Core Insights - eGain reported solid bookings and strong profitability for fiscal 2025, with a significant deal signed in the fourth quarter and healthy demand in the pipeline [2][3] - The company is well-positioned to capitalize on opportunities in AI customer experience automation [2] Fiscal 2025 Fourth Quarter Financial Highlights - Total revenue for Q4 2025 was $23.2 million, representing an 11% increase sequentially and a 3% increase year over year [5] - GAAP net income was $30.9 million, or $1.13 per share on a basic basis, compared to $1.5 million, or $0.05 per share in Q4 2024 [5] - Adjusted EBITDA for Q4 2025 was $4.5 million, reflecting a 19% margin, compared to $2.4 million and an 11% margin in Q4 2024 [5] Fiscal 2025 Full Year Financial Highlights - Total revenue for fiscal 2025 was $88.4 million, down 5% year over year [5] - GAAP net income for the full year was $32.3 million, or $1.15 per share on a basic basis, compared to $7.8 million, or $0.25 per share in fiscal 2024 [5] - Adjusted EBITDA for the full year was $8.6 million, with a 10% margin, compared to $11.2 million and a 12% margin in fiscal 2024 [5] Fiscal 2026 Financial Guidance - For Q1 of fiscal 2026, eGain expects total revenue between $23.0 million to $23.5 million and GAAP net income of $900,000 to $1.6 million [4] - For the full fiscal year 2026, total revenue is expected to be between $90.5 million to $92.0 million, with GAAP net income projected at $3.5 million to $5.0 million [4] Stock Repurchase Program - eGain's Board of Directors approved a $20 million increase in its stock repurchase program, raising the total authorization to $60 million [6] - The program will be funded using existing cash or future cash flows, reflecting the company's belief that its shares are undervalued [7] Non-GAAP Financial Measures - The company provided non-GAAP financial measures, including adjusted EBITDA and non-GAAP net income, to offer additional insights into its operating results [8] - Adjusted EBITDA is defined as net income adjusted for various expenses, while non-GAAP net income excludes certain tax benefits and stock-based compensation [8]

[eGain Announces Fourth Quarter and Fiscal Year 2025 Financial Results and $20 Million Stock Repurchase Program Expansion](index=1&type=section&id=eGain%20Announces%20Fourth%20Quarter%20and%20Fiscal%20Year%202025%20Financial%20Results%20and%20%2420%20Million%20Stock%20Repurchase%20Program%20Expansion) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ashu Roy expressed satisfaction with solid bookings and strong profitability in fiscal 2025, highlighting a significant deal and healthy pipeline, positioning eGain to capitalize on AI CX automation opportunities - CEO Ashu Roy noted **solid bookings and strong profitability** for fiscal 2025, driven by one of the largest deals ever signed and a healthy demand pipeline[2](index=2&type=chunk) - The company is well-positioned to capture opportunities in **AI CX automation** powered by trusted knowledge[2](index=2&type=chunk) [About eGain](index=4&type=section&id=About%20eGain) eGain provides an AI Knowledge Hub designed to enhance customer experience and reduce costs by delivering reliable, consumable answers - eGain offers an **AI Knowledge Hub** that helps businesses improve customer experience and reduce costs[11](index=11&type=chunk) - The platform achieves this by delivering **trusted, consumable answers**[11](index=11&type=chunk) [Fiscal 2025 Fourth Quarter Financial Highlights](index=1&type=section&id=Fiscal%202025%20Fourth%20Quarter%20Financial%20Highlights) [GAAP Financials (Q4 FY2025)](index=1&type=section&id=GAAP%20Financials%20%28Q4%20FY2025%29) Q4 FY2025 saw total revenue increase by 3% year-over-year and 11% sequentially, reaching $23.2 million. GAAP net income surged to $30.9 million, or $1.13 per basic share, primarily due to a $29.0 million tax benefit from the release of a valuation allowance Q4 FY2025 GAAP Financial Highlights | Metric | Q4 FY2025 | Q4 FY2024 | YoY Change | Sequential Change | | :----- | :-------- | :-------- | :--------- | :---------------- | | Total Revenue | $23.2 million | $22.462 million | +3% | +11% | | GAAP Net Income | $30.9 million | $1.5 million | +1960% | - | | GAAP EPS (Basic) | $1.13 | $0.05 | +2160% | - | | GAAP EPS (Diluted) | $1.11 | $0.05 | +2120% | - | - GAAP net income for Q4 FY2025 includes a tax benefit of approximately **$29.0 million** from the release of a majority of the company's valuation allowance[4](index=4&type=chunk) [Adjusted EBITDA (Q4 FY2025)](index=1&type=section&id=Adjusted%20EBITDA%20%28Q4%20FY2025%29) Adjusted EBITDA for Q4 FY2025 increased to $4.5 million, representing a 19% margin, up from $2.4 million (11% margin) in Q4 FY2024 Q4 FY2025 Adjusted EBITDA | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :----- | :-------- | :-------- | :----- | | Adjusted EBITDA | $4.5 million | $2.4 million | +87.5% | | Adjusted EBITDA Margin | 19% | 11% | +8 ppts | [Stock Repurchases (Q4 FY2025)](index=1&type=section&id=Stock%20Repurchases%20%28Q4%20FY2025%29) In Q4 FY2025, eGain repurchased approximately 630,000 shares at an average price of $5.97 per share, totaling $3.8 million Q4 FY2025 Stock Repurchase Activity | Metric | Q4 FY2025 | | :----- | :-------- | | Shares Repurchased | ~630,000 | | Average Price per Share | $5.97 | | Total Value | $3.8 million | [Fiscal 2025 Full Year Financial Highlights](index=1&type=section&id=Fiscal%202025%20Full%20Year%20Financial%20Highlights) [GAAP Financials (FY2025)](index=1&type=section&id=GAAP%20Financials%20%28FY2025%29) Full year FY2025 total revenue was $88.4 million, down 5% year-over-year. GAAP net income significantly increased to $32.3 million, or $1.15 per basic share, primarily due to a $29.0 million tax benefit FY2025 GAAP Financial Highlights | Metric | FY2025 | FY2024 | YoY Change | | :----- | :----- | :----- | :--------- | | Total Revenue | $88.4 million | $92.803 million | -5% | | GAAP Net Income | $32.3 million | $7.8 million | +314% | | GAAP EPS (Basic) | $1.15 | $0.25 | +360% | | GAAP EPS (Diluted) | $1.13 | $0.25 | +352% | - GAAP net income for fiscal 2025 includes a tax benefit of approximately **$29.0 million** from the release of a majority of the company's valuation allowance[4](index=4&type=chunk) [Adjusted EBITDA (FY2025)](index=1&type=section&id=Adjusted%20EBITDA%20%28FY2025%29) Adjusted EBITDA for fiscal 2025 was $8.6 million, representing a 10% margin, down from $11.2 million (12% margin) in fiscal 2024 FY2025 Adjusted EBITDA | Metric | FY2025 | FY2024 | Change | | :----- | :----- | :----- | :----- | | Adjusted EBITDA | $8.6 million | $11.2 million | -23.2% | | Adjusted EBITDA Margin | 10% | 12% | -2 ppts | [Cash Flow & Cash Equivalents (FY2025)](index=1&type=section&id=Cash%20Flow%20%26%20Cash%20Equivalents%20%28FY2025%29) Cash provided by operations for fiscal 2025 was $5.3 million, with an operating cash flow margin of 6%. Total cash and cash equivalents decreased to $62.9 million as of June 30, 2025, from $70.0 million a year prior FY2025 Cash Flow and Cash Equivalents | Metric | FY2025 | FY2024 | Change | | :----- | :----- | :----- | :----- | | Cash Provided by Operations | $5.3 million | - | - | | Operating Cash Flow Margin | 6% | - | - | | Total Cash & Cash Equivalents (as of June 30) | $62.9 million | $70.0 million | -10.1% | [Stock Repurchases (FY2025)](index=1&type=section&id=Stock%20Repurchases%20%28FY2025%29) For the full fiscal year 2025, eGain repurchased approximately 2,616,000 shares at an average price of $6.03 per share, totaling $15.8 million FY2025 Stock Repurchase Activity | Metric | FY2025 | | :----- | :----- | | Shares Repurchased | ~2,616,000 | | Average Price per Share | $6.03 | | Total Value | $15.8 million | [Fiscal 2026 Financial Guidance](index=1&type=section&id=Fiscal%202026%20Financial%20Guidance) [Fiscal 2026 First Quarter Guidance](index=1&type=section&id=Fiscal%202026%20First%20Quarter%20Guidance) For Q1 FY2026, eGain