eGain Reports Q3 2025 Financials: Revenue Down 6%, Adjusts FY 2025 Guidance

eGain (EGAN) reported a 6% YoY decline in Q3 2025 revenue to $21.0 million. The company achieved a GAAP net income of $66,000 and non-GAAP net income of $765,000. eGain expects Q4 2025 revenue between $22.8 million and $23.3 million and GAAP net income between $1.1 million and $1.6 million. The company secured a large expansion deal with a U.S. megabank and launched its AI Agent for Contact Center.

eGain Corporation (NASDAQ: EGAN) reported its financial results for the third quarter of fiscal year 2025, revealing a shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.03, falling short of the expected $0.07. Revenue came in at $21 million, below the forecasted $23.58 million. Following the announcement, eGain’s stock price declined by 4.17% during regular trading hours to close at $5.27, with no change in aftermarket trading. According to InvestingPro data, the company maintains a "FAIR" financial health score of 2.47 out of 5, with particularly strong marks in profit and cash flow metrics [1].

eGain’s Q3 2025 performance reflected challenges in meeting market expectations, with a year-over-year revenue decline of 6%. Despite the revenue drop, the company continues to focus on its SaaS business, which now represents a significant portion of its revenue. The launch of a new AI agent for contact centers marks a strategic step in strengthening its product suite, aligning with the growing demand for AI-driven solutions. The company also secured a large expansion deal with a U.S. megabank, which is expected to deploy by late fall, covering over 100,000 users [1].

Financial Highlights:
- Revenue: $21 million (6% year-over-year decline)
- Earnings per share: $0.03
- Operating cash flow: $2.2 million
- Total cash and equivalents: $68.7 million
- SaaS ARR for knowledge customers increased by 11% year-over-year

Earnings vs. Forecast:
eGain reported an EPS of $0.03, missing the forecasted $0.07 by approximately 57%. Revenue fell short by 10.9%, coming in at $21 million against an expected $23.58 million. This marks a notable deviation from the company’s previous performance trends, indicating potential operational challenges [1].

Market Reaction:
Following the earnings announcement, eGain’s stock price decreased by 4.17% to $5.27. This decline reflects investor disappointment with the company’s financial performance, particularly the missed earnings and revenue targets. The stock remains closer to its 52-week low of $4.34, suggesting cautious investor sentiment [1].

Outlook & Guidance:
Looking ahead, eGain projects Q4 revenue between $22.8 million and $23.3 million, with full fiscal year revenue guidance set at $88 to $88.5 million. The company anticipates a continued increase in SaaS ARR for knowledge customers, expecting growth in the high teens. Executives have highlighted 2026 as a pivotal year for realizing the impact of AI knowledge investments on the top line [1].

References:
[1] https://au.investing.com/news/transcripts/earnings-call-transcript-egain-q3-2025-misses-eps-forecast-stock-dips-93CH-3843356