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]

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]