eGain Communications Surpasses Expectations with Q4 GAAP EPS of $1.11 and Revenue of $23.23M.

eGain Communications reported Q4 GAAP EPS of $1.11, beating estimates by $1.07. Revenue reached $23.23M, up 3.4% YoY and beating estimates by $0.19M. The company expects Q1 fiscal 2026 revenue to be between $23M and $23.5M.

eGain Communications (NASDAQ: EGAN) has reported its fourth-quarter (Q4) results, showing robust performance that exceeded analyst expectations. The company's Q4 GAAP EPS (earnings per share) of $1.11 surpassed estimates by $1.07, while revenue reached $23.23 million, up 3.4% year-over-year (YoY), and beat estimates by $0.19 million [1]. The company's stock price has increased by 2.11% after the announcement.

For the first quarter of fiscal 2026, eGain expects total revenue to be between $23.0 million and $23.5 million. The company also expects GAAP net income to be between $900,000 and $1.6 million, or $0.03 to $0.06 per share. Non-GAAP net income is anticipated to be between $3.1 million and $3.8 million, or $0.11 to $0.14 per share. Adjusted EBITDA is expected to be between $3.7 million and $4.4 million, with a margin of 16% to 19% [1].

eGain's strong Q4 results were driven by a significant deal and a tax benefit. The company attributed its strong performance to one of its largest deals ever signed and a $29 million tax benefit from the release of a valuation allowance [3]. The company's adjusted EBITDA margin improved to 19% from 11% in Q4 2024 [3].

Analysts have a "buy" rating on eGain, with the average consensus recommendation for the software peer group also being "buy". The median 12-month price target for eGain is $8.00, about 22% above its September 3 closing price of $6.24 [3].

References:
[1] https://seekingalpha.com/news/4492518-egain-communications-gaap-eps-of-1_11-beats-by-1_07-revenue-of-23_23m-beats-by-0_19m
[2] https://www.ainvest.com/news/egain-communications-high-conviction-small-cap-play-ai-driven-customer-service-2509/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX43B1B4:0-cloud-based-software-firm-egain-q4-revenue-beats-expectations/