Core Points - Energean Israel has formalized a 15-year agreement with Israel Natural Gas Lines (INGL) for the transportation of up to one billion cubic meters of gas annually through the Nitzana pipeline to the Egyptian border [1] - The operational status of the Nitzana pipeline is contingent upon the completion of transmission agreements among Energean, Leviathan, and Tamar, with a deadline of 36 months from the signing date for functionality [2] - Energean Israel will cover 16.4% of the construction costs for the pipeline and compression station, approximately $100 million, primarily financed through a $70 million unsecured ten-year loan from Bank Hapoalim [3] - Energean's CEO emphasized the company's position as a key regional player focused on advancing export opportunities from Israeli assets [4] - The Israeli Ministry of Energy supports expanding gas exports to strengthen the market, and the agreement is seen as a milestone for growth in annual gas sales [5] - Energean has also signed a non-binding term sheet with an East Mediterranean client for natural gas sales, pending an export permit [5] - In July 2025, Energean and INA announced a final investment decision to develop the Irena gas field off the coast of Croatia [6]

Company Overview - eGain (EGAN) shares increased by 6% to close at $14.72, with a notable trading volume compared to typical sessions, and a total gain of 49.4% over the past four weeks [1] - The company is experiencing growth due to rising demand for its AI Knowledge Hub, which enhances AI-powered solutions [1] Earnings Expectations - eGain is projected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of 175% [2] - Expected revenues for the upcoming quarter are $23.24 million, representing a 6.6% increase from the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for eGain has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - eGain holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3] Industry Context - eGain operates within the Zacks Internet - Software industry, alongside TELUS Digital (TIXT), which has a Zacks Rank of 3 (Hold) and is expected to report an EPS of $0.09, an 80% increase year-over-year [3][4]

Core Insights - eGain has launched eGain Composer, a modular AI knowledge platform designed to enhance customer experience (CX) automation through Trusted Knowledge™ [1][5] - The platform addresses the fragmentation and inflexibility of current AI knowledge systems, providing a comprehensive solution for developers to create scalable AI CX applications [2] Benefits - eGain Composer offers robust APIs, Model Context Protocol (MCP) servers, and SDKs in Python and TypeScript, facilitating the integration of trusted enterprise knowledge in various formats [4] - The platform supports diverse environments through OpenAPI specifications, enabling flexible integrations and enhancing the overall development experience [4][7] - It provides granular API controls throughout the content management lifecycle, ensuring effective content lifecycle management from authoring to deprecation [7] Security and Compliance - eGain Composer adheres to high security and authentication standards, including OAuth 2.0, HTTPS, SOC 2, HIPAA, GDPR, and FedRAMP, ensuring advanced compliance for enterprises [7] Integration and Optimization - The platform is designed for seamless integration with AI agents, enabling enterprise search, answers, and reliable agentic actions across customer-facing platforms [7] - eGain Composer ensures ongoing improvement in search effectiveness and agentic reliability through closed-loop optimization cycles, maintaining content completeness, accuracy, and compliance [7]

Core Insights - eGain Corporation is transforming traditional knowledge management into AI-powered Knowledge Automation, addressing the content chaos that costs organizations approximately $31 billion annually [1] - The company’s AI Knowledge Hub automates manual knowledge management processes, delivering measurable ROI to various business functions including contact centers and HR [1][4] Industry Challenges - Time constraints and lack of resources are the primary barriers to knowledge capture and retention, as identified in a survey of 1000 organizations [2] - Knowledge silos and conflicting information are prevalent issues in contact centers and customer support operations, exacerbated by manual knowledge management processes [2][3] eGain AI Knowledge Method - The eGain AI Knowledge Method focuses on discovering essential knowledge, emphasizing that 90% of knowledge ROI often comes from just 10% of knowledge content [4] - The platform automates previously manual processes, enhancing efficiency in knowledge management [4][5] Benefits of Knowledge Automation - Intelligent Discovery: AI analyzes customer and employee interactions to identify critical knowledge [5] - Content Cleansing: AI eliminates duplicate or conflicting content, streamlining knowledge management [5] - Automated Curation: Trusted knowledge content is sourced and curated automatically, ensuring adherence to templates and style guides [5] - Deterministic Reasoning: AI converts compliance-heavy procedures into consistent answers, reducing errors [5] - Continuous Optimization: Ongoing maintenance and publishing of content is automated, improving organization and metadata generation [5] Impact on Various Departments - Contact Centers: Reduces Average Handle Time (AHT) and improves First-Contact Resolution (FCR) [5] - Customer Support Teams: Enhances customer experience metrics such as Customer Satisfaction (CSAT) and Net Promoter Score (NPS) [5] - HR Departments: Lowers training costs and streamlines employee onboarding processes [5] - Learning and Development: Facilitates efficient creation and maintenance of training materials [5] - Knowledge Management Teams: Breaks down silos to create a unified source of truth across the enterprise [6]

