EGAN

Interested in eGain Corporation? Here are five stocks we like better. AI customer adoption expanded: AI customer revenue grew 20% for fiscal 2026, while AI customers represented 72% of SaaS ARR, up from 63% midyear. Legacy non-AI revenue and total SaaS ARR continued to decline. Profitability and cash flow improved annually: Full-year non-GAAP net income rose to $13 million, adjusted EBITDA increased to $13.6 million, and operating cash flow reached a record $21.2 million. However, fourth-quarter revenue, GAAP earnings and adjusted EBITDA declined year over year. Fiscal 2027 reflects a transition toward AI: eGain expects AI customer revenue to grow 8%–10% and AI customer ARR to increase about 20%, while legacy ARR could fall 60%. The company projects a full-year GAAP loss and is targeting $100 million–$120 million in AI customer and total SaaS ARR by fiscal 2030. 3 Small-Cap Stocks Trading Under $10 With Room to Run eGain (NASDAQ:EGAN) reported fiscal 2026 revenue growth of 3% to $91.1 million as revenue from customers using its artificial intelligence offerings increased 20%. The company said it is shifting its reporting focus toward “AI customers,” defined as customers actively using one or more AI offerings, while its legacy non-AI business continues to decline. Chief Executive Officer Ashu Roy said Gartner’s July publication of its first Magic Quadrant for Customer Service Knowledge Management Systems represented a significant market development. Gartner named eGain a leader and positioned it highest for ability to execute and furthest for completeness of vision, according to Roy. → Boarding Call: EHang Secures First-Mover Altitude Roy said enterprises increasingly view knowledge management as essential infrastructure for AI deployments because AI tools rely on current policies, procedures and operational know-how. “Wrong knowledge equals wrong AI,” Roy said, describing the company’s approach as “AI Knowledge Ops,” or the ongoing engineering, governance and operation of knowledge used to instruct AI systems. eGain said AI customer annual recurring revenue, or ARR, rose 13% year over year and represented 72% of total SaaS ARR at the end of fiscal 2026, compared with 63% at the midpoint of the fiscal year. Total SaaS ARR declined 1%, which Chief Financial Officer Eric Smit attributed to declines among legacy non-AI customers. → Medtronic’s Stars Are Aligning for a Price Recovery The company has changed its metrics to report AI customer revenue and ARR at the customer level rather than by product hub. Under the new definition, AI customer ARR includes all SaaS ARR from customers using at least one AI offering, while AI customer revenue includes their SaaS and professional-services revenue. Smit said eGain believes customer-wide adoption of its AI capabilities is a stronger indicator of retention and expansion potential than the initial product a customer purchased. Trailing-12-month dollar-based net retention for AI customers was 104%, compared with 120% a year earlier. The prior-year figure benefited from a significant expansion deal with JPMorgan Chase completed in the fourth quarter of fiscal 2025, Smit said. Net retention across all customers was 93%, down from 105%. → Dutch Bros Sell-Off Creates a Growth Opportunity Roy said new-logo wins increased 27% during fiscal 2026, while the number of pipeline opportunities valued at $500,000 in ARR or more doubled year over year. Pipeline opportunities in compliance-heavy sectors including banking, financial services, insurance and healthcare rose 40%. Fourth-quarter revenue totaled $22.2 million, down from $23.2 million a year earlier but above the company’s guidance and Wall Street consensus, according to Smit. The year-over-year decline reflected lower revenue from legacy conversation and analytics customers. AI customer revenue increased 11% in the quarter. Fourth-quarter GAAP net income was $1.3 million, or $0.05 per diluted share, compared with $30.9 million, or $1.11 per diluted share, a year earlier. Smit noted that the prior-year quarter included an approximately $29 million tax benefit from the release of most of the company’s valuation allowance. Non-GAAP net income for the quarter was $2.1 million, or $0.08 per share, compared with $2.4 million, or $0.09 per share, in the prior-year period. Adjusted EBITDA was $2.2 million, representing a 10% margin, compared with $4.5 million and a 19% margin a year ago. Full-year GAAP net income was $8.9 million, or $0.32 per diluted share, versus $32.3 million, or $1.13 per diluted share, in fiscal 2025. Full-year non-GAAP net income increased to $13 million, or $0.47 per diluted share, from $5.7 million, or $0.20 per share. Adjusted EBITDA rose to $13.6 million, or a 15% margin, from $8.6 million, or a 10% margin. Operating cash flow reached a record $21.2 million, compared with $5.3 million in fiscal 2025. Cash and cash equivalents totaled $73.3 million at June 30, 2026, up from $62.9 million a year earlier. During the fourth quarter, eGain repurchased 1.4 million shares for $10.1 million at an average price of $7.32 per share. For the full year, it repurchased 1.6 million shares for $11.5 million. The company had $9.7 million remaining under its $60 million repurchase authorization at year-end. Roy highlighted several product introductions and deployments, including eGain AI Agent IVA, an intelligent voice agent using the same knowledge platform as the company’s digital self-service products; eGain Agentic Studio, a zero-code environment for building multi-step service applications; and the general availability of eGain Evaluator, a tool for continuous evaluation of AI pipelines. The company also introduced eGain AI Knowledge Suite for Healthcare, which Roy described as a governed knowledge foundation designed for health plans and health systems. In the fourth quarter, eGain won new customers including a European insurance company seeking to establish a governed knowledge foundation before scaling AI automation, and a global multi-energy operator deploying eGain’s knowledge platform and AI agent in one contact center. Roy said the energy customer plans to expand the deployment following the initial implementation. The company also added paid pilots with large organizations, including a pharmaceutical company seeking to capture expertise from scientists and specialists, a testing and certification company facing a regulatory deadline, and a gaming technology provider. Roy said early results from the testing and certification pilot showed 95% self-service resolution and 80% user satisfaction. For the first quarter of fiscal 2027, eGain forecast AI customer revenue of $13.7 million to $14 million and total revenue of $20.9 million to $21.4 million. It expects GAAP net income of $500,000 to $1 million, or $0.02 to $0.04 per share, and non-GAAP net income of $1.4 million to $2 million, or $0.05 to $0.08 per share. For the full fiscal year ending June 30, 2027, the company projected AI customer revenue of $59.5 million to $60.5 million, representing approximately 8% to 10% growth, and total revenue of $84.5 million to $86 million. eGain expects AI customer ARR to rise about 20%, while ARR from legacy customers is projected to decline 60%. The company forecast a GAAP net loss of $2 million to $3 million and adjusted EBITDA of $650,000 to $1.4 million. Smit said eGain expects revenue from profitable legacy customers to decline about 40% during fiscal 2027 and plans to use cash generated from that business to fund AI investments. By fiscal 2030, the company is targeting AI customer ARR and total SaaS ARR of $100 million to $120 million, with AI customers representing approximately all SaaS ARR and about 95% of total revenue. eGain Incorporated (NASDAQ: EGAN) is a software company specializing in cloud-based customer engagement solutions. Its platform integrates knowledge management, analytics, and artificial intelligence to help organizations streamline customer service across digital channels. By centralizing information and automating routine interactions, eGain aims to improve agent productivity, reduce response times, and deliver consistent customer experiences. The company's product suite includes tools for knowledge authoring and delivery, AI-powered chatbots, case management, and predictive analytics. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "eGain Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

