eGain Corporation (EGAN) Market Cap
eGain Corporation has a market capitalization of $222.4M.
Financials based on reported quarter end 2025-12-31
Price: $8.12
▲ 0.05 (0.62%)
Market Cap: 222.38M
NASDAQ · time unavailable
CEO: Ashutosh Roy
Sector: Technology
Industry: Software - Application
IPO Date: 1999-09-23
Website: https://www.egain.com
eGain Corporation (EGAN) - Company Information
Market Cap: 222.38M · Sector: Technology
eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides unified cloud software solutions to automate, augment, and orchestrate customer engagement. It also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting, implementation, and training services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.
Analyst Sentiment
Based on 11 ratings
Consensus Price Target
No data available
Price & Moving Averages
Related Companies in Technology
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"EGAN reported revenue of $22.98M and net income of $2.34M for the year ending December 31, 2025. The company presents a reasonable growth trajectory, with a year-over-year price appreciation of 68.41% despite a recent decline over the last six months. EGAN shows a healthy balance sheet with total assets of $146.77M and total liabilities of $57.98M, providing it with a solid equity base of $88.79M. Importantly, the company's negative net debt of $77.55M indicates substantial cash reserves relative to debt obligations. However, cash flow management appears to be a challenge, as indicated by zero operating cash flow and no free cash flow reported, which raises concerns about the company's ability to finance operations without external funding or operational improvements. Overall, while EGAN demonstrates strong shareholder returns through price appreciation, the lack of cash generation and dividend payments may limit its appeal in the long term."
Revenue Growth
Revenue of $22.98M shows positive growth but remains moderate.
Profitability
Net income of $2.34M reflects profitability, with reasonable EPS of $0.0859.
Cash Flow Quality
No operational or free cash flow raises concerns about cash management.
Leverage & Balance Sheet
Strong balance sheet with negative net debt indicating good financial health.
Shareholder Returns
Price change of 68.41% over the past year reflects strong shareholder return.
Analyst Sentiment & Valuation
Lack of consensus on market cap and price target limits clarity on valuation.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management delivered strong Q2 execution: revenue of $23M (+3% YoY) and meaningful margin expansion (gross margin +300 bps to 74%; SaaS GM +200 bps to 80%). Cash generation was also strong with $10.1M operating cash flow (44% margin). However, the Q&A showed operational “gotchas” behind the headlines: the largest marquee enterprise deployment (JPMC) is not fully rolled out—only halfway, with full rollout expected later this year—so some upside may phase in. The other near-term drag is PS: Q2 PS revenue and margins were negative due to late-quarter bookings and the government shutdown, though management expects PS margins to normalize in Q3 (flat to slightly positive) after rightsizing. Management framed confidence around AI Knowledge Hub land-grab dynamics and partner-led lead gen, but analysts pressed for rollout timing and practical moats. The result is a cautious-positive story: strong current metrics, but execution and near-term margin normalization are key.
Growth Catalysts
- AI Knowledge Hub momentum: AI Knowledge SaaS ARR +27% YoY; AI Knowledge ARR now 64% of total SaaS ARR
- Top-of-funnel lead growth: >50% YoY increase in AI Knowledge top-of-funnel leads
- Partner-sourced partner momentum: partner-sourced new logos accounted for 25% of new logos in first half of fiscal 2026 (more than doubled YoY)
- Product-led expansion via eGain Composer driving AI Knowledge Hub adoption and ecosystem conversations
Business Development
- Large business software provider (Global 1000) enterprise knowledge mandate: deployed across 100,000+ users across CX, employee experience, and AI experience; replacing absence of an enterprise-wide knowledge platform (had AI search in functional groups)
- U.S. kitchen cabinets manufacturer: 15+ brands / 6,000 employees; selected AI Knowledge Hub to centralize scattered product/policy knowledge and automate future AI initiatives