Core Insights - eGain Corporation introduced its eGain AI Agent 2 for Omnichannel CX Automation, focusing on enhancing reliability and consistency in customer experience through a hybrid AI approach [1][2][3] Group 1: Product Features - eGain AI Agent 2 utilizes a hybrid AI model that combines probabilistic reasoning for natural conversations and deterministic reasoning for precise, multi-step workflows, particularly in compliance-sensitive areas [8] - The solution is built on the eGain AI Knowledge Hub, ensuring that interactions are based on accurate and up-to-date information [3] - The PrismEval Service continuously optimizes the alignment between the knowledge base and AI-generated responses, enhancing quality assurance and reducing inaccuracies [4] Group 2: Customer Experience - eGain AI Agent 2 delivers "Assured Actions," providing consistent and reliable experiences across various contexts, which is crucial for building customer trust and meeting regulatory standards [5] - The solution integrates with CCaaS systems, offering real-time trusted answers and guidance for contact center agents, thereby improving both customer and agent experiences [6] Group 3: Deployment and Availability - eGain AI Agent 2 supports omnichannel interactions across phone, email, chat, messaging, and social media, with rapid deployment capabilities [9] - Organizations can configure an AI agent quickly, with the process taking as little as five minutes [9] - The product is currently available for interested organizations to learn more and configure through eGain's website [7]

Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank as of October 7th: eGain Corporation, StoneCo Ltd., and Alignment Healthcare, Inc. [1] Company Summaries - **eGain Corporation (EGAN)**: - Provides an AI-powered knowledge hub to enhance customer experiences - Zacks Rank 1 with a 52.2% increase in current year earnings estimate over the last 60 days - Shares increased by 51.4% in the last three months, outperforming the S&P 500's 7.8% gain - Holds a Momentum Score of A [1][2] - **StoneCo Ltd. (STNE)**: - A fintech company offering software solutions - Zacks Rank 1 with an 8.7% increase in current year earnings estimate over the last 60 days - Shares gained 9.7% in the last three months, also outperforming the S&P 500's 7.8% gain - Holds a Momentum Score of A [2] - **Alignment Healthcare, Inc. (ALHC)**: - A healthcare platform focused on seniors - Zacks Rank 1 with a 14.3% increase in current year earnings estimate over the last 60 days - Shares increased by 24.8% in the last three months, surpassing the S&P 500's 7.8% gain - Holds a Momentum Score of A [3]

Core Insights - eGain Corporation (NASDAQ: EGAN) is a software provider specializing in knowledge management solutions, but has faced challenges in reconciling its business story with its financial performance [1] Company Overview - eGain Corporation offers knowledge management solutions, which are critical for businesses aiming to enhance customer service and operational efficiency [1] - The company has been under scrutiny due to its relatively poor performance despite a solid business narrative [1] Analyst Background - Dr. Duru, a veteran in financial markets, has extensive experience including the dot-com bubble, financial crisis, and the coronavirus pandemic, which informs his unique perspectives on trading and investing [1] - Dr. Duru holds a B.S. in Mechanical Engineering and a Ph.D. in Engineering-Economic Systems, providing a strong analytical foundation for his insights [1] Investment Perspective - The blog "One-Twenty Two" by Dr. Duru challenges conventional market wisdom and offers analyses on various financial instruments including stocks, options, and cryptocurrencies [1] - The blog leverages both technical and fundamental analysis for short-term and long-term investment strategies [1]

Group 1 - eGain (EGAN) is outperforming the Computer and Technology sector with a year-to-date return of 43.3%, compared to the sector's average return of 20.6% [4] - eGain is ranked 2 (Buy) in the Zacks Rank system, indicating a strong earnings outlook with a 220% increase in the consensus estimate for its full-year earnings over the past three months [3] - The Internet - Software industry, to which eGain belongs, has an average return of 23.6% this year, further highlighting eGain's strong performance within its industry [5] Group 2 - Draganfly Inc. (DPRO) has also shown strong performance in the Computer and Technology sector with a year-to-date return of 30.2% [4] - Draganfly Inc. is also ranked 2 (Buy) in the Zacks Rank system, with a 37.9% increase in its current year EPS consensus estimate over the past three months [5] - The Computers - IT Services industry, where Draganfly Inc. is categorized, has underperformed with a return of -15.1% since the beginning of the year [6]

[Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, covering future financial performance, market expectations, and business plans - The report contains forward-looking statements regarding future periods, events, and financial performance, identified by words like "believe," "expect," "target," and conditional verbs; these statements are subject to various risks and uncertainties that could cause actual results to differ materially from projections[10](index=10&type=chunk)[11](index=11&type=chunk) - Key forward-looking statements include beliefs about non-GAAP operating income, expected benefits of solutions, market opportunities, customer and market expectations, sales cycles, financial metrics, AI automation in contact centers, business plans, technology changes (including AI), product development, competition, demand for solutions, customer composition, reliance on partnerships, cybersecurity risks, regulatory compliance, tax legislation effects, privacy laws, trade policies, intellectual property, capital resources, international operations, foreign currency fluctuations, inflation, and health epidemics[10](index=10&type=chunk) [Summary Risk Factors](index=7&type=section&id=Summary%20Risk%20Factors) The company faces numerous risks including operational unpredictability, SaaS model challenges, intense competition, and regulatory changes, which could impact its strategy and financial results - The company's business is exposed to numerous risks and uncertainties that could impact its strategy and financial results; key risks include the ability to manage business plans, improve solutions, innovate, execute sales and marketing, ensure customer acceptance, predict subscription renewals, adapt to new legislation, compete effectively, manage partnerships, obtain capital, manage growth, retain key personnel, protect intellectual property, and mitigate impacts from foreign currency fluctuations, inflation, global economic environment, trade policies, and public health pandemics[13](index=13&type=chunk)[14](index=14&type=chunk) - Specific operational risks highlighted are the inherent unpredictability of factors beyond control, risks associated with the SaaS business model, revenue and operating result fluctuations due to deferred revenue recognition, inability to accurately predict subscription renewal rates, lengthy and unpredictable sales cycles, dependence on a small number of key customers, intense competition in the customer engagement software market (including generative AI), and challenges in expanding sales and marketing[15](index=15&type=chunk) - Further risks include difficulties in customer product implementation, significant international operations exposure, unplanned system interruptions or capacity issues in third-party data centers, costly software errors, increased costs/liabilities from Service Level Agreements, dependence on broad market acceptance of applications and business model, inability to respond to rapid technological change, reliance on third-party technologies, and challenges in managing offshore product development and services[15](index=15&type=chunk) - Cybersecurity breaches, changes in privacy and data protection laws (e.g., GDPR), evolving regulations for cloud computing and AI, and changes in domestic and foreign trade policies (e.g., tariffs) also pose significant risks[16](index=16&type=chunk) [PART I](index=12&type=section&id=PART%20I) [ITEM 1. BUSINESS](index=12&type=section&id=ITEM%201.%20BUSINESS) eGain Corporation automates customer experience with an AI knowledge hub SaaS solution for enterprises, operating globally to enhance service and reduce costs through integrated AI Agent, AI Knowledge Hub, and Conversation Hub - eGain automates customer experience with an AI knowledge hub SaaS solution, aiming to improve customer experience and reduce costs for enterprises by synthesizing and delivering trusted answers[18](index=18&type=chunk) - The company's solution is structured into three main hubs: eGain AI Agent (for agent assistance), eGain AI Knowledge Hub (for centralized, guided knowledge), and eGain Conversation Hub (for omnichannel interaction management)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - eGain's solutions offer benefits such as enhanced customer experience, reduced operating costs through self-service automation and improved agent productivity, ensured compliance, and delivery of insights for service and product improvement[32](index=32&type=chunk) - The company primarily sells to large enterprises (over **$1 billion** in annual revenue or government organizations), which accounted for over **87%** of its annual recurring cloud revenue in fiscal year 2025; North America and EMEA collectively generated **78%** and **22%** of total revenue, respectively, in FY2025[37](index=37&type=chunk) - eGain competes with application software providers like LivePerson, NICE, and Verint, and occasionally with platform partners such as Five9, Genesys, Microsoft, Salesforce, and ServiceNow[39](index=39&type=chunk) - Growth strategies include advancing product and platform leadership (especially in AI), investing in direct sales and marketing, developing new partner relationships, and expanding within existing enterprise accounts[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - As of June 30, 2025, eGain had **446 employees** (**444 full-time**), with significant portions in product development (**173**) and services/support (**176**)[59](index=59&type=chunk) [ITEM 1A. RISK FACTORS](index=25&type=section&id=ITEM%201A.