eGain (EGAN) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +166.67%. A quarter ago, it was expected that this maker of customer engagement software would post earnings of $0.07 per share when it actually produced earnings of $0.11, delivering a surprise of +57.14%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. eGain, which belongs to the Zacks Internet - Software industry, posted revenues of $22.15 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.84%. This compares to year-ago revenues of $23.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. eGain shares have lost about 29.7% since the beginning of the year versus the S&P 500's gain of 12%. While eGain has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for eGain was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $22.12 million in revenues for the coming quarter and $0.43 on $94.44 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Micron (MU), another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended August 2026. The results are expected to be released on September 30. This chipmaker is expected to post quarterly earnings of $31.39 per share in its upcoming report, which represents a year-over-year change of +936%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Micron's revenues are expected to be $50.76 billion, up 348.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eGain Corporation (EGAN) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SUNNYVALE, Calif., Sept. 03, 2026 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a leading provider of AI-powered knowledge management and customer experience automation solutions, today announced financial results for its fiscal 2026 fourth quarter and full fiscal year ended June 30, 2026. “Fiscal 2026 was a pivotal year for eGain. AI Knowledge is emerging as a distinct operating layer in the enterprise – the infrastructure that makes every other AI initiative, from agents to copilots to automation, trustworthy and accurate – rather than another point application in another silo. Gartner’s decision to create a dedicated Magic Quadrant for Customer Service Knowledge Management Systems, and to name eGain a Leader in its inaugural edition, validates both the category and the position we’ve spent years building toward,” said Ashu Roy, eGain’s CEO. “This validation is showing up in the numbers. Total revenue grew 3% for the year, a rate that reflects two trends in our business. First, our investment in AI Knowledge drove 20% year-over-year growth in AI customer revenue. Second, the managed decline in our profitable legacy business.” “As we enter fiscal 2027, we’re all in on the AI Knowledge opportunity. We believe the market is still early in recognizing how foundational trusted knowledge infrastructure will be to enterprise AI, and we intend to lead it.” Fiscal 2026 Fourth Quarter Financial Highlights Total revenue was $22.2 million, compared to $23.2 million in Q4 fiscal 2025. AI customer revenue grew 11% year over year. GAAP gross margin was 72%, compared to 73% in Q4 fiscal 2025. Non-GAAP gross margin was 72%, compared to 73% in Q4 fiscal 2025. GAAP net income was $1.3 million, or $0.05 per share on a basic and diluted basis, compared to GAAP net income of $30.9 million, or $1.13 per share on a basic basis and $1.11 per share on a diluted basis, in Q4 fiscal 2025, which includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in Q4 fiscal 2025. Non-GAAP net income was $2.1 million, or $0.08 per share on a basic and diluted basis, compared to non-GAAP net income of $2.4 million, or $0.09 per share on a basic and diluted basis, in Q4 fiscal 2025. Adjusted EBITDA was $2.2 million, representing a 10% margin, compared to $4.5 million, or a 19% margin, in Q4 fiscal 2025. Total cash and cash equivalents were $73.3 million as of June 30, 2026, compared to $62.9 million as of June 30, 2025. Fiscal 2026 Full Year Financial Highlights Total revenue was $91.1 million, compared to $88.4 million in the same period last year. AI customer revenue grew 20% year over year. AI customer annual recurring revenue (ARR) grew 13% year over year and represented 72% of total SaaS ARR as of June 30, 2026. GAAP gross margin was 73%, compared to 70% in the same period last year. Non-GAAP gross margin was 74%, compared to 71% in the same period last year. GAAP net income was $8.9 million, or $0.33 per share on a basic basis and $0.32 per share on a diluted basis, compared to GAAP net income of $32.3 million, or $1.15 per share on a basic and $1.13 per share on a diluted basis, in the same period last year. This includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in fiscal 2025. Non-GAAP net income was $13.0 million, or $0.48 per share on a basic basis and $0.47 per share on a diluted basis, compared to non-GAAP net income of $5.7 million, or $0.20 per share on a basic and diluted basis, in the same period last year. Adjusted EBITDA was $13.6 million, representing a 15% margin, compared to $8.6 million, or a 10% margin, in the same period last year. Cash provided by operating activities was $21.2 million, or an operating cash flow margin of 23%. Total shares repurchased were approximately 1,607,000 at an average price of $7.16 per share, totaling $11.5 million. Fiscal 2027 First Quarter and Fiscal 2027 Financial Guidance For the first quarter of fiscal 2027 ending September 30, 2026, eGain expects: Total revenue between $20.9 million and $21.4 million. AI customer revenue between $13.7 million and $14.0 million. GAAP net income of $500,000 to $1.1 million, or between $0.02 and $0.04 per share. Non-GAAP net income between $1.4 million and $2.0 million, or between $0.05 and $0.08 per share. Adjusted EBITDA between $1.4 million and $1.9 million, or a margin between 7% and 9%. For the fiscal 2027 full year ending June 30, 2027, eGain expects: Total revenue between $84.5 million and $86.0 million. AI customer revenue between $59.5 million and $60.5 million. GAAP net loss between $2.0 million and $3.0 million, or between $0.08 and $0.11 per share. Non-GAAP net income between $1.0 million and $2.0 million, or between $0.04 and $0.07 per share. Adjusted EBITDA between $650,000 and $1.4 million, or a margin of 1% to 2%. Guidance Assumption: Weighted average shares outstanding are expected to be approximately 26.6 million for the first quarter of fiscal 2027 and 26.8 million for the full fiscal year 2027. Key Business Metrics: We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions. Total SaaS ARR is defined as the recurring revenue from SaaS subscriptions, normalized over a period of one year. AI customer ARR is defined as Total SaaS ARR from customers who actively utilize one or more of our AI offerings. This amount includes all offerings associated with a customer and not solely the AI offerings. AI customer revenue is defined as the total revenue generated from customers who actively utilize one or more of our AI offerings, inclusive of their SaaS and Professional Services revenue. This amount includes all offerings associated with a customer and not solely the AI offerings. Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures as supplemental information relating to eGain’s operating results, including adjusted EBITDA and non-GAAP net income. Adjusted EBITDA is defined as net income, adjusted for the impact of depreciation and amortization, issuance of common stock warrant for services, stock-based compensation expense, interest income, net, provision for income taxes, benefit from income tax where applicable, other income (expense), net and severance and related charges. Non-GAAP net income measure is adjusted for benefit from income taxes related to the release of valuation allowance, issuance of common stock warrant for services, and stock-based compensation expense. eGain’s management has analyzed the effect of these non-GAAP adjustments on our provision for income taxes and believes the change in our provision for income taxes would not be substantial. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare our performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in our financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business. In addition, this press release includes eGain’s non-GAAP net income and adjusted EBITDA guidance for future periods, non-GAAP measures used to describe eGain’s expected performance. We have not presented a reconciliation of eGain’s non-GAAP net income or adjusted EBITDA to future net income, the most comparable GAAP financial measure, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliation is not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure. Conference Call Information eGain will discuss its fiscal 2026 fourth quarter and full year financial results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) and ask to join the eGain earnings call. A live and archived webcast of the call will also be accessible on the “Investors” section of eGain’s website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and will remain available for one week. To access the phone replay, dial 855-669-9658 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 1145039. About eGain eGain is a leading provider of AI-powered knowledge management and customer experience automation solutions. With over 25 years of experience in knowledge management, eGain helps enterprises unify siloed content, automate trusted knowledge workflows, and deliver measurable AI-ROI through proven frameworks and methods. Global 2000 companies across industries rely on eGain to transform customer service, improve employee productivity, reduce costs, and accelerate AI adoption. Visit www.egain.com for more information. Gartner DisclaimerGartner, Magic Quadrant for Customer Service Knowledge Management Systems, Pri Rathnayake, Jennifer MacIntosh, Patrick Quinlan, Drew Kraus, 16 July 2026. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the first quarter of fiscal 2027 and fiscal 2027 full year ending June 30, 2027; our beliefs regarding the validity of our business strategy; our investment in AI customer business; the expected profitability and cash-generating capacity of our legacy business; demand for our products and market opportunity; and our market position. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the first quarter of fiscal 2027 and fiscal 2027 full year ending June 30, 2027. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, and financial condition; the pace of technological advancements in generative AI and the adaptability of our services to incorporate these advancements; market demand for AI-enabled solutions; risks associated with new product releases and new services and product features; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third-party distribution channels; risks related to our international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; general political or destabilizing events, including war, intensified international hostilities, conflict or acts of terrorism; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including those addressing data privacy, cyber-security and cross-border data transfers; and other risks detailed from time to time in eGain’s public filings, including eGain’s quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2026 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law. eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corporation in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies. Investor RelationsTodd Kehrli or Jim ByersPondelWilkinson, [email protected]@pondel.com [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period. [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.

Rapid7 (RPD) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.71%. A quarter ago, it was expected that this cybersecurity company would post earnings of $0.3 per share when it actually produced earnings of $0.36, delivering a surprise of +20%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Rapid7, which belongs to the Zacks Internet - Software industry, posted revenues of $210.88 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.34%. This compares to year-ago revenues of $214.19 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rapid7 shares have lost about 23.9% since the beginning of the year versus the S&P 500's gain of 13.3%. While Rapid7 has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rapid7 was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.43 on $210.24 million in revenues for the coming quarter and $1.56 on $838.94 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. eGain (EGAN), another stock in the same industry, has yet to report results for the quarter ended June 2026. This maker of customer engagement software is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -55.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. eGain's revenues are expected to be $21.65 million, down 6.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rapid7, Inc. (RPD) : Free Stock Analysis Report eGain Corporation (EGAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bumble Inc. (BMBL) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +80.00%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.34, delivering a surprise of +36%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Bumble, which belongs to the Zacks Internet - Software industry, posted revenues of $210.53 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $248.