eGain 2025 Q4 Earnings Strong Performance as Net Income Surges 1949%

eGain (EGAN) reported its fiscal 2025 Q4 earnings on Sep 12th, 2025, showcasing strong revenue growth and a dramatic increase in net income. The company beat expectations with a substantial improvement in profitability. eGain also raised its guidance for fiscal 2026, reflecting confidence in its AI-driven customer experience automation strategy and long-term value creation.

Revenue
eGain reported total revenue of $23.23 million for fiscal 2025 Q4, representing a 3.4% increase compared to $22.46 million in the same period of 2024.

Earnings/Net Income
The company’s earnings per share (EPS) surged 2108.5% to $1.14 in fiscal 2025 Q4 from $0.05 in 2024 Q4. Meanwhile, net income jumped to $30.86 million, a 1949.5% increase from $1.51 million in the prior year quarter. This reflects a significant improvement in profitability driven by strong bookings and operational efficiency. The substantial rise in EPS and net income demonstrates a clear turnaround in performance.

Price Action
The stock price of eGain has edged up 0.12% during the latest trading day, surged 24.77% during the most recent full trading week, and gained 38.40% month-to-date.

Post-Earnings Price Action Review
eGain’s stock has shown positive momentum in the short term, with strong gains over the past week and month. This aligns with the company’s positive earnings report and management’s optimistic outlook. The market appears to be responding favorably to the improved profitability and strategic initiatives, including stock repurchases.

CEO Commentary
Ashu Roy, CEO of eGain, emphasized the company’s strong performance in closing fiscal 2025 with solid bookings and strong profitability. He highlighted one of the company’s largest deals ever signed in Q4 and healthy demand in the sales pipeline. Roy expressed confidence in eGain’s ability to capitalize on the growing AI-driven customer experience (CX) automation market and reiterated the company’s focus on innovation and shareholder value through strategic investments and stock repurchase programs.

Guidance
For fiscal 2026, eGain expects total revenue of $90.5 million to $92.0 million. GAAP net income is projected at $3.5 million to $5.0 million, or $0.13 to $0.18 per share, while non-GAAP net income is expected to range between $8.3 million to $9.8 million, or $0.30 to $0.36 per share. Adjusted EBITDA is forecasted at $10.4 million to $11.9 million, representing a 11% to 13% margin. For Q1 2026, revenue is anticipated between $23.0 million and $23.5 million, with non-GAAP net income of $3.1 million to $3.8 million, or $0.11 to $0.14 per share.

Additional News
eGain announced a $20 million increase in its stock repurchase program, bringing the total authorization to $60 million. The company’s management emphasized that the increased share repurchase reflects the belief that the stock is undervalued and aligns with eGain’s long-term strategy to enhance shareholder value. Additionally, eGain’s Board of Directors approved the fiscal 2026 guidance, which reflects confidence in the company’s operational performance and its ability to scale profitably. The CEO reiterated the company’s focus on AI-driven customer experience automation and innovation in response to growing market demand.