eGain Announces Second Quarter 2026 Financial Results

Core Insights - eGain reported a 27% year-over-year growth in AI Knowledge Hub annual recurring revenue (ARR), which now constitutes 64% of the total SaaS ARR [2][6] - The company achieved total revenue of $23.0 million for the second quarter of fiscal 2026, reflecting a 3% increase year over year [6] - eGain's GAAP net income for the second quarter was $2.3 million, or $0.09 per share, compared to $671,000, or $0.02 per share, in the same quarter of the previous year [6][19] Financial Highlights for Q2 Fiscal 2026 - Total revenue reached $23.0 million, up 3% year over year [6] - AI Knowledge Hub ARR grew to $48.4 million, a 27% increase year over year [6] - GAAP gross margin improved to 73%, up from 70% in Q2 fiscal 2025 [6] - Non-GAAP gross margin increased to 74%, compared to 71% in Q2 fiscal 2025 [6] - Adjusted EBITDA was $3.3 million, representing a 14% margin, compared to $1.6 million and a 7% margin in Q2 fiscal 2025 [6] Financial Highlights for First Six Months of Fiscal 2026 - Total revenue for the first six months was $46.5 million, a 5% increase year over year [6] - GAAP net income for the first six months was $5.2 million, or $0.19 per share, compared to $1.3 million, or $0.05 per share, in the same period last year [6] - Non-GAAP net income for the first six months was $7.7 million, or $0.28 per share, compared to $2.6 million, or $0.09 per share, in the same period last year [6] Third Quarter Financial Guidance - eGain expects total revenue for Q3 fiscal 2026 to be between $22.2 million and $22.7 million [6] - GAAP net income is projected to be between $1.0 million and $1.5 million, or $0.04 to $0.05 per share [6] - Non-GAAP net income is anticipated to be between $1.8 million and $2.3 million, or $0.06 to $0.08 per share [6] Full Year Financial Guidance - For the full fiscal year ending June 30, 2026, eGain updated its revenue guidance to between $90.5 million and $92.0 million [12] - GAAP net income is expected to be between $4.5 million and $6.0 million, or $0.16 to $0.21 per share [12] - Non-GAAP net income is projected to be between $8.8 million and $10.3 million, or $0.31 to $0.36 per share [12]