%20RISK%20FACTORS) eGain faces diverse risks from its business model, market competition, international operations, and technology, including revenue fluctuations, intense AI-driven competition, global operational exposure, cybersecurity threats, and evolving data privacy and AI regulations - The SaaS business model is subject to risks, including customer non-renewal or reduction of subscriptions, which can adversely affect operating and financial results; revenue recognition over time means downturns are not immediately reflected[68](index=68&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) - The market for customer engagement software, including generative AI, is highly competitive; failure to compete successfully against established and new entities with greater resources could adversely affect the business[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - Significant international operations (**22%** of revenue from EMEA, **43%** of workforce in India) expose the company to risks like foreign currency fluctuations, changes in data privacy laws (e.g., GDPR), geopolitical conflicts, and increased compensation costs in regions like India[95](index=95&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) - Cybersecurity breaches, unauthorized access to data, and system interruptions at third-party data centers or PaaS providers could harm reputation, lead to customer attrition, and incur significant legal and financial liabilities[100](index=100&type=chunk)[101](index=101&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[136](index=136&type=chunk) - Evolving data privacy laws (e.g., GDPR, CCPA, CPRA, India's DPDP) and AI regulations (e.g., EU AI Act) increase compliance costs, create legal uncertainties, and may limit the use and adoption of eGain's solutions[137](index=137&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk)[150](index=150&type=chunk) - The development and use of AI technologies carry risks such as flawed algorithms, biased datasets, and potential for harmful content, which could lead to reputational harm, regulatory scrutiny, or legal liability[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Dependence on a relatively small number of customers for a substantial portion of revenue means the loss of any significant customer could materially and adversely affect financial condition and results of operations[81](index=81&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=58&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) There are no unresolved staff comments from the SEC regarding the company's filings - The company has no unresolved staff comments from the Securities and Exchange Commission[176](index=176&type=chunk) [ITEM 1C. CYBERSECURITY](index=58&type=section&id=ITEM%201C.%20CYBERSECURITY) eGain maintains a robust cybersecurity framework aligned with NIST and ISO27001, overseen by a CISO and the Audit Committee, conducting third-party evaluations and managing risks, with no material impact from past incidents - eGain has an enterprise cybersecurity risk mitigation and governance process, detailed in its Information Security Protection Program (Security Plan), which aligns with NIST and ISO27001 frameworks[177](index=177&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - The company engages third-party providers for security control evaluations, including penetration testing and independent audits, to test the design and operational effectiveness of its security controls[178](index=178&type=chunk) - A Third-Party Cyber Risk Management Plan ensures due diligence on third parties, including security and privacy clauses in contracts and regular reviews[181](index=181&type=chunk) - A Cyber Incident Response Plan outlines processes for detecting, identifying, prioritizing, and analyzing security events, involving the CISO, legal counsel, and business stakeholders for appropriate response and mitigation[182](index=182&type=chunk) - The CISO, with over **25 years** of experience in IT and security, leads the company's cybersecurity strategy and reports to the Chief Financial Officer; the Audit Committee of the board oversees data privacy and cybersecurity risks, receiving annual updates from the CISO[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - As of the report date, eGain is not aware of any material risks from cybersecurity threats or past incidents that have materially affected or are likely to materially affect its business strategy, financial condition, results of operations, or cash flows[184](index=184&type=chunk) [ITEM 2. PROPERTIES](index=60&type=section&id=ITEM%202.