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bumble shares have lost about 10.4% since the beginning of the year versus the S&P 500's gain of 13%. While Bumble has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bumble was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.23 on $210.91 million in revenues for the coming quarter and $1.03 on $834.42 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, eGain (EGAN), has yet to report results for the quarter ended June 2026. This maker of customer engagement software is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -55.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. eGain's revenues are expected to be $21.65 million, down 6.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bumble Inc. (BMBL) : Free Stock Analysis Report eGain Corporation (EGAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, May 14, 2026 at 5 p.m. ET Chief Executive Officer — Ashutosh Roy Chief Financial Officer — Eric Smit Ashu Roy; and Chief Financial Officer, Eric Smit. Before we begin, I would like to remind everyone that during this conference call, management will make certain forward-looking statements, which convey management's expectations, beliefs, plans and objectives regarding future financial and operational performance. Forward-looking statements are generally preceded by words such as believe, plan, intend, expect, anticipate or similar expressions. Forward-looking statements are protected by safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a wide range of risks and uncertainties that could cause actual results to differ in material respects. Information on various factors that could affect eGain's results are detailed in the company's reports filed with the Securities and Exchange Commission. eGain is making these statements as of today, May 14, 2026, and assumes no obligation to publicly update or revise any of the forward-looking information in this conference call. In addition to GAAP results, we will also discuss certain non-GAAP financial measures such as non-GAAP operating income. The tables included with the earnings press release include a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. eGain's earnings press release can be found by clicking the Press Releases link on the Investor Relations page of eGain's website at egain.com. And along with the earnings release, we will post an updated investor presentation to the Investor Relations page of eGain's website. And lastly, a phone replay of this conference call will be available for 1 week. And now with that said, I'd like to turn the call over to eGain's CEO, Ashu Roy. Ashutosh Roy: Thank you, Jim, and good afternoon, everyone. Thanks for joining us. We delivered a strong third quarter with continued momentum in our AI Knowledge business, driven by customer expansion, growing partner engagement and new products. Revenue was in line with expectations and profitability remains strong. Year-to-date, our AI Knowledge ARR has grown 26%, and we have generated $18.7 million in operating cash flow year-to-date, which is a 27% margin. Let me share some of the interesting highlights that we are seeing in the business. In the last 60 days, we've seen a meaningful increase in RFP activity in the U.S., most of it from Fortune 1000 BFSI, which is banking and insurance and health care enterprises. These RFPs almost always seem to focus on AI readiness of knowledge, an open architecture for APIs and MCPs and deep integration into the customer service, customer experience stack. Equally importantly, many of these RFPs are coming through our partners. Year-to-date, our partner-sourced opportunities are up 67%. We see the growing interest in AI knowledge as a natural progression from an early adopter phase to an early majority phase of the adoption curve. Knowledge management, we see is being increasingly seen as a core AI infrastructure, a must-have, not a nice-to-have. Switching to customers. Now, we had a very nice quarter for product adoption and expansion. These expansions reflect a pattern of customers standardizing on eGain as their enterprise knowledge platform. Let me highlight some examples. The first one is a top 10 U.S. insurance company. This client expanded from an initial deployment of about 3,000 licenses in one business unit to an additional 5,600 licenses in a second major business unit. This creates a single knowledge hub across these divisions, replacing the fragmented and siloed content and knowledge they had before. With this platform, the client is now establishing consistent taxonomy, knowledge workflows and content life cycle governance across these business units, while analytics and AI help them continuously refine knowledge. This client is also piloting AI Agent, which is one of our products for the contact center, powered by the trusted knowledge coming from our platform. The second example I want to share is a top 10 global airline. To support growth in their customer care department, the client has added licenses to ensure consistent knowledge access across all the new teams, reinforcing eGain as the single platform for knowledge-powered service and operational efficiencies. We're also seeing rapid follow-on expansion from newer clients. I'd give you a couple of examples. After selecting eGain to support a large-scale digital transformation a few months ago, this European financial services conglomerate is now expanding usage across other business units beyond customer service in the contact center to look at self-service options for all their touch points. Another example is a global engineering services leader. They initially deployed our solution for field service knowledge, and now they're expanding to assist all their service personnel, including contact centers and partners. Across these examples, there is a theme, and that is that once we are deployed in a CX or customer service use case, the eGain platform naturally expands to become the centralized enterprise knowledge platform, both for AI and humans. Looking at products during the quarter, we introduced several innovations to deliver greater value in some of our strong verticals and also deepen our ecosystem integrations. First, we launched the eGain AI Knowledge Suite for retail banking. The solution is purpose-built for banks and credit unions to unify knowledge and enable AI-driven service and needs-based guided selling. Early clients like Rogue Credit Union are very excited about the positive user adoption and accelerated time to value, something they shared during a joint webinar last month. Then we introduced our AI Agent for Cisco Webex Contact Center, strengthening our proposition in the Cisco ecosystem. Third, we announced connectors into UCaaS platforms, Microsoft Teams, Slack and Zoom Team Chat, all with the goal to enhance employee collaboration with the same trusted knowledge. These connectors will help our clients build knowledge once for CX use cases and then reuse it for employee-facing use cases across their business. And it's, again, a pattern that we are seeing emerging where we land into the CX world, which is customer service or contact center. And once we show our solution and deploy the success of that then drives a natural extension of that knowledge platform across the rest of the use cases, which are more employee-facing. Finally, we announced enterprise AI connectors to agentic development environments, including Copilot, Claude, Gemini and Cursor. These connectors enable developers to tap into trusted knowledge managed within the eGain platform via APIs and MCP protocols right from their favorite development environment. As I said before, this idea of