expects total revenue between $23.0 million and $23.5 million, GAAP net income of $0.9 million to $1.6 million, and Adjusted EBITDA of $3.7 million to $4.4 million (16% to 19% margin) Q1 FY2026 Financial Guidance | Metric | Guidance Range | | :----- | :------------- | | Total Revenue | $23.0 million - $23.5 million | | GAAP Net Income | $0.9 million - $1.6 million | | GAAP EPS | $0.03 - $0.06 | | Non-GAAP Net Income | $3.1 million - $3.8 million | | Non-GAAP EPS | $0.11 - $0.14 | | Adjusted EBITDA | $3.7 million - $4.4 million | | Adjusted EBITDA Margin | 16% - 19% | - Q1 FY2026 GAAP net income guidance includes approximately **$800,000** in stock-based compensation expense and **$1.4 million** in warrant expense[4](index=4&type=chunk) [Fiscal 2026 Full Year Guidance](index=1&type=section&id=Fiscal%202026%20Full%20Year%20Guidance) For the full fiscal year 2026, eGain anticipates total revenue between $90.5 million and $92.0 million, GAAP net income of $3.5 million to $5.0 million, and Adjusted EBITDA of $10.4 million to $11.9 million (11% to 13% margin) FY2026 Financial Guidance | Metric | Guidance Range | | :----- | :------------- | | Total Revenue | $90.5 million - $92.0 million | | GAAP Net Income | $3.5 million - $5.0 million | | GAAP EPS | $0.13 - $0.18 | | Non-GAAP Net Income | $8.3 million - $9.8 million | | Non-GAAP EPS | $0.30 - $0.36 | | Adjusted EBITDA | $10.4 million - $11.9 million | | Adjusted EBITDA Margin | 11% - 13% | - FY2026 GAAP net income guidance includes approximately **$3.4 million** in stock-based compensation expense[4](index=4&type=chunk) [Guidance Assumption](index=3&type=section&id=Guidance%20Assumption) The financial guidance for Q1 and full fiscal year 2026 assumes a weighted average of approximately 27.5 million shares outstanding - Weighted average shares outstanding are expected to be approximately **27.5 million** for both Q1 FY2026 and the full fiscal year 2026[5](index=5&type=chunk) [Stock Repurchase Program](index=3&type=section&id=Stock%20Repurchase%20Program) [Program Expansion Details](index=3&type=section&id=Program%20Expansion%20Details) The Board of Directors approved a $20 million increase to the stock repurchase program, raising the total authorized amount from $40 million to $60 million. The program will be funded by existing cash or future cash flows Stock Repurchase Program Expansion | Metric | Old Authorization | New Authorization | Increase | | :----- | :---------------- | :---------------- | :------- | | Total Program Amount | $40 million | $60 million | $20 million | - The stock repurchase program will be funded using **existing cash or future cash flows**[6](index=6&type=chunk) [CEO Commentary on Repurchase Program](index=3&type=section&id=CEO%20Commentary%20on%20Repurchase%20Program) CEO Ashu Roy stated that the strong balance sheet enables focus on long-term shareholder value, and the increased authorization reflects the belief that eGain's shares are undervalued and confidence in the AI knowledge market opportunity - CEO Ashu Roy emphasized that the **strong balance sheet** supports driving long-term shareholder value[7](index=7&type=chunk) - The increased repurchase authorization indicates management's belief that eGain's shares are **undervalued** and demonstrates confidence in the **AI knowledge market opportunity**[7](index=7&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Rationale](index=3&type=section&id=Definition%20and%20Rationale) eGain uses non-GAAP measures like Adjusted EBITDA and Non-GAAP net income to provide supplemental information for evaluating operating results and trends, comparing performance, and aiding management's financial and operational decision-making. These adjustments primarily account for depreciation, stock-based compensation, interest, taxes (including valuation allowance release), and severance - Adjusted EBITDA is defined as net income adjusted for depreciation, stock-based compensation, interest income, income taxes (including benefit from valuation allowance release), other expense, and severance[8](index=8&type=chunk) - Non-GAAP net income is adjusted for the benefit from income taxes related to the release of valuation allowance and stock-based compensation expense[8](index=8&type=chunk) - These non-GAAP measures are used by management for trend analysis, budgeting, planning, and to provide investors with additional tools for evaluating ongoing operating results and comparing with other software companies[8](index=8&type=chunk) [GAAP to Non-GAAP Reconciliation - Q4 FY2025](index=7&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation%20-%20Q4%20FY2025) For Q4 FY2025, non-GAAP income from operations was $3.743 million, Adjusted EBITDA was $4.468 million, and non-GAAP net income was $2.397 million. Supplemental data shows SaaS revenue growth of 6% (5% constant currency) and a non-GAAP gross profit increase of 8% (6% constant currency) Non-GAAP Income from Operations (Q4 FY2025) | Metric | Q4 FY2025 (Thousands USD) | Q4 FY2024 (Thousands USD) | | :----- | :-------- | :-------- | | GAAP Income from Operations | $3,247 | $1,192 | | Stock-based Compensation | $496 | $1,016 | | **Non-GAAP Income from Operations** | **$3,743** | **$2,208** | Adjusted EBITDA Reconciliation (Q4 FY2025) | Metric | Q4 FY2025 (Thousands USD) | Q4 FY2024 (Thousands USD) | | :----- | :-------- | :-------- | | Net Income (GAAP) | $30,865 | $1,506 | | Depreciation and amortization | $77 | $91 | | Stock-based compensation expense | $496 | $1,016 | | Interest income, net | ($440) | ($865) | | Provision for income taxes | $1,396 | $513 | | Benefit from income taxes related to valuation allowance release | ($28,964) | — | | Other expense, net | $390 | $38 | | Severance and related charges | $648 | $104 | | **Adjusted EBITDA** | **$4,468** | **$2,403** | Non-GAAP Net Income Reconciliation (Q4 FY2025) | Metric | Q4 FY2025 (Thousands USD) | Q4 FY2024 (Thousands USD) | | :----- | :-------- | :-------- | | Net Income (GAAP) | $30,865 | $1,506 | | Benefit from income taxes related to valuation allowance release | ($28,964) | — | | Stock-based compensation | $496 | $1,016 | | **Non-GAAP Net Income** | **$2,397** | **$2,522** | | Non-GAAP Basic EPS | $0.09 | $0.08 | | Non-GAAP Diluted EPS | $0.09 | $0.08 | Other GAAP to Non-GAAP Supplemental Financial Information (Q4 FY2025) Q4 FY2025 Revenue and Gross Profit (GAAP & Non-GAAP) | Metric | Q4 FY2025 (Thousands USD) | Q4 FY2024 (Thousands USD) | Growth Rate | Constant Currency Growth Rate | | :----- | :-------- | :-------- | :---------- | :---------------------------- | | GAAP SaaS Revenue | $21,691 | $20,439 | 6% | 5% | | GAAP Professional Services Revenue | $1,543 | $2,023 | (24%) | (25%) | | Total GAAP Revenue | $23,234 | $22,462 | 3% | 2% | | Non-GAAP Gross Profit | $17,066 | $15,869 | 8% | 6% | Q4 FY2025 Non-GAAP Operating Expenses | Metric | Q4 FY2025 (Thousands USD) | Q4 FY2024 (Thousands USD) | Growth Rate | Constant Currency Growth Rate | | :----- | :-------- | :-------- | :---------- | :---------------------------- | | Non-GAAP Research and Development | $6,844 | $6,350 | 8% | 7% | | Non-GAAP Sales and Marketing | $4,566 | $5,045 | (9%) | (11%) | | Non-GAAP General and Administrative | $1,913 | $2,266 | (16%) | (17%) | | Total Non-GAAP Operating Expenses | $13,323 | $13,661 | (2%) | (3%) | [GAAP to Non-GAAP Reconciliation - FY2025](index=7&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation%20-%20FY2025) For the full fiscal year 2025, non-GAAP income from operations was $6.882 million, Adjusted EBITDA was $8.629 million, and non-GAAP net income was $5.739 million. Supplemental data shows a 4% (constant currency) decline in SaaS revenue and a 5% (constant currency) decline in total GAAP revenue, with non-GAAP gross profit decreasing by 5% (6% constant currency) Non-GAAP Income from Operations (FY2025) | Metric | FY2025 (Thousands USD) | FY2024 (Thousands USD) | | :----- | :----- | :----- | | GAAP Income