%20PROPERTIES) eGain leases all its facilities, including headquarters in Sunnyvale, California, and offices in Newbury, England, and Pune, India, which are considered adequate for current and near-future operations - eGain leases all its facilities, including corporate headquarters in Sunnyvale, California, and offices in Newbury, England, and Pune, India[188](index=188&type=chunk) - The company believes its current offices are adequate for its present and near-future operating needs[188](index=188&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=60&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) eGain is not a party to any material legal proceedings and is unaware of significant pending or threatened actions, though it evaluates claims including intellectual property infringement and indemnifies customers - eGain is not currently a party to any legal proceedings, nor is it aware of any pending or threatened legal proceedings that could have a material adverse effect on its business, consolidated operating results, or financial condition[189](index=189&type=chunk) - In the ordinary course of business, the company is involved in various legal proceedings and claims, including alleged infringement of third-party patents and other intellectual property rights, commercial, labor, and employment matters[189](index=189&type=chunk) - The company indemnifies its customers against third-party intellectual property infringement claims, which could increase costs in the event of an adverse ruling[190](index=190&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=60&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to eGain Corporation - The disclosure requirement for mine safety is not applicable to eGain Corporation[191](index=191&type=chunk) [PART II](index=62&type=section&id=PART%20II) [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=62&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) eGain's common stock trades on Nasdaq under 'EGAN', with approximately 120 stockholders as of June 30, 2025; the company has never paid cash dividends and has a $40.0 million stock repurchase program with $1.2 million remaining - eGain's common stock is traded on the Nasdaq Stock Market under the symbol "**EGAN**"[194](index=194&type=chunk) - As of June 30, 2025, there were approximately **120 stockholders of record**[195](index=195&type=chunk) - The company has never declared or paid any cash dividends on its common stock and does not intend to in the foreseeable future, planning to retain all available funds for business operations[196](index=196&type=chunk) - On May 31, 2024, the board authorized a **$20.0 million** increase in its stock repurchase program, bringing the aggregate amount to **$40.0 million**; as of June 30, 2025, approximately **$1.2 million** remained available[197](index=197&type=chunk) Stock Repurchase Activity (Q4 FY2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (in thousands) | | :--- | :--- | :--- | :--- | | April 1, 2025 to April 30, 2025 | 183,906 | $5.38 | $3,962 | | May 1, 2025 to May 31, 2025 | 215,648 | $5.87 | $2,696 | | June 1, 2025 to June 30, 2025 | 230,858 | $6.53 | $1,188 | | **Total** | **630,412** | | | Cumulative Total Stockholder Return (FY2020-FY2025) | Index | 6/30/2020 | 6/30/2021 | 6/30/2022 | 6/30/2023 | 6/30/2024 | 6/30/2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | eGain Corporation | $100.00 | $103.33 | $87.76 | $67.42 | $56.80 | $56.26 | | Nasdaq Composite | $100.00 | $145.56 | $111.46 | $140.60 | $182.23 | $210.79 | | S&P Software & Services Select Industry Index | $100.00 | $154.47 | $100.40 | $120.90 | $137.30 | $172.80 | [ITEM 6. RESERVED](index=65&type=section&id=ITEM%206.%20RESERVED) This item is intentionally reserved and contains no information [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=65&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) eGain's total revenue decreased by **$4.4 million (4.7%)** to **$88.4 million** in FY2025, while net income significantly increased to **$32.3 million** due to a **$26.6 million** deferred tax valuation allowance release, with stable liquidity of **$62.9 million** in cash - eGain automates customer experience with an AI knowledge hub solution, selling its SaaS solution to enterprises to improve customer experience and reduce costs[210](index=210&type=chunk) Total Revenue (FY2025 vs. FY2024) | Revenue Category | FY2025 (in thousands) | FY2024 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | SaaS revenue | $81,921 | $85,082 | $(3,161) | (4)% | | Professional services | $6,510 | $7,721 | $(1,211) | (16)% | | **Total revenue** | **$88,431** | **$92,803** | **$(4,372)** | **(4.7)%** | Non-GAAP Operating Income (FY2025 vs. FY2024) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | | :--- | :--- | :--- | | Income from operations (GAAP) | $4,433 | $5,971 | | Add: Stock-based compensation | $2,449 | $4,529 | | **Non-GAAP income from operations** | **$6,882** | **$10,500** | - Net income significantly increased to **$32.3 million** in FY2025 from **$7.8 million** in FY2024, primarily due to an income tax benefit of **$26.6 million** in FY2025 (compared to a provision of **$1.9 million** in FY2024) resulting from the release of a deferred tax valuation allowance[285](index=285&type=chunk)[319](index=319&type=chunk) - Total costs and operating expenses decreased by **$2.8 million** in FY2025, mainly due to