eGain Corporation Expects 20% AI Knowledge ARR Growth, Expands JPMorgan Partnership Through 2026

EGain Corporation (EGAN) aims to achieve 20% AI Knowledge ARR growth and has expanded its partnership with JPMorgan through 2026. In Q4 2025, the company reported strong bookings, revenue growth, and improved profitability, exceeding projections and consensus estimates. Major new customer wins were highlighted by CEO Ashutosh Roy.

eGain Corporation (EGAN) reported a solid Q4 2025, showcasing 11% sequential and 3% year-over-year revenue growth, marking the first YOY increase in eight quarters. The growth was driven by strong bookings in the AI knowledge business and a one-time tax benefit from the release of an income tax valuation allowance [1]. The company's AI knowledge ARR grew by 25% year over year, indicating increasing demand for trusted knowledge infrastructure to support AI investments [2].

The company's strategic focus has shifted towards AI knowledge solutions, with plans to sunset its messaging products in fiscal 2026. This decision is driven by the lack of ongoing investment in messaging products and the demand for new capabilities from clients. The messaging sunset is expected to have a $4.7M ARR impact across FY26, with a 50% run-rate reduction starting in Q2 FY26 and declining to zero by Q1 FY27 [1].

eGain has expanded its partnership with JPMorgan Chase & Co., issuing warrants to them and having a senior executive join the board as an observer. This partnership aims to leverage JPMorgan's strategic insights and improve AI efficiencies across the business [1]. The company's Q4 non-GAAP operating costs were $13.3 million, down 3% sequentially and 2% year over year, with a non-GAAP gross margin of 73% for the quarter. This improvement is due to streamlining business operations with AI, enhancing productivity, and reallocating savings to R&D and profitability [1].

For fiscal 2026, eGain expects a 74-75% gross margin target, with $90.5-92M revenue, emphasizing AI-led growth. The company aims to achieve a 20%+ AI knowledge ARR growth target and improve services margins gradually, aiming to reach break-even or slightly positive levels by the end of the year [1].

References:
[1] https://www.ainvest.com/news/egain-2025-q4-earnings-call-contradictions-emerge-messaging-product-sunset-ai-focus-services-margin-strategy-2509/
[2] https://www.ainvest.com/news/egain-2025-q4-earnings-call-contradictions-emerge-messaging-product-sunset-ai-focus-services-margin-strategy-2509/