eGain Announces First Quarter 2026 Financial Results

Core Insights - eGain reported strong financial results for the first quarter of fiscal 2026, with total revenue reaching $23.5 million, an 8% increase year-over-year, and exceeding EBITDA guidance [1][5] - The company achieved a 23% year-over-year growth in Annual Recurring Revenue (ARR) for its AI Knowledge Hub, contributing significantly to its SaaS revenue [2][5] - eGain's GAAP net income for the quarter was $2.8 million, or $0.10 per share, compared to $652,000, or $0.02 per share, in the same quarter last year [5][16] Financial Performance - Total revenue for Q1 fiscal 2026 was $23.5 million, up from $21.8 million in Q1 fiscal 2025 [5][21] - AI Knowledge Hub ARR grew to $45.9 million, representing 60% of total SaaS ARR [5] - GAAP gross margin improved to 75% from 69% year-over-year, while non-GAAP gross margin increased to 76% from 70% [5][21] - Adjusted EBITDA was $5.0 million, reflecting a 21% margin, compared to $1.4 million and a 6% margin in Q1 fiscal 2025 [5][19] Guidance and Expectations - For Q2 fiscal 2026, eGain expects total revenue between $22.3 million to $22.8 million and GAAP net income between $1.2 million to $1.7 million [3][5] - For the full fiscal year 2026, the company anticipates total revenue between $90.5 million to $92.0 million, with GAAP net income projected between $3.5 million to $5.0 million [3][5] Operational Highlights - Cash provided by operations was $10.4 million, resulting in an operating cash flow margin of 44% [5] - The company repurchased approximately 231,000 shares at an average price of $6.38 per share, totaling $1.5 million [5] - eGain unveiled three new AI products at its recent Solve25 event, indicating strong customer interest in its expanded AI knowledge solutions [2]