EGAIN Corp (EGAN): Results of Operations and Financial Condition
EGAIN Corp (EGAN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 eGain Reports Fiscal 2026 Results: Total Revenue Up 3%, AI Customer Revenue Up 20%, Company Named a Leader in Gartner's First Customer Service Knowledge Management MQ Sunnyvale, CA (September 3, 2026) – eGain (Nasdaq: EGAN), a leading provider of AI-powered knowl
How this was made
The 30-second read
Why it matters
The earnings release shows modest top‑line growth but a shift to GAAP loss guidance, which may pressure the stock in the near term. AI segment growth remains a positive catalyst.
Market read
First‑time public disclosure of eGain's FY 2026 results and FY 2027 outlook, providing fresh data for traders.
What to watch
Cash balance of $73M provides runway; share repurchase activity may support price.
eGain Reports Fiscal 2026 Results: Total Revenue Up 3%, AI Customer Revenue Up 20%, Company Named a Leader in Gartner's First Customer Service Knowledge Management MQ
Fiscal 2026 revenue, AI customer revenue, gross margins, non-GAAP net income and adjusted EBITDA improved from fiscal 2025, but fourth-quarter revenue and profitability declined year over year and fiscal 2027 guidance calls for lower total revenue, a GAAP net loss and substantially lower adjusted EBITDA.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 fiscal 2026 total revenueGAAP | $22.2M | – | (5%) |
| Q4 fiscal 2026 SaaS revenueGAAP | $20.67M | – | (5%) |
| Q4 fiscal 2026 professional services revenueGAAP | $1.48M | – | (4%) |
| Q4 fiscal 2026 total cost of revenueGAAP | $6.29M | – | – |
| Q4 fiscal 2026 gross profitGAAP | $15.86M | – | – |
| Q4 fiscal 2026 gross marginGAAP | 72% | – | – |
| Q4 fiscal 2026 gross marginnon-GAAP | 72% | – | – |
| Q4 fiscal 2026 research and development expenseGAAP | $7.29M | – | – |
| Q4 fiscal 2026 sales and marketing expenseGAAP | $5.63M | – | – |
| Q4 fiscal 2026 general and administrative expenseGAAP | $1.86M | – | – |
| Q4 fiscal 2026 total operating expensesGAAP | $14.78M | – | – |
| Q4 fiscal 2026 income from operationsGAAP | $1.08M | – | – |
| Q4 fiscal 2026 non-GAAP income from operationsnon-GAAP | $1.92M | – | – |
| Q4 fiscal 2026 net incomeGAAP | $1.3M | – | – |
| Q4 fiscal 2026 GAAP earnings per share, basicGAAP | $0.05 per share | – | – |
| Q4 fiscal 2026 GAAP earnings per share, dilutedGAAP | $0.05 per share | – | – |
| Q4 fiscal 2026 non-GAAP net incomenon-GAAP | $2.1M | – | – |
| Q4 fiscal 2026 non-GAAP earnings per share, basic and dilutednon-GAAP | $0.08 per share | – | – |
| Q4 fiscal 2026 adjusted EBITDAnon-GAAP | $2.2M | – | – |
| Q4 fiscal 2026 adjusted EBITDA marginnon-GAAP | 10% margin | – | – |
| Fiscal 2026 total revenueGAAP | $91.1M | – | 3% |
| Fiscal 2026 SaaS revenueGAAP | $85.29M | – | 4% |
| Fiscal 2026 professional services revenueGAAP | $5.85M | – | (10%) |
| Fiscal 2026 total cost of revenueGAAP | $24.29M | – | – |
| Fiscal 2026 gross profitGAAP | $66.85M | – | – |
| Fiscal 2026 gross marginGAAP | 73% | – | – |
| Fiscal 2026 gross marginnon-GAAP | 74% | – | – |
| Fiscal 2026 research and development expenseGAAP | $29.45M | – | – |
| Fiscal 2026 sales and marketing expenseGAAP | $19.48M | – | – |
| Fiscal 2026 general and administrative expenseGAAP | $9.96M | – | – |
| Fiscal 2026 total operating expensesGAAP | $58.88M | – | – |
| Fiscal 2026 income from operationsGAAP | $7.96M | – | – |
| Fiscal 2026 non-GAAP income from operationsnon-GAAP | $12.12M | – | – |
| Fiscal 2026 net incomeGAAP | $8.9M | – | – |
| Fiscal 2026 GAAP earnings per share, basicGAAP | $0.33 per share | – | – |
| Fiscal 2026 GAAP earnings per share, dilutedGAAP | $0.32 per share | – | – |
| Fiscal 2026 non-GAAP net incomenon-GAAP | $13M | – | – |
| Fiscal 2026 non-GAAP earnings per share, basicnon-GAAP | $0.48 per share | – | – |
| Fiscal 2026 non-GAAP earnings per share, dilutednon-GAAP | $0.47 per share | – | – |
| Fiscal 2026 adjusted EBITDAnon-GAAP | $13.6M | – | – |
| Fiscal 2026 adjusted EBITDA marginnon-GAAP | 15% margin | – | – |
| Fiscal 2026 total stock-based compensationGAAP | $2.80M | – | – |
| AI customer revenueother | 20% year-over-year growth | – | 20% |
