3,530
Costs capitalized to obtain revenue
contracts, net of current portion 1,200 1,460
Goodwill 13,186 13,186
Other assets, net 28,230 28,592
--------
Total assets $ 147,995 $ 148,005
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,486 $ 2,596
Accrued compensation 4,610 6,749
Accrued liabilities 4,267 2,821
Operating lease liabilities 1,246 1,220
Deferred revenue 46,478 48,765
-------- --------
Total current liabilities 59,087 62,151
Deferred revenue, net of current portion 2,062 1,766
Operating lease liabilities, net of
current portion 1,532 2,449
Other long-term liabilities 1,101 908
--------
Total liabilities 63,782 67,274
-------- --------
Stockholders' equity:
Common stock, $0.001 par value per
share -- authorized: 60,000 shares;
issued: 33,933 and 33,237 shares;
outstanding: 26,172 and 27,083 shares
as of June 30, 2026 and 2025,
respectively. 34 33
Additional paid-in capital 418,710 411,253
Treasury stock, at cost: 7,761 and
6,154 common shares as of June 30,
2026 and 2025, respectively. (50,322) (38,812)
Accumulated other comprehensive loss (1,678) (336)
Accumulated deficit (282,531) (291,407)
--------
Total stockholders' equity 84,213 80,731
-------- --------
Total liabilities and stockholders'
equity $ 147,995 $ 148,005
======== ========
eGain Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
June 30, June 30,
------------------ --------------------
2026 2025 2026 2025
-------- -------- -------- ----------
Revenue:
SaaS $20,670 $21,691 $85,286 $81,921
Professional
services 1,480 1,543 5,850 6,510
------
Total revenue 22,150 23,234 91,136 88,431
------ ------ ------ ------
Cost of
revenue:
Cost of SaaS 4,591 4,233 17,732 17,975
Cost of
professional
services 1,698 2,121 6,554 8,448
------
Total cost of
revenue 6,289 6,354 24,286 26,423
------ ------ ------ ------
Gross profit 15,861 16,880 66,850 62,008
------ ------ ------ ------
Operating
expenses:
Research and
development 7,291 6,961 29,449 29,604
Sales and
marketing 5,629 4,641 19,476 19,356
General and
administrative 1,863 2,031 9,960 8,615
------
Total
operating
expenses 14,783 13,633 58,885 57,575
------ ------ ------ ------
Income from
operations 1,078 3,247 7,965 4,433
Interest income,
net 561 440 2,250 2,469
Other income
(expense), net (18) (390) 581 (1,265)
------ ------ ------ ------
Income before
income tax
(provision)
benefit 1,621 3,297 10,796 5,637
Income tax
(provision)
benefit (317) 27,568 (1,920) 26,617
Net income $ 1,304 $30,865 $ 8,876 $32,254
====== ====== ====== ======
Per share
information:
Earnings per
share:
Basic $ 0.05 $ 1.13 $ 0.33 $ 1.15
====== ====== ====== ======
Diluted $ 0.05 $ 1.11 $ 0.32 $ 1.13
====== ====== ====== ======
Weighted-average
shares used in
computation:
Basic 27,069 27,324 27,158 28,161
====== ====== ====== ======
Diluted 27,496 27,750 27,861 28,650
====== ====== ====== ======
Summary of
stock-based
compensation
included in the
costs and
expenses above:
Cost of revenue $ 151 $ 186 $ 528 $ 865
Research and
development 421 117 1,333 640
Sales and
marketing 178 75 560 352
General and
administrative 95 118 381 592
------
Total stock-based
compensation $ 845 $ 496 $ 2,802 $ 2,449
====== ====== ====== ======
eGain Corporation
GAAP to Non-GAAP Reconciliation Table
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
June 30, June 30,
------------------- ---------------------
2026 2025 2026 2025
-------- --------- -------- -----------
Income from
operations $ 1,078 $ 3,247 $ 7,965 $ 4,433
Add:
Issuance of
common stock
warrant for
services -- -- 1,350 --
Stock-based
compensation 845 496 2,802 2,449
------ ------- ------ -------
Non-GAAP income
from operations $ 1,923 $ 3,743 $12,117 $ 6,882
====== ======= ====== =======
Three Months Ended Year Ended
June 30, June 30,
------------------- ---------------------
2026 2025 2026 2025
-------- --------- -------- -----------
Net income $ 1,304 $ 30,865 $ 8,876 $ 32,254
Add:
Depreciation
and
amortization 103 77 388 340
Issuance of
common stock
warrant for
services -- -- 1,350 --
Stock-based
compensation
expense 845 496 2,802 2,449
Interest
income, net (561) (440) (2,250) (2,469)
Provision for
income taxes 317 1,396 1,920 2,347
Benefit from
income taxes
related to
the release
of valuation
allowance -- (28,964) -- (28,964)
Other income
(expense),
net 18 390 (581) 1,265
Severance and
related
charges 143 648 1,118 1,407
Adjusted EBITDA $ 2,169 $ 4,468 $13,623 $ 8,629
====== ======= ====== =======
Three Months Ended Year Ended
June 30, June 30,
------------------- ---------------------
