Core Insights - eGain Corporation has appointed John Copeland as Vice President of Marketing, bringing extensive experience in marketing analytics and digital transformation from leading technology companies [1][2] - Copeland's appointment is expected to drive eGain's marketing transformation and accelerate growth in the AI CX automation market [2] Company Background - eGain is a provider of AI CX automation powered by Trusted Knowledge™, aiming to improve business experiences and reduce costs through consumable answers [5] - The company is positioned to leverage the convergence of AI and enterprise knowledge to transform customer experiences [5] Executive Experience - John Copeland previously held leadership roles at ServiceNow, Adobe, eBay, and consulting firms like McKinsey & Company, where he focused on marketing analytics and customer-centric strategies [2][3][4] - At ServiceNow, he optimized global marketing activities and led the activation of Generative AI use cases [2] - His tenure at Adobe included leading teams to enhance digital capabilities and optimize marketing investments across various business segments [3]

Core Insights - eGain Corporation, listed on NASDAQ as EGAN, specializes in customer engagement solutions within the Internet - Software industry, competing with other software companies in the same domain [1] Financial Performance - eGain reported earnings per share (EPS) of $0.09 for the quarter ending June 2025, exceeding the estimated EPS of $0.07, resulting in a 28.57% earnings surprise [2] - The company's revenue for the same quarter was $23.23 million, slightly above the estimated $23.22 million, marking a 1.55% increase over the Zacks Consensus Estimate and an improvement from $22.46 million in the same period last year [3][6] - eGain has consistently outperformed consensus EPS estimates over the past four quarters and surpassed consensus revenue estimates twice in the last four quarters [2][3] Valuation Metrics - eGain's price-to-earnings (P/E) ratio stands at approximately 59.81, indicating that investors are willing to pay $59.81 for every dollar of earnings [4] - The price-to-sales ratio is 1.93, and the enterprise value to sales ratio is 1.18, reflecting the company's valuation relative to its revenue [4] Financial Health - The company maintains a low debt-to-equity ratio of 0.07, indicating a conservative approach to leveraging its equity [5][6] - eGain's current ratio of 1.72 demonstrates a good level of liquidity to cover its short-term liabilities, highlighting its strong financial health [5][6]

Group 1 - eGain reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and showing an increase from $0.08 per share a year ago, resulting in an earnings surprise of +28.57% [1] - The company achieved revenues of $23.23 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.55% and increasing from $22.46 million year-over-year [2] - eGain has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times during the same period [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - eGain shares have increased by approximately 0.2% since the beginning of the year, while the S&P 500 has gained 9.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $23.73 million, and for the current fiscal year, it is $0.23 on revenues of $97.93 million [7] Group 3 - The Zacks Industry Rank indicates that the Internet - Software sector is in the top 29% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for eGain was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Total revenue for Q4 was $23.2 million, up 11% sequentially and up 3% year over year, marking the first year-over-year increase in revenue in eight quarters [17] - Non-GAAP gross margin for Q4 was 73%, up from 71% a year ago, while sales gross margin was 80%, up from 76% [17] - For the full year, total revenue was $88.4 million, down 5% year over year, primarily due to churn in the messaging business [19] - Non-GAAP net income for the full year was $5.7 million or $0.20 per share, compared to $4.3 million or $0.40 per share in the prior year [20] Business Line Data and Key Metrics Changes - AI knowledge ARR grew by 25% year over year, with expectations of 20% growth in fiscal 2026 [11] - Sales ARR for knowledge customers increased 25% year over year, while sales ARR for all customers increased 11% [22] - Non-GAAP operating costs for the full fiscal year were $56 million, flat compared to the prior year [19] Market Data and Key Metrics Changes - The company signed significant clients, including the largest nonprofit healthcare network in New Jersey and a major credit union, indicating strong market demand for AI knowledge solutions [5][6] - The partnership with JPMorgan Chase is expected to enhance customer experience and drive AI efficiencies across their business [9][10] Company Strategy and Development Direction - The company plans to focus on AI knowledge solutions, defocusing from less strategic products, such as messaging, which will be sunset in fiscal 2026 [12] - R&D spending is expected to increase by 6% year over year to extend product leadership in the AI knowledge infrastructure market [11][27] - The company aims to achieve gross margin expansion to between 74% and 75% for the year, up from 71% in fiscal 2025 [26] Management's Comments on Operating Environment and Future Outlook - Management noted that AI investments are not showing significant ROI due to a lack of trusted knowledge, which is critical for delivering value [10] - The company expressed optimism about the growing demand for trusted knowledge to support AI initiatives, which is reflected in their bookings for fiscal 2025 [11] - Guidance for fiscal 2026 indicates total revenue is expected to return to growth, with projections between $90.5 million and $92 million [25] Other Important Information - The company repurchased 2.6 million shares at an average price of $6.03 per share during fiscal 2025, with a total of $15.8 million spent [21] - An investor and analyst day event is scheduled for October 14th and 15th in Chicago, providing opportunities for engagement with customers and insights into the business [27] Q&A Session Summary Question: Timing on the sunsetting of the messaging products - Management indicated that the decision was driven by the need to focus on AI knowledge, which is expected to yield better ROI [29] Question: Expected impact of messaging product sunsetting on numbers - The impact is expected to begin in Q2, with a run rate reduction of roughly 50% by the end of fiscal 2026 [31] Question: Details on the partnership with JPMorgan Chase - The partnership is seen as a strategic opportunity to strengthen the relationship and gain insights into customer needs [33] Question: Trends in AI pilot to conversion rates - The conversion rate for AI solutions is currently stable at about two out of three [35] Question: Sustainability of cost reductions in OpEx and COGS - Management noted improvements in COGS due to migration to a new cloud platform and automation processes [37][38] Question: Breakdown of SaaS ARR components - Approximately 60% of total ARR is now from AI knowledge, with the remainder from eGain Analytics Hub and eGain Conversation Hub [44] Question: Competitive position on the Conversation Hub - Management expressed optimism about the Conversation Hub's growth potential as the AI Knowledge Hub expands [48] Question: Pipeline status for mega deals - Currently, there are no deals of JPMorgan Chase's size in the pipeline, but there are several attractive seven-figure opportunities [49] Question: Services gross margins outlook - The goal is to bring services margins closer to break even as efficiencies improve [50]

AI Knowledge Platform & Market Opportunity - eGain helps companies reduce customer service costs by 75% while improving experience by 20 NPS points using AI Knowledge[7] - The AI Knowledge market represents a $20B+ SaaS opportunity for service[12] - Potential cost savings of $400 billion annually through AI Knowledge solutions[11] Financial Performance & Growth - AI Knowledge ARR grew 25% year-over-year in Q425[37] - AI Knowledge ARR represents 59% of SaaS ARR, up from 52% a year ago[38] - AI Knowledge net retention of 115%, up from 98% a year ago[38] - Total revenue for Q425 was $23.2 million, up 3% year-over-year[42] - SaaS revenue for Q425 was $21.7 million, up 6% year-over-year[42] - The company bought back $3.8 million in stock in Q425[42] FY26 Outlook - Targeting 20+% growth in ARR Knowledge business, with ARR of $44.8M in FY25[48]

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]