from Operations | $4,433 | $5,971 | | Stock-based Compensation | $2,449 | $4,529 | | **Non-GAAP Income from Operations** | **$6,882** | **$10,500** | Adjusted EBITDA Reconciliation (FY2025) | Metric | FY2025 (Thousands USD) | FY2024 (Thousands USD) | | :----- | :----- | :----- | | Net Income (GAAP) | $32,254 | $7,780 | | Depreciation and amortization | $340 | $387 | | Stock-based compensation expense | $2,449 | $4,529 | | Interest income, net | ($2,469) | ($3,798) | | Provision for income taxes | $2,347 | $1,938 | | Benefit from income taxes related to valuation allowance release | ($28,964) | — | | Other expense, net | $1,265 | $51 | | Severance and related charges | $1,407 | $351 | | **Adjusted EBITDA** | **$8,629** | **$11,238** | Non-GAAP Net Income Reconciliation (FY2025) | Metric | FY2025 (Thousands USD) | FY2024 (Thousands USD) | | :----- | :----- | :----- | | Net Income (GAAP) | $32,254 | $7,780 | | Benefit from income taxes related to valuation allowance release | ($28,964) | — | | Stock-based compensation | $2,449 | $4,529 | | **Non-GAAP Net Income** | **$5,739** | **$12,309** | | Non-GAAP Basic EPS | $0.20 | $0.40 | | Non-GAAP Diluted EPS | $0.20 | $0.39 | Other GAAP to Non-GAAP Supplemental Financial Information (FY2025) FY2025 Revenue and Gross Profit (GAAP & Non-GAAP) | Metric | FY2025 (Thousands USD) | FY2024 (Thousands USD) | Growth Rate | Constant Currency Growth Rate | | :----- | :----- | :----- | :---------- | :---------------------------- | | GAAP SaaS Revenue | $81,921 | $85,082 | (4%) | (4%) | | GAAP Professional Services Revenue | $6,510 | $7,721 | (16%) | (16%) | | Total GAAP Revenue | $88,431 | $92,803 | (5%) | (5%) | | Non-GAAP Gross Profit | $62,873 | $66,448 | (5%) | (6%) | FY2025 Non-GAAP Operating Expenses | Metric | FY2025 (Thousands USD) | FY2024 (Thousands USD) | Growth Rate | Constant Currency Growth Rate | | :----- | :----- | :----- | :---------- | :---------------------------- | | Non-GAAP Research and Development | $28,964 | $25,202 | 15% | 15% | | Non-GAAP Sales and Marketing | $19,004 | $21,470 | (11%) | (12%) | | Non-GAAP General and Administrative | $8,023 | $9,276 | (14%) | (14%) | | Total Non-GAAP Operating Expenses | $55,991 | $55,948 | 0% | 0% | [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $148.0 million from $127.9 million in 2024, primarily driven by an increase in "Other assets, net." Total liabilities decreased slightly to $67.3 million from $69.4 million, while total stockholders' equity significantly increased to $80.7 million from $58.5 million Condensed Consolidated Balance Sheets (Key Figures) | Metric | June 30, 2025 (Thousands USD) | June 30, 2024 (Thousands USD) | Change (Thousands USD) | | :-------------------- | :------------ | :------------ | :----- | | Cash and cash equivalents | $62,909 | $70,003 | ($7,094) | | Total current assets | $100,567 | $107,124 | ($6,557) | | Total assets | $148,005 | $127,852 | $20,153 | | Total current liabilities | $62,151 | $62,613 | ($462) | | Total liabilities | $67,274 | $69,356 | ($2,082) | | Total stockholders' equity | $80,731 | $58,496 | $22,235 | - The significant increase in total assets is largely attributable to a rise in **"Other assets, net"** from **$1.511 million** in 2024 to **$28.592 million** in 2025[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q4 FY2025, total revenue was $23.234 million (up 3% YoY), and net income was $30.865 million (up significantly YoY due to tax benefit). For the full FY2025, total revenue was $88.431 million (down 5% YoY), and net income was $32.254 million (up significantly YoY due to tax benefit) Condensed Consolidated Statements of Operations (Q4 & FY2025) | Metric | Q4 FY2025 (Thousands USD) | Q4 FY2024 (Thousands USD) | FY2025 (Thousands USD) | FY2024 (Thousands USD) | | :-------------------- | :-------- | :-------- | :----- | :----- | | SaaS Revenue | $21,691 | $20,439 | $81,921 | $85,082 | | Professional Services Revenue | $1,543 | $2,023 | $6,510 | $7,721 | | Total