SUNNYVALE, Calif., Aug. 27, 2025 (GLOBE NEWSWIRE) -- eGain (NASDAQ: EGAN), the AI knowledge platform for service, will announce its fiscal 2025 fourth quarter and full year financial results after the close of regular market trading on Thursday, September 4, 2025, followed by an investor conference call and webcast at 2:00 p.m. Pacific Time (5:00 p.m. ET). Chief Executive Officer Ashu Roy and Chief Financial Officer Eric Smit will host the call and webcast. When:Thursday, September 4th at 2:00 p.m. Pacific ...

Core Insights - eGain announced findings from a survey on the state of AI in 2025, highlighting significant concerns regarding AI adoption among executives and knowledge managers [1][2] AI Adoption Challenges - 61% of respondents identified erroneous or inconsistent answers as the primary barrier to successful AI adoption [2] - Gartner warns that all generative AI projects lacking integration with modern knowledge management systems are likely to fail in achieving customer experience and operational cost-reduction goals [2] Importance of Trusted Content - eGain's CEO emphasized the necessity of trusted content for successful AI applications, stating that both AI and knowledge are essential for organizations to thrive [3] - The survey results underscore the critical role of trusted content in driving successful AI initiatives [3] Performance Improvements - Companies utilizing the eGain AI Knowledge Hub reported significant operational improvements, including a 24% reduction in Average Handle Time (AHT) and a 57% decrease in Average Wait Time (AWT) for member calls [4] - Additionally, agent satisfaction scores increased by 22% as a result of implementing trusted knowledge solutions [4]

Core Insights - eGain (EGAN) reported Q3 results that fell short of revenue guidance but exceeded earnings expectations [1] Financial Performance - The company missed its revenue guidance while beating earnings expectations, indicating a mixed financial performance in the latest quarter [1] Investment Perspective - The analysis suggests a bullish thesis for eGain, highlighting the potential for asymmetric investment opportunities within the technology and software sectors [1]

