eGain Corporation Q4 2025 Earnings Call Transcript: Key Takeaways and Insights.

eGain Corporation reported Q4 2025 earnings, with CEO Ashu Roy and CFO Eric Smit on the call. The conference call was hosted by Jim Byers of PondelWilkinson Investor Relations. eGain discussed its fiscal 2025 fourth quarter and full year financial results. The company highlighted its forward-looking statements and noted that actual results may differ due to various risks and uncertainties. eGain also discussed its non-GAAP financial measures.

eGain Corporation (EGAN) reported its Q4 2025 earnings, with CEO Ashu Roy and CFO Eric Smit on the call. The conference call was hosted by Jim Byers of PondelWilkinson Investor Relations. eGain discussed its fiscal 2025 fourth quarter and full year financial results. The company highlighted its forward-looking statements and noted that actual results may differ due to various risks and uncertainties. eGain also discussed its non-GAAP financial measures.

Financial Highlights

- Total revenue for the fourth quarter was $23.2 million, up 11% sequentially and up 3% year-over-year.
- SaaS gross margin for the quarter was 80%, up from 76% a year ago.
- GAAP net income of $30.9 million for the quarter, driven by a $29 million tax valuation allowance release.
- Non-GAAP net income for Q4 was $2.4 million or $0.09 per share.
- Adjusted EBITDA margin reached 19% in the quarter, up from 11% in the prior year.

Outlook

- For the first quarter of fiscal 2026, eGain expects total revenue of between $23 million to $23.5 million.
- GAAP net income of $900,000 to $1.6 million or $0.03 to $0.06 per share.
- Non-GAAP net income of $3.1 million to $3.8 million or $0.11 to $0.14 per share and adjusted EBITDA of $3.7 million to $4.4 million or a margin of 16% to 19%.
- For full fiscal 2026, eGain expects total revenue to return to growth and be between $90.5 million and $92 million.
- GAAP net income of $3.5 million to $5 million or $0.13 to $0.18 per share.
- Non-GAAP net income of $8.3 million to $9.8 million or $0.30 to $0.36 per share.

Strategic Updates

- eGain announced a strategic partnership with JPMorgan Chase, including warrants and a board observer role.
- The company is targeting 20% plus growth in ARR from its core AI Knowledge offering, partially offset by the sunset of messaging products in fiscal 2026.
- eGain is redeploying operational savings into R&D, with a 6% year-over-year increase in investment.

Risks and Concerns

- The sunsetting of messaging products may impact ARR by $4.7 million through fiscal 2026.
- Competitive pressures and the need to focus resources on AI Knowledge for greater ROI.
- Analysts raised concerns about the pace and impact of sunsetting products, sustainability of margin improvements, and pipeline depth for future large deals.

Conclusion

eGain closed fiscal 2025 with momentum in AI Knowledge bookings and profitability, highlighted by the landmark JPMorgan Chase partnership and the launch of new AI Agent products. Management is targeting 20% growth in AI Knowledge ARR for fiscal 2026 while sunsetting noncore messaging products to sharpen strategic focus. Operational efficiencies and increased R&D investment are expected to drive gross margin expansion, although the transition may present near-term headwinds. The company anticipates continued pipeline development, especially among large enterprises seeking enterprise-wide AI knowledge solutions, and remains confident in its position as a leader in trusted knowledge infrastructure for AI.

References

[1] https://seekingalpha.com/news/4492544-egain-targets-20-percent-ai-knowledge-arr-growth-and-expands-jpmorgan-partnership-through
[2] https://seekingalpha.com/article/4819794-egain-corporation-egan-q4-2025-earnings-call-transcript