eGain(US:EGAN)2026-02-03 21:30Revenue Performance - SaaS revenue for the three months ended December 31, 2025, was $21,799,000, representing a 5% increase from $20,847,000 in the same period of 2024[128]. - Total revenue for the three months ended December 31, 2025, was $22,979,000, a 3% increase from $22,389,000 in 2024[128]. - The company reported a total SaaS revenue of $43,699,000 for the six months ended December 31, 2025, up 7% from $40,667,000 in 2024[128]. - SaaS revenue represented 95% of total revenue for the three months ended December 31, 2025, compared to 93% for the same period in 2024[151]. - North America revenue increased by 6% to $18.353 million for the three months ended December 31, 2025, due to a $1.3 million increase in SaaS revenue[154]. - EMEA revenue decreased by 9% to $4.626 million for the three months ended December 31, 2025, due to a decline in both SaaS and professional services revenue[156]. Professional Services Revenue - Professional services revenue decreased by 23% to $1,180,000 for the three months ended December 31, 2025, compared to $1,542,000 in 2024[128]. - Professional services revenue for the six months ended December 31, 2025, was $2,788,000, down 21% from $3,521,000 in 2024[128]. - The company expects professional services revenue to vary based on the volume and timing of recognition[152]. Financial Metrics - Non-GAAP income from operations for the three months ended December 31, 2025, was $2,691,000, compared to $1,272,000 in 2024[131]. - Income from operations was $2.0 million with an operating margin of 9% during the three months ended December 31, 2025, compared to $650,000 and 3% in the same period in fiscal year 2024[176]. - Gross profit margin improved to 73% for the three months ended December 31, 2025, compared to 70% for the same period in 2024[147]. - Operating expenses as a percentage of total revenue decreased to 65% for the three months ended December 31, 2025, from 67% in the prior year[147]. Cash Flow and Assets - Net cash provided by operating activities increased by $13.2 million during the six months ended December 31, 2025, from the same period in fiscal year 2024[184]. - Cash, cash equivalents, and restricted cash totaled $83.1 million as of December 31, 2025, compared to $62.9 million as of June 30, 2025[181]. Costs and Expenses - Cost of revenue decreased by 8% to $6.172 million for the three months ended December 31, 2025, contributing to a gross margin of 73%[158]. - Research and development expenses decreased by 6% to $7.3 million for the three months ended December 31, 2025, from $7.7 million in the same period in fiscal year 2024[168]. - Sales and marketing expenses decreased by 1% to $5.2 million for the three months ended December 31, 2025, from $5.3 million in the same period in fiscal year 2024[171]. - General and administrative expenses increased by 10% to $2.3 million for the three months ended December 31, 2025, from $2.1 million in the same period in fiscal year 2024[174]. Future Outlook and Risks - The company expects SaaS revenue to continue increasing, reflecting positive market opportunities and customer demand[119]. - The company faces risks related to customer attrition and lengthy sales cycles, which may impact future revenue[123]. - The company operates in multiple regions, including the U.S., U.K., and India, which exposes it to various regulatory and market risks[124]. - As of December 31, 2025, the remaining performance obligations were $84.9 million, with expected revenue recognition of $53.0 million within one year and $31.9 million beyond one year[141]. Other Financial Information - Interest income was $624,000 during the three months ended December 31, 2025, down from $661,000 in the same period in fiscal year 2024[178]. - Other income (expense), net was an expense of $32,000 during the three months ended December 31, 2025, compared to an expense of $431,000 in the same period in fiscal year 2024[179]. - Provision for income taxes was $302,000 for the three months ended December 31, 2025, compared to $209,000 for the same period in fiscal year 2024[180]. - Future non-cancelable minimum payments under lease commitments were approximately $4.4 million as of December 31, 2025[188].