eGain (EGAN) AI Stock Analysis

• Market Cap: $275.92M
• Dividend Yield: N/A
• Average Volume (3M): 520.78K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.63
• Revenue Growth: -0.32%
• EPS Growth: 557.28%
• Country: US
• Employees: 539
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.17
• Shares Outstanding: 27,051,157
• 10 Day Avg. Volume: 622,325
• 30 Day Avg. Volume: 520,782
• 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: 0.62
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 19.53
• 1Y Price Target: $17.50
• Price Target Upside: 71.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $12.50 ▲(22.55% Upside)

eGain's strong financial performance and positive earnings call are the primary drivers of its high score. The stock's undervaluation further supports its potential, despite technical indicators suggesting limited short-term momentum.

Positive Factors

Strong Revenue Growth

The consistent revenue growth reflects eGain's successful market expansion and product adoption, supporting long-term business sustainability.

AI Product Expansion

The strong growth in AI product ARR indicates eGain's competitive edge in AI-driven solutions, enhancing its market position and future revenue potential.

Cash Flow and Balance Sheet Strength

Robust cash flow generation and a strong balance sheet provide eGain with financial flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Messaging Platform Revenue Decline

The decline in messaging platform revenue could impact overall growth if not offset by other segments, indicating potential vulnerability in product diversification.

Government Business Uncertainty

Uncertainty in government engagements may lead to revenue volatility, affecting eGain's ability to predict and manage future earnings from this sector.

Operational Margin Improvement Needed

While financial performance is strong, improving operational margins is crucial for sustaining profitability and enhancing competitive positioning.

eGain Business Overview & Revenue Model

Company Description

eGain Corporation (EGAN) is a leading provider of cloud-based customer engagement solutions, specializing in artificial intelligence (AI) and knowledge management. The company serves various sectors, including telecommunications, financial services, healthcare, and retail, offering products designed to enhance customer interactions through digital channels. eGain's core offerings include its AI-driven customer service platform, which automates responses and provides knowledge-based support, as well as tools for chat, email, and social media interactions.

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 demonstrates strong profitability with a high net profit margin and robust cash flow generation. The balance sheet is solid with low leverage, and the company is on a positive growth trajectory, although there is room for improvement in operational margins.

Income Statement

eGain demonstrates strong profitability with a high net profit margin of 36.47% and a gross profit margin of 70.12% in the TTM period. The company has shown a positive revenue growth rate of 1.93% in the TTM, recovering from previous declines. EBIT and EBITDA margins are modest but improving, indicating operational efficiency gains.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.045, indicating minimal leverage and financial risk. Return on equity is exceptionally high at 53.02%, reflecting strong profitability relative to shareholder equity. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

Cash flow performance is strong, with a significant free cash flow growth rate of 199.30% in the TTM. The operating cash flow to net income ratio is 0.15, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is high at 0.96, underscoring effective cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	90.14M	88.43M	92.80M	98.01M	91.95M	78.29M
Gross Profit	64.55M	62.01M	65.21M	70.70M	67.41M	59.02M
EBITDA	8.82M	5.98M	7.46M	3.02M	-614.00K	9.43M
Net Income	34.42M	32.25M	7.78M	2.11M	-2.44M	6.96M
Balance Sheet
Total Assets	144.61M	148.33M	128.34M	130.12M	126.90M	114.56M
Cash, Cash Equivalents and Short-Term Investments	70.90M	62.92M	70.01M	73.20M	72.18M	63.23M
Total Debt	3.39M	3.67M	3.77M	2.59M	3.58M	2.26M
Total Liabilities	61.08M	67.60M	69.83M	68.42M	69.94M	68.50M
Stockholders Equity	83.53M	80.73M	58.52M	61.70M	56.95M	46.06M
Cash Flow
Free Cash Flow	14.06M	4.70M	12.26M	4.33M	7.49M	13.46M
Operating Cash Flow	14.74M	5.26M	12.45M	4.62M	8.12M	13.86M
Investing Cash Flow	-680.00K	-565.00K	-198.00K	-288.00K	-628.00K	-402.00K
Financing Cash Flow	-11.20M	-14.39M	-15.39M	-4.08M	3.33M	2.35M

eGain Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGAN, the sentiment is Neutral. The current price of 10.2 is below the 20-day moving average (MA) of 12.82, below the 50-day MA of 12.20, and above the 200-day MA of 7.35, indicating a neutral trend. The MACD of -0.71 indicates Positive momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 10.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EGAN.

eGain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	79 Outperform	$275.92M	8.23	49.42%	―	-0.32%	557.28%
RDVT	75 Outperform	$762.44M	70.85	11.58%	―	22.27%	117.93%
CXM	73 Outperform	$1.76B	15.97	23.74%	―	6.08%	153.79%
VTEX	66 Neutral	$745.43M	110.30	6.53%	―	3.62%	-20.45%
MLNK	66 Neutral	―	―	-5.41%	―	5.96%	50.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$581.44M	―	-26.69%	―	13.09%	32.34%

eGain Corporate Events

eGain’s Earnings Call Highlights Robust Growth and New Innovations

The recent earnings call for eGain Communications Corporation painted a picture of robust financial health, marked by significant revenue and ARR growth, and successful new client deployments. While the overall sentiment was positive, there were minor concerns regarding a decline in messaging platform revenue and uncertainties in government business engagements.

eGain Reports Strong Start to Fiscal 2026

eGain Communications Corporation is a company specializing in AI customer experience automation, offering solutions that enhance customer service operations across various industries. In its first quarter of fiscal 2026, eGain reported revenue at the high end of its guidance and exceeded its EBITDA expectations, showcasing a robust start to the fiscal year. The company highlighted a 23% year-over-year growth in its AI Knowledge Hub’s Annual Recurring Revenue, contributing significantly to its overall SaaS ARR.

eGain Updates Indemnification and Bylaws, Enhancing Governance

On September 22, 2025, eGain Corporation’s Board of Directors approved an updated indemnification agreement for its directors and executive officers, ensuring full indemnity under Delaware law and coverage under eGain’s insurance policies. Additionally, the Compensation Committee approved variable annual cash compensation for executive officers, with specific amounts for the fiscal year ended June 30, 2025. The Board also amended and restated eGain’s bylaws to enhance procedural mechanics for stockholder meetings, expand authority delegation, and permit electronic communication, among other changes.

The most recent analyst rating on (EGAN) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on eGain stock, see the EGAN Stock Forecast page.

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.