a trusted governed knowledge base and a hub is very compelling. It connects and controls all the AI projects, including prototypes and offers governance, explainability, observability to developers and business users alike in the business. As I zoom out of the customers and specific products that we announced last quarter, all of us would agree that the pace of innovation is accelerating in the market, and so it is with eGain. We see lots of opportunity to increasingly automate the capture, curation and consumption of knowledge, that loop as it relates to customer service and contact centers in regulated businesses and companies with complex products. Last week, we hosted our annual Solve 26 event in London. We have another annual event in Chicago in October, but this one is a European event in London for customers and partners. The event reinforced what we are seeing across the market, trusted knowledge is becoming the essential foundation for enterprise AI. The reason is simple. Conventional wisdom says that knowledge is nothing more than unstructured data, not true. Knowledge is the instruction layer for AI. It provides the what, and the how and occasionally the why that is used by the models to then deliver automated experiences that are reliable. To build these agentic systems, enterprises must first centralize, govern and improve this knowledge. So the quality of knowledge determines the quality of AI outcomes. This is especially important in customer service and contact centers, which represents one of the largest near-term opportunities for AI transformation. At the same time, our research shows that more than 80% of organizations are still in the very early stages of their AI knowledge maturity and transformation journey, and that creates a significant opportunity for eGain. At our Solve event, we also launched several new products beyond the ones we announced last quarter. And these help our clients consume the knowledge more easily in agentic workflows. They enable our clients to evaluate and ensure quality of these AI Knowledge pipelines they're building all the way from content to begin with and automated experiences that the AI tools deliver. We also launched an IVA product, which brings accurate conversational self-service to the voice channel. And finally, we announced an AI agent for Salesforce version 2, which is a pluggable solution that activates our AI Agent with full context of Salesforce content and data within the Salesforce Service Cloud desktop. Customers and partners love the new capabilities and what they appreciated the most was their fellow customers sharing their knowledge journey and AI ROI stories. Customers like Achmea, BT, BMI, Specialized Bikes, Worldpay, they shared their insights, including tips and tricks, very, very valuable for attendees. And for us, it is gratifying and inspiring. On the team front, during the quarter, we strengthened our leadership team with the appointment of Steve Pappas as Head of Innovation. Steve brings deep expertise in knowledge management, AI and customer experience, along with a strong track record of scaling enterprise SaaS businesses and a sharp focus on helping clients modernize their knowledge architecture. His leadership will help us deliver more consumable innovation and accelerate market expansion as we continue to shape the AI Knowledge category. To conclude, we delivered strong financial performance, expanded within customers and are building a high-quality pipeline driven by growing enterprise demand for AI-powered knowledge. As the market increasingly recognizes Trusted Knowledge as the foundation for enterprise AI, we are well positioned to lead this category. With that, I'll hand it over to Eric. Eric Smit: Thanks, Ashu, and thanks, everyone, for joining us today. Before I begin, I'd like to note that we are again using slides to support today's call. We believe this provides helpful context and makes it easier to follow our results and outlook. You can access the slides in the Investor Relations section of our website alongside the webcast. As Ashu noted, we delivered a solid third quarter with year-over-year growth in both revenue and ARR, along with continued strong profitability. Let me walk you through our Q3 financial results, followed by our outlook. Looking at our revenue. Total revenue for the third quarter was $22.5 million, up 7% year-over-year. SaaS revenue also grew 7% year-over-year and represented 93% of total revenue. Excluding the approximately $600,000 quarterly impact from noncore messaging products we are sunsetting, total revenue and SaaS revenue would have been up 13% and 14%, respectively, year-over-year. Revenue was also impacted by approximately $450,000 due to the 2 fewer days this quarter compared to the prior quarter. Looking at non-GAAP gross profits and gross margins. Total gross margin for the quarter was 74%, up 500 basis points from 69% a year ago. SaaS gross margin was 78%, up 100 basis points year-over-year. This expansion was driven by continued improvements in SaaS margins and a greater mix shift of higher-margin SaaS revenue relative to professional services revenue. Now turning to our operations. Non-GAAP operating costs for the third quarter was $13.9 million, up 1% year-over-year and down 3% sequentially, reflecting ongoing discipline as we streamline operations and benefit from automation and our shift towards a product-led sales model. R&D was up 3% sequentially, reflecting continued investment in engineering talent and leadership. We expect the trend towards approximately 30% of revenue over time as we invest to support innovation and growth. Sales and marketing expense was $4.5 million for the quarter, down 11% sequentially, though we expect this to increase in Q4 as we invest in go-to-market initiatives, including our recently completed eGain Solve event in London. Looking at our bottom line. Non-GAAP net income was $3.2 million or $0.12 per share on a basic basis and $0.11 per share on a diluted basis, up significantly from $765,000 or $0.03 per share on a basic basis and diluted basis in the year ago quarter. Adjusted EBITDA margin was 14% at the high end of our guidance range and up from 6% a year ago. Turning to our balance sheet and cash flows. We used $1.8 million of cash in the third quarter, reflecting typical seasonality and collections, which are weighted toward the first half of the fiscal year. For the first 9 months, cash flow from operations was $18.7 million, representing a 27% cash flow margin, well ahead of our expectations. We end the quarter with $80.5 million in cash, up from $62.9 million as of June 30, 2025, and we have no debt, maintaining a strong balance sheet and financial flexibility. Now turning to our customer metrics. To highlight the strength of our Knowledge business, we are breaking out our ARR metrics for Knowledge customers. SaaS ARR for Knowledge customers increased 26% year-over-year and SaaS ARR for all customers increased 7% year-over-year. Excluding noncore messaging products, SaaS ARR growth for all customers increased -- would have increased 11% year-over-year. During Q3 2026, 1 on-premise subscription customer in EMEA chose not to migrate to our product suite in the eGain Cloud and as a result, terminated the agreement with us. This reduced our total SaaS ARR impact of approximately $1.6 million. And of that, the AI knowledge