- Achmea (Netherlands-based insurer; 10M+ customers): selected eGain to power 21,000 users across customer service/contact center and related use cases
- Oregon Community Credit Union (250,000+ members across Oregon/Idaho/Washington): selected for open architecture + AI; integrated into Genesys CCaaS for contact center use cases
- Partner motion focus areas cited: boutique knowledge consulting shops refreshing legacy knowledge vendors; TSD network contact center knowledge deals
Financial Highlights
- Revenue: $23.0M in Q2 2026, +3% YoY and ahead of guidance/Street consensus
- Noncore messaging products (sunsetting): excluded impact was ~-$0.6M per quarter; implied revenue growth was +5% YoY; SaaS revenue +8% YoY excluding messaging
- Total gross margin: 74% vs 71% a year ago, +300 bps YoY
- SaaS gross margin: 80% vs 78% a year ago, +200 bps YoY
- Adjusted EBITDA margin: 14% vs 7% a year ago
- Non-GAAP net income: $3.0M or $0.11/share (basic & diluted) vs $1.3M or $0.05/share (basic) and $0.04/share (diluted) in prior-year quarter
- Cash flow: operating cash flow $10.1M; 44% operating cash flow margin vs $6.4M; 29% prior-year
- PS revenue/gross margin: sequentially lower due to late-quarter bookings timing and government shutdown; PS margin negative in Q2; company rightsized PS organization in Q2 with full-quarter savings expected in Q3+
- Q3 revenue guide: $22.2M to $22.7M (includes reminder: fewer days in Q3 imply ~$0.4M negative revenue impact vs Q2)
- Q3 GAAP EPS guide: $0.04 to $0.05/share; Non-GAAP EPS: $0.06 to $0.08/share
- Q3 adjusted EBITDA guide: $2.6M to $3.1M; margin 12% to 14%
- FY26 unchanged guidance: total revenue $90.5M to $92.0M; GAAP EPS $0.16 to $0.21; Non-GAAP EPS $0.31 to $0.36; FY adjusted EBITDA margin 12% to 13%
- Messaging sunsetting timing clarified in Q&A: 50% reduced in Q2; remaining reduced in first quarter of FY '27
Capital Funding
- No share repurchases in Q2
- Remaining authorized buyback capacity: $19.7M
- Balance sheet: $83.1M cash and cash equivalents at quarter-end (up from $62.9M as of June 30, 2025); no debt
Strategy & Ops
- AI Knowledge Hub gross margin expansion attributed to product enhancements enabling more cost-efficient deployments and operational efficiencies in cloud and customer support teams
- Automation and operational streamlining: non-GAAP operating costs $14.2M (-3% YoY) while increasing AI product innovation investment
- PS organization rightsized in Q2; PS gross margins expected to return to flat to slightly positive in Q3
- Hiring approach shift discussed: reducing some distributed teams due to automation while reallocating into Bay Area product/engineering/architecture/AI talent; increased marketing investment in H2; sales muscle to be added as Composer-driven demand scales
- Moat/challenge barrier theme: barriers shift toward architecture/use-case understanding and non-functional requirements (reliability, scalability, performance) plus proven record; not just coding automation
Market Outlook
- Q3 (fiscal 2026) revenue: $22.2M to $22.7M
- Q3 adjusted EBITDA margin: 12% to 14%
- FY26 outlook unchanged from prior: revenue $90.5M to $92.0M; Non-GAAP EPS $0.31 to $0.36
- Investor events: Oppenheimer Emerging Growth Conference virtual meetings on Feb 4 (tomorrow); ROTH conference on Mar 23; Europe event moved earlier: eGain Solve in London May 6-7 (pulled from June)
Risks & Headwinds
- PS margin headwind in Q2 from (1) timing of bookings that closed late in the quarter and (2) impact of the government shutdown; PS margin expected to normalize in Q3
- JPMC rollout not fully complete: deployment is halfway through with full rollout expected later in 2026 as planned (implies near-term execution variability vs fully rolled-out assumption)
- Competitive displacement risk: management said they typically replace tactical solutions or CX AI/AM solutions that have stopped innovating, but also referenced competition in AI search groups at the JPMC-like enterprise (implies ongoing competitive pressure)
- Pricing pressure expectation: management explicitly warned pricing pressure likely over time across the category (risk to future margins if pricing doesn't hold)
- Macro/tariff: no explicit tariffs mentioned; government shutdown explicitly cited as impacting PS revenue timing/margins
Sentiment: MIXED
Note: This summary was synthesized by AI from the EGAN Q2 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.