eGain (EGAN) AI Stock Analysis

• Market Cap: $239.65M
• Dividend Yield: N/A
• Average Volume (3M): 72.90K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.78
• Revenue Growth: -4.71%
• EPS Growth: 368.66%
• Country: US
• Employees: 539
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.09
• Shares Outstanding: 26,867,067
• 10 Day Avg. Volume: 152,732
• 30 Day Avg. Volume: 72,896
• PEG Ratio: 0.02
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 37.46
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 21.27
• 1Y Price Target: $8.67
• Price Target Upside: -3.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: $9.50 ▲(5.44% Upside)

eGain's overall stock score reflects strong technical momentum and a solid financial performance, with an attractive valuation suggesting potential for growth. The earnings call provided a balanced view with significant strategic wins and profitability improvements, though tempered by revenue and cash flow challenges. The absence of corporate events further emphasizes the importance of these factors.

eGain Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

eGain generates revenue primarily through a subscription-based model, where customers pay for access to its cloud-based software solutions. This model allows for predictable, recurring revenue streams as clients subscribe to various tiers of service based on their needs. Key revenue streams include licensing fees for the use of its software platforms, professional services for implementation and customization, and ongoing support and maintenance. Additionally, eGain may engage in partnerships with technology providers and system integrators, which can enhance its market reach and lead to increased sales opportunities. The company's focus on expanding its AI capabilities and integrations with other enterprise systems further contributes to its earnings potential.

eGain Financial Statement Overview

Summary

eGain's financial statements reflect significant improvements in profitability and financial stability. The income statement shows improved margins, though revenue growth has been inconsistent. The balance sheet is robust with low leverage and strong equity returns. Cash flow management is effective, but there is room for improvement in cash conversion.

Income Statement

eGain's income statement shows a strong gross profit margin consistently above 70%, indicating effective cost management. The net profit margin has improved significantly from negative in 2022 to 36.47% in 2025, showcasing a turnaround in profitability. However, revenue growth has been volatile, with a notable decline in 2024. The EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio, indicating conservative leverage. Return on equity has improved significantly to 39.95% in 2025, reflecting strong shareholder returns. The equity ratio is healthy, suggesting a stable capital structure. Overall, the balance sheet demonstrates financial stability and effective equity utilization.

Cash Flow

Cash flow analysis shows positive free cash flow growth in 2025, recovering from previous declines. The operating cash flow to net income ratio is low, indicating potential challenges in converting income to cash. However, the free cash flow to net income ratio is strong, suggesting efficient cash generation relative to profits. Overall, cash flow management appears solid but could benefit from improved cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	88.43M	88.43M	92.80M	98.01M	91.95M	78.29M
Gross Profit	62.01M	62.01M	65.21M	70.70M	67.41M	59.02M
EBITDA	5.37M	5.98M	7.46M	3.02M	-614.00K	9.43M
Net Income	32.25M	32.25M	7.78M	2.11M	-2.44M	6.96M
Balance Sheet
Total Assets	148.00M	148.00M	127.85M	130.12M	126.01M	114.56M
Cash, Cash Equivalents and Short-Term Investments	62.92M	62.92M	70.00M	73.20M	72.17M	63.23M
Total Debt	3.67M	3.67M	3.77M	2.59M	3.58M	2.26M
Total Liabilities	67.27M	67.27M	69.36M	68.42M	69.15M	68.50M
Stockholders Equity	80.73M	80.73M	58.50M	61.70M	56.86M	46.06M
Cash Flow
Free Cash Flow	9.24M	4.70M	12.26M	4.33M	7.49M	13.46M
Operating Cash Flow	9.59M	5.26M	12.45M	4.62M	8.12M	13.86M
Investing Cash Flow	-352.00K	-565.00K	-198.00K	-288.00K	-628.00K	-402.00K
Financing Cash Flow	-11.11M	-14.39M	-15.39M	-4.08M	3.33M	2.35M

eGain Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGAN, the sentiment is Positive. The current price of 9.01 is above the 20-day moving average (MA) of 7.40, above the 50-day MA of 6.68, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 78.78 is Negative, neither overbought nor oversold. The STOCH value of 92.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGAN.

eGain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	79 Outperform	$239.65M	7.77	46.33%	―	-4.71%	368.66%
ONTF	56 Neutral	243.68M	-6.68	-24.17%	―	-6.88%	15.83%
EGHT	52 Neutral	289.10M	-13.01	-16.57%	―	-0.73%	67.98%
OCFT	46 Neutral	284.38M	-2.82	-17.97%	―	-48.61%	-2291.48%
LPSN	43 Neutral	97.89M	-0.33	206.62%	―	-24.89%	-72.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

eGain Corporate Events

eGain Increases Stock Repurchase Program by $20 Million

On September 3, 2025, eGain Corporation’s Board of Directors approved a $20 million increase in its stock repurchase program, raising the total from $40 million to $60 million. This decision reflects eGain’s confidence in the undervaluation of its shares and the potential of the AI knowledge market. The program, which allows for discretionary repurchases through open market or privately negotiated transactions, is extended until all shares are repurchased or the Board decides to terminate it. This move underscores eGain’s strategy to leverage its strong balance sheet to drive long-term shareholder value.

The most recent analyst rating on (EGAN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on eGain stock, see the EGAN Stock Forecast page.

eGain Issues Warrant to JPMC Strategic Investments

On August 14, 2025, eGain Corporation issued a warrant to JPMC Strategic Investments I Corporation to acquire 500,000 shares of eGain’s common stock at an exercise price of $7.10 per share. This issuance is exempt from registration under the Securities Act of 1933, as JPMC is an accredited investor acquiring the warrant for investment purposes. Additionally, eGain and JPMC have entered into a board observer agreement, allowing a senior executive from JPMC to attend eGain’s board meetings in a non-voting observer capacity.

The most recent analyst rating on (EGAN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on eGain stock, see the EGAN Stock Forecast page.