Want to see EGAN full AI Analyst Report?
Top Page
eGain
(NASDAQ:EGAN)
Select Model
Select Model
Rating:66Neutral
Price Target:
$8.00
▼(-1.60% Downside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid financial fundamentals (strong margins and minimal leverage) and a constructive earnings update highlighting accelerating AI-related ARR and improved retention/profitability. This is tempered by weak technicals (price below key moving averages with negative MACD) and a key financial risk around earnings quality/cash-flow conversion alongside recent free-cash-flow decline.
Positive Factors
High SaaS mix / recurring revenue
A 93% SaaS mix and strong ARR/RPO dynamics create durable recurring revenue and visibility. High subscription penetration reduces revenue volatility, supports predictable renewal/expansion growth and enables long‑term unit economics planning versus one‑time license models.
Negative Factors
Weak cash conversion / earnings quality
OCF materially lagging net income and a significant FCF decline suggest earnings include non‑cash or timing items. Persistent weak cash conversion could undermine sustainability of reported net income, constrain organic investment or force external financing if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
High SaaS mix / recurring revenue
A 93% SaaS mix and strong ARR/RPO dynamics create durable recurring revenue and visibility. High subscription penetration reduces revenue volatility, supports predictable renewal/expansion growth and enables long‑term unit economics planning versus one‑time license models.
Read all positive factors
eGain Key Performance Indicators (KPIs)
eGain (EGAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$177.88M
Dividend YieldN/A
Average Volume (3M)333.08K
Price to Earnings (P/E)4.6
Beta (1Y)0.84
Revenue Growth5.20%
EPS Growth1319.56%
CountryUS
Employees445
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.40
Shares Outstanding27,450,080
10 Day Avg. Volume290,703
30 Day Avg. Volume333,084
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.18
Price to Sales (P/S)1.99
P/FCF Ratio37.46
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda8.49
Forecast
1Y Price Target
$10.50Price Target Upside29.15% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.43
Revenue Forecast (FY)$95.88M
eGain Business Overview & Revenue Model
Company Description
eGain Corporation engages in the development, license, implementation, and support of its customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain AI Agent, which...
How the Company Makes Money
eGain makes money primarily by selling access to its customer engagement software platform under subscription-based software-as-a-service (SaaS) and term-based licensing arrangements, typically priced per user/agent seat, usage, or other contracte...
eGain Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call highlights strong momentum in the AI Knowledge business with clear improvements in ARR growth (AI Knowledge ARR +26% YoY), profitability (non‑GAAP net income up to $3.2M, adjusted EBITDA margin 14%), margin expansion, healthy cash generation (YTD CFO $18.7M, cash $80.5M) and significant customer/partner traction (partner-sourced opportunities +67%, RFP activity roughly doubled). Near-term headwinds are largely timing and one-off: a single EMEA on‑prem customer termination (~$1.6M ARR), the impact of sunsetting noncore messaging (~$600k), seasonality (Q3 softer, Q4 guidance slightly lower than Q3) and longer sales cycles for larger deals. Overall the positives — broad ARR and retention strength, product launches and a strong balance sheet — materially outweigh these localized/near-term negatives.Positive Updates
Revenue Growth and SaaS Mix
Total Q3 revenue of $22.5M, up 7% year-over-year; SaaS represented 93% of revenue. Excluding ~ $600k quarterly impact from noncore messaging products being sunset, total revenue and SaaS revenue would have grown ~13% and ~14% YoY, respectively. Q3 was impacted by ~ $450k due to two fewer days in the quarter.
Negative Updates
One-off EMEA Customer Termination
One on‑premise subscription customer in EMEA chose not to migrate to the cloud, terminating an agreement that reduced total SaaS ARR by approximately $1.6M; roughly $900k of that was AI Knowledge ARR. Management views this as a one‑off driven by country restrictions on cloud services.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth and SaaS Mix
Total Q3 revenue of $22.5M, up 7% year-over-year; SaaS represented 93% of revenue. Excluding ~ $600k quarterly impact from noncore messaging products being sunset, total revenue and SaaS revenue would have grown ~13% and ~14% YoY, respectively. Q3 was impacted by ~ $450k due to two fewer days in the quarter.