2026 2025 2026 2025
-------- --------- -------- -----------
Net income $ 1,304 $ 30,865 $ 8,876 $ 32,254
Add:
Benefit from
income taxes
related to
the release
of valuation
allowance -- (28,964) -- (28,964)
Issuance of
common stock
warrant for
services -- -- 1,350 --
Stock-based
compensation 845 496 2,802 2,449
------ ------- ------ -------
Non-GAAP net
income $ 2,149 $ 2,397 $13,028 $ 5,739
====== ======= ====== =======
Per share
information:
Non-GAAP earnings
per share:
Basic $ 0.08 $ 0.09 $ 0.48 $ 0.20
====== ======= ====== =======
Diluted $ 0.08 $ 0.09 $ 0.47 $ 0.20
====== ======= ====== =======
Weighted-average
shares used in
computation:
Basic 27,069 27,324 27,158 28,161
====== ======= ====== =======
Diluted 27,496 27,750 27,861 28,650
====== ======= ====== =======
eGain Corporation
Other GAAP to Non-GAAP Supplemental Financial Information
(in thousands)
(unaudited)
Constant
Three Months Ended Growth Currency Growth
June 30, Rates Rates [1]
------------------ -------- ---------------
2026 2025
-------- --------
Revenue:
GAAP SaaS $20,670 $21,691 (5%) (5%)
GAAP professional
services 1,480 1,543 (4%) (4%)
------ ------
Total GAAP
revenue $22,150 $23,234 (5%) (5%)
====== ======
Cost of Revenue:
GAAP SaaS $ 4,591 $ 4,233
------ ------
Non-GAAP SaaS $ 4,591 $ 4,233
====== ======
GAAP professional
services $ 1,698 $ 2,121
Add back:
Stock-based
compensation (151) (186)
------ ------
Non-GAAP
professional
services $ 1,547 $ 1,935
====== ======
GAAP total cost of
revenue $ 6,289 $ 6,354
Add back:
Stock-based
compensation (151) (186)
------ ------
Non-GAAP total
cost of
revenue $ 6,138 $ 6,168 (0%) 0%
====== ======
Gross Profit:
Non-GAAP SaaS $16,079 $17,458
Non-GAAP
professional
services (67) (392)
------ ------
Non-GAAP gross
profit $16,012 $17,066 (6%) (7%)
====== ======
Operating expenses:
GAAP research
and
development $ 7,291 $ 6,961
Add back:
Stock-based
compensation
expense (421) (117)
------ ------
Non-GAAP
research and
development $ 6,870 $ 6,844 0% 1%
====== ======
GAAP sales and
marketing $ 5,629 $ 4,641
Add back:
Stock-based
compensation
expense (178) (75)
------ ------
Non-GAAP sales
and marketing $ 5,451 $ 4,566 19% 20%
====== ======
GAAP general and
administrative $ 1,863 $ 2,031
Add back:
Stock-based
compensation
expense (95) (118)
------ ------
Non-GAAP general
and
administrative $ 1,768 $ 1,913 (8%) (7%)
====== ======
GAAP operating
expenses $14,783 $13,633
Add back:
Stock-based
compensation
expense (694) (310)
------ ------
Non-GAAP
operating
expenses $14,089 $13,323 6% 6%
====== ======
[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.
eGain Corporation
Other GAAP to Non-GAAP Supplemental Financial Information
(in thousands)
(unaudited)
Constant
Currency
Year Ended June Growth Growth
30, Rates Rates [1]
------------------ -------- ----------
2026 2025
-------- --------
Revenue:
GAAP SaaS $85,286 $81,921 4% 3%
GAAP professional
services 5,850 6,510 (10%) (11%)
------ ------
Total GAAP
revenue $91,136 $88,431 3% 2%
====== ======
Cost of Revenue:
GAAP SaaS $17,732 $17,975
------ ------
Non-GAAP SaaS $17,732 $17,975
====== ======
GAAP professional
services $ 6,554 $ 8,448
Add back:
Stock-based
compensation (528) (865)
------ ------
Non-GAAP
professional
services $ 6,026 $ 7,583
====== ======
GAAP total cost of
revenue $24,286 $26,423
Add back:
Stock-based
compensation (528) (865)
------ ------
Non-GAAP total
cost of
revenue $23,758 $25,558 (7%) (7%)
====== ======
Gross Profit:
Non-GAAP SaaS $67,554 $63,946
Non-GAAP
professional
services (176) (1,073)
------ ------
Non-GAAP gross
profit $67,378 $62,873 7% 6%
====== ======
Operating expenses:
GAAP research
and
development $29,449 $29,604
Add back:
Stock-based
compensation
expense (1,333) (640)
------ ------
Non-GAAP
research and
development $28,116 $28,964 (3%) (3%)
====== ======
GAAP sales and
marketing $19,476 $19,356
Add back:
Stock-based
compensation
expense (560) (352)
------ ------
Non-GAAP sales
and marketing $18,916 $19,004 (0%) (1%)
====== ======
GAAP general and
administrative $ 9,960 $ 8,615
Add back:
Issuance of
common stock
warrant for
services (1,350) --
Stock-based
compensation
expense (381) (592)
------ ------
Non-GAAP general
and
administrative $ 8,229 $ 8,023 3% 2%
====== ======
GAAP operating
expenses $58,885 $57,575
Add back:
Issuance of
common stock
warrant for
services (1,350) --
Stock-based
compensation
expense (2,274) (1,584)
------ ------
Non-GAAP
operating
expenses $55,261 $55,991 (1%) (1%)
====== ======
[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.