eGain (EGAN) AI Stock Analysis

• Market Cap: $279.71M
• Dividend Yield: N/A
• Average Volume (3M): 533.38K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.59
• 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: 425,615
• 30 Day Avg. Volume: 533,379
• 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: 69.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $11.00 ▲(6.38% Upside)

eGain's strong financial performance and positive earnings call sentiment are major strengths, contributing significantly to the overall score. However, technical analysis indicates bearish momentum, which tempers the overall outlook. The stock's valuation suggests it is undervalued, adding a positive aspect to the investment thesis.

Positive Factors

Revenue Growth

Consistent revenue growth, especially in SaaS, indicates strong market demand and a successful subscription model, supporting long-term stability.

AI Product Success

The growth in AI product ARR shows effective innovation and market penetration, positioning eGain as a leader in AI-driven solutions.

Financial Performance

Improved profitability and margins reflect operational efficiency and effective cost management, enhancing long-term financial health.

Negative Factors

Messaging Platform Revenue Decline

The decline in messaging platform revenue suggests challenges in product lifecycle management, potentially impacting future revenue streams.

Government Business Uncertainty

Uncertainty in government contracts can lead to unpredictable revenue and operational disruptions, affecting strategic planning and stability.

Revenue Growth Challenges

Despite profitability, the modest revenue growth rate of 1.93% suggests potential challenges in expanding market share or product adoption.

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 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: Positive
• Last Price: 10.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.34 is below the 20-day moving average (MA) of 10.43, below the 50-day MA of 12.45, and above the 200-day MA of 7.62, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.33 is Neutral, 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
CXM	77 Outperform	$1.98B	18.98	21.35%	―	6.48%	168.94%
RDVT	76 Outperform	$758.65M	69.92	11.58%	―	22.27%	117.93%
EGAN	74 Outperform	$279.71M	8.34	49.42%	―	-0.32%	557.28%
VTEX	66 Neutral	$680.54M	103.04	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	$653.67M	―	-26.69%	―	13.09%	32.34%

eGain Corporate Events

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.