component of their business was approximately $900,000. We view this as a one-off event given the restrictions in the customers' country of origin on the use of cloud-based services. Also, as expected, bookings reflected normal seasonal trends with Q3 typically being the softer quarter based on historical patterns. Our retention rates also improved significantly. LTM dollar-based SaaS net retention for Knowledge customers was 116%, up from 97% a year ago, while net retention for all customers was 101%, up from 88% a year ago. LTM dollar-based SaaS net expansion rate was 120% for our Knowledge customers and 107% for all customers. Looking at our remaining performance obligations, total RPO increased 11% year-over-year, and our short-term RPO of $48.5 million was up 9% year-over-year. These metrics reflect strong engagement and expansion, particularly within our AI Knowledge offering. Before turning to our guidance, I'd like to share some additional color on the factors influencing our updated FY '26 revenue estimates. As Ashu stated, we are seeing a clear shift in the market. AI Knowledge is now being evaluated as enterprise infrastructure rather than solely as a contact center solution. This aligns directly with how we're positioning the platform and is creating larger, more strategic opportunities that we believe we are well positioned to win. That said, these larger opportunities typically involve longer sales cycles, which are affecting the timing of revenue conversion. But, to the guidance, for the fourth quarter of fiscal 2026, we expect total revenue of between $21.5 million to $22 million. Turning to the bottom line. For Q4, we expect GAAP net loss of $300,000 to net income of $400,000 or $0.01 negative to $0.01 positive per share, which includes stock-based compensation expense of approximately $900,000. We expect non-GAAP net income of $600,000 to $1.3 million or $0.02 to $0.05 per share and adjusted EBITDA of $500,000 to $1 million or a range of 2% to 5%. For the full fiscal year ending June 30, 2026, we expect total revenue to be between $90.5 million to $91 million, representing a return to growth for the year. GAAP net income of $7 million to $7.8 million or $0.25 to $0.28 per share. This includes stock-based compensation expense of approximately $2.9 million. It also includes warrant expense of approximately $1.4 million, and non-GAAP net income of $11.3 million to $12.1 million or $0.39 to $0.42 per share. and adjusted EBITDA margin of $11.9 million to $12.4 million or a margin of 13%. We expect weighted average shares outstanding of approximately 28 million for both the fourth quarter and the full fiscal 2026. In conclusion, we delivered a solid quarter with revenue and ARR growth and strong profitability. Our AI Knowledge Hub ARR grew 26%, highlighting continued momentum. We are executing well against our go-to-market strategy. While it's still early, we are seeing encouraging signs, including increased high-quality RFP activity and pilot programs. We remain focused on expanding our market reach and building on our leadership position in AI knowledge. With that, I'll turn it back to operator for Q&A. Operator: [Operator Instructions] The first question will come from Jeff Van Rhee with Craig-Hallum. Jeff Van Rhee: Just a few for me. On Ashu, I guess this would be for both of you. On the RFP surge and the increase in activity, can you just put a little more scoping around that in terms of the magnitude of late-stage opportunities at this point maybe versus 6 months, 12 months, 18 months ago? Just I don't know, put some context around that increase in RFP activity that you referenced. Ashutosh Roy: Sure. I would say that the number of RFPs that we are actively -- that we have responded to, right, in the last 60 days is probably about double of what our average rate in 60 days would be, right? So that's one lens to look at. In terms of the stage of decision around those RFPs and the eventual conclusion into wrap up, I'd say that's a 2- to 4-month process, I would assume for most of them, right? So those are the 2 comments I would make. Jeff Van Rhee: Got it. And then maybe I know you're not giving formal guidance for '27, but can you put some bounds around how you think about the year based on what you've got in ARR, what you're looking at there in pipeline, even if it's broad ranges, do you see positive top line? Is there -- are there scenarios where you think double-digit top line is credible? I don't know, anything you would offer there would be helpful. Ashutosh Roy: So a couple of thoughts there. One, I don't know if I have the numbers right away to give you numbers, but I would say that the number of new logos is going to go up substantially, [ perhaps, ] in the sort of the target profile that we are going after, right? So that I'm feeling pretty optimistic about. And the other thing I would say is that the expansion in existing accounts is picking steam, and that's something we saw even in the last quarter. And so that to me bodes well in terms of average ARR per customer. So put those 2 together, I feel like our AI Knowledge ARR should definitely grow double digits in the '27 time frame. Eric, do you have anything to add? Eric Smit: Exactly. Yes. I think, as we see the AI Knowledge piece now 64% of total business, and that will -- we expect that to continue to increase. And certainly, that component certainly we would expect that to continue to grow in double-digit numbers. Jeff Van Rhee: Helpful. Maybe just one last question. The -- I guess, there is a 2-part. Just maybe any update on the Cisco relationship. And then obviously, you're building cash. You got a pretty healthy cash balance at this point. Just thoughts on use of cash, returns of capital, how you're thinking about that? Ashutosh Roy: I'll take the first one. Maybe you can take the second one, Eric. Eric Smit: Okay. Ashutosh Roy: So my -- so the Cisco relationship is active and healthy. I think there is more that we can do. And so we are working on seeing how we can partner with them more, especially as some of the AI Agent capability that we have, as you noted, we've announced last quarter in their Webex Contact Center platform. So yes, that's an area that I think is an opportunity for us to further expand our engagement with them in their ecosystem. Eric Smit: And then I think on the use of cash, I mean, obviously, in this environment, having a very healthy balance sheet, we feel very comfortable in this position, both in our focus on the go-to-market execution. So obviously, continuing to be careful in that investment, but recognizing how dynamic and exciting this opportunity is, we want to make sure that we continue to invest in sort of the position and the go-to-market. Obviously, there are seasonal aspects of when the money gets spent. So Q3 is historically a slower spend for us. That's why the numbers were down, but that's spend -- as I indicated, we are spending more in Q4, especially with the big customer events. So that's typically what you would see. And then certainly, we will be opportunistic when it comes to other options, especially in this environment, if there's a plan to acquire customers through inorganic means, we're always open to that. But our primary focus here is driving execution on the core business operation. And we do have $20 million -- roughly $20 million available in our buyback