Core Viewpoint - eGain (EGAN) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.08 per share a year ago, indicating a 200% earnings surprise [1][2] Financial Performance - eGain's revenues for the quarter ended March 2025 were $21.01 million, missing the Zacks Consensus Estimate by 1.04%, and down from $22.35 million year-over-year [2] - Over the last four quarters, eGain has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - eGain shares have declined approximately 15.4% since the beginning of the year, contrasting with the S&P 500's gain of 0.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $23.39 million, and for the current fiscal year, it is $0.15 on revenues of $88.81 million [7] - The trend of estimate revisions for eGain is mixed, which could change following the recent earnings report [6] Industry Context - The Internet - Software industry, to which eGain belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $21 million, down 6% year over year, primarily due to the impact of two large client losses last year [15][20] - SaaS revenue accounted for 93% of total revenue, with SaaS gross margin at 77% compared to 78% a year ago [15][16] - Non-GAAP net income was $765,000 or $0.03 per share, down from $2.6 million or $0.08 per share in the year-ago quarter [17] - Operating cash flow was $2.2 million, up from $1.7 million in the year-ago quarter, reflecting an 11% operating cash flow margin [18] Business Line Data and Key Metrics Changes - SaaS ARR for knowledge customers increased 11% year over year, while total SaaS ARR for all customers decreased 6% year over year [19] - Non-GAAP operating costs for Q3 were $13.8 million, down 6% sequentially and flat compared to the year-ago quarter [17] Market Data and Key Metrics Changes - The company secured a significant deal with the U.S. Consumer Group of a major bank, expanding its AI knowledge platform across more than half the bank, impacting over 100,000 users [6][8] - Gartner rated eGain as a leader in the emerging market quadrant for generative AI knowledge management apps, indicating strong market positioning [12] Company Strategy and Development Direction - The company is focused on capitalizing on the emerging market opportunity in AI knowledge management, investing in product innovation [13][21] - The launch of the eGain AI agent for contact centers aims to enhance service performance and broaden the addressable market [9][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while macro uncertainty impacted deal closures in Q3, they are seeing good deal closures in the current quarter [13] - The company expects total revenue for Q4 to be between $22.8 million to $23.3 million, with GAAP net income guidance revised upward for the full fiscal year [20][21] Other Important Information - The company repurchased 895,000 shares at an average price of $5.61 per share during the quarter [18] - Total cash and cash equivalents at the end of the quarter was $68.7 million, indicating a strong balance sheet [18] Q&A Session Summary Question: Can you talk about the mega bank win and the pace of rollout? - Management indicated that deployment is on pace, with full deployment expected by late fall, and the expansion is significantly larger than previous engagements, approximately 10 times bigger [24][25] Question: Have sales cycles stabilized? - Management confirmed that sales cycles have stabilized, now averaging nine to twelve months due to the size of opportunities and the number of groups involved in the evaluation process [27][28] Question: What does the revenue ramp look like for the mega bank deal? - The revenue recognition will ramp up from the beginning, and the implementation process is expected to be fairly standard for large enterprises, with the bank being aggressive on the AI front [35][36] Question: What are the drivers of sequential growth from Q3 to Q4? - The growth is expected to be driven by the significant mega bank deal and other factors contributing to visibility in revenue [36] Question: What does the growth formula look like for 2026 and beyond? - Management anticipates that 2026 will show real top-line impact from AI knowledge investments made over the past two years, particularly in fiscal 2025 [37][38]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $21 million, down 6% year over year, primarily due to the impact of two large client losses from the previous year [15][21] - SaaS revenue accounted for 93% of total revenue, with SaaS gross margin at 77%, down from 78% a year ago [15][16] - Non-GAAP net income was $765,000 or $0.03 per share, compared to $2.6 million or $0.08 per share in the year-ago quarter [18][22] - Operating cash flow generated was $2.2 million, up from $1.7 million in the year-ago quarter, resulting in an 11% operating cash flow margin [19] Business Line Data and Key Metrics Changes - SaaS ARR for knowledge customers increased 11% year over year, while total SaaS ARR for all customers decreased 6% year over year [20] - Non-GAAP operating costs were $13.8 million, down 6% sequentially and flat compared to the year-ago quarter [17] Market Data and Key Metrics Changes - The company secured a significant deal with the U.S. Consumer Group of a major bank, expanding its AI knowledge platform across more than half of the bank, impacting over 100,000 users [6][7] - Gartner rated eGain as a leader in the emerging market quadrant for generative AI knowledge management apps, highlighting the importance of knowledge management in the AI era [12] Company Strategy and Development Direction - The company is focused on investing in AI knowledge offerings and capitalizing on emerging market opportunities, with a strategic emphasis on product innovation [13][22] - The launch of the eGain AI agent for contact centers is expected to enhance service performance and broaden the addressable market [8][23] Management's Comments on Operating Environment and Future Outlook - Management noted that while macro uncertainty impacted deal closures in Q3, they are seeing good deal closures in the current quarter, including the mega bank deal [5][13] - The company expects total revenue for Q4 to be between $22.8 million to $23.3 million, with GAAP net income guidance revised upward for the full fiscal year [21][22] Other Important Information - The company repurchased 895,000 shares at an average price of $5.61 per share during the quarter [19] - Total cash and cash equivalents at the end of the quarter was $68.7 million, indicating a strong balance sheet [19] Q&A Session Summary Question: Can you talk about the mega bank win and the pace of rollout? - Management indicated that the deployment is on pace and expected to be fully deployed by late fall, with an expansion that is significantly larger than previous engagements [24][25] Question: Have sales cycles stabilized? - Management confirmed that sales cycles have stabilized, now averaging nine to twelve months due to the size of opportunities and the number of groups involved in the evaluation process [27] Question: What will the revenue ramp look like for the mega bank deal? - The revenue from the deal is structured to ramp up from the beginning rather than in phases, indicating a strong initial impact [34] Question: What are the drivers of sequential growth from Q3 to Q4? - The growth is expected to be driven by the significant mega bank deal and other strong bookings [35] Question: What does the growth formula look like for 2026 and beyond? - Management anticipates that 2026 will show a real top-line impact from AI knowledge investments made over the past two years [36][37]

AI Knowledge Platform & Market Opportunity - eGain is positioned as the 1 AI Knowledge Platform[5] - AI Knowledge helps companies reduce customer service costs by 75% and improve experience by 20 NPS points[9] - The AI Knowledge SaaS market for service is estimated to be over $20 billion[16] - Gartner predicts that by 2025, 100% of generative AI virtual customer assistant and virtual agent assistant projects lacking integration with modern knowledge management systems will fail[17] Financial Performance & Guidance - Q3FY25 total revenue was $21.0 million, a 6% decrease year-over-year[48] - Q3FY25 Non-GAAP net income was $0.8 million, representing a 4% margin[48] - Q3FY25 operating cash flow was $2.2 million, an 11% margin[48] - The company holds $68.7 million in cash and equivalents[48] - AI Knowledge ARR grew 11% year-over-year in Q3FY25[43] - AI Knowledge ARR represents 54% of SaaS ARR, up from 46% a year ago[44] - The company projects total revenue between $22.8 million and $23.3 million for Q4FY25 and between $88.0 million and $88.5 million for the full fiscal year 2025[59] Product & Customer Success - eGain AI Agent for Contact Center was launched in March 2025[47] - eGain AI Knowledge Hub is now KCS-Verified[46] - One customer achieved a 97% search success rate and a 10x speed to answer improvement using AI Knowledge[37]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-35314 eGain Corporation (Exact name of registrant as specified in its charter) Delaware 77-0466366 (State or othe ...