Read all positive updates
Company Guidance
The company guided Q4 FY2026 revenue of $21.5M–$22.0M; GAAP net income of -$0.3M to $0.4M (‑$0.01 to $0.01 per share), which includes about $0.9M of stock‑based compensation; non‑GAAP net income of $0.6M–$1.3M ($0.02–$0.05 per share); and adjusted EBITDA of $0.5M–$1.0M (about 2%–5%). For the full fiscal year ending June 30, 2026, management expects total revenue of $90.5M–$91.0M, GAAP net income of $7.0M–$7.8M ($0.25–$0.28 per share) (including ~$2.9M stock‑based comp and ~$1.4M warrant expense), non‑GAAP net income of $11.3M–$12.1M ($0.39–$0.42 per share), and adjusted EBITDA of $11.9M–$12.4M (roughly a 13% margin); weighted average shares outstanding are expected to be ~28M for both Q4 and the full year. They also reiterated longer‑term modeling assumptions such as R&D running toward ~30% of revenue as they invest for growth.eGain Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 92.22M | 88.43M | 92.80M | 98.01M | 91.95M | 78.29M |
| Gross Profit | 67.59M | 62.01M | 65.21M | 70.70M | 67.41M | 59.02M |
| EBITDA | 14.53M | 5.98M | 11.20M | 4.99M | 318.00K | 8.88M |
| Net Income | 38.44M | 32.25M | 7.78M | 2.11M | -2.44M | 6.96M |
Balance Sheet | ||||||
| Total Assets | 139.69M | 148.33M | 128.34M | 130.12M | 126.90M | 114.56M |
| Cash, Cash Equivalents and Short-Term Investments | 80.46M | 62.92M | 70.01M | 73.20M | 72.18M | 63.23M |
| Total Debt | 3.13M | 3.67M | 3.77M | 2.59M | 3.58M | 2.26M |
| Total Liabilities | 48.13M | 67.60M | 69.83M | 68.42M | 69.94M | 68.50M |
| Stockholders Equity | 91.56M | 80.73M | 58.52M | 61.70M | 56.95M | 46.06M |
Cash Flow | ||||||
| Free Cash Flow | 13.67M | 4.70M | 12.26M | 4.33M | 7.49M | 13.46M |
| Operating Cash Flow | 14.41M | 5.26M | 12.45M | 4.62M | 8.12M | 13.86M |
| Investing Cash Flow | -735.00K | -565.00K | -198.00K | -288.00K | -628.00K | -402.00K |
| Financing Cash Flow | -2.02M | -14.39M | -15.39M | -4.08M | 3.33M | 2.35M |
eGain Technical Analysis
Negative
8.13
Price Trends
7.31
Negative
8.08
Negative
9.64
Negative
Market Momentum
-0.21
Positive
38.43
Neutral
12.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGAN, the sentiment is Negative. The current price of 8.13 is above the 20-day moving average (MA) of 7.24, above the 50-day MA of 7.31, and below the 200-day MA of 9.64, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 12.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EGAN.
eGain Risk Analysis
eGain disclosed 39 risk factors in its most recent earnings report. eGain reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eGain Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $850.49M | 62.46 | 13.98% | ― | 18.07% | 60.39% | |
75 Outperform | $688.76M | 32.11 | 9.69% | ― | 8.25% | -99.84% | |
69 Neutral | $449.89M | -11.61 | -19.29% | ― | 12.27% | 37.41% | |
66 Neutral | $177.88M | 4.56 | 44.62% | ― | 5.20% | 1319.56% | |
63 Neutral | $1.21B | 45.09 | 5.25% | ― | 8.10% | -73.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
EGAN
eGain
6.40
0.15
2.40%
RDVT
Red Violet
62.46
13.26
26.95%
SPT
Sprout Social
7.66
-13.25
-63.37%
CXM
Sprinklr
5.19
-3.27
-38.65%
VTEX
VTEX
4.21
-2.39
-36.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.