decreases in personnel-related expenses, legal expenses, outside consulting costs, and credit loss expenses, partially offset by increases in cloud computing and lead generation costs[281](index=281&type=chunk) Key Financial Measures (FY2025 vs. FY2024) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income from operations | $4,433 | $5,971 | $(1,538) | (26)% | | Operating margin | 5% | 6% | -1% | | | Interest income, net | $2,469 | $3,798 | $(1,329) | (35)% | | Other expense, net | $(1,265) | $(51) | $(1,214) | 2380% | | Income before income tax benefit (provision) | $5,637 | $9,718 | $(4,081) | (42)% | | Benefit from (provision for) income taxes | $26,617 | $(1,938) | $28,555 | -1473% | | Net income | $32,254 | $7,780 | $24,474 | 315% | | Basic EPS | $1.15 | $0.25 | $0.90 | 360% | | Diluted EPS | $1.13 | $0.25 | $0.88 | 352% | Liquidity and Capital Resources (FY2025 vs. FY2024) | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $62,909 | $70,003 | | Restricted cash | $8 | $8 | | Total liquidity sources | $95,700 | $101,700 | | Working capital | $38,400 | $44,500 | | Deferred revenue | $50,531 | $49,269 | Cash Flows (FY2025 vs. FY2024) | Cash Flow Activity | FY2025 (in thousands) | FY2024 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $5,263 | $12,454 | $(7,191) | | Net cash used in investing activities | $(565) | $(198) | $(367) | | Net cash used in financing activities | $(14,393) | $(15,391) | $998 | | Effect of exchange rate differences on cash and cash equivalents | $2,601 | $(62) | $2,663 | | Net decrease in cash, cash equivalents and restricted cash | $(7,094) | $(3,197) | $(3,897) | | Cash, cash equivalents and restricted cash at end of year | $62,917 | $70,011 | $(7,094) | [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=85&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) eGain faces market risks from foreign currency fluctuations, particularly USD, Euro, GBP, and INR, and interest rate changes, but does not use derivatives, with a 10% USD increase potentially decreasing foreign assets by **$2.6 million** - eGain is exposed to foreign currency exchange risk, principally from fluctuations between the U.S. Dollar, Euro, British Pound, and Indian Rupee, as international sales are made in local currencies[299](index=299&type=chunk) - As of June 30, 2025, identifiable assets denominated in foreign currency totaled approximately **$25.9 million**; a **10%** increase in the U.S. dollar's value relative to other currencies would decrease these assets by **$2.6 million**[299](index=299&type=chunk) - The company does not currently use derivative instruments to hedge against foreign exchange risk[299](index=299&type=chunk)[301](index=301&type=chunk) - eGain's exposure to interest rate risk relates primarily to interest earned on cash and cash equivalents; the company's investment policy focuses on short-term, low-risk investment-grade debt instruments[300](index=300&type=chunk) - A hypothetical **10%** change in market interest rates is not expected to have a material impact on the fair value of securities or cash flows/income[301](index=301&type=chunk) [PART III](index=141&type=section&id=PART%20III) [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](index=141&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information on eGain's directors, executive officers, and corporate governance, including an insider trading policy, is incorporated by reference from the 2025 Annual Meeting of Stockholders Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Annual Meeting of Stockholders Proxy Statement[477](index=477&type=chunk) - Specific information about executive officers is also provided in Part I, Item 1 of this report[478](index=478&type=chunk) - eGain has adopted an insider trading policy designed to promote compliance with insider trading laws, rules, and Nasdaq listing standards[479](index=479&type=chunk) [ITEM 11. EXECUTIVE COMPENSATION](index=141&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Executive compensation details are incorporated by reference from the Proxy Statement, with the company not granting equity awards in anticipation of material nonpublic information and historically limiting stock option grants to named executive officers - Information on executive compensation is incorporated by reference from the Proxy Statement[480](index=480&type=chunk) - eGain does not grant equity awards in anticipation of material nonpublic information, nor does it time the release of such information based on equity award grant dates[481](index=481&type=chunk) - Historically, including in fiscal year 2025, the compensation committee has not granted stock options, stock appreciation rights, or similar option-like instruments to named executive officers, except in certain circumstances like hiring or promotion[481](index=481&type=chunk) [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=141&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Security ownership information is incorporated by reference from the Proxy Statement; as of June 30, 2025, eGain had **3,954,716** outstanding options and rights with a weighted-average exercise price of **$8.80**, and **2,089,443** shares available for future issuance - Information on security ownership of certain