Core Viewpoint - eGain reported its fiscal 2025 third quarter results, highlighting a decline in revenue but an increase in profitability and cash flow, alongside significant business developments including a major expansion deal and product launch [2][5]. Financial Highlights Fiscal 2025 Third Quarter - Total revenue was $21.0 million, a decrease of 6% year over year [5]. - GAAP net income was $66,000, or $0.00 per share, compared to $1.5 million, or $0.05 per share in Q3 2024 [5]. - Non-GAAP net income was $765,000, or $0.03 per share, down from $2.6 million, or $0.08 per share in Q3 2024 [5]. - Cash provided by operating activities was $2.2 million, with an operating cash flow margin of 11% [5]. - Adjusted EBITDA was $1.2 million, compared to $2.3 million in Q3 2024 [5]. Fiscal 2025 First Nine Months - Total revenue for the first nine months was $65.2 million, down 7% year over year [5]. - GAAP net income was $1.4 million, or $0.05 per share, compared to $6.3 million, or $0.20 per share in the same period last year [5]. - Non-GAAP net income was $3.3 million, or $0.12 per share, down from $9.8 million, or $0.31 per share in the same period last year [5]. - Adjusted EBITDA was $4.2 million, compared to $8.8 million in the same period last year [5]. Fourth Quarter Financial Guidance - eGain expects total revenue for Q4 to be between $22.8 million to $23.3 million [5]. - GAAP net income is projected to be between $1.1 million to $1.6 million, or $0.04 to $0.06 per share [5]. - Non-GAAP net income is expected to be between $1.7 million to $2.2 million, or $0.06 to $0.08 per share [5]. - Full year revenue guidance has been lowered to $88.0 million to $88.5 million, while GAAP net income guidance has been raised to $2.5 million to $3.0 million [5]. Business Developments - eGain secured one of its largest expansion deals with a U.S. megabank shortly after the quarter closed [2]. - The company launched its AI Agent for Contact Center, which assists agents in real-time using trusted knowledge and reasoning [2]. - eGain was recognized by Gartner as an emerging leader in the Generative AI Technologies market [2].

Financial Performance - Total revenue for Q3 2025 was $21.0 million, down 6% year over year[5] - GAAP net income for Q3 2025 was $66,000, or $0.00 per share, compared to $1.5 million, or $0.05 per share in Q3 2024[5] - Non-GAAP net income for Q3 2025 was $765,000, or $0.03 per share, compared to $2.6 million, or $0.08 per share in Q3 2024[5] - Total revenue for the three months ended March 31, 2025, was $21,009 million, a decrease of 6% compared to $22,350 million for the same period in 2024[16] - GAAP total revenue for the nine months ended March 31, 2025, was $65,197 million, a decrease of 7% compared to $70,341 million in 2024[22] - GAAP SaaS revenue was $60,230 million, down 7% from $64,643 million in the prior year[22] - GAAP professional services revenue decreased by 13% to $4,967 million from $5,698 million year-over-year[22] - Constant currency growth rates indicate a consistent decline across major revenue segments, with total GAAP revenue down 8%[22] Cash Flow and Guidance - Cash provided by operating activities was $2.2 million, with an operating cash flow margin of 11%[5] - Total cash and cash equivalents decreased to $68.7 million from $83.0 million in Q3 2024[5] - eGain expects total revenue for Q4 2025 to be between $22.8 million and $23.3 million[5] - GAAP net income guidance for Q4 2025 is projected to be between $1.1 million and $1.6 million, or $0.04 to $0.06 per share[5] - Non-GAAP net income guidance for Q4 2025 is projected to be between $1.7 million and $2.2 million, or $0.06 to $0.08 per share[5] - eGain is lowering its total revenue guidance for the full fiscal year 2025 to $88.0 million to $88.5 million[10] - eGain is raising its GAAP net income guidance for the full fiscal year 2025 to $2.5 million to $3.0 million, or $0.09 to $0.10 per share[10] Expenses and Profitability - Research and development expenses increased to $7,514 million for the three months ended March 31, 2025, up from $6,655 million in the prior year, representing a 13% increase[20] - Total operating expenses for the three months ended March 31, 2025, were $14,259 million, slightly down from $14,554 million in the same quarter of 2024[16] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,172 million, down from $2,252 million in the same quarter of 2024[18] - The company incurred stock-based compensation of $699 million for the three months ended March 31, 2025, compared to $1,110 million in the same period of 2024[18] - The total cost of revenue for the three months ended March 31, 2025, was $6,723 million, a slight decrease from $6,858 million in the same quarter of 2024[16] - Non-GAAP total cost of revenue decreased by 2% to $19,390 million from $19,762 million year-over-year[22] - Non-GAAP gross profit was $45,807 million, reflecting a 9% decline from $50,579 million in the previous year[22] - Non-GAAP research and development expenses increased by 17% to $22,120 million compared to $18,852 million in the prior year[22] - GAAP operating expenses totaled $43,942 million, slightly down from $44,876 million year-over-year[22] - Non-GAAP operating expenses increased by 1% to $42,668 million from $42,287 million in the previous year[22] Strategic Focus - The company is focusing on new product development and market expansion strategies to drive future growth[22]