eGain Corp Q4 2025 Earnings Call Highlights: Strong AI Growth Amid Messaging Product Sunset

eGain Corp reported Q4 2025 earnings, with total revenue of $23.2 million, up 11% sequentially and 3% YoY. Gross margin increased to 73%, while SaaS gross margin rose to 80%. Non-GAAP operating costs decreased by 3% sequentially and 2% YoY. GAAP net income was $30.9 million, or $1.13 per share. The company expects Q1 fiscal 2026 revenue to be between $23 million and $23.5 million.

eGain Corp (NASDAQ: EGAN) reported its Q4 2025 earnings, showcasing a mixed performance with total revenue of $23.2 million, up 11% sequentially and 3% year-over-year (YoY). Gross margin increased to 73%, while SaaS gross margin rose to 80%. Non-GAAP operating costs decreased by 3% sequentially and 2% YoY. GAAP net income was $30.9 million, or $1.13 per share. The company expects Q1 fiscal 2026 revenue to be between $23 million and $23.5 million.

The quarter saw a significant improvement in financial performance, driven by a robust AI product roadmap and strategic deals. The company's AI Knowledge Hub secured a major U.S. bank contract for 50% deployment, impacting 100,000+ users, and was named a "Leader" in generative AI knowledge apps by Gartner. These developments highlight eGain's strategic positioning in the AI-driven customer experience (CX) automation market.

Despite the progress, eGain continues to navigate macroeconomic challenges. The company's strong balance sheet, with substantial cash reserves, provides flexibility to fund R&D, pursue strategic acquisitions, or return capital to shareholders. The 97% LTM Dollar-Based SaaS Net Retention Rate and 11% year-over-year growth in SaaS ARR for knowledge customers underscore eGain's commitment to customer loyalty and sustainable growth.

The combination of financial momentum, operational efficiency, and strategic AI innovations positions eGain as a compelling investment opportunity. For investors seeking exposure to the AI infrastructure layer, eGain offers a high-conviction case, especially given the sector's poised exponential growth in 2026.

References:
[1] https://www.globenewswire.com/news-release/2025/09/04/3145000/0/en/eGain-Announces-Fourth-Quarter-and-Fiscal-Year-2025-Financial-Results-and-20-Million-Stock-Repurchase-Program-Expansion.html
[2] https://www.datainsightsmarket.com/companies/EGAN
[3] https://www.ainvest.com/news/egain-corporation-egan-poised-capitalize-ai-driven-cx-automation-2026-2509/