eGain Reports Q2 Financial Results, Revenue Declines

eGain Communications Corporation ( (EGAN) ) has released its Q2 earnings. Here is a breakdown of the information eGain Communications Corporation presented to its investors.

eGain Communications Corporation, a leading provider of AI knowledge management solutions, operates in the technology sector, focusing on enhancing customer service through automation. In its second quarter of fiscal 2025, eGain reported a 6% year-over-year decrease in total revenue, amounting to $22.4 million. Despite the revenue decline, the company saw a 17% increase in annual recurring revenue from its AI Knowledge Hub customers, indicating strong demand for its AI-driven solutions. Key financial metrics for the quarter included a GAAP net income of $671,000, translating to $0.02 per share, and a non-GAAP net income of $1.3 million, or $0.05 per share on a basic basis.

The company generated an operating cash flow of $6.4 million and reported an adjusted EBITDA of $1.6 million, both reflecting a decrease compared to the previous year. Cash and cash equivalents stood at $70.5 million, down from $86.8 million in Q2 2024. Additionally, eGain repurchased approximately 421,000 shares at an average cost of $5.73 each, totaling $2.4 million.

Looking ahead, eGain anticipates third-quarter revenue to range between $21.0 million and $21.5 million, with expectations of a GAAP net loss between $300,000 and $800,000. For the full fiscal year 2025, the company has revised its revenue guidance to between $88.5 million and $90.0 million, while projecting a GAAP net income between $1.1 million and $1.7 million.

In summary, while eGain faces challenges with declining revenues, its strategic focus on AI-driven customer service solutions shows promise, as highlighted by the growth in its AI Knowledge Hub customer base. The company’s ability to adapt and innovate in the competitive landscape will be crucial as it navigates the upcoming quarters.