program. So again, depending upon where the stock price is, we would certainly look to sort of reengage on the buyback that we paused for the last quarter or so. Operator: The next question will come from Erik Suppiger with B. Riley. Erik Suppiger: Two questions. One, the RFP activity, why do you think that's increasing? Do you think that is a function of just market awareness for the need for better knowledge management? Or is that more a function of some of the outreach that you've had? And then secondly, Salesforce announced that it's expanding into the Agentforce Contact Center. It sounds like they're going to be really pushing an integration between CRM and contact centers going forward. Do you think that changes market dynamics in terms of your opportunity going forward as CRM starts getting more blended or the vendors doing CRM get more blended with contact centers? Ashutosh Roy: Right. So the first question about why I think the RFP activity, I would say -- I'd like to say that it has to do entirely with our marketing outreach, but I think it has, as much to do with the market awareness. And awareness around the fact that these AI investments are not scaling and not scaling in ROI positive ways. So that's the theme we are seeing even in our conversations with prospects who are not in our pipeline. They're all struggling with having made big bets on things like Copilot across the enterprise or a few of them working with Gemini, Google or OpenAI. The theme we hear is consistent and that is the foundation is not right. And so it's like a whack-a-mole constantly trying to figure out what part of it broke down in terms of the inputs into the AI system. I think that is as much to -- as a contribution factor as our marketing efforts. In terms of your second question, I would say, at this point, I haven't seen that impact any conversations that we are in. And we -- let's say, the most popular CRM system in our target customers is Salesforce. So we do see a lot of Salesforce. We are used to -- we integrate with them, we enhance these -- we work with their content, all that. So we have not seen too many examples of people saying, "Oh, I'm going to throw away my XYZ CCaaS and just go with Salesforce as the entire solution for CRM plus CCaaS yet. Erik Suppiger: Do you think it would be more difficult or easier for you to get into an account that has an integrated CRM and contact center solution? Ashutosh Roy: It's a hypothetical. I -- we haven't seen any of those, but I would say that Salesforce generally has an open ecosystem architecture. And so we have not seen that being a huge challenge if the clients decide they want to explore a best-in-class solution like ours for their knowledge layer in their AI kind of strategy. Operator: [Operator Instructions] Showing no further questions, this will conclude our question-and-answer session. I would like to hand the conference back over to management for any closing remarks. Eric Smit: Right. Thanks, operator, and thanks, everyone, for joining us today. Look forward to updating you once we finish out the year and give updated to our plans for FY '27. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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SUNNYVALE, Calif., May 14, 2026 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a leader in AI-powered knowledge management for customer service, today announced financial results for its fiscal 2026 third quarter ended March 31, 2026. “We delivered solid third quarter results with revenue in line with expectations and strong profitability that exceeded expectations,” said Ashu Roy, eGain’s CEO. “During the quarter, we secured multiple customer expansions and saw a meaningful increase in RFP activity, driven by growing market awareness of the ‘Garbage In Garbage Out’ knowledge problem in AI deployments. And last week, we announced four new products on our platform to strong customer interest at eGain Solve London.” Fiscal 2026 Third Quarter Financial Highlights Total revenue was $22.5 million, up 7% year over year. AI Knowledge Hub annual recurring revenue grew 26% year over year to $48.0 million, contributing 64% of total SaaS annual recurring revenue. GAAP gross margin was 73%, compared to 68% in Q3 fiscal 2025. Non-GAAP gross margin was 74%, up from 69% in Q3 fiscal 2025. GAAP net income was $2.4 million, or $0.09 per share on a basic and diluted basis, compared to GAAP net income of $66,000, or $0.00 per share on a basic and diluted basis, in Q3 fiscal 2025. Non-GAAP net income was $3.2 million, or $0.12 per share on a basic basis and $0.11 per share on a diluted basis, compared to non-GAAP net income of $765,000, or $0.03 per share on a basic and diluted basis, in Q3 fiscal 2025. Adjusted EBITDA was $3.2 million, representing a 14% margin, compared to $1.2 million, or a 6% margin, in Q3 fiscal 2025. Total cash and cash equivalents were $80.5 million, compared to $68.7 million in Q3 fiscal 2025. Fiscal 2026 First Nine Months Financial Highlights Total revenue was $69.0 million, up 6% year over year. GAAP gross margin was 74%, compared to 69% in the same period last year. Non-GAAP gross margin was 74%, up from 70% in the same period last year. GAAP net income was $7.6 million, or $0.28 per share on a basic basis and $0.27 per share on a diluted basis, compared to GAAP net income of $1.4 million, or $0.05 per share on a basic and diluted basis, in the same period last year. Non-GAAP net income was $10.9 million, or $0.40 per share on a basic basis and $0.39 per share on a diluted basis, compared to non-GAAP net income of $3.3 million, or $0.12 per share on a basic and diluted basis, in the same period last year. Adjusted EBITDA was $11.5 million, representing a 17% margin, compared to $4.2 million, or a 6% margin, in the same period last year. Cash provided by operating activities was $18.7 million, or an operating cash flow margin of 27%. Fiscal 2026 Fourth Quarter Financial Guidance For the fourth quarter of fiscal 2026 ending June 30, 2026, eGain expects: Total revenue between $21.5 million to $22.0 million. GAAP net loss of $300,000 to net income of $400,000, or between ($0.01) to $0.01 per share. Includes stock-based compensation expense of approximately $900,000. Non-GAAP net income between $600,000 to $1.3 million, or between $0.02 to $0.05 per share. Adjusted EBITDA between $500,000 to $1.0 million, or margin between 2% to 5%. Fiscal 2026 Financial Guidance For the fiscal 2026 full year ending June 30, 2026, eGain is updating its guidance as follows: Total revenue between $90.5 million to $91.0 million. GAAP net income between $7.0 million to $7.8 million, or $0.25 to $0.28 per share. Includes stock-based compensation expense of approximately $2.9 million. Includes warrant expense of approximately $1.4 million. Non-GAAP net income between $11.3 million to $12.1 million, or $0.39 to $0.42 per share. Adjusted EBITDA between $11.9 million to $12.4 million, or margin of 13%. Guidance Assumptions: Weighted average shares outstanding are expected to be approximately 28.0 million for the fourth quarter and full fiscal 2026. Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures as supplemental information relating to eGain’s operating results, including adjusted EBITDA and non-GAAP net income. Adjusted EBITDA is defined as net income, adjusted for the impact of depreciation and amortization, issuance of common stock warrant for services, stock-based compensation expense, interest income, provision for income taxes, other income (expense), net and severance and related charges. Non-GAAP net income measure is adjusted for issuance of common stock warrant for services and stock-based compensation expense. eGain’s management has analyzed the effect of these non-GAAP adjustments on our provision for income taxes and believes the change in our provision for income taxes would not be substantial. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare our performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in our financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business. In addition, this press release includes eGain’s projected non-GAAP net income and adjusted EBITDA for future periods, non-GAAP measures used to describe eGain’s expected performance. We have not presented a reconciliation of eGain’s non-GAAP net income or adjusted EBITDA to projected net income, the most comparable GAAP financial measure, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliations are not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure. Conference Call Information eGain will discuss its fiscal 2026 third quarter results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) and ask to join the eGain earnings call. A live and archived webcast of the call will also be accessible on the “Investors” section of eGain’s website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and will remain available for one week. To access the phone replay, dial 855-669-9658 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 8344740. About eGain eGain is a leading provider of AI-powered knowledge management and customer experience automation solutions. With over 25 years of experience in knowledge management, eGain helps enterprises unify siloed content, automate trusted knowledge workflows, and deliver measurable AI-ROI through proven frameworks and methods. Global 2000 companies across industries rely on eGain to transform customer service, improve employee productivity, reduce costs, and accelerate AI adoption. Visit www.egain.com for more information. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the fourth quarter of fiscal 2026 and fiscal 2026 full year ending June 30, 2026; demand for our products and market opportunity; and our market position. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the fourth quarter of fiscal 2026 and fiscal 2026 full year ending June 30, 2026. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, and financial condition; the pace of technological advancements in generative AI and the adaptability of our services to incorporate these advancements; market demand for AI-enabled solutions; risks associated with new product releases and new services and products features; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third-party distribution channels; risks related to our international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; general political or destabilizing events, including war, intensified international hostilities, conflict or acts of terrorism; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including those addressing data privacy, cyber-security and cross-border data transfers; and other risks detailed from time to time in eGain’s public filings, including eGain’s annual report on Form 10-K for the fiscal year ended June 30, 2025 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law. eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corporation in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies. Investor Relations Todd Kehrli or Jim Byers PondelWilkinson, Inc. [email protected] [email protected] [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period. [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. eGain Corp (NASDAQ:EGAN) reported a strong third quarter with continued momentum in its AI knowledge business, driven by customer expansion, growing partner engagement, and new products. Year-to-date, AI knowledge ARR has grown 26%, and the company has generated $18.7 million in operating cash flow, representing a 27% margin. The company has seen a meaningful increase in RFP activity, particularly from Fortune 1000 BFSI and healthcare enterprises, indicating strong market interest. eGain Corp (NASDAQ:EGAN) introduced several innovations, including the eGain AI Knowledge Suite for retail banking and AI agent for Cisco WebEx Contact Center, enhancing its product offerings. The company maintains a strong balance sheet with $80.5 million in cash and no debt, providing financial flexibility for future investments and growth opportunities. Total revenue for the third quarter was $22.5 million, only up 7% year-over-year, which may not meet some investor expectations for higher growth. Revenue was impacted by approximately $450,000 due to two fewer days in the quarter compared to the prior quarter. One on-premise subscription customer in EMEA chose not to migrate to eGain's cloud products, resulting in a $1.6 million reduction in total SaaS ARR. The company faces longer sales cycles for larger opportunities, affecting the timing of revenue conversion. Bookings reflected normal seasonal trends, with Q3 typically being a softer quarter, which could impact short-term financial performance. Warning! GuruFocus has detected 6 Warning Signs with EGAN. Is EGAN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more context on the recent surge in RFP activity and how it compares to previous periods? A: Ashu Roy, CEO: The number of RFPs we've responded to in the last 60 days is about double our average rate. The decision process for these RFPs typically takes two to four months. Q: Without giving formal guidance for 2027, can you discuss your expectations for the year based on current ARR and pipeline? A: Ashu Roy, CEO: We anticipate a substantial increase in new logos and expansion in existing accounts, which should lead to double-digit growth in AI knowledge ARR. Eric Smith, CFO: We expect the AI knowledge component, which is 64% of our business, to continue growing in double digits. Q: Could you update us on the Cisco relationship and your plans for cash utilization? A: Ashu Roy, CEO: The Cisco relationship is active and healthy, with opportunities to expand, especially with our AI agent capabilities in their WebEx contact center platform. Eric Smith, CFO: We maintain a strong balance sheet and are open to strategic investments, including potential acquisitions and stock buybacks, with $20 million available in our buyback program. Q: Why do you think RFP activity is increasing? Is it due to market awareness or your outreach efforts? A: Ashu Roy, CEO: It's a combination of both. Market awareness is growing, especially as companies realize their AI investments aren't scaling effectively. Our marketing efforts also contribute, but the need for a solid AI foundation is a significant factor. Q: How might Salesforce's expansion into the contact center space affect your market opportunities? A: Ashu Roy, CEO: We haven't seen a significant impact yet. Salesforce's open ecosystem allows us to integrate effectively, and we haven't encountered many cases where clients choose Salesforce as a complete CRM and contact center solution. For the complete transcript of the earnings call, please refer to the full earnings call transcript.