Revenue | $23,234 | $22,462 | $88,431 | $92,803 | | Gross Profit | $16,880 | $15,556 | $62,008 | $65,211 | | Income from Operations | $3,247 | $1,192 | $4,433 | $5,971 | | Net Income | $30,865 | $1,506 | $32,254 | $7,780 | | Basic EPS | $1.13 | $0.05 | $1.15 | $0.25 | | Diluted EPS | $1.11 | $0.05 | $1.13 | $0.25 | - The significant increase in net income for both Q4 and FY2025 was primarily driven by a substantial benefit from income taxes, amounting to **$27.568 million** in Q4 and **$26.617 million** for the full year[17](index=17&type=chunk) Stock-Based Compensation Included in Costs and Expenses | Category | Q4 FY2025 (Thousands USD) | Q4 FY2024 (Thousands USD) | FY2025 (Thousands USD) | FY2024 (Thousands USD) | | :------- | :-------- | :-------- | :----- | :----- | | Cost of revenue | $186 | $313 | $865 | $1,237 | | Research and development | $117 | $329 | $640 | $1,424 | | Sales and marketing | $75 | $169 | $352 | $645 | | General and administrative | $118 | $205 | $592 | $1,223 | | **Total Stock-based Compensation** | **$496** | **$1,016** | **$2,449** | **$4,529** | [Additional Information](index=3&type=section&id=Additional%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) eGain will host a teleconference on September 4, 2025, at 2:00 p.m. Pacific Time to discuss its fiscal 2025 fourth quarter and full year results, with live and archived webcasts available on its investor relations website - A teleconference to discuss Q4 and FY2025 results will be held on **September 4, 2025, at 2:00 p.m. Pacific Time**[9](index=9&type=chunk) - Live and archived webcasts will be available on the **"Investor relations" section of eGain's website (www.egain.com)**[9](index=9&type=chunk) - A phone replay will be available for one week following the call[9](index=9&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements, including financial guidance and market opportunities, which are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. The company disclaims any obligation to update these statements - The press release includes forward-looking statements regarding financial guidance for FY2026, market demand for AI-enabled solutions, and the company's belief that its shares are undervalued[12](index=12&type=chunk) - These statements involve risks, uncertainties, and assumptions, such as technological advancements in generative AI, market demand fluctuations, and economic conditions, which could cause actual results to differ materially[12](index=12&type=chunk) - eGain assumes no obligation to update these forward-looking statements, except as required by law[12](index=12&type=chunk) [Trademarks & Investor Relations](index=4&type=section&id=Trademarks%20%26%20Investor%20Relations) This section provides information on eGain's trademarks and contact details for investor relations inquiries - eGain, the eGain logo, and other product names are **trademarks or registered trademarks of eGain Corporation**[13](index=13&type=chunk) - Investor relations contacts are **Todd Kehrli and Jim Byers of PondelWilkinson, Inc.**[13](index=13&type=chunk)

Core Viewpoint - eGain is set to announce its fiscal 2025 fourth quarter and full year financial results on September 4, 2025, followed by an investor conference call and webcast led by CEO Ashu Roy and CFO Eric Smit [1]. Company Information - eGain is an AI knowledge platform focused on improving service experiences and reducing costs by providing trusted, consumable answers through its Knowledge Hub [2]. Investor Relations - The investor conference call will take place on September 4 at 2:00 p.m. Pacific Time (5:00 p.m. ET), with a live and archived webcast available on eGain's website [3]. - To join the live call, participants can dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) [3]. - A phone replay of the conference call will be available starting two hours after the call and will remain accessible for one week [3].

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 ...