| AI customer annual recurring revenueother | 72% of total SaaS ARR as of June 30, 2026 | – | 13% year over year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q4 fiscal 2026 SaaSThe filing reports GAAP SaaS revenue of $20,670 (in thousands). | $20.67M | – | (5%) |
| Q4 fiscal 2026 professional servicesThe filing reports GAAP professional services revenue of $1,480 (in thousands). | $1.48M | – | (4%) |
| Fiscal 2026 SaaSThe filing reports GAAP SaaS revenue of $85,286 (in thousands). | $85.29M | – | 4% |
| Fiscal 2026 professional servicesThe filing reports GAAP professional services revenue of $5,850 (in thousands). | $5.85M | – | (10%) |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2027 first quarter ending September 30, 2026 and fiscal 2027 full year ending June 30, 2027 outlook
- RevenueFirst quarter: Total revenue between $20.9 million and $21.4 million. Full year: Total revenue between $84.5 million and $86.0 million.
- NoteFirst quarter AI customer revenue between $13.7 million and $14.0 million.
- NoteFirst quarter GAAP net income of $500,000 to $1.1 million, or between $0.02 and $0.04 per share.
- NoteFirst quarter guidance includes stock-based compensation expense of approximately $900,000.
- NoteFirst quarter non-GAAP net income between $1.4 million and $2.0 million, or between $0.05 and $0.08 per share.
- NoteFirst quarter adjusted EBITDA between $1.4 million and $1.9 million, or a margin between 7% and 9%.
- NoteFull-year AI customer revenue between $59.5 million and $60.5 million.
- NoteFull-year GAAP net loss between $2.0 million and $3.0 million, or between $0.08 and $0.11 per share.
- NoteFull-year guidance includes stock-based compensation expense of approximately $4.0 million.
- NoteFull-year non-GAAP net income between $1.0 million and $2.0 million, or between $0.04 and $0.07 per share.
- NoteFull-year adjusted EBITDA between $650,000 and $1.4 million, or a margin of 1% to 2%.
- NoteWeighted 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.
Capital returns
- Total shares repurchased were approximately 1,607,000 at an average price of $7.16 per share, totaling $11.5 million.
What drove it
- AI customer revenue grew 11% year over year in the fiscal 2026 fourth quarter and 20% year over year for fiscal 2026.
- AI customer ARR grew 13% year over year and represented 72% of total SaaS ARR as of June 30, 2026.
- The company attributed total-revenue growth to investment in AI Knowledge and cited a managed decline in its profitable legacy business.
- Fiscal 2026 GAAP total cost of revenue was $24,286 (in thousands), compared to $26,423 (in thousands) in fiscal 2025.
- Fiscal 2026 non-GAAP operating expenses were $55,261 (in thousands), compared to $55,991 (in thousands) in fiscal 2025.
Concerns
- Q4 fiscal 2026 total revenue was $22.2 million, compared to $23.2 million in Q4 fiscal 2025.
- Q4 fiscal 2026 SaaS revenue declined (5%) and professional services revenue declined (4%).
- Q4 GAAP and non-GAAP gross margin were each 72%, compared to 73% in Q4 fiscal 2025.
- Q4 adjusted EBITDA was $2.2 million, representing a 10% margin, compared to $4.5 million, or a 19% margin, in Q4 fiscal 2025.
- Fiscal 2026 GAAP net income includes a comparison period affected by a tax benefit of approximately $29.0 million from the release of a majority of the company's valuation allowance in fiscal 2025.
- Fiscal 2027 full-year guidance calls for total revenue between $84.5 million and $86.0 million and a GAAP net loss between $2.0 million and $3.0 million.
What to watch
- AI customer revenue against first-quarter guidance between $13.7 million and $14.0 million and full-year guidance between $59.5 million and $60.5 million.
- Total revenue against first-quarter guidance between $20.9 million and $21.4 million and full-year guidance between $84.5 million and $86.0 million.
- Adjusted EBITDA against first-quarter guidance between $1.4 million and $1.9 million and full-year guidance between $650,000 and $1.4 million.
- The development of AI customer ARR, which represented 72% of total SaaS ARR as of June 30, 2026.
- The extent of the managed decline in the legacy business and the associated impact on consolidated revenue and profitability.
