Education
About Us
Working with TipRanks
Follow Us
eGain Communications Corporation (EGAN)
NASDAQ:EGAN
Earnings Data
Report Date
May 07, 2026TBA (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.07Last Year’s EPS
0.03Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call presents a predominantly positive operational and financial picture: revenue and profitability beat expectations, SaaS and AI Knowledge metrics show strong growth (AI Knowledge ARR +27%, net retention for AI Knowledge 116%), gross margins and adjusted EBITDA margins expanded, and operating cash flow strengthened materially. Challenges noted include the deliberate sunsetting of noncore messaging revenue (~$600K/quarter), temporary professional services margin pressure, ongoing rollout timing for large deployments, and management acknowledgement of potential future pricing pressure as AI lowers barriers to entry. On balance, the positives—growth in high-margin SaaS, strong cash generation, improving retention/expansion and significant enterprise wins—outweigh the lowlights.Company Guidance
Total Revenue Beat and Year-over-Year Growth
Total revenue of $23.0M for Q2, ahead of guidance and street consensus, up 3% year-over-year. Excluding the ~ $600K/quarter reduction from sunsetting noncore messaging products, revenue growth would be ~5% year-over-year.
SaaS Mix and Growth
SaaS revenue represented 95% of total revenue (up from 93% a year ago). SaaS revenue increased 5% year-over-year, and excluding noncore messaging revenue SaaS revenue growth was ~8% year-over-year.
AI Knowledge ARR Momentum
AI Knowledge ARR grew 27% year-over-year and now represents 64% of total SaaS ARR, indicating accelerating adoption of the AI Knowledge Hub.
Customer Retention and Expansion Strength
LTM dollar-based SaaS net retention for AI Knowledge customers improved to 116% (from 99% a year ago). Net retention for all customers rose to 101% (from 89% a year ago). LTM net expansion rate was 119% for AI Knowledge and 108% for all customers.
Gross Margin Expansion
Total non-GAAP gross margin expanded to 74%, up 300 basis points year-over-year (from 71%). SaaS gross margin increased to 80%, up 200 basis points year-over-year (from 78%), driven by product enhancements and operational efficiencies.
Profitability and EBITDA Improvement
Non-GAAP net income was $3.0M (or $0.11 per share), up from $1.3M ($0.05) a year ago. Adjusted EBITDA margin improved to 14% from 7% in the prior-year quarter.
Strong Operating Cash Flow and Cash Position
Operating cash flow of $10.1M in the quarter, representing a 44% operating cash flow margin versus $6.4M and 29% a year ago. Cash and cash equivalents of $83.1M at quarter end, up from $62.9M.
RPO and Short-Term Visibility
Total remaining performance obligations (RPO) increased 15% year-over-year; short-term RPO was $53M, up 4% year-over-year, supporting near-term revenue visibility.
Large Enterprise Wins and Customer Expansions
Notable bookings included an enterprise knowledge mandate for a major global business software provider (deployment across >100,000 users), Achmea (21,000 users), a large U.S. manufacturer and multiple insurance and credit-union wins—showing both new logos and enterprise expansions.
Partner and Top-of-Funnel Momentum
25% of new logos in H1 FY26 were partner-sourced (more than double year-over-year); partner-sourced leads increased 80% year-over-year in H1. Top-of-funnel AI Knowledge leads rose >50% year-over-year and inbound interest grew 23% year-over-year.
Product and Market Recognition
Launched developer-focused eGain Composer (October), driving product-led growth and partner engagement. Recognized in the Gartner Emerging MQ leader quadrant for generative AI knowledge apps and won KMWorld's Readers' Choice Award.
Guidance: Return to Growth and Profitability Outlook
Q3 revenue guidance of $22.2M–$22.7M (note ~ $400K negative impact from fewer days vs Q2). Full-year revenue guidance unchanged at $90.5M–$92.0M, with expected non-GAAP net income $8.8M–$10.3M and adjusted EBITDA $10.9M–$12.4M (12%–13% margin).
EGAN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EGAN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 03, 2026 | $9.56 | $9.55 | -0.10% |
Nov 12, 2025 | $15.10 | $11.35 | -24.83% |
Jun 30, 2025 | $6.25 | $6.80 | +8.80% |
May 14, 2025 | $5.06 | $5.24 | +3.56% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does eGain Communications Corporation (EGAN) report earnings?
eGain Communications Corporation (EGAN) is schdueled to report earning on May 07, 2026, TBA (Confirmed).
What is eGain Communications Corporation (EGAN) earnings time?
eGain Communications Corporation (EGAN) earnings time is at May 07, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is EGAN EPS forecast?
EGAN EPS forecast for the fiscal quarter 2026 (Q3) is 0.07.