beneficial owners and management is incorporated by reference from the Proxy Statement[482](index=482&type=chunk) Equity Compensation Plan Summary (as of June 30, 2025) | Plan Category | Number of securities to be issued upon exercise of outstanding options and rights (a) | Weighted-average exercise price of outstanding options and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders (2005 Stock Incentive Plan) | 3,477,199 | $9.67 | 2,089,443 | | Equity compensation plans not approved by security holders (2005 Management Stock Option Plan) | 477,517 | $2.49 | — | | **Total** | **3,954,716** | **$8.80** | **2,089,443** | [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE](index=142&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%20AND%20DIRECTOR%20INDEPENDENCE) Information regarding certain relationships, related party transactions, and director independence is incorporated by reference from the Proxy Statement - Information on related party transactions, director independence, and board meetings/committees is incorporated by reference from the Proxy Statement[484](index=484&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES](index=142&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Information concerning principal accounting fees and services is incorporated by reference from the Proxy Statement - Information on principal accounting fees and services is incorporated by reference from the Proxy Statement[485](index=485&type=chunk) [PART IV](index=143&type=section&id=PART%20IV) [ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES](index=143&type=section&id=ITEM%2015.%20EXHIBIT%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section details the financial statements, schedules, and exhibits filed with the Form 10-K, including consolidated financial statements, a valuation and qualifying accounts schedule, and a comprehensive list of corporate documents and certifications - The report includes consolidated financial statements as of June 30, 2025 and 2024, and for the years ended June 30, 2025 and 2024, as listed in Item 8[488](index=488&type=chunk) Schedule II—Valuation and Qualifying Accounts (FY2025 vs. FY2024) | Provision for Credit Losses | Balance at Beginning of Period | Additions Charged to Expense | Written Off, Net of Recoveries | Balance at End of Period | | :--- | :--- | :--- | :--- | :--- | | Year ended June 30, 2025 | $59 | $63 | $(115) | $7 | | Year ended June 30, 2024 | $237 | $93 | $(271) | $59 | - A comprehensive list of exhibits is provided, including organizational documents, stock plans, lease agreements, insider trading policy, and various certifications[492](index=492&type=chunk)[493](index=493&type=chunk)[494](index=494&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=147&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) This item is not applicable to the report - The Form 10-K Summary is not applicable[497](index=497&type=chunk) [SIGNATURES](index=148&type=section&id=SIGNATURES) The report is signed by eGain Corporation's CEO, Ashutosh Roy, and CFO, Eric N. Smit, along with other directors, as of September 12, 2025, granting power of attorney for amendments - The report is signed by Ashutosh Roy (Chief Executive Officer) and Eric N. Smit (Chief Financial Officer) on September 12, 2025[502](index=502&type=chunk)[505](index=505&type=chunk) - A power of attorney is granted to the Chief Executive Officer and Chief Financial Officer to sign and file any amendments to this annual report[503](index=503&type=chunk)

Company Performance - eGain (EGAN) has seen a significant increase in its stock price, rising 39.6% over the past month and reaching a new 52-week high of $8.41 [1] - Year-to-date, eGain's stock has gained 31.3%, outperforming the Zacks Computer and Technology sector's 16.8% and the Zacks Internet - Software industry's 22.7% returns [1] Earnings and Revenue - eGain has a strong track record of positive earnings surprises, beating the Zacks Consensus Estimate in the last four quarters [2] - In the latest earnings report on September 4, 2025, eGain reported an EPS of $0.09, exceeding the consensus estimate of $0.07 [2] - For the current fiscal year, eGain is projected to achieve earnings of $0.35 per share on revenues of $91.74 million, indicating a 75% increase in EPS with a 3.74% change in revenues [2] Valuation Metrics - eGain's current valuation metrics show it trading at 23.4X current fiscal year EPS estimates, below the peer industry average of 31.6X [5] - On a trailing cash flow basis, eGain trades at 22.7X compared to the peer group's average of 27X, suggesting it is not among the top value stocks [5] Zacks Rank and Style Scores - eGain holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, which positions it favorably for potential gains [6] - The stock has a Value Score of C, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of B [5][6] Industry Comparison - The Internet - Software industry is performing well, ranking in the top 31% of all industries, providing favorable conditions for eGain and its peers [9] - CLEAR Secure, Inc. (YOU), a peer in the industry, also shows strong performance with a Zacks Rank of 2 (Buy) and a projected EPS of $1.07 on revenues of $889.15 million for the current fiscal year [7][8]