Balance sheet and cash flow
- Cash provided by operating activities was $21.2 million, or an operating cash flow margin of 23%.
- Total cash and cash equivalents were $73.3 million as of June 30, 2026, compared to $62.9 million as of June 30, 2025.
- Accounts receivable were $24,391 (in thousands) as of June 30, 2026, compared to $32,775 (in thousands) as of June 30, 2025.
- Deferred revenue was $46,478 (in thousands) as of June 30, 2026, compared to $48,765 (in thousands) as of June 30, 2025.
- Total assets were $147,995 (in thousands) as of June 30, 2026, compared to $148,005 (in thousands) as of June 30, 2025.
- Total liabilities were $63,782 (in thousands) as of June 30, 2026, compared to $67,274 (in thousands) as of June 30, 2025.
- Total stockholders' equity was $84,213 (in thousands) as of June 30, 2026, compared to $80,731 (in thousands) as of June 30, 2025.
Analysis
Fiscal 2026 showed modest consolidated growth alongside stronger AI-customer activity. Total revenue was $91.1 million, compared to $88.4 million in fiscal 2025, while AI customer revenue grew 20% year over year. AI customer ARR grew 13% year over year and represented 72% of total SaaS ARR as of June 30, 2026. SaaS revenue was $85,286 (in thousands), compared to $81,921 (in thousands), while professional services revenue was $5,850 (in thousands), compared to $6,510 (in thousands).
The fourth quarter weakened relative to the prior-year quarter. Total revenue was $22.2 million, compared to $23.2 million, with SaaS revenue down (5%) and professional services revenue down (4%). GAAP and non-GAAP gross margin were each 72%, compared to 73% in Q4 fiscal 2025. Q4 adjusted EBITDA was $2.2 million, representing a 10% margin, compared to $4.5 million, or a 19% margin.
Full-year profitability improved on an operating and non-GAAP basis. GAAP gross margin was 73%, compared to 70%, and non-GAAP gross margin was 74%, compared to 71%. Income from operations was $7,965 (in thousands), compared to $4,433 (in thousands), while non-GAAP income from operations was $12,117 (in thousands), compared to $6,882 (in thousands). Non-GAAP net income was $13.0 million, compared to $5.7 million, and adjusted EBITDA was $13.6 million, representing a 15% margin, compared to $8.6 million, or a 10% margin. GAAP net income was $8.9 million versus $32.3 million, with fiscal 2025 including a tax benefit of approximately $29.0 million from the release of a majority of the valuation allowance.
Cash generation and repurchases were material features of the year. Cash provided by operating activities was $21.2 million, or an operating cash flow margin of 23%, and cash and cash equivalents were $73.3 million as of June 30, 2026, compared to $62.9 million as of June 30, 2025. The company repurchased approximately 1,607,000 shares at an average price of $7.16 per share, totaling $11.5 million.
Fiscal 2027 guidance indicates a transition period despite continued AI customer expansion. The company expects first-quarter total revenue between $20.9 million and $21.4 million and full-year total revenue between $84.5 million and $86.0 million. Full-year guidance calls for a GAAP net loss between $2.0 million and $3.0 million, non-GAAP net income between $1.0 million and $2.0 million, and adjusted EBITDA between $650,000 and $1.4 million, or a margin of 1% to 2%.
Management, verbatim
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.
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.
Ashu Roy, eGain’s CEO
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.
Ashu Roy, eGain’s CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Free cash flow was not reported.
- Debt was not reported.
- Dividend information was not reported.
- Quarter-over-quarter comparisons were not reported.
- Fiscal 2027 gross-margin guidance was not reported.
- Fiscal 2027 operating-expense guidance was not reported.
- Fiscal 2027 tax-rate guidance was not reported.
- CFO commentary was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
eGain Corp (NASDAQ:EGAN) provides AI‑powered knowledge management and CX automation solutions. The 8‑K filing includes FY 2026 results and FY 2027 guidance.
Ticker impact
SEC Form 8‑K reports eGain's FY 2026 results and FY 2027 guidance, the first public disclosure of these numbers.
Possible short‑term downside as investors digest lower full‑year revenue outlook and GAAP loss guidance.
Guidance signals a slowdown in total revenue and a shift to loss, which may trigger sell pressure; however, strong AI revenue growth could attract upside if execution improves.
Market effects
Highlights growing importance of AI knowledge management within enterprise software sector.
Primarily U.S. market impact; limited broader regional effect.
Signals competitive pressure in global AI‑driven customer service solutions.
Counterpoint
Despite GAAP loss guidance, the rapid AI revenue growth could justify a longer‑term bullish stance.
Key entities
- ExecutiveAshu Roy
CEO of eGain, quoted on AI Knowledge strategy.
